Aeropostale Reports Results For Third Quarter Of Fiscal 2012

         Aeropostale Reports Results For Third Quarter Of Fiscal 2012

Third Quarter Earnings of $0.31 Per Diluted Share

Provides Fourth Quarter Guidance

PR Newswire

NEW YORK, Nov. 28, 2012

NEW YORK, Nov.28, 2012 /PRNewswire/ --Aeropostale, Inc. (NYSE: ARO), a
mall-based specialty retailer of casual apparel for young women and men, today
reported results for the third quarter of fiscal 2012, and provided guidance
for the fourth quarter of fiscal 2012.

Third Quarter Performance
Diluted net earnings for the third quarter of 2012 were $0.31 per share,
compared to $0.30 per diluted share in the same period last year. Net income
for the third quarter of 2012 was $24.9 million, compared to net income of
$24.1 million last year.

For the third quarter of fiscal 2012, net sales increased 2% to $605.9
million, from $596.5 million in the year ago period. Comparable sales,
including the e-commerce channel, for the third quarter decreased 1% compared
to a 7% decrease last year. Comparable store sales, excluding the e-commerce
channel, for the third quarter decreased 2%, compared to a 9% decrease last
year.

Thomas P. Johnson, Chief Executive Officer, commented, "For the third quarter,
we achieved net earnings slightly ahead of our previously issued guidance.
Although we experienced pressure on our women's core basics business, she
responded positively to our fashion offering. In addition, our men's and
accessories businesses performed well."

E-commerce
Net revenue from the Company's e-commerce business for the third quarter of
fiscal 2012 increased 12% to $51.1 million, from $45.7 million in the year ago
period.

Cash Position and Share Repurchase Program
The Company ended the quarter with cash and cash equivalents of $184.5 million
and no debt. During the third quarter of fiscal 2012, the Company repurchased
approximately $40.8 million, or 3.0 million shares of common stock. The
Company currently has $104.4 million of availability remaining under its share
repurchase program.

Store Growth and Capital Spending
The Company opened five Aeropostale and five P.S. from Aeropostale stores, and
closed two Aeropostale and two temporary P.S. from Aeropostale stores during
the quarter. For the third quarter, the Company invested $15.9 million in
planned capital expenditures.

Fourth Quarter Guidance
The Company announced earnings guidance for the fourth quarter of fiscal
2012. The Company expects adjusted earnings in the range of $0.36 to $0.41
per diluted share, compared to adjusted earnings of $0.44 per diluted share in
the same period last year. This earnings guidance does not include the impact
of any potential store asset impairment charges, and assumes an effective tax
rate of approximately 43.5% versus a tax rate of 35.9% last year.

Mr. Johnson continued, "While our performance over the Black Friday weekend
was encouraging, the environment during the first few weeks of November was
challenging. As a result, we continue to be cautious for the remainder of the
quarter given the inconsistency we are seeing in our business against the
backdrop of a highly promotional environment. We will continue to focus on
delivering on our strategic initiatives, managing our business conservatively,
and ending the quarter with inventories well-controlled."

Use of Non-GAAP Measures
The Company believes that the disclosure of adjusted net income and adjusted
earnings per diluted share, which are non-GAAP financial measures, provides
investors with useful information to help them better understand the Company's
results (see Exhibit D).

Conference Call Information
The Company will be holding a conference call today at 4:15 P.M EST to review
its third 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
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, 78 Aeropostale stores in
Canada and 99 P.S. from Aeropostale® stores in 20 states. In addition,
pursuant to various licensing agreements, our licensees currently operate 28
Aeropostale® and P.S. from Aeropostale® stores in the Middle East, Asia and
Europe. On November 13, 2012, Aeropostale, Inc. acquired substantially all of
the assets of online women's fashion footwear and apparel retailer GoJane.com,
Inc. Based in Ontario, California, GoJane focuses primarily on fashion
footwear, with a select offering of contemporary apparel and other
accessories.

