Aeropostale Reports Results for First Quarter of Fiscal 2012
First Quarter Earnings of $0.13 Per Diluted Share

NEW YORK, May 17, 2012 /PRNewswire/ -- Aeropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of casual apparel for young women and men, today reported results for the first quarter of fiscal 2012, and provided guidance for the second quarter of fiscal 2012.

First Quarter Performance
Diluted net earnings for the first quarter of 2012 were $0.13 per share, compared to $0.20 per diluted share in the same period last year.  Net income for the first quarter of 2012 was $10.6 million, compared to net income of $16.4 million last year. 

For the first quarter of fiscal 2012, net sales increased 6% to $497.2 million, from $469.2 million in the year ago period. Comparable sales, including the e-commerce channel, for the first quarter increased 2%, compared to a 5% decrease last year.  Comparable store sales, excluding the e-commerce channel, for the first quarter were essentially flat, compared to a 7% decrease last year. 

Thomas P. Johnson, Chief Executive Officer, commented, "During the first quarter, we continued to make progress on our key initiatives, and we experienced a significant improvement in trends versus the fourth quarter. This accomplishment was a result of the efforts of our entire organization, and I continue to be very proud of our team's contributions and dedication."

E-commerce
Net revenue from the Company's e-commerce business for the first quarter of fiscal 2012 increased 32% to $37.2 million, from $28.2 million in the year ago period. 

Inventory
Total merchandise inventory for the first quarter of fiscal 2012 was $174.9 million, a total increase of 23%, or 16% on a retail per square foot basis, reflecting accelerated receipts due to a shift in the timing of summer floor-sets.  As of May 12, 2012, inventory levels versus last year decreased 2% on a retail per square foot basis.

Cash Positioning and Share Repurchase Program
The Company ended the quarter with cash and cash equivalents of $202.6 million and no debt. The Company currently has $145.2 million of availability remaining under its share repurchase program.

Store Growth and Capital Spending
The Company opened three Aeropostale and 10 P.S. from Aeropostale stores, and closed three Aeropostale stores during the quarter. For the first quarter, the Company invested $18.2 million in planned capital expenditures.

Second Quarter Guidance
For the second quarter of fiscal 2012, the Company expects earnings in the range of $0.03 to $0.05 per diluted share. This compares to earnings of $0.04 per diluted share for the second quarter of 2011, which included a non-recurring pre-tax benefit to the Company's gross profit of $8.7 million, or $0.06 per diluted share, resulting from the resolution of a dispute with one of the Company's merchandise vendors surrounding prior period allowances.

Mr. Johnson, continued, "While I am pleased with the sequential progress we are making in our business, the overall retail environment remains uncertain and we are early in the cycle of executing our key initiatives.  As we move through the remainder of the year, we continue to focus on improving our financial performance and our profitability."

Conference Call Information
The Company will be holding a conference call today at 4:15 P.M EDT to review its first quarter results. The broadcast will be available through the 'Investor Relations' link at www.aeropostale.com and www.fulldisclosure.com.  To listen to the broadcast your computer must have Windows Media Player installed. If you do not have Windows Media Player go to the latter site prior to the call, where you can download the software for free.

About Aeropostale, Inc.
Aeropostale®, Inc. is a primarily 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 4 to 12 year-old kids through its P.S. from Aeropostale® stores. The Company provides customers with a focused selection of high quality fashion and fashion basics at compelling values in an innovative and exciting store environment. Aeropostale® maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. Aeropostale® products can only be purchased in its Aeropostale® stores and online at www.aeropostale.com. P.S. from Aeropostale® products can be purchased in P.S. from Aeropostale® stores and online at www.ps4u.com and www.aeropostale.com. The Company currently operates 916 Aeropostale® stores in 50 states and Puerto Rico, 70 Aeropostale stores in Canada and 81 P.S. from Aeropostale® stores in 21 states. In addition, pursuant to various licensing agreements, our licensees currently operate 17 Aeropostale® and P.S. from Aeropostale® stores in the Middle East, Asia and Europe.

