Aeropostale Reports Results for Fourth Quarter and Fiscal 2012

        Aeropostale Reports Results for Fourth Quarter and Fiscal 2012

Fourth Quarter Loss of $0.01 Per Diluted Share

Adjusted Earnings of $0.24 Per Diluted Share In-Line with Previously Issued
Guidance of $0.20 to $0.24

Provides First Quarter Fiscal 2013 Guidance

PR Newswire

NEW YORK, March 14, 2013

NEW YORK, March 14, 2013 /PRNewswire/ --Aeropostale, Inc. (NYSE: ARO), a
mall-based specialty retailer of casual apparel for young women and men, today
reported results for the fourth quarter of 2012 (the fourth quarter of fiscal
2012 consisted of 14 weeks compared to the fourth quarter of fiscal 2011,
which consisted of 13 weeks) and fiscal 2012 (fiscal 2012 consisted of 53
weeks compared to fiscal 2011, which consisted of 52 weeks). The Company also
provided guidance for the first quarter of fiscal 2013.

Fourth Quarter Performance

For the fourth quarter of fiscal 2012, net sales decreased 1% to $797.7
million, from $808.4 million in the year ago period. Fourth quarter comparable
sales, including the e-commerce channel, decreased 8% compared to a 7%
decrease for the corresponding 14-week period of the prior year. Fourth
quarter comparable store sales, excluding the e-commerce channel, decreased
9%, compared to a decrease of 9% for the corresponding 14-week period of the
prior year.

The Company reported a net loss for the fourth quarter of fiscal 2012 of $0.7
million, or $0.01 per diluted share, which included an after-tax charge of
$19.7 million, or $0.25 per diluted share, resulting from store asset
impairment charges. The Company reported net income of $26.1 million, or
$0.32 per diluted share, for the fourth quarter of 2011, which included an
after-tax charge of $9.5 million, or $0.12 per diluted share, resulting from
store asset impairment charges.

Excluding the aforementioned store asset impairment charges, the Company
reported adjusted net income of $19.1 million, and adjusted earnings of $0.24
per diluted share in the fourth quarter of 2012 (see Exhibit D). This
compares to the Company's previously issued guidance of $0.20 to $0.24 per
diluted share, which did not include the aforementioned charges. Also
excluding store asset impairment charges, the Company reported adjusted net
income of $35.6 million, or $0.44 per diluted share, for the fourth quarter of
the prior year.

Full Fiscal Year Performance

Net sales for fiscal 2012 increased 2% to $2.386 billion, from $2.342 billion
in the year ago period. Fiscal 2012 comparable sales, including the e-commerce
channel, decreased 2% compared to an 8% decrease for the comparable 53-week
period of the prior year. Fiscal 2012 comparable store sales, excluding the
e-commerce channel, decreased 4%, compared to a decrease of 9% for the
comparable 53-week period of the prior year.

Net income for fiscal 2012 was $34.9 million, or $0.43 per diluted share,
which included an after-tax charge of $19.7 million, or $0.25 per diluted
share, resulting from store asset impairment charges.

Net income for fiscal 2011 was $69.5 million, or $0.85 per diluted share,
which included the following items:

  oStore asset impairment charges of $9.1 million after tax, or $0.11 per
    diluted, recorded during the fourth quarter of fiscal 2011, partially
    offset by
  oA benefit of $5.3 million after tax, or $0.06 per diluted share, from the
    previously disclosed resolution of a dispute with one of the Company's
    sourcing agents related to prior period allowances in the second quarter
    of fiscal 2011.

Excluding these items in both years, adjusted net income for fiscal 2012 was
$54.7 million, or $0.68 per diluted share, compared to adjusted net income for
fiscal 2011 of $73.3 million, or $0.90 per diluted share (see Exhibit D).

Thomas P. Johnson, Chief Executive Officer, commented, "Our results for the
fourth quarter and fiscal year were disappointing; however, we made progress
during 2012 against our strategic initiatives. We added new talent to our
team, injected more relevant fashion into our assortments, and developed our
next generation store model. Further, we continued to build positive momentum
in our P.S. business, extended our global reach by opening in new markets, and
grew our e-commerce business, which included the successful acquisition of
GoJane.com. While we have not reached the level and consistency in our
performance for which we strive, we are committed to evolving and transforming
our product to position ourselves as a true lifestyle brand."