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)
(Unaudited)
                                     October 27,    January 28,    October 29,
                                     2012           2012           2011
ASSETS
Current Assets:
 Cash and cash equivalents       $ 184,456      $ 223,712      $ 109,379
 Merchandise inventory             277,440        163,522        265,133
 Other current assets              64,578         54,565         67,500
 Total current assets           526,474        441,799        442,012
Fixtures, equipment and              298,915        287,393        313,483
improvements, net
Other assets                        4,057          6,041          5,830
TOTAL ASSETS                      $ 829,446      $ 735,233      $ 761,325
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
 Accounts payable                $ 178,523      $ 103,476      $ 171,592
 Accrued expenses                  107,377        89,735         77,701
 Total current liabilities      285,900        193,211        249,293
Other non-current liabilities       134,752        132,588        129,834
Stockholders' equity                408,794        409,434        382,198
TOTAL LIABILITIES AND              $ 829,446      $ 735,233      $ 761,325
STOCKHOLDERS' EQUITY

EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(In thousands, except per share and store data)
(Unaudited)
                                13 weeks ended
                                October 27, 2012         October 29, 2011
                                           % of sales               % of sales
Net sales                   $ 605,918    100.0%      $ 596,506    100.0%
Cost of sales (including
certain buying, occupancy and   436,911    72.1%         434,985    72.9%
warehousing expenses)
Gross profit                   169,007    27.9%         161,521    27.1%
Selling, general and            126,514    20.9%         121,793    20.4%
administrative expenses
Income from operations        42,493     7.0%          39,728     6.7%
Interest expense, net          39         0.0%          185        0.0%
Income before income taxes     42,454     7.0%          39,543     6.7%
Income taxes                   17,507     2.9%          15,435     2.7%
Net income                   $ 24,947     4.1%        $ 24,108     4.0%
Basic earnings per share     $ 0.31                   $ 0.30
Diluted earnings per share   $ 0.31                   $ 0.30
Weighted average basic          79,833                   80,741
shares
Weighted average diluted        80,136                   81,068
shares
STORE DATA:
Comparable sales change
(including e-commerce           -1%                      -7%
channel)
Comparable store sales change
(excluding e-commerce           -2%                      -9%
channel)
Stores open at end of period   1,091                    1,055
Total square footage at end     4,033,820                3,886,083
of period
Average square footage during   4,027,337                3,862,152
period

EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(In thousands, except per share and store data)
(Unaudited)
                                39 weeks ended
                                October 27, 2012         October 29, 2011
                                           % of sales               % of sales
Net sales                   $ 1,588,469  100.0%      $ 1,533,880  100.0%
Cost of sales (including
certain buying, occupancy and   1,157,680  72.9%         1,121,666  73.1%
warehousing expenses)
Gross profit                   430,789    27.1%         412,214    26.9%
Selling, general and            371,012    23.4%         339,524    22.1%
administrative expenses
Income from operations        59,777     3.7%          72,690     4.7%
Interest expense, net          346        0.0%          300        0.0%
Income before income taxes     59,431     3.7%          72,390     4.7%
Income taxes                   23,837     1.5%          28,974     1.9%
Net income                   $ 35,594     2.2%        $ 43,416     2.8%
Basic earnings per share     $ 0.44                   $ 0.53
Diluted earnings per share   $ 0.44                   $ 0.53
Weighted average basic          80,714                   81,358
shares
Weighted average diluted        81,157                   81,924
shares
STORE DATA:
Comparable sales change
(including e-commerce           1%                       -8%
channel)
Comparable store sales change
(excluding e-commerce           -1%                      -10%
channel)
Average square footage during   3,981,670                3,806,693
period

EXHIBIT D
AEROPOSTALE, INC.
RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE
(In thousands, except per share data)
(Unaudited)
The following table presents a reconciliation of net income and diluted
earnings per share ("EPS") on a GAAP basis to the non-GAAP adjusted basis
discussed in this release.
                           39 weeks ended
                           October 27, 2012             October 29, 2011
                           Net            Diluted       Net           Diluted
                           Income         EPS           Income        EPS
As reported        $     35,594      $  0.44       $  43,416     $  0.53
Vendor dispute             -              -             (4,700)       (0.06)
resolution^1
As adjusted        $     35,594      $  0.44       $  38,716     $  0.47
^1During the second quarter of 2011, we recorded a favorable pre-tax benefit
of $8.7 million, resulting from the resolution of a previously disclosed
dispute with one of our sourcing agents. Of this benefit, $8.0 million
related to periods prior to fiscal 2011.

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

Media Contact:
Leigh Parrish, FTI Consulting
(212) 850-5651

SOURCE Aeropostale, Inc.

Website: http://www.aeropostale.com
 
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