Aeropostale Chairman pleased with Q3 performance
Aeropostale Inc reported results for the third quarter ended November 1, 2008.
Third Quarter Results
Diluted earnings per share for the third quarter of fiscal 2008 increased 31% to a record $0.63 per diluted share, compared to net earnings of $0.48 per share in the third quarter of fiscal 2007. Net income for the third quarter increased 18% to a record $42.6 million, compared to net income of $36.0 million in the same period last year.
For the third quarter of fiscal 2008, total net sales increased 17% to $482.0 million, from $412.6 million in the year-ago period. Same store sales for the third quarter increased 7%, compared to an increase of 2% in the year- ago period.
Julian R. Geiger, Chairman and Chief Executive Officer said, "We are very pleased with the record results we generated in the third quarter. This accomplishment was particularly impressive given the unprecedented weakness in the macroeconomic environment. Our performance demonstrates the strength of our brand and the flexibility and resilience of our business model."
November Sales Results
Total net sales for the four-week period ended November 29, 2008 increased 5% to $200.9 million, from $192.2 million for the four-week period ended December 1, 2007. The Company's same store sales decreased 5% for the month, compared to a same store sales increase of 7% in the year ago period. The Company estimates that the timing of a later Thanksgiving holiday had a negative mid-single digit impact on comparable store sales for the month.
Year to date total net sales have increased 17% to $1.396 billion, from $1.192 billion in the year ago period. Year to date same store sales increased 7%, compared to essentially flat same store sales last year.
Fourth Quarter Guidance
The Company announced its earnings guidance for the fourth quarter of fiscal 2008. The Company expects earnings in the range of $0.84 to $0.90 per diluted share for the fourth quarter.
The Company achieved diluted earnings per share of $0.95 in the fourth quarter last year. Results for the fourth quarter of fiscal 2007 reflected certain special items (Exhibit D). Excluding these special items, diluted earnings per share were $0.93 for the fourth quarter of 2007. The Company believes that the disclosure of diluted earnings per share excluding the special items, which is a non-GAAP financial measure, provides investors with useful information to help them better understand the Company's results.
Mr. Geiger concluded, "As we progress through the holiday selling season, we will continue to offer our customers the right fashion at compelling values. We believe that the fundamentals of our business, which are responsible for our record year-to-date results, remain strong. We are focused on managing the business conservatively while maximizing growth opportunities and continuing to deliver profitable performance."
TheCompany expects fiscal 2009 capital expenditures of approximately $55 million, which relate to new and remodeled stores, corporate projects and IT initiatives. The Company anticipates capital expenditures of approximately $80 million for fiscal 2008.
Aeropostale Inc is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men. The Company provides customers with a focused selection of high-quality, active-oriented, fashion and fashion basic merchandise at compelling values.