Fourth Quarter Earnings of $1.01 Per Diluted Share NEW YORK, March
12 /PRNewswire-FirstCall/ -- Aeropostale, Inc. (NYSE: ARO), a
mall-based specialty retailer of casual apparel for young women and
men, today reported results for the fourth quarter, provided
guidance for the first quarter of fiscal 2009 and announced the
name of its new kids store concept. Fourth Quarter Performance: Net
income for the fourth quarter of fiscal 2008 increased 5% to a
record $68.2 million, or $1.01 per diluted share, compared to net
income of $64.7 million, or $0.95 per diluted share, in the fourth
quarter of fiscal 2007. Total net sales for the fourth quarter of
fiscal 2008 increased 17% to $690.0 million, from $591.3 million
for the fourth quarter of fiscal 2007. Same store sales for the
fourth quarter increased 6%, compared to a same store sales
increase of 9% in the year ago period. Julian R. Geiger, Chairman
and Chief Executive Officer, said, "We are extremely pleased with
our record fourth quarter performance and our strong finish to
fiscal 2008. The ongoing strength of our merchandise assortment,
coupled with our powerful promotions, led to another record quarter
and another record year. Throughout the year we have maintained
strong brand momentum and we have executed consistently on our
strategies to meet our corporate goals." Full Fiscal Year
Performance Net income for fiscal 2008 increased 16% to a record
$149.4 million or $2.21 per diluted share, compared to net income
of $129.2 million or $1.73 per diluted share in fiscal 2007. Total
net sales for the fiscal year ended January 31, 2009 increased 19%
to $1.886 billion, from $1.591 billion in the year ago period. Same
store sales for fiscal 2008 increased 8%, compared to a same store
sales increase of 3% in the year ago period. First Quarter Guidance
The Company announced its earnings guidance for the first quarter
of fiscal 2009. The Company expects earnings in the range of $0.22
to $0.24 per diluted share for the first quarter, which includes
charges of approximately $3.0 million, or $0.03 per diluted share
related to the closing of the Jimmy'Z concept. The Company expects
to record additional costs related to the Jimmy'Z closing of
approximately $2.0 million, or $0.02 per diluted share, in the
second quarter of fiscal 2009. Mr. Geiger concluded, "Moving into
fiscal 2009, we are well positioned to continue building upon our
significant accomplishments from last year. We are very pleased
with the initial customer reaction to our spring merchandise
assortment. We look forward to expanding the Aeropostale brand,
both domestically and internationally, while also launching our new
concept. We are very proud of the achievements we have made in our
business, and we look forward to maximizing our opportunities in
the coming year." Launch of P.S. from Aeropostale The Company also
announced today the name of its new kids store concept - "P.S. from
Aeropostale". The new concept will offer casual clothing and
accessories for kids ages 7 to 12. "P.S. from Aeropostale" will
draw from the core competencies of Aeropostale by offering the
customer trend-right merchandise at compelling values. The
innovative store format will be a fun, playful and inviting
shopping experience for both the child and parent. The first "P.S.
from Aeropostale" store is planned to open in June 2009, with an
online launch at http://www.ps4u.com/ shortly thereafter.
E-commerce Total net sales from the Company's e-commerce business
for the fourth quarter of fiscal 2008 increased 88% to $41.4
million, from $22.0 million for the fourth quarter of fiscal 2007.
Total net sales from the Company's e-commerce business for the
fiscal year ended January 31, 2009 increased 85% to $79.1 million,
from $42.8 million in the year ago period. Strong Cash Positioning
The Company ended fiscal 2008 with cash and cash equivalents of
$228.5 million, compared to $111.9 million last year. The Company
currently has no debt outstanding. As of January 31, 2009, the
Company had $150.0 million available under its revolving credit
facility. Store Growth and Capital Spending The Company plans to
invest approximately $55 million in capital for fiscal 2009 to open
approximately 40 Aeropostale and approximately 10 P.S. from
Aeropostale stores, remodel certain existing stores and make
certain information technology investments. This compares to
capital expenditures of approximately $83 million in fiscal 2008.
