Casual apparel retailer Aeropostale performs well
Aeropostale, Inc., a mall-based specialty retailer of casual apparel for young women and men, reported results for the second quarter of fiscal 2010, and provided guidance for the third quarter of fiscal 2010.
Second Quarter Performance
Diluted net earnings per share for the second quarter of fiscal 2010 increased 21% to a record $0.46 per share, compared to $0.38 per share in the same period last year. Net income for the second quarter increased 13% to $43.6 million, compared to net income of $38.6 million last year.
For the second quarter of fiscal 2010, total net sales increased 9% to $494.7 million, from $453.0 million in the year ago period. Same store sales for the second quarter increased 4%, compared to a same store sales increase of 12% last year.
Co-Chief Executive Officers Mindy C. Meads and Thomas P. Johnson, said, "We are very proud of the dedication and hard work of our entire organization in achieving these results. The consistency of our results underscores the strength and talent of our organization, the power of our brand, and the flexibility of our operating model."
Total net sales from the Company's e-commerce business for the second quarter of fiscal 2010 increased 32% to $20.9 million, from $15.8 million in the year ago period.
Third Quarter Guidance
For the third quarter of fiscal 2010 the Company expects net earnings in the range of $0.61 to $0.63 per diluted share, which includes a previously disclosed after-tax charge of approximately $3.8 million, or $0.04 per share, resulting from the related third quarter retirement plan payment to its Chairman and former Chief Executive Officer. This guidance compares to net earnings of $0.61 per share in the third quarter last year.
Co-Chief Executive Officers Mindy C. Meads and Thomas P. Johnson, commented, "Moving into the third quarter, we are clearly operating in a challenging retail climate. We are focused on executing key strategies that will enable us to navigate through the current environment and build upon our strong brand position."
Store Growth and Capital Spending
The company opened 8 Aeropostale and 14 P.S. from Aeropostale stores, and closed 1 Aeropostale store during the quarter. For the second quarter, the company incurred $24.3 million in capital expenditures.
Aeropostale, Inc. is a 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 7 to 12 year-old kids through its P.S. from Aeropostale stores. The Company provides customers with a focused selection of high-quality, active-oriented, fashion and fashion basic merchandise at compelling values.