SPECIAL NOTE: THIS PRESS RELEASE AND ORAL STATEMENTS MADE FROM TIME TO TIME BY REPRESENTATIVES OF THE COMPANY CONTAIN CERTAIN "FORWARD-LOOKING STATEMENTS" CONCERNING EXPECTATIONS FOR SALES, STORE OPENINGS, GROSS MARGINS, EXPENSES, STRATEGIC DIRECTION AND EARNINGS.  ACTUAL RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER INCLUDE, CHANGES IN THE COMPETITIVE MARKETPLACE, INCLUDING THE INTRODUCTION OF NEW PRODUCTS OR PRICING CHANGES BY OUR COMPETITORS, CHANGES IN THE ECONOMY AND OTHER EVENTS LEADING TO A REDUCTION IN DISCRETIONARY CONSUMER SPENDING; SEASONALITY; RISKS ASSOCIATED WITH CHANGES IN SOCIAL, POLITICAL, ECONOMIC AND OTHER CONDITIONS AND THE POSSIBLE ADVERSE IMPACT OF CHANGES IN IMPORT RESTRICTIONS; RISKS ASSOCIATED WITH UNCERTAINTY RELATING TO THE COMPANY'S ABILITY TO IMPLEMENT ITS GROWTH STRATEGIES, AS WELL AS THE OTHER RISK FACTORS SET FORTH IN THE COMPANY'S FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.

EXHIBIT A

AEROPOSTALE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(in thousands)

 


April 28, 2012

January 28, 2012

April 30, 2011





ASSETS




Current Assets:




  Cash and cash equivalents

$202,625

$ 223,712

$139,103

  Merchandise inventory

174,947

163,522

142,250

  Other current assets

53,383

54,565

59,484

     Total current assets

430,955

441,799

340,837





Fixtures, equipment and improvements, net

295,818

287,393

308,514





Other assets

4,905

6,041

4,531





TOTAL ASSETS

$731,678

$735,233

$653,882





LIABILITIES AND STOCKHOLDERS' EQUITY




Current Liabilities:




  Accounts payable

$ 83,553

$ 103,476

$ 94,065

  Accrued expenses

92,993

89,735

78,002

     Total current liabilities

176,546

193,211

172,067





Other non-current liabilities

134,721

132,588

128,949





Stockholders' equity

420,411

409,434

352,866





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$731,678

$735,233

$653,882


 

EXHIBIT B

AEROPOSTALE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

SELECTED STORE DATA

 

(in thousands, except per share and store data)

 


13 weeks ended


April 28, 2012

April 30, 2011



% of sales


% of sales






Net sales

$497,214

100.0%

$469,183

100.0%






Cost of sales (including certain buying, occupancy and warehousing expenses)

358,202

72.0

332,525

70.9






Gross profit

139,012

28.0

136,658

29.1






Selling, general and administrative expenses

122,323

24.6

109,082

23.2






Income from operations

16,689

3.4

27,576

5.9






Interest expense, net

159

0.1

67

0.0






Income before income taxes

16,530

3.3

27,509

5.9






Income taxes

5,954

1.2

11,142

2.4






Net income

$10,576

2.1%

$16,367

3.5%






Basic earnings per share

$0.13


$0.20







Diluted earnings per share

$0.13


$0.20







Weighted average basic shares

81,044


82,605







Weighted average diluted shares

81,626


83,445







STORE DATA:










Comparable sales change (including e-commerce channel) increase

2%


(5)%







Comparable store sales change (excluding e-commerce channel)

0%


(7)%







Stores open at end of period

1,067


1,027







Total square footage at end of period

3,950,570


3,762,379







Average square footage during period

3,928,627


3,737,495


Company Contact:
Kenneth Ohashi/VP, Investor & Media Relations
(646) 452-1876 or kohashi@aeropostale.com

Media Contact:
Leigh Parrish, FTI Consulting
(212) 850-5600

SOURCE Aeropostale, Inc.

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