E-commerce

Net revenues from the Company's e-commerce business for the fourth quarter of
fiscal 2012, including net revenues from the GoJane business beginning
November 14, 2012, increased 16% to $96.8 million, from $83.2 million in the
year ago period. Net revenues from the Company's e-commerce business for
fiscal 2012 increased 19% to $217.0 million, from $182.1 million in the year
ago period.

Cash Positioning and Share Repurchase Program

The Company ended fiscal 2012 with cash and cash equivalents of $231.5 million
and no debt. The Company repurchased 3.0 million shares of common stock for
approximately $40.8 million during fiscal 2012. The Company currently has
$104.4 million of availability remaining under its share repurchase program.

First Quarter Guidance

For the first quarter of fiscal 2013, the Company expects to report a loss in
the range of $0.15 to $0.20 per diluted share, compared to earnings of $0.13
per diluted share last year.

Mr. Johnson continued, "We anticipate a challenging first quarter as a result
of expected margin pressures from Holiday carryover inventory, and the impact
of a weak macroeconomic environment. We will continue to plan our business
conservatively and manage our cost structure carefully. While we face
near-term challenges, we believe we have the right strategies and the right
team in place to improve the trajectory of our business."

Store Growth and Capital Spending for Fiscal 2013

For fiscal 2013, the Company plans to open approximately 14 Aeropostale
stores, approximately 60 P.S. from Aeropostale stores, remodel approximately
30 stores, and close approximately 15 to 20 Aeropostale stores. The Company
expects to invest approximately $89.0 million in its store growth and certain
information technology. This compares to capital expenditures of
approximately $72.3 million in fiscal 2012.

Conference Call Information

The Company will be holding a conference call today at 4:15 P.M. ET to review
its fourth 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.

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).

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 906
Aeropostale® stores in 50 states and Puerto Rico, 78 Aeropostale stores in
Canada and 103 P.S. from Aeropostale® stores in 22 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.com 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. READERS ARE
REFERRED TO THOSE SEC FILINGS.

EXHIBIT A
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                         February 2, 2013    January 28, 2012
ASSETS
Current Assets:
 Cash and cash equivalents           $ 231,501           $ 223,712
 Merchandise inventory                 155,463             163,522
 Other current assets                  53,603              54,565
 Total current assets               440,567             441,799
Fixtures, equipment and improvements,    263,512             287,393
net
Goodwill and intangible assets           28,599              -
Other assets                            9,303               6,041
TOTAL ASSETS                          $ 741,981           $ 735,233
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
 Accounts payable                    $ 89,991            $ 103,476
 Accrued expenses                      114,700             89,735
 Total current liabilities          204,691             193,211
Other non-current liabilities           126,974             132,588
Stockholders' equity                    410,316             409,434
TOTAL LIABILITIES AND STOCKHOLDERS'    $ 741,981           $ 735,233
EQUITY



EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
SELECTED STORE DATA
(In thousands, except per share and store data)
(Unaudited)
                         14 weeks ended                 13 weeks ended
                         February 2, 2013               January 28, 2012
                                        % of                           % of
                                        sales                          sales
Net sales          $   797,709        100.0%      $   808,380        100.0%
Cost of sales
(including certain
buying, occupancy
and                      639,141        80.2%           612,250        75.7%

warehousing
expenses) ^1
Gross profit            158,568        19.8%           196,130        24.3%
Selling, general and
administrative           158,834        19.9%           155,305        19.2%
expenses
Income (loss) from       (266)          -0.1%           40,825         5.1%
operations
Interest expense,        139            0.0%            117            0.0%
net
Income (loss) before     (405)          -0.1%           40,708         5.1%
income taxes
Income taxes            266            0.0%            14,609         1.8%
Net income (loss)    $   (671)          -0.1%       $   26,099         3.3%
Basic earnings       $   (0.01)                     $   0.32
(loss) per share
Diluted earnings     $   (0.01)                     $   0.32
(loss) per share
Weighted average         78,272                         80,757
basic shares
Weighted average         78,272                         81,472
diluted shares
STORE DATA:
Comparable sales
change (including        -8%                            -7%
e-commerce channel)
Comparable store
sales change             -9%                            -9%
(excluding
e-commerce channel)
Stores open at end       1,084                          1,057
of period
Total square footage     4,013,521                      3,909,196
at end of period
Average square
footage during           4,048,435                      3,910,242
period
^1 Cost of sales for the fourth quarter of fiscal 2012 was unfavorably
impacted by store asset impairment charges of $32.6 million ($19.7 million
after tax, or $0.25 per diluted share). Cost of sales for the fourth quarter
of fiscal 2011 was unfavorably impacted by store asset impairment charges of
$14.8 million ($9.5 million after tax, or $0.12 per diluted share).



EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(In thousands, except per share and store data)
(Unaudited)
                         53 weeks ended                 52 weeks ended
                         February 2, 2013               January 28, 2012
                                        % of                           % of
                                        sales                          sales
Net sales          $   2,386,178      100.0%      $   2,342,260      100.0%
Cost of sales
(including certain
buying, occupancy
and                      1,796,821      75.3%           1,733,916      74.0%

warehousing
expenses) ^1
Gross profit            589,357        24.7%           608,344        26.0%
Selling, general and
administrative           529,846        22.2%           494,829        21.1%
expenses
Income from              59,511         2.5%            113,515        4.9%
operations
Interest expense,        485            0.0%            417            0.0%
net
Income before income     59,026         2.5%            113,098        4.9%
taxes
Income taxes            24,103         1.0%            43,583         1.9%
Net income          $   34,923         1.5%        $   69,515         3.0%
Basic earnings per   $   0.44                       $   0.86
share
Diluted earnings per $   0.43                       $   0.85
share
Weighted average         80,069                         81,208
basic shares
Weighted average         80,494                         81,811
diluted shares
STORE DATA:
Comparable sales
change (including        -2%                            -8%
e-commerce channel)
Comparable store
sales change             -4%                            -9%
(excluding
e-commerce channel)
Average square
footage during           3,998,361                      3,832,580
period
^1Cost of sales for fiscal 2012 was unfavorably impacted by store asset
impairment charges of $32.6 million ($19.7 million after tax, or $0.25 per
diluted share) recorded during the fourth quarter. Cost of sales for fiscal
2011 was unfavorably impacted by store asset impairment charges of $14.8
million ($9.1 million after tax, or $0.11 per diluted share) recorded during
the fourth quarter. In fiscal 2011, this amount was partially offset by a
favorable benefit of $8.7 million ($5.3 million after tax, or $0.06 per
diluted share) resulting from the resolution of a previously disclosed dispute
with one of our sourcing agents that was recorded during the second quarter of
fiscal 2011. Additional store asset impairment charges of $1.2 million ($0.8
million after tax) were recorded during the third quarter of fiscal 2011.



EXHIBIT D
AEROPOSTALE, INC.
RECONCILIATION OF NET INCOME (LOSS) AND DILUTED EARNINGS PER SHARE
(In thousands, except per share data)
(Unaudited)
The following table presents a reconciliation of net income (loss) and diluted
earnings per share ("EPS") on a GAAP basis to the non-GAAP adjusted basis
discussed in this release.
                  14 weeks ended                   13 weeks ended
                      February 2, 2013                 January 28, 2012
                      Net
                      Income          Diluted          Net            Diluted
                                      EPS              Income         EPS
                      (Loss)
As reported     $   (671)       $   (0.01)       $   26,099      $  0.32
Asset impairment
charges recorded
during the
                      19,738          0.25             9,477          0.12
fourth quarter of
the respective
fiscal year
As adjusted     $   19,067      $   0.24         $   35,576      $  0.44
                  53 weeks ended                   52 weeks ended
                      February 2, 2013                 January 28, 2012
                      Net             Diluted          Net            Diluted
                      Income          EPS              Income         EPS
As reported     $   34,923      $   0.43         $   69,515      $  0.85
Asset impairment
charges recorded
during the
                      19,738          0.25             9,082          0.11
fourth quarter of
the respective
fiscal year ^1
Vendor dispute        -               -                (5,345)        (0.06)
resolution ^2
As adjusted     $   54,661      $   0.68         $   73,252      $  0.90
^1The Company recorded store asset impairment charges of $1.2 million ($0.8
million after tax) during the third quarter of fiscal 2011.
^2During the second quarter of 2011, we recorded a favorable benefit of $8.7
million ($5.3 million after tax, or $0.06 per diluted share) resulting from
the resolution of a previously disclosed dispute with one of our sourcing
agents.

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.

Website: http://www.aeropostale.com
 
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