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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast