Second Quarter Net Sales Increase 21% Same Store Sales Increase 11% Earnings Per Share Growth of 63% to $0.31 Per Diluted Share
NEW YORK, Aug 21, 2008 (BUSINESS WIRE) -- Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of
active and casual apparel for young women and men, today reported
results for the second quarter ended August 2, 2008.
Net income for the second quarter of fiscal 2008 increased 43% to
a record $21.1 million, or $0.31 per diluted share, compared to net
income of $14.7 million, or $0.19 per diluted share, in the second
quarter of fiscal 2007.
For the second quarter of fiscal 2008, total net sales increased
21% to $377.1 million, from $311.2 million in the year-ago period.
Same store sales for the second quarter increased 11%, compared to a
decrease of 4% in the year-ago period.
Julian R. Geiger, Chairman and Chief Executive Officer said, "We
are extremely pleased with our second quarter performance. The ongoing
strength of our merchandise assortments and our team's consistent
execution led to another record quarter. Our back-to-school
merchandise assortments have been positively received by our customers
and we believe that we are well positioned as we head into the second
half of the year. We remain focused on building on our strong momentum
for the Aeropostale brand, while strategically investing in our
business to support our long-term growth."
Third Quarter Guidance
The Company announced its earnings guidance for the third quarter
of fiscal 2008. The Company believes it will achieve earnings in the
range $0.59 to $0.61 per diluted share for the third quarter. The
Company achieved earnings of $0.48 per diluted share in the third
quarter last year.
Board Appointment
The Company also announced today that Thomas P. Johnson, Executive
Vice President, Chief Operating Officer of Aeropostale has been
elected to the Company's Board of Directors, effective August 19,
2008. Mr. Johnson has served as the Company's Chief Operating Officer
since 2004 and has been with the Company since 2001. In addition to
becoming a member of our Board, Mr. Johnson will continue in his role
as the Company's Executive Vice President, Chief Operating Officer.
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 can only be purchased
in its stores or on-line through its e-commerce website
(www.aeropostale.com). The Company currently operates 845 Aeropostale
stores in 48 states and Puerto Rico, 23 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
(in thousands)
August 2, 2008 February 2, 2008 August 4, 2007
-------------- ---------------- --------------
ASSETS
Current Assets:
Cash and cash
equivalents $ 70,792 $111,927 $164,520
Short-term
investments -- -- 39,476
Merchandise
inventory 183,710 136,488 150,605
Other current assets 43,614 36,272 44,849
-------------- ---------------- --------------
Total current
assets 298,116 284,687 399,450
Fixtures, equipment and
improvements, net 249,826 213,831 209,270
Other assets 18,377 15,651 8,400
-------------- ---------------- --------------
TOTAL ASSETS $566,319 $514,169 $617,120
============== ================ ==============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $125,271 $ 99,369 $ 99,219
Accrued expenses 69,838 98,018 64,437
-------------- ---------------- --------------
Total current
liabilities 195,109 197,387 163,656
Other non- current
liabilities 126,696 119,506 114,097
Stockholders' equity 244,514 197,276 339,367
-------------- ---------------- --------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $566,319 $514,169 $617,120
============== ================ ==============
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 2, 2008 August 4, 2007
---------------------- -----------------------
% of sales % of sales
---------- ----------
Net sales $ 377,145 100.0% $ 311,236 100.0%
Cost of sales
(including certain
buying, occupancy and
warehousing expenses) 251,209 66.6 214,358 68.9
----------- ---------- ------------ ----------
Gross profit 125,936 33.4 96,878 31.1
Selling, general and
administrative
expenses 90,654 24.0 74,533 23.9
----------- ---------- ------------ ----------
Income from operations 35,282 9.4 22,345 7.2
Interest income, net 80 0.0 1,839 0.6
----------- ---------- ------------ ----------
Income before income
taxes 35,362 9.4 24,184 7.8
Income taxes 14,309 3.8 9,482 3.1
----------- ---------- ------------ ----------
Net income $ 21,053 5.6% $ 14,702 4.7%
=========== ========== ============ ==========
Basic earnings per
share $ 0.31 $ 0.19
=========== ============
Diluted earnings per
share $ 0.31 $ 0.19
=========== ============
Weighted average basic
shares 66,905 77,629
Weighted average
diluted shares 67,716 78,171
STORE DATA:
Comparable store sales
increase 11% (4)%
Stores open at end of
period 879 792
Total square footage at
end of period 3,139,274 2,805,960
Average square footage
during period 3,086,083 2,775,823
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SELECTED STORE DATA
(in thousands, except per share and store data)
26 weeks ended
----------------------------------------------
August 2, 2008 August 4, 2007
---------------------- -----------------------
% of sales % of sales
---------- ----------
Net sales $ 713,477 100.0% $ 587,018 100.0%
Cost of sales
(including certain
buying, occupancy and
warehousing expenses) 476,263 66.8 401,437 68.4
----------- ---------- ------------ ----------
Gross profit 237,214 33.2 185,581 31.6
Selling, general and
administrative
expenses 172,744 24.2 142,752 24.3
----------- ---------- ------------ ----------
Income from operations 64,470 9.0 42,829 7.3
Interest income, net 320 0.0 3,974 0.7
----------- ---------- ------------ ----------
Income before income
taxes 64,790 9.0 46,803 8.0
Income taxes 26,239 3.6 18,349 3.2
----------- ---------- ------------ ----------
Net income $ 38,551 5.4% $ 28,454 4.8%
=========== ========== ============ ==========
Basic earnings per
share $ 0.58 $ 0.37
=========== ============
Diluted earnings per
share $ 0.57 $ 0.36
=========== ============
Weighted average basic
shares 66,827 77,555
Weighted average
diluted shares 67,511 78,188
STORE DATA:
Comparable store sales
increase 10% (1)%
Average square footage
during period 3,027,628 2,719,441
SOURCE: Aeropostale, Inc.
Aeropostale, Inc.
Kenneth Ohashi, 646-452-1876
VP, Investor & Media Relations
kohashi@aeropostale.com
or
Financial Dynamics
Leigh Parrish/Diane Zappas, 212-850-5600
