NEW YORK--(BUSINESS WIRE)--Aug. 19, 2004--Aeropostale, Inc.
(NYSE:ARO):
-- Earnings Per Share of $0.19 Versus Earnings Per Share of $0.05
Last Year
-- Revenues Increase 50.0% Versus Prior Year
-- Comparable Store Sales Increase 20.0% Versus Prior Year
Aeropostale, Inc. (NYSE:ARO), a mall-based specialty retailer of
active and casual apparel for the teen market, today reported record
results for the fiscal second quarter ended July 31, 2004.
Net income for the quarter ended July 31, 2004 was $10.9 million
or $0.19 per diluted share versus net income of $2.7 million or $0.05
per diluted share in the comparable quarter in the prior year. The
Company noted that the reported earnings were higher than the
company's previously issued guidance and current First Call consensus
estimate of $0.17 per diluted share.
Net sales for the quarter ended July 31, 2004 increased 50.0% to
$194.9 million versus $129.9 million in the comparable period.
Comparable store sales for the second quarter of fiscal 2004 increased
20.0% compared to an increase of 9.2% in the same period in the prior
year.
Julian R. Geiger, Chairman and Chief Executive Officer, said,
"During the second quarter, we were able to perform at a high level
and achieve record sales and earnings because of the ongoing strength
of our brand, our merchandise assortment, and our continuing
dedication to improving execution. Our ability to translate
significant top line growth into meaningful operating margin expansion
underscores the advantages of our unique operating formula. During the
first half of fiscal 2004, we were able to improve our earnings per
share by 275% compared to the same period last year. In addition, our
back-to-school selling season has had a strong start and we believe we
are well positioned to build on our positive momentum as we head into
fall."
The company also today updated guidance for the third quarter. For
the third quarter, the company is comfortable with current consensus
of $0.51 per diluted share.
The company will be holding a conference call today at 4:15 P.M.
to review its fiscal 2004 second quarter 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. (www.aeropostale.com) is a mall-based specialty
retailer of casual apparel and accessories that targets both young
women and young men aged 11 to 20. The company provides customers with
a selection of high-quality, active-oriented, fashion basic
merchandise in a high-energy store environment. The company maintains
complete control over the proprietary brand by designing and sourcing
all of its own merchandise. Aeropostale products can be purchased only
in its stores, which sell Aeropostale merchandise exclusively.
The first Aeropostale store was opened in 1987. The company
currently operates 524 stores in 42 states.
Special Note: Safe Harbor Statement Under the Private Securities
Litigation Reform Act of 1995: Except for historical information
contained herein, the statements made in this release constitute
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Such forward-looking statements involve certain risks and
uncertainties, including statements regarding the company's strategic
direction, prospects and future results. Certain factors, including
factors outside of our control, may cause actual results to differ
materially from those contained in the forward-looking statements.
These factors include the company's ability to implement its growth
strategy successfully, changes in consumer fashion preferences,
economic and other conditions in the markets in which we operate,
competition, seasonality and the other risks discussed in the
company's Form 10-K for the year ended January 31, 2004 filed with the
Securities and Exchange Commission, which discussions are incorporated
in this release by reference.
EXHIBIT A
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
July 31, January 31, August 2,
2004 2004 2003
---------------------------------
ASSETS
Current Assets:
Cash and cash equivalents $97,302 $138,356 $76,222
Merchandise inventory 99,215 61,807 91,760
Other current assets 36,904 12,284 23,812
---------------------------------
Total current assets 233,421 212,447 191,794
Fixtures, equipment and improvements,
net 111,482 92,578 85,990
Other assets 3,440 2,023 8,781
---------------------------------
TOTAL ASSETS $ 348,343 $ 307,048 $286,565
=================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $59,350 $30,477 $59,159
Accrued expenses 35,875 41,091 35,262
---------------------------------
Total current liabilities 95,225 71,568 94,421
Other non-current liabilities 60,940 49,787 45,548
Stockholders' equity 192,178 185,693 146,596
---------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 348,343 $ 307,048 $286,565
=================================
EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
13 weeks ended
-----------------------------------
July 31, 2004 August 2, 2003
-----------------------------------
% of % of
sales sales
------- -------
Net sales $194,852 100.0% $129,944 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 135,366 69.5 94,362 72.6
-----------------------------------
Gross profit 59,486 30.5 35,582 27.4
Selling, general and administrative
expenses 41,925 21.5 31,342 24.1
-----------------------------------
Income from operations 17,561 9.0 4,240 3.3
Interest income, net 201 0.1 253 0.2
-----------------------------------
Income before income taxes 17,762 9.1 4,493 3.5
Income taxes 6,865 3.5 1,751 1.4
-----------------------------------
Net income $10,897 5.6% $ 2,742 2.1%
===================================
Basic net income per share $0.20 $0.05
=========== ==========
Diluted net income per share $0.19 $0.05
=========== ==========
Basic weighted average number of
shares outstanding (*) 55,663 54,041
Diluted weighted average number of
shares outstanding (*) 57,287 58,145
STORE DATA:
Comparable store sales 20.0% 9.2%
Stores open at end of period 521 427
Total gross square footage at
end of period 1,832,060 1,498,920
(*) as adjusted for 3-for-2 stock split effected April 26, 2004
EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND SELECTED STORE DATA
(in thousands, except per share and store data)
26 weeks ended
-----------------------------------
July 31, 2004 August 2, 2003
-----------------------------------
% of % of
sales sales
------- -------
Net sales $362,506 100.0% $242,155 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 253,913 70.0 176,323 72.8
-----------------------------------
Gross profit 108,593 30.0 65,832 27.2
Selling, general and administrative
expenses 81,030 22.4 58,309 24.1
-----------------------------------
Income from operations 27,563 7.6 7,523 3.1
Interest income, net 460 0.1 434 0.2
-----------------------------------
Income before income taxes 28,023 7.7 7,957 3.3
Income taxes 10,865 3.0 3,103 1.3
-----------------------------------
Net income $17,158 4.7% $ 4,854 2.0%
===================================
Basic net income per share $0.31 $0.09
=========== ==========
Diluted net income per share $0.30 $0.08
=========== ==========
Basic weighted average number of
shares outstanding (*) 55,742 53,586
Diluted weighted average number of
shares outstanding (*) 57,494 57,926
STORE DATA:
Comparable store sales 19.5% 5.5%
(*) as adjusted for 3-for-2 stock split effected April 26, 2004
CONTACT: Aeropostale, Inc.
Michael J. Cunningham, 888-363-2825
or
Investor Relations:
Kenneth Ohashi, 888-363-2825
or
Integrated Corporate Relations
Investor Relations:
James Palczynski/Chad A. Jacobs
203-222-9013
SOURCE: Aeropostale, Inc.
