Second Quarter Net Sales Increase 20%; Same Store Sales Increase 12%
Earnings Per Share Growth of 84% to $0.57 Per Diluted Share
Provides Third Quarter Guidance
NEW YORK, Aug. 20 /PRNewswire-FirstCall/ -- Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of casual apparel for young women and men, today reported results for the second quarter ended August 1, 2009.
Net income for the second quarter of fiscal 2009 was $38.6 million, or $0.57 per diluted share, compared to net income of $21.1 million, or $0.31 per diluted share, in the second quarter of fiscal 2008. Results for the second quarter include pre-tax charges of approximately $0.6 million related to the closing of the Company's Jimmy'Z concept.
For the second quarter of fiscal 2009, total net sales increased 20% to $453.0 million, from $377.1 million in the year ago period. Same store sales for the second quarter increased 12%, compared to a same store sales increase of 11% last year. Year to date, total net sales have increased 21% to $861.0 million, from $713.5 million in the year ago period. Year to date, same store sales have increased 11%, compared to a same store sales increase of 10% last year.
Total net revenue from the Company's e-commerce business for the second quarter of fiscal 2009 increased 49% to $15.8 million, from $10.6 million for the second quarter of fiscal 2008.
Julian R. Geiger, Chairman and Chief Executive Officer, said, "We are extremely pleased with our results for the second quarter. We continue to create strong brand momentum by striking the right balance between fashion and value. Our initial reads on our back to school merchandise have been positive and we believe that we are well positioned as we head into the second half of the year. We remain focused on executing our strategic initiatives and investing in our business to support long-term growth."
Third Quarter Guidance:
The Company announced its earnings guidance for the third quarter of fiscal 2009. The Company believes it will achieve earnings in the range $0.76 to $0.78 per diluted share for the third quarter, compared to earnings of $0.63 per share in the third quarter last year.
Conference Call Information
The Company will be holding a conference call today at 4:15 P.M. EDT to review its second quarter results. The broadcast will be available through the 'Investor Relations' link at www.aeropostale.com and www.fulldisclosure.com. To listen to the broadcast your computer must have Windows Media Player installed. If you do not have Windows Media Player go to the latter site prior to the call, where you can download the software for free.
About Aeropostale, Inc.
Aeropostale, Inc. is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale(R) stores and 7 to 12 year-old kids through its P.S. from Aeropostale(TM) stores. The Company provides customers with a focused selection of high-quality, active-oriented, fashion and fashion basic merchandise at compelling values. Aeropostale(R) maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. Aeropostale(R) products can only be purchased in its Aeropostale stores and online at www.aeropostale.com. P.S. from Aeropostale(TM) products can be purchased in P.S. from Aeropostale(TM) stores and online at www.ps4u.com. The Company currently operates 887 Aeropostale stores in 49 states and Puerto Rico, 37 Aeropostale stores in Canada and 7 P.S. from Aeropostale stores in 3 states.
SPECIAL NOTE: THIS PRESS RELEASE AND ORAL STATEMENTS MADE FROM TIME TO TIME BY REPRESENTATIVES OF THE COMPANY CONTAIN CERTAIN "FORWARD-LOOKING STATEMENTS" CONCERNING EXPECTATIONS FOR SALES, STORE OPENINGS, GROSS MARGINS, EXPENSES, STRATEGIC DIRECTION AND EARNINGS. ACTUAL RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER INCLUDE, CHANGES IN THE COMPETITIVE MARKETPLACE, INCLUDING THE INTRODUCTION OF NEW PRODUCTS OR PRICING CHANGES BY OUR COMPETITORS, CHANGES IN THE ECONOMY AND OTHER EVENTS LEADING TO A REDUCTION IN DISCRETIONARY CONSUMER SPENDING; SEASONALITY; RISKS ASSOCIATED WITH CHANGES IN SOCIAL, POLITICAL, ECONOMIC AND OTHER CONDITIONS AND THE POSSIBLE ADVERSE IMPACT OF CHANGES IN IMPORT RESTRICTIONS; RISKS ASSOCIATED WITH UNCERTAINTY RELATING TO THE COMPANY'S ABILITY TO IMPLEMENT ITS GROWTH STRATEGIES, AS WELL AS THE OTHER RISK FACTORS SET FORTH IN THE COMPANY'S FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.
