First Quarter Earnings Increase 55% to $0.48 Per Diluted Share
Provides Second Quarter Guidance
NEW YORK, May 20, 2010 /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 2010, and provided guidance for the second quarter of fiscal 2010.
First Quarter Performance
Diluted net earnings per share for the first quarter of fiscal 2010 increased 55% to a record $0.48 per share, compared to $0.31 per share in the same period last year. Net income for the first quarter increased 43% to $45.4 million, compared to net income of $31.7 million last year.
For the first quarter of fiscal 2010, total net sales have increased 14% to $463.6 million, from $408.0 million in the year-ago period. Same store sales for the first quarter increased 8%, compared to a same store sales increase of 11% last year.
Co-Chief Executive Officers Mindy C. Meads and Thomas P. Johnson, said, "We are very pleased with our strong start to fiscal 2010. In the first quarter we delivered solid top line growth, improved profitability and achieved record earnings. The consistency and strength of our results truly underscore the on-going momentum in our brand, the power of our promotional specialty store model and the tremendous talent across our entire organization."
E-commerce
Total net sales from the Company's e-commerce business for the first quarter of fiscal 2010 increased 42% to $23.8 million, from $16.7 million in the year ago period.
Share Repurchase Program
During the first quarter of fiscal 2010, the Company repurchased approximately $36.7 million, or 1.3 million shares of common stock. The Company currently has $166.1 million of availability remaining under its share repurchase program.
Second Quarter Guidance
For the second quarter of fiscal 2010 the Company expects earnings in the range of $0.45 to $0.48 per diluted share, an increase of 18% to 26% compared to earnings of $0.38 per diluted share for the second quarter of 2009.
Co-Chief Executive Officers Mindy C. Meads and Thomas P. Johnson, commented, "We are extremely proud of our consistent ability to drive both comp and margin increases on top of a record performance last year. We are very well positioned as we head into the upcoming back to school season. We look forward to sustaining our strong momentum and building upon our successes for the remainder of the year."
Store Growth and Capital Spending
The company opened 7 Aeropostale and 7 P.S. from Aeropostale stores, and closed 4 Aeropostale stores during the quarter. For the first quarter the company incurred $14.7 million in capital expenditures. For full year fiscal 2010 the Company now plans to spend approximately $90.0 million in capital expenditures, which will include opening approximately 25 Aeropostale stores, including a Times Square location, opening approximately 30 P.S. from Aeropostale stores, and approximately 40 store remodels, in addition to certain information technology investments.
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(R) stores and 7 to 12 year-old kids through its P.S. from Aeropostale(R) stores. The Company provides customers with a focused selection of high-quality, active-oriented, fashion and fashion basic merchandise at compelling values. Aeropostale(R) maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. Aeropostale(R) products can only be purchased in its Aeropostale stores and online at www.aeropostale.com. P.S. from Aeropostale(R) products can be purchased in P.S. from Aeropostale(R) stores and online at www.ps4u.com. The Company currently operates 896 Aeropostale stores in 49 states and Puerto Rico, 44 Aeropostale stores in Canada and 22 P.S. from Aeropostale stores in nine 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.
EXHIBIT A
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
May 1, January 30, May 2,
2010 2010 2009
------- ------------ -------
ASSETS
Current Assets:
Cash and cash equivalents $312,716 $346,976 $247,747
Merchandise inventory 122,686 132,915 128,929
Other current assets 50,350 50,126 37,033
------ ------ ------
Total current assets 485,752 530,017 413,709
Fixtures, equipment and improvements, net 264,895 251,558 249,676
Other assets 10,740 10,734 13,298
------ ------ ------
TOTAL ASSETS $761,387 $792,309 $676,683
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $72,008 $90,850 $70,308
Accrued expenses 128,180 150,990 83,139
------- ------- ------
Total current liabilities 200,188 241,840 153,447
Other non-current liabilities 112,077 115,980 126,087
Stockholders' equity 449,122 434,489 397,149
------- ------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $761,387 $792,309 $676,683
======== ======== ========
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 1, 2010 May 2, 2009
----------- -----------
% of % of
sales sales
----- -----
Net sales $463,641 100.0% $408,024 100.0%
Cost of sales (including
certain buying, occupancy and
warehousing expenses 280,822 60.6 260,134 63.8
------- ---- ------- ----
Gross profit 182,819 39.4 147,890 36.2
Selling, general and
administrative expenses 107,668 23.2 94,446 23.1
------- ---- ------ ----
Income from operations 75,151 16.2 53,444 13.1
Interest expense, net 27 0.0 45 0.0
--- --- --- ---
Income before income taxes 75,124 16.2 53,399 13.1
Income taxes 29,740 6.4 21,724 5.3
------ --- ------ ---
Net income $45,384 9.8% $31,675 7.8%
======= === ======= ===
Basic earnings per share $0.48 $0.31
===== =====
Diluted earnings per share $0.48 $0.31
===== =====
Weighted average basic shares 93,912 100,649
Weighted average diluted
shares 94,944 101,685
STORE DATA:
Comparable store sales
increase 8% 11%
Stores open at end of period 962 920
Total square footage at end of
period 3,458,065 3,305,058
Average square footage during
period 3,451,563 3,296,109
Note:
All share and per share amounts were given retroactive recognition to
the three-for-two common stock split that was effective on March
5, 2010.
Company Contact:
----------------
Kenneth Ohashi/VP, Investor & Media Relations
(646) 452-1876 or kohashi@aeropostale.com
Media Contact:
--------------
Leigh Parrish/Melissa Kahaly, FD
(212) 850-5600
SOURCE Aeropostale, Inc.
