Same store sales essentially flat at Aeropostale
Aeropostale Inc, a mall-based specialty retailer of active and casual apparel for young women and men, reported results for the third quarter ended October 30, 2010 and total net sales for the four-week period ended November 27, 2010.
Third Quarter Results
Diluted net earnings for the third quarter of fiscal 2010 were $0.63 per diluted share, which includes a previously disclosed after-tax charge of approximately $3.9 million, or $0.04 per diluted share, resulting from the related third quarter retirement plan payment to its Chairman and former Chief Executive Officer. The Company reported net earnings of $0.61 per diluted share in the third quarter last year.
For the third quarter of fiscal 2010, total net sales increased 6% to $602.8 million, from $567.8 million in the year ago period. Same store sales for the third quarter were essentially flat, compared to a same store sales increase of 10% last year. Total net sales for the Company's e-commerce business for the third quarter of fiscal 2010 increased 17% to $38.3 million, from $32.6 million in third quarter last year.
Thomas P. Johnson, Chief Executive Officer, said, "We are very pleased to deliver third quarter earnings at the high-end of our initial guidance. Our ability to navigate effectively through the challenging and promotional environment truly underscores the power and flexibility of our promotional specialty store model."
November Sales Results
Total net sales for the four-week period ended November 27, 2010 increased 7% to $243.8 million, from $228.0 million for the four-week period ended November 28, 2009. The Company's same store sales decreased 1% for the month, compared to a same store sales increase of 7% in the year ago period.
The Company stated that it experienced a mid-single digit same store sales increase on the Friday after Thanksgiving Day. The Company also stated, however, that sales trends decelerated significantly for the remainder of the Thanksgiving Day weekend.
Fourth Quarter Guidance
The Company announced its earnings guidance for the fourth quarter of fiscal 2010. The Company expects earnings in the range of $0.94 to $0.96 per diluted share for the fourth quarter. The Company achieved diluted earnings per share of $0.99 in the fourth quarter last year.
Store Growth and Capital Spending for Fiscal 2011
For fiscal 2011 the Company plans to invest approximately $70.0 million to open approximately 30 Aeropostale stores, approximately 20 P.S. from Aeropostale stores, approximately 50 store remodels, in addition to certain information technology investments. This compares to capital expenditures of approximately $96.0 million in fiscal 2010.
Discontinuation of Monthly Sales Reporting
Beginning in Fiscal 2011, the Company will discontinue monthly sales reporting. Sales and earnings will be reported in conjunction with the quarterly earnings announcement.