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Aeropostale Chief disappointed with Q2 results
06 Aug '11
2 min read
Aeropostale Inc, a mall-based specialty retailer of casual apparel for young women and men, announced updated expectations for the second quarter.
For the second quarter of fiscal 2011 net sales decreased 5% to $468.2 million, from $494.7 million in the year ago period. Same store sales for the second quarter decreased 14%, compared to a same store sales increase of 4% last year.
Thomas P. Johnson, Chief Executive Officer, commented, "We are very disappointed with our second quarter financial results that were clearly unacceptable. As a result of a lack of balance in our merchandise assortments, as well as continued promotional and macroeconomic challenges, we significantly increased the depth and breadth of our promotions and markdowns." Mr. Johnson continued, "Our top priority is to deliver a merchandise assortment that resonates with the teen customer and captures market share from our competitors.
Additionally, based on current business conditions that are likely to continue for the remainder of the year, we are planning our inventories conservatively and focusing aggressively on cost controls. As we look to 2012 and beyond, we have great confidence in the strength of the Aeropostale and PS brands, in our ability to develop balanced merchandise assortments for our customer, and in our capability to deliver improved financial performance and growth."
Based on the lower than expected sales and margins for the quarter, the Company expects net earnings to be in the range of $0.02 to $0.03 per share, which includes a non-recurring pre-tax benefit to the Company's gross profit of $8.7 million, or $0.06 per share, resulting from the resolution of a dispute with one of the Company's merchandise vendors, surrounding prior period allowances.
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 stores and 7 to 12 year-old kids through its P.S. from Aeropostale stores. The Company provides customers with a focused selection of high-quality, active-oriented, trend-right merchandise at compelling values. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise.
For the second quarter of fiscal 2011 net sales decreased 5% to $468.2 million, from $494.7 million in the year ago period. Same store sales for the second quarter decreased 14%, compared to a same store sales increase of 4% last year.
Thomas P. Johnson, Chief Executive Officer, commented, "We are very disappointed with our second quarter financial results that were clearly unacceptable. As a result of a lack of balance in our merchandise assortments, as well as continued promotional and macroeconomic challenges, we significantly increased the depth and breadth of our promotions and markdowns." Mr. Johnson continued, "Our top priority is to deliver a merchandise assortment that resonates with the teen customer and captures market share from our competitors.
Additionally, based on current business conditions that are likely to continue for the remainder of the year, we are planning our inventories conservatively and focusing aggressively on cost controls. As we look to 2012 and beyond, we have great confidence in the strength of the Aeropostale and PS brands, in our ability to develop balanced merchandise assortments for our customer, and in our capability to deliver improved financial performance and growth."
Based on the lower than expected sales and margins for the quarter, the Company expects net earnings to be in the range of $0.02 to $0.03 per share, which includes a non-recurring pre-tax benefit to the Company's gross profit of $8.7 million, or $0.06 per share, resulting from the resolution of a dispute with one of the Company's merchandise vendors, surrounding prior period allowances.
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 stores and 7 to 12 year-old kids through its P.S. from Aeropostale stores. The Company provides customers with a focused selection of high-quality, active-oriented, trend-right merchandise at compelling values. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise.
Aeropostale Inc
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