NEW YORK, May 21, 2015 /PRNewswire/ -- Aeropostale,
Inc. (NYSE: ARO), a mall-based specialty retailer of casual apparel
for young women and men, today reported results for the first
quarter of fiscal 2015, and provided guidance for the second
quarter of fiscal 2015.
First Quarter Performance
For the first quarter of
fiscal 2015, net sales decreased 20% to $318.6 million, from $395.9 million in the year ago period. Comparable
sales, including the e-commerce channel, for the first quarter
decreased 11%, compared to a decrease of 13% for the corresponding
13-week period ended May 3, 2014.
The Company reported a net loss for the first quarter of fiscal
2015 of $45.3 million, or
$0.57 per diluted share, which
included:
- an after-tax charge of $2.3
million, or $0.03 per diluted
share, resulting from store closing costs, partially offset by
- an after-tax benefit of $1.1
million, or $0.02 per diluted
share, resulting from a retirement plan settlement adjustment.
Excluding the aforementioned charges, the Company reported an
adjusted net loss of $44.0 million,
or $0.56 per diluted share in the
first quarter of fiscal 2015 (see Exhibit C).
The Company reported an operating loss for the first quarter of
fiscal 2015 of $40.5 million or,
excluding the aforementioned charges, an adjusted operating loss of
$39.3 million (see Exhibit C).
Julian R. Geiger, Chief Executive
Officer, commented, "As we anticipated, the first quarter of 2015
represented a period of transition for us. We worked our way
through a number of issues, including a merchandise assortment that
was not consistent with our future direction, unseasonably cool
weather, and the West Coast port slowdown. However, the
performance of our women's division exceeded our expectations, and
we were encouraged by the demand we were able to create through
certain key items and promotions."
The Company ended the quarter with cash and cash equivalents of
$76.0 million and long-term debt of
$141.1 million. As of May 2, 2015, the Company had no borrowings
outstanding and availability of $137.8
million under its revolving credit facility.
The Company opened one Aeropostale store during the quarter and
closed 12 Aeropostale stores. For the first quarter, the Company
invested $2.6 million in planned
capital expenditures.
Second Quarter Guidance
For the second quarter of
fiscal 2015, the Company expects operating losses in the range of
$37.0 to $43.0 million, which
translates to a net loss in the range of $0.52 to $0.60 per diluted share. The
effective tax rate for the second quarter is projected to be
approximately negative 2%. This outlook does not include the impact
of any store impairments, accelerated store closure costs, or real
estate consulting fees.
Mr. Geiger continued, "As I have said previously, the Back to
School period represents the time when all of the disciplines and
strategies we have instituted over the last nine months should come
to fruition. To prepare for this key selling season, we are
focused on optimizing the quantity and composition of our
merchandise to ensure a successful Back to School launch. We
are enthusiastic about seeing the results that this key period will
bring."
Use of Non-GAAP Measures
The Company believes that the
disclosure of adjusted net loss and adjusted operating loss, which
are non-GAAP financial measures, provides investors with useful
information to help them better understand the Company's results
(see Exhibit C).
Conference Call Information
The Company will be
holding a conference call today at 4:15 P.M.
ET to review its first quarter results. The broadcast will
be available through the 'Investor Relations' link at
www.aeropostale.com or by dialing 877-407-9039 approximately 10
minutes prior to the scheduled time with the passcode
"Aeropostale." A replay will be available approximately one
hour after the recording through Thursday,
May 28, 2015 and can be accessed by dialing 877-870-5176,
using the required passcode 13609938. An archive will also be
available at the Aeropostale website for 12 months.
About Aeropostale, Inc.
Aeropostale, Inc. is a
specialty retailer of casual apparel and accessories, principally
targeting 14 to 17 year-old young women and men through its
Aeropostale stores and website and 4 to 12 year-olds through its
P.S. from Aeropostale stores and website. The Company
provides customers with a focused selection of high quality fashion
and fashion basic merchandise at compelling values in an exciting
and customer friendly store environment. Aeropostale
maintains control over its proprietary brands by designing,
sourcing, marketing and selling all of its own merchandise, other
than in licensed stores. Aeropostale products can be
purchased in Aeropostale stores and online at
www.aeropostale.com. P.S. from Aeropostale products can be
purchased in P.S. from Aeropostale stores, in certain Aeropostale
stores and online at www.ps4u.com and www.aeropostale.com. The
Company currently operates 761 Aeropostale® stores in 50 states and
Puerto Rico, 61 Aeropostale stores
in Canada and 26 P.S. from
Aeropostale® stores in 12 states and Puerto Rico. In addition, pursuant to various
licensing agreements, the Company's licensees currently operate 265
Aeropostale® and P.S. from Aeropostale® locations in the
Middle East, Asia, Europe,
and Latin America. Since November
2012, Aeropostale, Inc. has operated GoJane.com, an online
women's fashion footwear and apparel retailer. GoJane
products can be purchased online at www.gojane.com.