Conference Call Information The Company will be holding a
conference call today at 4:15 P.M. EDT to review its fourth quarter
results. The broadcast will be available through the 'Investor
Relations' link at http://www.aeropostale.com/ and
http://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 (http://www.aeropostale.com/). The
Company currently operates 874 Aeropostale stores in 48 states and
Puerto Rico and 29 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. Company Contact:
Kenneth Ohashi/VP, Investor & Media Relations (646) 452-1876 or
Media Contact: Leigh Parrish/Diane Zappas, FD (212) 850-5600
EXHIBIT A AEROPOSTALE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands) January 31, February 2, 2009 2008 -----------
----------- ASSETS Current Assets: Cash and cash equivalents
$228,530 $111,927 Merchandise inventory 126,361 136,488 Other
current assets 39,967 36,272 ------ ------ Total current assets
394,858 284,687 Fixtures, equipment and improvements, net 248,999
213,831 Other assets 14,822 15,651 ------ ------ TOTAL ASSETS
$658,679 $514,169 ======== ======== LIABILITIES AND STOCKHOLDERS'
EQUITY Current Liabilities: Accounts payable $77,248 $99,369
Accrued expenses 98,993 98,018 ------ ------ Total current
liabilities 176,241 197,387 Other non- current liabilities 127,422
119,506 Stockholders' equity 355,016 197,276 ------- ------- TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY $658,679 $514,169 ========
======== EXHIBIT B AEROPOSTALE, INC. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND SELECTED STORE DATA (in thousands, except
per share and store data) 13 weeks ended
--------------------------------------------- January 31, 2009
February 2, 2008 -------------------- --------------------- % of
sales % of sales ---------- ---------- Net sales (1) $690,017
100.0% $591,289 100.0% Cost of sales (including certain buying,
occupancy and warehousing expenses) 446,500 64.7 367,511 62.2
------- ---- ------- ---- Gross profit 243,517 35.3 223,778 37.8
Selling, general and administrative expenses 130,055 18.8 116,792
19.8 Jimmy'Z asset impairment charges (1) - - 9,023 1.5 Other
income (1) - - 4,078 0.7 --- --- ----- --- Income from operations
113,462 16.5 102,041 17.2 Interest income, net (20) 0.0 587 0.1
---- --- --- --- Income before income taxes 113,442 16.5 102,628
17.3 Income taxes 45,217 6.6 37,893 6.4 ------ --- ------ --- Net
income $68,225 9.9% $64,735 10.9% ======= ==== ======= ===== Basic
earnings per share $1.02 $0.96 ===== ===== Diluted earnings per
share $1.01 $0.95 ===== ===== Weighted average basic shares 66,822
67,489 Weighted average diluted shares 67,440 67,995 STORE DATA:
Comparable store sales increase 6% 9% Stores open at end of period
914 828 Total square footage at end of period 3,284,614 2,935,214
Average square footage during period 3,296,466 2,933,759 (1)
Amounts for the quarter ended February 2, 2008 were favorably
impacted by initial gift card breakage income of $7.7 million ($4.8
million, after tax, or $0.06 per diluted share), or 1.3% of sales
and by other income of $4.1 million ($2.6 million, after tax or
$0.04 per diluted share), or 0.7% of sales. These amounts were
partially offset by Jimmy'Z asset impairment charges of $9.0
million ($5.7 million, after tax, or $0.08 per diluted share), or
1.5% of sales. EXHIBIT C AEROPOSTALE, INC. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND SELECTED STORE DATA (in thousands, except
per share and store data) 52 weeks ended
---------------------------------------------- January 31, 2009
February 2, 2008 ---------------------- ---------------------- % of
sales % of sales ---------- ---------- Net sales (1) $1,885,531
100.0% $1,590,883 100.0% Cost of sales (including certain buying,
occupancy and warehousing expenses) 1,231,349 65.3 1,037,680 65.2
--------- ---- --------- ---- Gross profit 654,182 34.7 553,203
34.8 Selling, general and administrative expenses 405,883 21.5
345,805 21.7 Jimmy'Z asset impairment charges (1) - - 9,023 0.6
Other income (1) - - 4,078 0.3 --- --- ----- --- Income from
operations 248,299 13.2 202,453 12.8 Interest income, net 510 0.0
6,550 0.4 --- --- ----- --- Income before income taxes 248,809 13.2
209,003 13.2 Income taxes 99,387 5.3 79,806 5.0 ------ --- ------
--- Net income $149,422 7.9% $129,197 8.2% ======== ==== ========
==== Basic earnings per share $2.24 $1.74 ===== ===== Diluted
earnings per share $2.21 $1.73 ===== ===== Weighted average basic
shares 66,832 74,315 Weighted average diluted shares 67,576 74,846
STORE DATA: Comparable store sales increase 8% 3% Average square
footage during period 3,139,515 2,814,679 (1) Amounts for the
fiscal year ended February 2, 2008 were favorably impacted by
initial gift card breakage income of $7.7 million ($4.8 million,
after tax, or $0.07 per diluted share), or 0.5% of sales and by
other income of $4.1 million ($2.6 million, after tax or $0.04 per
diluted share), or 0.3% of sales. These amounts were partially
offset by Jimmy'Z asset impairment charges of $9.0 million ($5.7
million, after tax, or $0.08 per diluted share), or 0.6% of sales.
DATASOURCE: Aeropostale, Inc. CONTACT: Company Contact, Kenneth
Ohashi/VP, Investor & Media Relations, +1-646-452-1876, ; or
Media Contact, Leigh Parrish or Diane Zappas, FD , +1-212-850-5600
Web Site: http://www.aeropostale.com/
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