Home / Knowledge / News / Apparel/Garments / Aeropostale Q1'FY14 ecommerce revenue slips 18% to $34.3mn
Aeropostale Q1'FY14 ecommerce revenue slips 18% to $34.3mn
23
May '14
Aeropostale, Inc., a mall-based specialty retailer of casual apparel for young women and men, reported results for the first quarter of fiscal 2014, and provided guidance for the second quarter of fiscal 2014.
 
First Quarter Performance
For the first quarter of fiscal 2014, net sales decreased 12% to $395.9 million, from $452.3 million in the year ago period. Comparable sales, including the e-commerce channel, for the first quarter decreased 13%, compared to a decrease of 14% for the corresponding 13-week period ended May 4, 2013.
 
Net revenues from the Company's e-commerce business for the first quarter of fiscal 2014 decreased 18% to $34.3 million, from $41.9 million in the year ago period. 
 
The Company reported a net loss for the first quarter of fiscal 2014 of $76.8 million, or $0.98 per diluted share, which included after-tax charges of $31.6 million, or $0.40 per diluted share, related to store asset impairment charges, the majority of which is recorded in restructuring charges, $3.8 million, or $0.05 per share for other restructuring charges, and a charge of $0.3 million, or $0.01 per diluted share in other lease exit and consulting costs.  The Company reported a net loss of $12.2 million, or $0.16 per diluted share, for the first quarter of 2013.
 
Excluding the aforementioned charges, the Company reported an adjusted net loss of $41.1 million, or $0.52 per diluted share in the first quarter of fiscal 2014 (see Exhibit C).  This compares to the Company's previously issued guidance for operating losses in the range of $64 million to $68 million, which translated to a net loss in the range of $0.70 to $0.75 per diluted share, which did not include the aforementioned charges.
 
Thomas P. Johnson, Chief Executive Officer, commented, "As other retailers experienced, the macroeconomic environment was challenging during the first quarter with aggressive promotions, lower mall traffic, and unseasonable weather.  While our overall results were disappointing, we were able to exceed guidance and end the quarter with inventories well-controlled.  
 
“Additionally, at the close of the quarter, we took additional actions to build on our turnaround efforts from the past year, restructuring our P.S. from Aeropostale business and expanding our expense savings program.  We remain focused on strengthening our company operationally and financially as we continue to implement our strategies to reposition the Aeropostale brand."
 
The Company ended the quarter with cash and cash equivalents of $24.5 million and $8.5 million in short term borrowings.
 
The Company closed 18 Aeropostale stores during the quarter and one P.S. from Aeropostale store. For the first quarter, the Company invested $8.0 million in planned capital expenditures.
 
Click here to view full results.
 

Aeropostale


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