Aeropostale Reports Third 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 third quarter ended October October: see month. 29, 2005. Net income for the third quarter of fiscal 2005 was $26.1 million or $0.47 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 $31.7 million or $0.55 per diluted share in the third 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 third quarter of fiscal 2005 increased 18.2% to $324.7 million versus net sales of $274.6 million in the third quarter of last year. Comparable store sales for the third quarter decreased 1.5% versus an increase of 5.4% 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 results for the third quarter and are not satisfied with our recent performance. We remain focused on working through our current excess inventory and on positioning ourselves appropriately for the holiday selling season. We have also made a number of significant changes to 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 practices, which we believe will reposition Aeropostale back to its historical levels of performance. We continue to believe that Aeropostale has strong brand identity and significant future growth opportunities." 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: The company announced that its board of directors approved an increase in its common stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program to acquire an additional $50.0 million of its outstanding 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 $150.0 million. As of October 29, 2005, the company had purchased back approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $99.3 million (4.2 million shares) under the repurchase program. FOURTH QUARTER AND FISCAL 2006 STORE OPENING GUIDANCE: The company also announced its earnings guidance for the fourth quarter of fiscal 2005. The company noted that it expects to achieve fourth quarter earnings in the range of $0.55 - $0.61 per diluted share and expects to achieve a comparable store decrease in the low to mid single digits. The company also announced its store opening plans for fiscal 2006. The company intends to open 65 Aeropostale stores and 5 Jimmy'Z stores. CONFERENCE CALL INFORMATION: The Company will be holding a conference call today at 4:15 P.M. to review its fiscal 2005 third 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 659 Aeropostale stores in 47 states and 13 Jimmy'Z stores in 10 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)
October January October
29, 2005 29, 2005 30, 2004
-------- -------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $114,317 $106,128 $ 65,620
Short-term investments 20,062 76,224 55,040
Merchandise inventory 159,873 81,238 114,515
Other current assets 28,430 15,897 21,808
-------- -------- ----------
Total current assets 322,682 279,487 256,983
Fixtures, equipment and
improvements, net 162,325 122,651 121,845
Other assets 4,466 3,681 3,527
-------- -------- ----------
TOTAL ASSETS $489,473 $405,819 $382,355
======== ======== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 95,064 $ 44,858 $ 69,075
Accrued expenses 49,777 52,136 39,837
-------- -------- ----------
Total current liabilities 144,841 96,994 108,912
Other non-current liabilities
93,077 70,574 64,004
Stockholders' equity 251,555 238,251 209,439
-------- -------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $489,473 $405,819 $382,355
======== ======== ==========
EXHIBIT B
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
13 weeks ended
-----------------
October 29, 2005 October 30, 2004
---------------- ----------------
% of % of
sales sales
------- -------
Net sales $324,657 100.0% $274,616 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 229,938 70.8 176,415 64.2
--------- ------ -------- -------
Gross profit
94,719 29.2 98,201 35.8
Selling, general and administrative
expenses 52,411 16.1 46,775 17.0
--------- ------ -------- -------
Income from operations
42,308 13.1 51,426 18.8
Interest income, net
781 0.1 336 0.1
--------- ------ -------- -------
Income before income taxes
43,089 13.2 51,762 18.9
Income taxes
17,004 5.2 20,076 7.4
--------- ------ -------- -------
Net income
$ 26,085 8.0% $ 31,686 11.5%
========= ====== ======== =======
Basic earnings per share $ 0.48 $ 0.57
========= ========
Diluted earnings per share $ 0.47 $ 0.55
========= ========
Weighted average basic shares 54,913 55,894
Weighted average diluted shares 55,711 57,210
STORE DATA:
Comparable store sales (decrease)
increase (1.5)% 5.4%
Stores open at end of period 668 560
Total gross square footage at
end of period 2,361,398 1,970,109
EXHIBIT C
AEROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
SELECTED STORE DATA
(in thousands, except per share and store data)
39 weeks ended
----------------
October 29, 2005 October 30, 2004
---------------- ----------------
% of % of
sales sales
------ -------
Net sales $769,101 100.0% $637,122 100.0%
Cost of sales (including certain
buying, occupancy and warehousing
expenses) 552,584 71.8 430,328 67.2
-------- ------ -------- -------
Gross profit
216,517 28.2 206,794 32.5
Selling, general and administrative
expenses 149,455 19.4 127,805 20.1
-------- ------ -------- -------
Income from operations
67,062 8.8 78,989 12.4
Interest income, net
2,362 0.2 796 0.1
-------- ------ -------- -------
Income before income taxes
69,424 9.0 79,785 12.5
Income taxes
27,276 3.5 30,941 4.8
-------- ------ -------- -------
Net income
$ 42,148 5.5% $ 48,844 7.7%
======== ====== ======== =======
Basic earnings per share $ 0.76 $ 0.88
======== ========
Diluted earnings per share $ 0.75 $ 0.85
======== ========
Weighted average basic shares 55,243 55,792
Weighted average diluted shares 56,217 57,399
STORE DATA:
Comparable store sales (decrease)
increase (0.1)% 12.8%
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