Aéropostale Inc. reported an 18.4 percent jump in third-quarter net income, although same-store sales fell in November.
Tightly managed inventory, new promotions and growth in the New York-based retailer’s graphic apparel business helped the firm post net income $42.6 million, or 63 cents a diluted share, for the quarter ended Nov. 1. This compares with net income of $36 million, or 48 cents a share, a year ago. Net sales rose 16.8 percent to $482 million from $412.6 million in the 2007 period.
Analysts surveyed by Yahoo expected EPS of 62 cents on sales of $482.7 million. Comparable-store sales were up 7 percent in the quarter, but fell 5 percent in November, the company reported.
Driven by higher merchandise margins, quarterly gross margin improved to 36 percent of sales from 34.9 percent in the prior-year period, driven by higher merchandise margins.
Black Friday comps were up in the low-single digits, but since then trends have been “somewhat inconsistent,” president and chief merchandising officer Mindy Meads said on a conference call.
Julian Geiger, chairman and chief executive officer, said despite posting a negative comp last month, Aéropostale is poised to continue its streak of 11 consecutive years of same-store sales increases. “I would never bet against the Aéropostale organization in doing anything,” he said.
For the nine months, net income grew 26 percent to $81.2 million, or $1.20 a share, from $64.5 million, or 84 cents a share, last year. Revenue rose 19.6 percent to $1.2 billion, from $999.6 million.
The company said it anticipates fourth-quarter earnings between 84 and 90 cents a share, adding that the broad outlook reflects an “environment of economic uncertainties.”
Wall Street had expected fourth-quarter EPS of 98 cents, on revenue of $647 million.
Capital expenditures for 2009 are expected to be $55 million, down from approximately $80 million for the current year, the company said.
Madonna turns 59 today, marking another year of show-stopping, one-of-a-kind bold looks from the singer. To celebrate, we took a look at the superstar's most memorable fashion moments. Here, Madonna sits front row at Versace's spring runway show in 1995. See more exclusive photos from the #wwdarchive on WWD.com. #wwdeye (📷: Cédric Dordevic)
WWD asked a handful of creative directors to evaluate the September covers of leading women's fashion magazines. How do they think the covers this year compare with years gone by, and what do they say about the current status of the publication? Link in bio. (GIF by @hypebreast)
"Stephen King is such a master, but I don't like being scared - there's enough that's really scary. How about the morning's news?" says Holland Taylor in an interview with WWD. See what else the actress said about starring in the TV adaptation of King's thriller "Mr. Mercedes" on WWD.com. #wwdeye (📷: @jgreenery)