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.
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