Net Sales of $412.6 Million
Earnings Per Share Growth of 17% to $0.48 Per Diluted Share
Provides Fourth Quarter Guidance
NEW YORK--(BUSINESS WIRE)--Nov. 28, 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 third quarter
ended November 3, 2007.
Julian R. Geiger, Chairman and Chief Executive Officer, said, "We
are very pleased with our results for the quarter, which exceeded
expectations. During the quarter we were able to drive consistent
comparable store sales increases, while continuing to improve our
gross margins over last year. We also ended the quarter with well
controlled inventories."
Net income for the third quarter of fiscal 2007 was $36.0 million,
or $0.48 per diluted share, compared to net income of $32.6 million,
or $0.41 per diluted share, in the third quarter of fiscal 2006.
For the third quarter of fiscal 2007, total net sales increased
7.0% to $412.6 million, from $385.5 million in the third quarter of
fiscal 2006. For the third quarter, same store sales increased 1.9%
compared to the corresponding period ended November 4, 2006.
Year-to-date, total net sales increased 10.3% to $999.6 million, from
$906.4 million in the year-ago period. Year-to-date, same store sales
increased 0.1% compared to the corresponding period ended November 4,
2006.
In addition to the Company's accelerated share repurchase program,
which the Company announced on November 13, 2007, the Company also
repurchased approximately $125.1 million, or 6.3 million shares of
common stock during the third quarter of fiscal 2007.
Fourth Quarter Guidance
The Company also announced its earnings guidance for the fourth
quarter of fiscal 2007. The Company believes it will achieve fourth
quarter earnings in the range $0.82 to $0.84 per diluted share,
including an approximate $0.08 positive impact from the accelerated
share repurchase of $125.0 million, in addition to the share
repurchases of $125.1 million, or 6.3 million shares made in the third
quarter of fiscal 2007. Based on fourth quarter earnings per share
guidance, the Company expects to achieve full year fiscal 2007
earnings in the range of $1.60 to $1.62 per diluted share. With this
guidance, the company is poised to significantly exceed its objective
of annual earnings per share growth of approximately 20% for fiscal
2007.
Julian R. Geiger, Chairman and Chief Executive Officer, continued,
"The sales and margin momentum from our strong third quarter has
carried over into our initial performance in the fourth quarter. Over
the important Friday and Saturday following Thanksgiving Day, we
achieved mid-single digit comparable store sales increases compared to
a mid-single digit increase last year. We currently expect our
November comparable store sales to increase in the mid-single digits
range. The reaction to our holiday merchandise assortment has been
positive and we remain focused on executing our strategies for the
peak holiday selling season."
The Company believes that the disclosure of sales on a pro-forma
basis due to the 53rd week in fiscal 2006, which is a non-GAAP
financial measure, provides investors useful information to help them
better understand the Company's results.
Conference Call Information:
The Company will be holding a conference call today at 4:15 P.M.
EST to review its third 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 or on-line through its e-commerce website
(www.aeropostale.com).
The Company currently operates 801 Aeropostale stores in 47
states, 12 Aeropostale stores in Canada 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
(Unaudited)
(In thousands)
November 3, February 3, October 28,
2007 2007 2006
----------- ----------- -----------
ASSETS
Current Assets:
Cash and cash equivalents $122,553 $200,064 $148,141
Short-term investments -- 76,223 55,202
Merchandise inventory 192,301 101,476 167,527
Other current assets 33,957 21,030 27,176
----------- ----------- -----------
Total current assets 348,811 398,793 398,046
Fixtures, equipment and
improvements, net 225,364 175,591 179,885
Other assets 9,232 6,780 4,055
----------- ----------- -----------
TOTAL ASSETS $583,407 $581,164 $581,986
=========== =========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Accounts payable $133,475 $63,918 $117,854
Accrued expenses 77,006 100,880 71,643
----------- ----------- -----------
Total current liabilities 210,481 164,798 189,497
Other non-current liabilities 118,110 104,250 101,452
Stockholders' equity 254,816 312,116 291,037
----------- ----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 583,407 $ 581,164 $ 581,986
=========== =========== ===========
EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(Unaudited)
(In thousands, except per share and store data)
13 weeks ended
-----------------------------------
November 3, 2007 October 28, 2006
---------------- ------------------
% of % of
sales sales
------ --------
Net sales $412,576 100.0% $385,455 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 268,732 65.1 261,856 67.9
--------- ------ --------- --------
Gross profit 143,844 34.9 123,599 32.1
Selling, general and administrative
expenses 86,261 20.9 71,840 18.6
Income from operations 57,583 14.0 51,759 13.5
Interest income, net 1,989 0.4 1,632 0.4
--------- ------ --------- --------
Income before income taxes 59,572 14.4 53,391 13.9
Income taxes 23,564 5.7 20,821 5.4
--------- ------ --------- --------
Net income $36,008 8.7% $32,570 8.5%
========= ====== ========= ========
Basic earnings per share $0.48 $0.41
========= =========
Diluted earnings per share $0.48 $0.41
========= =========
Weighted average basic shares 74,659 79,115
Weighted average diluted shares 75,016 79,784
STORE DATA:
Comparable store sales increase 1.9% 5.6%
Stores open at end of period 823 738
Total gross square footage at end
of period 2,918,810 2,611,783
Average square footage during
period 2,886,074 2,593,439
Note:
All share and per share amounts presented above were given
retroactive recognition to the three-for-two stock split on all
shares of common stock that was announced on July 11, 2007.
EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(Unaudited)
(In thousands, except per share and store data)
39 weeks ended
-----------------------------------
November 3, 2007 October 28, 2006
---------------- ------------------
% of % of
sales sales
------ --------
Net sales $999,594 100.0% $906,371 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 670,169 67.0 639,718 70.6
--------- ------ --------- --------
Gross profit 329,425 33.0 266,653 29.4
Selling, general and administrative
expenses 229,013 23.0 192,327 21.2
Other income -- -- 2,085 0.2
--------- --------
Income from operations 100,412 10.0 76,411 8.4
Interest income, net 5,963 0.6 4,500 0.5
--------- ------ --------- --------
Income before income taxes 106,375 10.6 80,911 8.9
Income taxes 41,913 4.2 31,555 3.5
--------- ------ --------- --------
Net income $64,462 6.4% $49,356 5.4%
========= ====== ========= ========
Basic earnings per share $0.84 $0.61
========= =========
Diluted earnings per share $0.84 $0.61
========= =========
Weighted average basic shares 76,590 80,388
Weighted average diluted shares 77,130 81,120
STORE DATA:
Comparable store sales increase 0.1% 1.8%
Average square footage during
period 2,774,985 2,527,933
Note:
All share and per share amounts presented above were given
retroactive recognition to the three-for-two stock split on all
shares of common stock that was announced on July 11, 2007.
CONTACT: Aeropostale, Inc.
Kenneth Ohashi, 646-452-1876
VP, Investor & Media Relations
kohashi@aeropostale.com
or
Media:
Financial Dynamics
Leigh Parrish/Samantha Cohen
212-850-5600
SOURCE: Aeropostale, Inc.