SPECIAL NOTE: THIS PRESS RELEASE AND ORAL STATEMENTS MADE FROM
TIME TO TIME BY REPRESENTATIVES OF THE COMPANY CONTAIN CERTAIN
"FORWARD-LOOKING STATEMENTS" MADE IN RELIANCE UPON THE SAFE HARBOR
PROVISIONS OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS
AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED, CONCERNING EXPECTATIONS FOR SALES, STORE OPENINGS, GROSS
MARGINS, EXPENSES, STRATEGIC DIRECTION AND EARNINGS. ACTUAL
RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE
FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT COULD CAUSE
ACTUAL RESULTS TO MATERIALLY DIFFER INCLUDE, CHANGES IN THE
COMPETITIVE MARKETPLACE, INCLUDING THE INTRODUCTION OF NEW PRODUCTS
OR PRICING CHANGES BY OUR COMPETITORS, CHANGES IN THE ECONOMY AND
OTHER EVENTS LEADING TO A REDUCTION IN DISCRETIONARY CONSUMER
SPENDING; SEASONALITY; RISKS ASSOCIATED WITH CHANGES IN SOCIAL,
POLITICAL, ECONOMIC AND OTHER CONDITIONS AND THE POSSIBLE ADVERSE
IMPACT OF CHANGES IN IMPORT RESTRICTIONS; RISKS ASSOCIATED WITH
UNCERTAINTY RELATING TO THE COMPANY'S ABILITY TO IMPLEMENT
ITS STRATEGIES; RISKS ASSOCIATED WITH THE COMPANY'S ABILITY
TO IMPLEMENT AND REALIZE THE ANTICIPATED BENEFITS OF THE COMPANY'S
STRATEGIC INITIATIVES AND COST REDUCTION PROGRAM, AS WELL AS THE
OTHER RISK FACTORS SET FORTH IN THE COMPANY'S FORM 10-K AND
QUARTERLY REPORTS ON FORM 10-Q, FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE
OR REVISE ANY FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT
EVENTS OR CIRCUMSTANCES.
EXHIBIT
A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AEROPOSTALE,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
May 2,
2015
|
|
|
January 31,
2015
|
|
|
May 3,
2014
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
75,951
|
|
$
|
151,750
|
|
$
|
24,521
|
Merchandise
inventory
|
|
138,346
|
|
|
130,474
|
|
|
173,167
|
Other current
assets
|
|
60,970
|
|
|
67,063
|
|
|
102,031
|
Total current
assets
|
|
275,267
|
|
|
349,287
|
|
|
299,719
|
|
|
|
|
|
|
|
|
|
Fixtures, equipment
and improvements, net
|
|
122,037
|
|
|
130,109
|
|
|
194,896
|
Goodwill and
intangible assets
|
|
22,539
|
|
|
22,728
|
|
|
28,392
|
Other
assets
|
|
9,186
|
|
|
10,065
|
|
|
8,886
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
429,029
|
|
$
|
512,189
|
|
$
|
531,893
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
$
|
67,918
|
|
$
|
88,289
|
|
$
|
103,520
|
Accrued
expenses
|
|
78,621
|
|
|
110,560
|
|
|
105,048
|
Short-term
borrowings
|
|
-
|
|
|
-
|
|
|
8,500
|
Total current
liabilities
|
|
146,539
|
|
|
198,849
|
|
|
217,068
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
141,084
|
|
|
138,540
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Other non-current
liabilities
|
|
91,477
|
|
|
81,248
|
|
|
106,855
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
49,929
|
|
|
93,552
|
|
|
207,970
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
429,029
|
|
$
|
512,189
|
|
$
|
531,893
|
EXHIBIT
B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AEROPOSTALE,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND
|
SELECTED STORE
DATA
|
(In
thousands, except per share and store data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
13 weeks
ended
|
|
|
May 2,
2015
|
|
|
May 3,
2014
|
|
|
|
|
% of
sales
|
|
|
|
|
% of
sales
|
Net
sales
|
$
|
318,643
|
|
100.0%
|
|
$
|
395,858
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(including certain buying, occupancy
and warehousing expenses) (1)
|
|
259,520
|
|
81.4%
|
|
|
325,361
|
|
82.2%
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
59,123
|
|
18.6%
|
|
|
70,497
|
|
17.8%
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses (2)
|
|
99,521
|
|
31.3%
|
|
|
119,445
|
|
30.2%
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges
(3)
|
|
58
|
|
0.0%
|
|
|
34,489
|
|
8.7%
