Aeropostale Reports Record Results for Fourth Quarter and Fiscal 2006.Provides First Quarter and Full Year 2007 Guidance Increases Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Program NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Aeropostale, Inc. (NYSE NYSE See: New York Stock Exchange : ARO), a mall-based specialty retailer of active and casual apparel for young men and women, today reported results for the fourth quarter (fourth quarter of fiscal 2006 consisted of 14 weeks compared to fourth quarter of fiscal 2005 which consisted of 13 weeks) and fiscal year ended February 3, 2007 (fiscal 2006 consisted of 53 weeks compared to fiscal 2005 which consisted of 52 weeks). Julian R. Geiger, Chairman and Chief Executive Officer, said, "The past year was one of significant accomplishment and growth for Aeropostale. We are pleased that we executed our strategic initiatives, consistently and well. We regained balance in our merchandise assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. , delivered excitement with our brand building initiatives and improved our planning processes. As a result, we achieved double-digit annual sales growth and earnings per share growth in excess of 25% over the previous year. We ended the year with strong momentum and we believe that the Aeropostale brand is recognized, respected and effectively positioned for a strong 2007." Fourth Quarter Performance: Net income for the fourth quarter of fiscal 2006 was $57.3 million, or $1.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, which includes pre-tax $7.4 million (net of professional fees), or $0.08 per diluted share, representing concessions, primarily by South Bay Apparel Inc., to the company for prior purchases of merchandise. Excluding these vendor concessions, the Company achieved net earnings of $1.00 per diluted share, representing an increase of approximately 31.6%, when compared to $0.76 per diluted share in the fourth quarter of fiscal 2005. The results for the fourth quarter also included a $0.01 per diluted share charge related to the expensing of stock options. In addition, these results included net losses from the Company's Jimmy'Z subsidiary of $0.04 per diluted share for the fourth quarter of fiscal 2006 and $0.03 per diluted share for the fourth quarter of fiscal 2005. As previously announced, total sales for the fourth quarter of fiscal 2006 increased 16.5% to $506.8 million, from $435.2 million for the fourth quarter of fiscal 2005. Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of for the fourth quarter increased 2.2%, compared to the corresponding 14-week period last year. Full Fiscal Year Performance: Net income for fiscal 2006 was $106.6 million, or $1.98 per diluted share, which includes pre-tax $7.4 million (net of professional fees), or $0.08 per diluted share, from the above mentioned vendor concessions. This net income also included pre-tax $2.1 million of other income, or $0.02 per diluted share, in connection with the resolution of a dispute with a vendor regarding the enforcement of the Company's intellectual property rights. Excluding these vendor concessions and other income, the Company achieved net earnings of $1.88 per diluted share, representing an increase of 25.3%, when compared to net earnings of $1.50 per diluted share in fiscal 2005. The results for fiscal 2006 also included a $0.04 per diluted share charge related to the expensing of stock options. In addition, results included net losses from the Company's Jimmy'Z subsidiary of $0.12 per diluted share for fiscal 2006 and $0.08 for the fiscal 2005. As previously announced, total net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for fiscal 2006 increased 17.4% to $1.413 billion, from $1.204 billion for fiscal 2005. Same store sales for fiscal 2006 increased 2.0%, compared to the corresponding 53-week period last year. The Company maintains no debt and ended fiscal 2006 with $276.3 million in cash and cash-equivalents, together with short-term investments. The Company believes that the disclosure of diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , excluding the other income described above, which is a non-GAAP financial measure, provides investors useful information to help them better understand the Company's results (see Exhibit D). Share Repurchase Program The Company announced that its board of directors approved an increase to its share repurchase program to acquire an additional $100.0 million of its common stock. This increased the total repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. program to $350.0 million. During the fourth quarter of fiscal 2006, the Company purchased approximately $35.4 million or 1.0 million shares of its common stock. During fiscal 2006, the Company purchased approximately $91.4 million or 3.1 million shares of stock. The Company currently has approximately $150.0 million remaining under the program, including the additional $100.0 million of approved availability discussed above. Store Growth and Capital Spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. During the fourth quarter of fiscal 2006 the Company opened 4 Aeropostale stores, ending the year with 728 Aeropostale stores in 47 states and 14 Jimmy'Z stores in 11 states. The Company intends to open approximately 85 Aeropostale stores, including its first 10 stores in Canada, during fiscal 2007. The Company is planning to invest approximately $85.0 million in capital expenditures for fiscal 2007 to open the 85 additional Aeropostale stores under a new store format, remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. certain existing stores under a new store format, open a west coast distribution center and make certain information technology investments. First Quarter And Full Year Guidance For the first quarter of fiscal 2007, the Company expects net earnings in the range of $0.19 to $0.21 per diluted share. This compares to earnings of $0.15 per diluted share in the first quarter of fiscal 2006. For the full year, the Company expects to achieve earnings per diluted share growth of approximately 20%. Mr. Geiger concluded, "We are excited about the growth opportunities that we have in 2007, including our initial penetration of the Canadian market. It is our goal to maintain the balance in our merchandise assortment and invest in appropriate infrastructure to support our expanding business. We anticipate that we will be able to further build on the momentum in our business while continuing to deliver long-term shareholder value." Conference Call Information: The Company will be holding a conference call today at 4:15 P.M. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to review its fourth quarter and full fiscal 2006 financial results. The broadcast will be available through the 'Investor Relations' link at www.aeropostale.com and at www.fulldisclosure.com. To listen to the broadcast your computer must have Windows Media Player Digital jukebox software for Windows from Microsoft that plays a variety of audio, video and streaming formats including MP3, WMA, CD audio and MIDI. Starting with Version 6.2 in 1999, the Windows Media Rights Manager was added for securing copyrighted content. installed. If you do not have Windows Media Player go to the latter site prior to the call, where you can download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. the software for free. About Aeropostale, Inc. Aeropostale, Inc. is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men. The Company provides customers with a focused selection of high-quality, active-oriented, fashion and fashion basic merchandise at compelling values. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. Aeropostale products are currently purchased only in its stores, on-line through its e-commerce website (www.aeropostale.com) or at organized sales events Noun 1. sales event - an occasion (usually brief) for buying at specially reduced prices; "they held a sale to reduce their inventory"; "I got some great bargains at their annual sale" cut-rate sale, sale at college campuses. The Company currently operates 729 Aeropostale stores in 47 states and 14 Jimmy'Z stores in 11 states. SPECIAL NOTE: THIS PRESS RELEASE AND ORAL STATEMENTS MADE FROM TIME TO TIME BY REPRESENTATIVES OF THE COMPANY CONTAIN CERTAIN "FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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 Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. ; 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. AND QUARTERLY REPORTS ON FORM 10-Q Form 10-Q See 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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