First Quarter Performance
For the first quarter of fiscal 2013, net sales decreased 9% to $452.3 million, from $497.2 million in the year ago period. Comparable sales, including the e-commerce channel, for the first quarter decreased 14%, compared to the corresponding 13-week period ended May 5, 2012.
The Company reported a net loss for the first quarter of 2013 of $12.2 million, or $0.16 per diluted share. The Company reported net income of $10.6 million, or $0.13 per diluted share, in the first quarter of 2012.
Thomas P. Johnson, Chief Executive Officer, commented, "As we had anticipated, our first quarter performance reflected an increase in promotional activity as we cleared through carryover inventory from the fourth quarter. In addition, we were impacted by a weak macroeconomic environment, as well as unseasonably cool weather. Our organization continues to work diligently to execute the initiatives we outlined earlier this year to transform the Aeropostale brand and develop our future growth drivers."
Net revenues from the Company's e-commerce business for the first quarter of fiscal 2013, including net revenues from the GoJane.com business, which was acquired on November 13, 2012, increased 13% to $41.9 million, from $37.2 million in the year ago period.
Cash Position and Share Repurchase Program
The Company ended the quarter with cash and cash equivalents of $148.4 million and no debt. The Company currently has $104.4 million of availability remaining under its share repurchase program.
Store Growth and Capital Spending
The Company opened one Aeropostale and 24 P.S. from Aeropostale stores, and closed three Aeropostale stores during the quarter. For the first quarter, the Company invested $16.4 million in planned capital expenditures.
Second Quarter Guidance
For the second quarter of fiscal 2013, the Company expects to report a loss in the range of $0.15 to $0.20 per diluted share. This compares to earnings of $0.00 per diluted share for the second quarter of 2012.
Mr. Johnson continued, "Our second quarter guidance reflects limited visibility as we head into the initial back-to-school selling period, as well as the uncertainty regarding the overall macroeconomic environment. As we navigate the remainder of the year, we remain confident about the progress we are making on our strategic initiatives."
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