Aeropostale Inc. saw a first-quarter decline in net income, impacted by higher expenses.
The company said net income for the first quarter ended April 28 fell 35.4 percent to $10.6 million, or 13 cents a diluted share, from $16.4 million, or 20 cents, last year. Higher selling, general and administrative expenses, which rose 12.1 percent to $122.3 million from $109.1 million, hurt the bottom line. Sales rose 6 percent to $497.2 million from $469.2 million. The company said comparable-store sales, including its e-commerce channel, increased 2 percent compared with a 5 percent decline last year.
Thomas P. Johnson, Aeropostale’s chief executive officer, said he was “pleased with the sequential progress” the company is making in its business. He cautioned that the retail environment remains uncertain and that the company is still “early in the cycle of executing our key initiatives.”
In a conference call with analysts, Johnson emphasized that the chain is in the early phase of “integrating the fashion intermix.” He said that the buys were a bit tight in some cases.
As for strategy, Johnson explained that in “fashion you buy tight and then we chase. So we’ve been fortunate and excited about chasing some of those fashion items.”
He noted that in some cases, the chain is back in position and, where it was oversold, “we definitely left a little bit of sale on the table, but as we move into the fall and the holiday season, we definitely upped those buys for us.”