Record Sales of $275.8 Million
Earnings Per Share Growth of 73% to $0.26 Per Diluted Share
Provides Second Quarter Guidance
NEW YORK--(BUSINESS WIRE)--May 24, 2007--Aeropostale, Inc. (NYSE:
ARO), a mall-based specialty retailer of active and casual apparel for
young men and women, today reported results for the first quarter
ended May 5, 2007.
Net income for the first quarter of fiscal 2007 was $13.8 million,
or $0.26 per diluted share, an increase of 73.3% compared to net
income of $8.4 million, or $0.15 per diluted share, in the first
quarter of fiscal 2006.
For the first quarter of fiscal 2007, total net sales increased
12.0% to $275.8 million, from $246.3 million in the year-ago period.
Same store sales for the first quarter increased 2.5%, compared to the
corresponding 13 weeks ended May 6, 2006.
Julian R. Geiger, Chairman and Chief Executive Officer, said, "We
are very pleased with our performance for the first quarter, the
results of which significantly exceeded our expectations. Our balanced
and trend-right merchandise assortments are continuing to be received
positively by our customers. Our accomplishments for the quarter also
reflect improvements we have made in our planning process and in our
inventory management. As a result of the consistent execution of our
strategic initiatives, we achieved strong increases in our gross
margins and we ended the quarter with record earnings. We are thrilled
with the momentum of our business and look forward to exciting summer
and back to school selling seasons."
Second Quarter Guidance
The Company announced its earnings guidance for the second quarter
of fiscal 2007. The Company believes it will achieve earnings in the
range $0.26 to $0.28 per diluted share. Based on the calendar year
shift, which includes the acceleration of the back to school selling
season, this guidance reflects an estimated shift of $0.04 to $0.06
earnings per share to the second quarter from the third quarter. This
compares to net income for the second quarter of fiscal 2006 of $8.4
million, or $0.16 per diluted share, (which included $2.1 million of
other income in connection with the resolution of a dispute with a
vendor regarding the enforcement of the Company's intellectual
property rights). Net income, excluding other income, was $7.2
million, or $0.13 per diluted share for the second quarter of fiscal
2006.
The Company believes that the disclosure of sales on a pro-forma
basis due to the 53rd week in fiscal 2006 and reporting diluted
earnings per share which excluded other income in fiscal 2006, both of
which are non-GAAP financial measures, provides investors useful
information to help them better understand the Company's expected
results without the impact of the two items described above.
Conference Call Information:
The Company will be holding a conference call today at 4:15 P.M.
EDT to review its first quarter 2007 financial results. The broadcast
will be available through the 'Investor Relations' link at
www.aeropostale.com and at 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. The company provides customers with a focused selection
of high-quality, active-oriented, fashion and fashion basic
merchandise at compelling values. Aeropostale maintains control over
its proprietary brands by designing, sourcing, marketing and selling
all of its own merchandise. Aeropostale products are currently
purchased only in its stores, on-line through its e-commerce website
(www.aeropostale.com) or at organized sales events at college
campuses.
The company currently operates 757 Aeropostale stores in 47 states
and 14 Jimmy'Z stores in 11 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)
May 5, February 3, April 29,
2007 2007 2006
--------- ----------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $154,119 $200,064 $143,951
Short-term investments 56,565 76,223 60,212
Merchandise inventory 107,575 101,476 108,971
Other current assets 22,271 21,030 27,600
--------- ----------- ---------
Total current assets 340,530 398,793 340,734
Fixtures, equipment and improvements,
net 193,833 175,591 170,228
Other assets 15,056 6,780 4,441
--------- ----------- ---------
TOTAL ASSETS $549,419 $581,164 $515,403
========= =========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 43,416 $ 63,918 $ 71,104
Accrued expenses 68,822 100,880 48,378
--------- ----------- ---------
Total current liabilities 112,238 164,798 119,482
Other non-current liabilities 112,701 104,250 96,968
Stockholders' equity 324,480 312,116 298,953
--------- ----------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $549,419 $581,164 $515,403
========= =========== =========
EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
13 weeks ended
-------------------------------------
May 5, 2007 April 29, 2006
------------------ ------------------
% of % of
sales sales
------ ------
Net sales $ 275,782 100.0% $ 246,292 100.0%
Cost of sales (including certain
buying, occupancy and
warehousing expenses) 187,079 67.8 175,814 71.4
----------- ------ ----------- ------
Gross profit 88,703 32.2 70,478 28.6
Selling, general and
administrative expenses 68,219 24.7 58,265 23.6
----------- ------ ----------- ------
Income from operations 20,484 7.5 12,213 5.0
Interest income, net 2,135 0.7 1,496 0.6
----------- ------ ----------- ------
Income before income taxes 22,619 8.2 13,709 5.6
Income taxes 8,867 3.2 5,346 2.2
----------- ------ ----------- ------
Net income $ 13,752 5.0% $ 8,363 3.4%
=========== ====== =========== ======
Basic earnings per share $ 0.27 $ 0.15
=========== ===========
Diluted earnings per share $ 0.26 $ 0.15
=========== ===========
Weighted average basic shares 51,655 54,407
Weighted average diluted shares 52,136 55,077
STORE DATA:
Comparable store sales increase
(decrease) 2.5% (2.9)%
Stores open at end of period 765 704
Total square footage at end of
period 2,707,976 2,497,544
Average square footage during
period 2,663,060 2,434,560
CONTACT:
Aeropostale, Inc.
Kenneth Ohashi
VP, Investor & Media Relations
646-452-1876
kohashi@aeropostale.com
Media:
Financial Dynamics
Leigh Parrish/Melissa Merrill, 212-850-5600
