Aeropostale Reports Second Quarter 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. 30, 2005. Net income for the second quarter of fiscal 2005 was $7.5 million or $0.13 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 versus net income of $10.9 million or $0.19 per diluted share in the second quarter of last year. 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 the second quarter of fiscal 2005 increased 19.5% to $232.8 million versus net sales of $194.9 million in the second quarter of last year. Comparable store sales for the second quarter decreased 2.2% versus an increase of 20.0% last year. 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, "We are clearly disappointed with our performance for the second quarter. While we were able to manage our expenses carefully, our sales and gross margins in certain key classifications were significantly below our plan. As a result of this shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. , our inventories at the end of the second quarter were higher than we initially anticipated." THIRD AND FOURTH QUARTER GUIDANCE: The company announced its earnings guidance for the third and fourth quarters of fiscal 2005. The company noted that it expects to achieve third quarter earnings in the range of $0.50 - $0.53 per diluted share and fourth quarter earnings in the range of $0.67 - $0.70 per diluted share. The company also noted it expects to achieve a low-single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. comparable store sales increase in the both the third and fourth quarters of fiscal 2005. Mr. Geiger, concluded, "Our objective during the third quarter will be to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. earnings and return to normalized inventory levels. Accordingly, we have revised our third and fourth quarter guidance reflecting increased promotional activity." CONFERENCE CALL INFORMATION: The Company will be holding a conference call today at 4:15 P.M. to review its fiscal 2005 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 11 to 18 year-old young women and men. The company provides customers with a focused selection of high-quality, active-oriented, 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, marketing and selling all of its own merchandise. Aeropostale products are currently purchased only in its stores, on-line thorough its 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. About Jimmy'Z: Jimmy'Z, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Aeropostale, Inc., is a California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). lifestyle-oriented brand targeting fashion-aware young women and men ages 18 to 25. Jimmy'Z offers customers trend-right apparel in an innovative and unique store environment. The first Aeropostale store was opened in 1987. The company currently operates 629 Aeropostale stores in 47 states and 6 Jimmy'Z stores in 6 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 30, Jan. 29, July 31,
2005 2005 2004
-------- -------- --------
ASSETS
Current Assets:
Cash and cash equivalents $127,940 $106,128 $ 67,411
Short-term investments 14,031 76,224 29,891
Merchandise inventory 162,726 81,238 99,215
Other current assets 27,328 15,897 36,904
-------- -------- --------
Total current assets 332,025 279,487 233,421
Fixtures, equipment and
improvements, net 144,509 122,651 111,482
Other assets 4,459 3,681 3,440
-------- -------- --------
TOTAL ASSETS $480,993 $405,819 $348,343
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $108,178 $ 44,858 $ 59,350
Accrued expenses 39,649 52,136 35,875
-------- -------- --------
Total current liabilities 147,827 96,994 95,225
Other non-current liabilities 83,745 70,574 60,940
Stockholders' equity 249,421 238,251 192,178
-------- -------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $480,993 $405,819 $348,343
======== ======== ========
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 30, 2005 July 31, 2004
----------------------------------
% of % of
sales sales
------ ------
Net sales $ 232,770 100.0% $ 194,852 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 170,743 73.4 135,366 69.5
--------- ----- --------- -----
Gross profit 62,027 26.6 59,486 30.5
Selling, general and administrative
expenses 50,607 21.7 41,925 21.5
--------- ----- --------- -----
Income from operations 11,420 4.9 17,561 9.0
Interest income, net 796 0.3 201 0.1
--------- ----- --------- -----
Income before income taxes 12,216 5.2 17,762 9.1
Income taxes 4,767 2.0 6,865 3.5
--------- ----- --------- -----
Net income $ 7,449 3.2% $ 10,897 5.6%
========= ===== ========= =====
Basic earnings per share $ 0.13 $ 0.20
========= =========
Diluted earnings per share $ 0.13 $ 0.19
========= =========
Weighted average basic shares 55,408 55,663
Weighted average diluted shares 56,367 57,287
STORE DATA:
Comparable store sales increase
(decrease) (2.2)% 20.0%
Stores open at end of period 634 521
Total gross square footage
at end of period 2,241,787 1,832,060
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 30, 2005 July 31, 2004
----------------------------------
% of % of
sales sales
------ ------
Net sales $ 444,444 100.0% $ 362,506 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 322,646 72.6 253,913 70.0
--------- ----- --------- -----
Gross profit 121,798 27.4 108,593 30.0
Selling, general and administrative
expenses 97,044 21.8 81,030 22.4
--------- ----- --------- -----
Income from operations 24,754 5.6 27,563 7.6
Interest income, net 1,581 0.4 460 0.1
--------- ----- --------- -----
Income before income taxes 26,335 5.9 28,023 7.7
Income taxes 10,272 2.3 10,865 3.0
--------- ----- --------- -----
Net income $ 16,063 3.6% $ 17,158 4.7%
========= ===== ========= =====
Basic earnings per share $ 0.29 $ 0.31
========= =========
Diluted earnings per share $ 0.28 $ 0.30
========= =========
Weighted average basic shares 55,408 55,742
Weighted average diluted shares 56,470 57,494
STORE DATA:
Comparable store sales increase 0.9% 19.5%
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