Aeropostale: Huge Earnings, Poor Sales

by MR Magazine Staff

Teen retailer Aeropostale made big money in the second quarter, but same store sales were down 4.1 percent.

The company reported stellar earnings – up 75 percent, meeting Wall Street’s expectations – but predicted lower profits in the third quarter to come. The net profit of $14.7 million (19 cents per share) was nearly double last year’s Q2 profit of $8.4 million (10 cents per share).

Net sales were up to $311.2 million in the second quarter from $274.6 million last year.

“We are pleased with our accomplishments for the quarter, which reflect the strength and balance of our merchandise assortment as well as our disciplined approach to inventory management,” said CEO Julian R. Geiger. “During the quarter we were able to generate strong increases in our gross margin and, as a result, deliver record second quarter earnings, which were at the high end of our previously issued guidance.”

Aeropostale is a mall-based retailer of its own proprietary brands focused on teens 14 to 17 years old. The company operates 780 stores in 47 states and four in Canada. It also runs 14 Jimmy’Z stores in 11 states.