Home / Knowledge / News / Apparel/Garments / Lower effective tax rate to benefit Aeropostale in Q2
Lower effective tax rate to benefit Aeropostale in Q2
09
Aug '13
Aeropostale, 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 2013, net sales decreased 6% to $454.0 million, from $485.3 million in the year ago period. Comparable sales, including the e-commerce channel, for the second quarter decreased by 15%, compared to the corresponding 13-week period ended August 4, 2012.

Based on lower than expected sales and margins for the quarter, the Company now expects its second quarter loss to be in the range of approximately $0.42 to $0.44 per diluted share, which includes charges totaling approximately $0.19 per diluted share that were not previously reflected in the Company's original second quarter guidance.  More specifically, our updated expectations, compared to our previously issued guidance, reflect:

An $8.9 million, or $0.11 per diluted share, lower than expected income tax benefit due to a change in the estimated effective tax rate to 25% from 45% resulting from lower taxable income; an after-tax charge of approximately $4.4 million, or $0.06 per diluted share, resulting from store asset impairment charges; and an after-tax charge of approximately $1.4 million, or $0.02 per diluted share, as a result of the accounting effect related to retirement features of our stock based compensation plan.

Thomas P. Johnson, Chief Executive Officer, commented, "During the second quarter, we continued to experience the challenging trends we faced in the first quarter.  Our performance was driven by an increase in promotional activity as we navigated through balancing our assortment, weak traffic trends and a challenging retail environment, particularly during the July selling period.  As we reposition the Aeropostale brand, we believe our current merchandise assortment is more fashionable and relevant.  Our entire organization is focused intently on accelerating customer adoption and regaining market share."

About Aeropostale, Inc.

Aeropostale, Inc. is a primarily 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 4 to 12 year-old kids through its P.S. from Aeropostale stores. The Company provides customers with a focused selection of high quality fashion and fashion basics at compelling values in an innovative and exciting store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise.

Aeropostale


Must ReadView All

Apparel/Garments | On 23rd Aug 2017

BRC welcomes clarity on goods flow during Brexit

British Retail Consortium (BRC) has welcomed the greater clarity that ...

Textiles | On 23rd Aug 2017

Kraig delivers first dragon silk fibre to medical firm

Kraig Biocraft Laboratories, Inc. a leading developer of genetically...

Information Technology | On 23rd Aug 2017

ThreadSol to organise Apparel Tech-Up in Bangladesh

ThreadSol, the pioneer in enterprise material management for sewn...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

August 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search