Aeropostale Reports Second Quarter Fiscal 2006 Results.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 A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. retailer of active and casual apparel for the teen market, today reported results for the second quarter ended July July: see month. 29, 2006. SECOND QUARTER PERFORMANCE: Net income for the second quarter of fiscal 2006 was $8.4 million, or $0.16 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 $2.1 million of other income in connection with the resolution of a dispute with a vendor regarding the enforcement of the Company's intellectual property rights). Net income, excluding other income, was $7.2 million, or $0.13 per diluted share for the second quarter of fiscal 2006. 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 such other income, which is a non-GAAP financial measure, provides investors useful information to help them better understand the Company's expected results without the impact of the other income described above. The Company had net income of $7.4 million or $0.13 per diluted share in the second quarter of fiscal 2005. The above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. results included net losses from the Company's Jimmy'Z subsidiary of ($0.03) per diluted share for the second quarter of 2006 and ($0.02) for the second quarter of fiscal 2005. In addition, the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results for the second quarter of 2006 included a $0.01 per diluted share charge related to the expensing of stock options. For the second quarter of fiscal 2006, 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 increased 18.0% to $274.6 million, compared to $232.8 million in the year-ago period. Comparable store sales for the second quarter increased 1.0%, versus a comparable store sales decrease of 2.2% in the year-ago period. Fiscal year to date, total net sales increased 17.2% to $520.9 million, compared to $444.4 million in the year-ago period. Also fiscal year to date, comparable store sales decreased 0.9%, versus a comparable store sales increase of 0.9% in the year-ago period. Julian Julian or Julian the Apostate Latin Julianus Apostata orig. Flavius Claudius Julianus (born AD 331/332, Constantinople—died June 26/27, 363, Ctesiphon, Mesopotamia) Roman emperor (361–363), noted scholar and military leader. R. Geiger, Chairman and Chief Executive Officer said, "During the second quarter, we believe that we executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. our merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. and planning initiatives consistently and well. While we were able to achieve results in line with our plan for May and June June: see month. , our sales and margins for the quarter were negatively affected by a significant slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in our business in the latter half of July. The trends in our business improved in August, particularly in the early back to school regions, but we are unable to extrapolate extrapolate - extrapolation this performance to the other regions, which have not yet peaked in their back to school selling season. As a result of this, we believe that it is prudent to adopt a somewhat cautious outlook on our business for the remainder of the third quarter." THIRD QUARTER GUIDANCE: The Company announced its earnings guidance for the third quarter of fiscal 2006. The Company believes it will achieve earnings in the range of $0.55 - $0.57 per diluted share, including the $0.01 per diluted share charge related to the expensing of stock options. CONFERENCE CALL INFORMATION: The Company will be holding a conference call today at 4:15 P.M. to review its second quarter 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 MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain 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 e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. 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 712 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, AMONG OTHERS, CHANGES IN THE COMPETITIVE MARKETPLACE, INCLUDING THE INTRODUCTION OF NEW PRODUCTS OR PRICING CHANGES BY OUR COMPETITORS COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , 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 CURRENT REPORTS ON FORM 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , 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 .
EXHIBIT A
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
July 29, Jan. 28, July 30,
2006 2006 2005
--------- --------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $ 117,307 $ 205,235 $ 127,940
Short-term investments 34,117 20,037 14,031
Merchandise inventory 154,720 91,908 162,726
Other current assets 30,015 22,159 27,328
--------- --------- ---------
Total current assets 336,159 339,339 332,025
Fixtures, equipment and
improvements, net 178,972 160,229 144,509
Other assets 4,435 4,383 4,459
--------- --------- ---------
TOTAL ASSETS $ 519,566 $ 503,951 $ 480,993
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 99,391 $ 57,165 $ 108,178
Accrued expenses 54,640 69,188 39,649
--------- --------- ---------
Total current liabilities 154,031 126,353 147,827
Other non-current liabilities 100,639 92,808 83,745
Stockholders' equity 264,896 284,790 249,421
--------- --------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 519,566 $ 503,951 $ 480,993
========= ========= =========
EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
13 weeks ended
--------------
July 29, 2006 July 30, 2005
--------------- ---------------
% of % of
sales sales
----- -----
Net sales $274,624 100.0% $232,770 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 202,048 73.6 170,743 73.4
--------- ----- --------- -----
Gross profit 72,576 26.4 62,027 26.6
Selling, general and administrative
expenses 62,222 22.7 50,607 21.7
Other income 2,085 0.8 -- --
--------- ----- --------- -----
Income from operations 12,439 4.5 11,420 4.9
Interest income, net 1,372 0.5 796 0.3
--------- ----- --------- -----
Income before income taxes 13,811 5.0 12,216 5.2
Income taxes 5,388 1.9 4,767 2.0
--------- ----- --------- -----
Net income $ 8,423 3.1% $ 7,449 3.2%
========= ===== ========= =====
Basic earnings per share $ 0.16 $ 0.13
========= =========
Diluted earnings per share $ 0.16 $ 0.13
========= =========
Weighted average basic shares 53,627 55,408
Weighted average diluted shares 54,072 56,367
STORE DATA:
Comparable store sales increase
(decrease) 1.0% (2.2)%
Stores open at end of period 726 634
Total gross square footage at end of
period 2,578,224 2,241,787
EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
26 weeks ended
-------------------------------
July 29, 2006 July 30, 2005
--------------- ---------------
% of % of
sales sales
----- -----
Net sales $520,916 100.0% $444,444 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 377,862 72.5 322,646 72.6
--------- ----- --------- -----
Gross profit 143,054 27.4 121,798 27.4
Selling, general and administrative
expenses 120,487 23.1 97,044 21.8
Other income 2,085 0.4 -- --
--------- ----- --------- -----
Income from operations 24,652 4.7 24,754 5.6
Interest income, net 2,868 0.6 1,581 0.4
--------- ----- --------- -----
Income before income taxes 27,520 5.3 26,335 5.9
Income taxes 10,734 2.1 10,272 2.3
--------- ----- --------- -----
Net income $ 16,786 3.2% $ 16,063 3.6%
========= ===== ========= =====
Basic earnings per share $ 0.31 $ 0.29
========= =========
Diluted earnings per share $ 0.31 $ 0.28
========= =========
Weighted average basic shares 54,017 55,408
Weighted average diluted shares 54,526 56,470
STORE DATA:
Comparable store sales (decrease)
increase (0.9)% 0.9%
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