EXHIBIT A
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
August 1, January 31, August 2,
2009 2009 2008
-------- ---------- --------
ASSETS
Current Assets:
Cash and cash equivalents $245,454 $228,530 $70,792
Merchandise inventory 200,993 126,360 183,710
Other current assets 44,366 38,991 43,614
------ ------ ------
Total current assets 490,813 393,881 298,116
Fixtures, equipment and improvements, net 256,978 248,999 249,826
Other assets 14,886 15,039 18,377
------ ------ ------
TOTAL ASSETS $762,677 $657,919 $566,319
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $125,009 $77,247 $125,271
Accrued expenses 82,020 98,190 69,838
------ ------ ------
Total current liabilities 207,029 175,437 195,109
Other non-current liabilities 126,072 127,422 126,696
Stockholders' equity 429,576 355,060 244,514
------- ------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $762,677 $657,919 $566,319
======== ======== ========
EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
13 weeks ended
--------------
August 1, 2009 August 2, 2008
--------------- ---------------
% of % of
sales sales
----- -----
Net sales $453,020 100.0% $377,145 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 287,328 63.4 251,209 66.6
------- ---- ------- ----
Gross profit 165,692 36.6 125,936 33.4
Selling, general and administrative
expenses 101,282 22.4 90,654 24.0
------- ---- ------ ----
Income from operations 64,410 14.2 35,282 9.4
Interest income, net 171 0.0 80 0.0
--- --- -- ---
Income before income taxes 64,581 14.2 35,362 9.4
Income taxes 25,992 5.7 14,309 3.8
------ --- ------ ---
Net income $38,589 8.5% $21,053 5.6%
======= ==== ======= ===
Basic earnings per share $0.57 $0.31
===== =====
Diluted earnings per share $0.57 $0.31
===== =====
Weighted average basic shares 67,386 66,905
Weighted average diluted shares 68,297 67,716
STORE DATA:
Comparable store sales increase 12% 11%
Stores open at end of period 927 879
Total square footage at end of
period 3,337,845 3,139,274
Average square footage during
period 3,331,902 3,086,083
EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
26 weeks ended
--------------
August 1, 2009 August 2, 2008
-------------- --------------
% of % of
sales sales
----- -----
$861,044 100.0% $713,477 100.0%
Net sales
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 547,462 63.6 476,263 66.8
------- ---- ------- ----
Gross profit 313,582 36.4 237,214 33.2
Selling, general and administrative
expenses 195,728 22.7 172,744 24.2
------- ---- ------- ----
Income from operations 117,854 13.7 64,470 9.0
Interest income, net 126 0.0 320 0.0
--- --- --- ---
Income before income taxes 117,980 13.7 64,790 9.0
Income taxes 47,716 5.5 26,239 3.6
------ --- ------ ---
Net income $70,264 8.2% $38,551 5.4%
======= === ======= ===
Basic earnings per share $1.04 $0.58
===== =====
Diluted earnings per share $1.03 $0.57
===== =====
Weighted average basic shares 67,242 66,827
Weighted average diluted shares 68,043 67,511
STORE DATA:
Comparable store sales increase 11% 10%
Average square footage during
period 3,314,005 3,027,628
Company Contact:
Kenneth Ohashi/VP, Investor & Media Relations
(646) 452-1876 or kohashi@aeropostale.com
Media Contact:
Leigh Parrish/Diane Zappas, FD
(212) 850-5600
SOURCE Aeropostale, Inc.
