First Quarter Net Sales Increase 21%; Same Store Sales Increase 11%
Reports Record Earnings Per Share
Provides Second Quarter Guidance
NEW YORK, May 21 /PRNewswire-FirstCall/ -- Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of casual apparel for young women and men, today reported results for the first quarter ended May 2, 2009.
Net income for the first quarter of fiscal 2009 was $31.7 million, or $0.47 per diluted share, compared to net income of $17.5 million, or $0.26 per diluted share, in the first quarter of fiscal 2008. Results for the first quarter include pre-tax charges of approximately $2.7 million, or $0.02 per diluted share, related to the closing of the Company's Jimmy'Z concept.
For the first quarter of fiscal 2009, total net sales increased 21% to $408.0 million, from $336.3 million in the year-ago period. Same store sales for the first quarter increased 11%, compared to an increase of 10% in the year-ago period.
Total net revenue from the Company's e-commerce business for the first quarter of fiscal 2009 increased 74% to $16.7 million, from $9.6 million for the first quarter of fiscal 2008.
Julian R. Geiger, Chairman and Chief Executive Officer, said, "The last three months, like the ten consecutive quarters that preceded it, was a period of record sales and record earnings for Aeropostale. We all know these results are extraordinary given the macro-economic climate in which we are operating. Clearly, we are proud of our organization's determination to succeed and its dedication to the principles that have made Aeropostale a destination lifestyle brand."
Second Quarter Guidance:
The Company announced its earnings guidance for the second quarter of fiscal 2009. The Company believes it will achieve earnings in the range $0.43 to $0.45 per diluted share for the second quarter, compared to earnings of $0.31 per share in the second quarter last year. This guidance includes pre-tax charges of approximately $3.0 million, or $0.03 per diluted share, related to the closing of the Jimmy'Z concept.
Julian R. Geiger, Chairman and Chief Executive Officer, concluded, "It is exciting to see that a new generation of teen customers has identified Aeropostale as one of their top brands of choice and has embraced it as its own. We are fully committed to maintaining and building this leadership position by listening to, and respecting, our customers every day."
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. 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 878 Aeropostale stores in 48 states and Puerto Rico and 33 Aeropostale stores in Canada.
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)
May 2, January 31, May 3,
2009 2009 2008
-------- --------- --------
ASSETS
Current Assets:
Cash and cash equivalents $247,747 $228,530 $64,469
Merchandise inventory 128,929 126,360 134,976
Other current assets 37,032 38,991 34,874
------ ------ ------
Total current assets 413,708 393,881 234,319
Fixtures, equipment and improvements, net 249,676 248,999 230,996
Other assets 13,299 15,039 16,385
------ ------ ------
TOTAL ASSETS $676,683 $657,919 $481,700
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $70,308 $77,247 $67,817
Accrued expenses 83,139 98,190 71,391
------ ------ ------
Total current liabilities 153,447 175,437 139,208
Other non- current liabilities 126,087 127,422 122,318
Stockholders' equity 397,149 355,060 220,174
------- ------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $676,683 $657,919 $481,700
======== ======== ========
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 2, 2009 May 3, 2008
----------- -----------
% of sales % of sales
---------- ----------
Net sales $408,024 100.0% $336,332 100.0%
Cost of sales (including
certain buying, occupancy and
warehousing expenses) 260,134 63.8 225,054 66.9
------- ---- ------- ----
Gross profit 147,890 36.2 111,278 33.1
Selling, general and
administrative expenses 94,446 23.1 82,090 24.4
------ ---- ------ ----
Income from operations 53,444 13.1 29,188 8.7
Interest (expense) income, net (45) 0.0 240 0.1
---- --- --- ---
Income before income taxes 53,399 13.1 29,428 8.8
Income taxes 21,724 5.3 11,930 3.5
------ --- ------ ---
Net income $31,675 7.8% $17,498 5.3%
======= ==== ======= ====
Basic earnings per share $0.47 $0.26
===== =====
Diluted earnings per share $0.47 $0.26
===== =====
Weighted average basic shares 67,099 66,749
Weighted average diluted
shares 67,790 67,305
STORE DATA:
Comparable store sales
increase 11% 10%
Stores open at end of period 920 848
Total square footage at end of
period 3,305,058 3,008,153
Average square footage during
period 3,296,109 2,969,173
Company Contact:
Kenneth Ohashi/VP, Investor & Media Relations
(646) 452-1876 or kohashi@aeropostale.com
Media Contact:
Leigh Parrish/Diane Zappas, FD
(212) 850-5600
