Aeropostale Q2 net sales increased 4 percentFriday, 17 August 2012
Comparable sales, including the e-commerce channel, for the second quarter were essentially flat compared to a 12 percent decrease last year. Comparable store sales, excluding the e-commerce channel, for the second quarter decreased 1 percent, compared to a 14 percent decrease last year.
Thomas P. Johnson, Chief Executive Officer, commented, "While we were encouraged by the customer response to our fashion offering, we were disappointed by our overall financial performance for the second quarter. Our core basics business experienced significant pricing pressure due to the highly promotional and competitive retail landscape. As a result, we promoted these businesses more aggressively than initially expected to end the quarter with inventories in line with our plan."
Net revenue from the company’s e-commerce business for the second quarter increased 27 percent to 31.9 million dollars, from 25.1 million dollars in the year ago period. The company ended the quarter with cash and cash equivalents of 169.6 million dollars and no debt. It currently has 145.2 million dollars of availability remaining under its share repurchase program.
The company opened seven Aeropostale and 15 P.S. from Aeropostale stores, and closed four Aeropostale stores during the quarter. For the second quarter, the company invested 20.8 million dollars in planned capital expenditures.
New York-based Aeropostale is a primarily mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its Aeropostale stores and 4 to 12 year-old kids through its P.S. from Aeropostale stores. The company currently operates 914 Aeropostale stores in 50 states and Puerto Rico, 75 Aeropostale stores in Canada and 97 P.S. from Aeropostale stores in 22 states. In addition, pursuant to various licensing agreements, its licensees currently operate 20 Aeropostale and P.S. from Aeropostale stores in the Middle East, Asia and Europe.