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Aeropostale Reports Results for First Quarter

First Quarter Earnings of $0.20 Per Diluted Share
Provides Second Quarter Guidance

NEW YORK, May 19, 2011 /PRNewswire via COMTEX/ --

Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of casual apparel for young women and men, today reported results for the first quarter of fiscal 2011, and provided guidance for the second quarter of fiscal 2011.

First Quarter Performance

Diluted net earnings per share for the first quarter of fiscal 2011 decreased 58% to $0.20 per share, compared to $0.48 per share in the same period last year. Net income for the first quarter decreased 64% to $16.4 million, compared to net income of $45.4 million last year.

For the first quarter of fiscal 2011 net sales increased 1% to $469.2 million, from $463.6 million in the year ago period. Same store sales for the first quarter decreased 7%, compared to a same store sales increase of 8% last year.

E-commerce

Total net sales from the Company's e-commerce business for the first quarter of fiscal 2011 increased 18% to $28.2 million, from $23.8 million in the year ago period.

Cash Positioning and Share Repurchase Program

The Company ended the quarter with cash and cash equivalents of $139.1 million, and no debt. During the first quarter of fiscal 2011, the Company repurchased approximately $100.1 million, or 4.2 million shares of common stock. The Company currently has $145.2 million of availability remaining under its share repurchase program.

Store Growth and Capital Spending

The company opened nine Aeropostale and seven P.S. from Aeropostale stores, and closed one Aeropostale store during the quarter. For the first quarter the company incurred $25.4 million in capital expenditures.

Second Quarter Guidance

For the second quarter of fiscal 2011, the Company expects earnings in the range of $0.11 to $0.16 per share. Based on current business trends and uncertainty surrounding the retail environment in the back-half of the year, the Company is not reiterating or providing an update to its previously issued full year guidance at this time. Moving forward, the Company expects to provide quarterly guidance.

Thomas P. Johnson, Chief Executive Officer, commented, "Our outlook for the second quarter reflects our plans to aggressively clear through spring inventories to position ourselves appropriately for the important back to school selling season. While we are disappointed with our current performance, we are confident that our entire organization is focused on the right initiatives to regain market share. Our goals for the remainder of the year remain very clear - regain balance and clarity in our merchandise assortments, mitigate industry wide cost increases, and manage our cost structure conservatively and carefully."

Conference Call Information

The Company will be holding a conference call today at 4:15 P.M. EDT to review its first 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® stores and 7 to 12 year-old kids through its P.S. from Aeropostale® stores. 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 Aeropostale stores and online at www.aeropostale.com. P.S. from Aeropostale® products can be purchased in P.S. from Aeropostale® stores and online at www.ps4u.com. The Company currently operates 914 Aeropostale stores in 49 states and Puerto Rico, 60 Aeropostale stores in Canada and 57 P.S. from Aeropostale stores in 16 states.

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.

Company Contact:Kenneth Ohashi/VP, Investor & Media Relations (646) 452-1876 or kohashi@aeropostale.com

Media Contact:Leigh Parrish, FD (212) 850-5600

EXHIBIT A


AEROPOSTALE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS


(in thousands)




April 30, 2011

January 29, 2011

May 1, 2010





ASSETS




Current Assets:




Cash and cash equivalents

$139,103

$265,553

$312,716

Merchandise inventory

142,250

156,596

122,686

Other current assets

59,484

47,416

50,350

Total current assets

340,837

469,565

485,752





Fixtures, equipment and improvements, net

308,514

299,242

264,895





Other assets

4,531

4,390

7,337





TOTAL ASSETS

$653,882

$773,197

$757,984





LIABILITIES AND STOCKHOLDERS' EQUITY




Current Liabilities:




Accounts payable

$ 94,065

$ 103,014

$ 72,008

Accrued expenses

78,002

113,088

121,033

Total current liabilities

172,067

216,102

193,041





Other non-current liabilities

128,949

124,458

112,077





Stockholders' equity

352,866

432,637

452,866





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$653,882

$773,197

$757,984


EXHIBIT B


AEROPOSTALE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

SELECTED STORE DATA


in thousands, except per share and store data)




13 weeks ended


April 30, 2011

May 1, 2010



% of sales


% of sales






Net sales

$469,183

100.0%

$463,641

100.0%






Cost of sales (including certain buying, occupancy and

warehousing expenses)

332,525

70.9

280,822

60.6






Gross profit

136,658

29.1

182,819

39.4






Selling, general and administrative expenses

109,082

23.2

107,668

23.2






Income from operations

27,576

5.9

75,151

16.2






Interest expense, net

67

0.0

27

0.0






Income before income taxes

27,509

5.9

75,124

16.2






Income taxes

11,142

2.4

29,740

6.4






Net income

$16,367

3.5%

$45,384

9.8%






Basic earnings per share

$0.20


$0.48







Diluted earnings per share

$0.20


$0.48







Weighted average basic shares

82,605


93,912







Weighted average diluted shares

83,445


94,944







STORE DATA:










Comparable store sales (decrease) increase

(7)%


8%







Stores open at end of period

1,027


962







Total square footage at end of period

3,762,379


3,458,065







Average square footage during period

3,737,495


3,451,563



SOURCE Aeropostale, Inc.


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