Aeropostale provides Q1 & full year guidance for 2008
14 Mar '08
3 min read
Net income for the fourth quarter of fiscal 2007 was $64.7 million, or $0.95 per diluted share. Results for the fourth quarter of fiscal 2007 reflected the following special items:
• a non-cash, asset impairment charge of $9.0 million pre-tax, or $0.08 per share, related to the Company's Jimmy'Z concept; offset by
• other income of $4.1 million pre-tax, or $0.04 per share, relating to the settlement of disputes with a former officer of the Company; and
• the aforementioned initial gift-card breakage estimate benefit which was $7.7 million pre-tax, or $0.06 per share, and included periods prior to fiscal 2007.
Excluding the special items, adjusted net income for the fourth quarter of fiscal 2007 was $63.0 million, or $0.93 per share (see Exhibit D). This compares to the Company's previously issued guidance of $0.87 per share, which had included neither the aforementioned special items, nor the additional benefit of $2.1 million, or $0.03 per share, related to a reduction in the effective tax rate primarily due to favorable state tax accrual adjustments.
Full Fiscal Year Performance: Total net sales for fiscal 2007 increased 12.6% to $1.591 billion, from $1.413 billion for fiscal 2006. Same store sales for fiscal 2007 increased 3.3%, compared to the corresponding 52-week period last year. Total net sales for fiscal 2007 included the aforementioned initial gift-card breakage estimates recorded in the fourth quarter. This estimate was not included in the Company's previously reported net sales for fiscal 2007.