Net Sales of $311.2 Million Split Adjusted Earnings Per Share Growth of 90% to $0.19 Per Diluted Share Provides Third Quarter Guidance
NEW YORK, Aug 23, 2007 (BUSINESS WIRE) -- Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of
active and casual apparel for young men and women, today reported
results for the second quarter ended August 4, 2007. Due to our
3-for-2 stock split which was distributed to shareholders on August
21, 2007, all per share data is presented on a post-stock split basis.
Net income for the second quarter of fiscal 2007 was $14.7
million, or $0.19 per diluted share, an increase of 90.0% compared to
net income of $8.4 million, or $0.10 per diluted share, in the second
quarter of fiscal 2006.
For the second quarter of fiscal 2007, total net sales increased
13.3% to $311.2 million from $274.6 million in the second quarter of
fiscal 2006. For the second quarter, same store sales decreased 4.1%,
compared to the corresponding period ended August 5, 2006.
Year-to-date, total net sales increased 12.7% to $587.0 million from
$520.9 million in the year-ago period. Year-to-date, same store sales
decreased 1.1%, compared to the corresponding period ended August 5,
2006.
Julian R. Geiger, Chairman and Chief Executive Officer, said, "We
are pleased with our accomplishments for the quarter, which reflect
the strength and balance of our merchandise assortment as well as our
disciplined approach to inventory management. During the quarter we
were able to generate strong increases in our gross margin and, as a
result, deliver record second quarter earnings, which were at the high
end of our previously issued guidance."
Third Quarter Guidance
The Company announced its earnings guidance for the third quarter
of fiscal 2007. The Company believes it will achieve third quarter
earnings in the range $0.43 to $0.45 per diluted share, compared to
net earnings of $0.41 per share in the third quarter of last year.
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.
EDT to review its second 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 780 Aeropostale stores in 47
states, 4 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 4, February 3, July 29,
2007 2007 2006
--------- ----------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 164,520 $ 200,064 $ 117,307
Short-term investments 39,476 76,223 34,117
Merchandise inventory 150,605 101,476 154,720
Other current assets 44,849 21,030 30,015
--------- ----------- ---------
Total current assets 399,450 398,793 336,159
Fixtures, equipment and improvements,
net 209,270 175,591 178,972
Other assets 8,400 6,780 4,435
--------- ----------- ---------
TOTAL ASSETS $ 617,120 $ 581,164 $ 519,566
========= =========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 99,219 $ 63,918 $ 99,391
Accrued expenses 64,437 100,880 54,640
--------- ----------- ---------
Total current liabilities 163,656 164,798 154,031
Other non-current liabilities 114,097 104,250 100,639
Stockholders' equity 339,367 312,116 264,896
--------- ----------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 617,120 $ 581,164 $ 519,566
========= =========== =========
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 4, 2007 July 29, 2006
-------------------- -------------------
% of % of
sales sales
------- -------
Net sales $ 311,236 100.0% $ 274,624 100.0%
Cost of sales (including
certain buying, occupancy and
warehousing expenses) 214,358 68.9 202,048 73.6
------------ ------- ----------- -------
Gross profit 96,878 31.1 72,576 26.4
Selling, general and
administrative expenses 74,533 23.9 62,222 22.7
Other income -- -- 2,085 0.8
----------- -------
Income from operations 22,345 7.2 12,439 4.5
Interest income, net 1,839 0.6 1,372 0.5
------------ ------- ----------- -------
Income before income taxes 24,184 7.8 13,811 5.0
Income taxes 9,482 3.1 5,388 1.9
------------ ------- ----------- -------
Net income $ 14,702 4.7% $ 8,423 3.1%
============ ======= =========== =======
Basic earnings per share $ 0.19 $ 0.10
============ ===========
Diluted earnings per share $ 0.19 $ 0.10
============ ===========
Weighted average basic shares 77,629 80,441
Weighted average diluted
shares 78,171 81,108
STORE DATA:
Comparable store sales
(decrease) increase (4.1%) 1.0%
Stores open at end of period 792 726
Total gross square footage at
end of period 2,805,960 2,578,224
Average square footage during
period 2,775,823 2,555,801
Note:
All share and per share amounts presented above were given retroactive
recognition to the three-for-two stock split on all shares of our
common stock.
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 4, 2007 July 29, 2006
------------------- -------------------
% of % of
sales sales
------ ------
Net sales $ 587,018 100.0% $ 520,916 100.0%
Cost of sales (including
certain buying, occupancy and
warehousing expenses) 401,437 68.4 377,862 72.5
------------ ------ ------------ ------
Gross profit 185,581 31.6 143,054 27.4
Selling, general and
administrative expenses 142,752 24.3 120,487 23.1
Other income -- -- 2,085 0.4
------------ ------
Income from operations 42,829 7.3 24,652 4.7
Interest income, net 3,974 0.7 2,868 0.6
------------ ------ ------------ ------
Income before income taxes 46,803 8.0 27,520 5.3
Income taxes 18,349 3.2 10,734 2.1
------------ ------ ------------ ------
Net income $ 28,454 4.8% $ 16,786 3.2%
============ ====== ============ ======
Basic earnings per share $ 0.37 $ 0.21
============ ============
Diluted earnings per share $ 0.36 $ 0.21
============ ============
Weighted average basic shares 77,555 81,026
Weighted average diluted shares 78,188 81,789
STORE DATA:
Comparable store sales decrease (1.1)% (0.9)%
Average square footage during
period 2,719,441 2,495,181
Note:
All share and per share amounts presented above were given retroactive
recognition to the three-for-two stock split on all shares of our
common stock.
SOURCE: Aeropostale, Inc.
Aeropostale, Inc.
Kenneth Ohashi, 646-452-1876
kohashi@aeropostale.com
VP, Investor & Media Relations
or
Media:
Financial Dynamics
Leigh Parrish/Melissa Merrill, 212-850-5600