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(40,456)
|
|
(12.7)%
|
|
|
(83,437)
|
|
(21.1)%
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
3,387
|
|
1.1%
|
|
|
349
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(43,843)
|
|
(13.8)%
|
|
|
(83,786)
|
|
(21.2)%
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit )
|
|
1,425
|
|
0.4%
|
|
|
(7,004)
|
|
(1.8)%
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(45,268)
|
|
(14.2)%
|
|
$
|
(76,782)
|
|
(19.4)%
|
|
|
|
|
|
|
|
|
|
|
Basic loss per
share
|
$
|
(0.57)
|
|
|
|
$
|
(0.98)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
$
|
(0.57)
|
|
|
|
$
|
(0.98)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
basic shares
|
|
79,275
|
|
|
|
|
78,558
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares
|
|
79,275
|
|
|
|
|
78,558
|
|
|
|
|
|
|
|
|
|
|
|
|
STORE
DATA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable sales
change (including e-commerce channel)
|
|
(11)%
|
|
|
|
|
(13)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Stores open at end of
period
|
|
849
|
|
|
|
|
1,081
|
|
|
|
|
|
|
|
|
|
|
|
|
Total square footage
at end of period
|
|
3,265,437
|
|
|
|
|
4,022,288
|
|
|
|
|
|
|
|
|
|
|
|
|
Average square
footage during period
|
|
3,289,229
|
|
|
|
|
4,066,155
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Cost of sales for
the first quarter of 2015 was unfavorably impacted by store closing
costs of $2.3 million ($2.3 million after tax, or $0.03 per diluted
share). Cost of sales for the first quarter of 2014 was
unfavorably impacted by store asset impairment charges of $2.6
million ($2.5 million after tax, or $0.03 per diluted share) and
lease exit costs of $0.2 million ($0.2 million after tax, or $0.01
per diluted share).
|
|
|
|
|
|
|
|
|
|
|
(2)Selling, general
and administrative expenses for the first quarter of 2015 were
favorably impacted by a retirement plan settlement adjustment of
$1.1 million ($1.1 million after tax, or $0.02 per diluted
share).
|
|
|
|
|
|
|
|
|
|
|
(3) Restructuring
charges for the first quarter of 2014 included store asset
impairment charges of $30.5 million ($29.1 million after tax, or
$0.37 per diluted share) and other restructuring charges of $4.0
million ($3.8 million after tax, or $0.05 per diluted
share).
|
EXHIBIT
C
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AEROPOSTALE,
INC.
|
RECONCILIATION OF
OPERATING LOSS, NET LOSS AND DILUTED LOSS PER SHARE
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
tables presents a reconciliation of operating loss, net loss and
diluted loss per share on a GAAP basis to the non-GAAP adjusted
basis discussed in this release.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 weeks
ended
|
|
|
|
|
|
|
|
May 2,
2015
|
|
May 3,
2014
|
|
|
|
|
|
|
|
Operating
Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$
|
(40,456)
|
|
$
|
(83,437)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Store closing
costs
|
|
2,268
|
|
|
4,277
|
|
|
|
|
|
|
Retirement plan
settlement adjustment
|
|
(1,064)
|
|
|
-
|
|
|
|
|
|
|
P.S. from Aeropostale
store asset impairment charges
|
|
-
|
|
|
33,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
adjusted
|
$
|
(39,252)
|
|
$
|
(46,036)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13 weeks
ended
|
|
May 2,
2015
|
|
May 3,
2014
|
|
|
Net
Loss
|
|
|
Diluted
EPS
|
|
|
Net
Loss
|
|
|
Diluted
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
$
|
(45,268)
|
|
$
|
(0.57)
|
|
$
|
(76,782)
|
|
$
|
(0.98)
|
|
|
|
|
|
|
|
|
|
|
|
|
Store closing
costs
|
|
2,343
|
|
|
0.03
|
|
|
4,076
|
|
|
0.06
|
Retirement plan
settlement adjustment
|
|
(1,099)
|
|
|
(0.02)
|
|
|
-
|
|
|
-
|
P.S. from Aeropostale
store asset impairment charges
|
|
-
|
|
|
-
|
|
|
31,562
|
|
|
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
As
adjusted
|
$
|
(44,024)
|
|
$
|
(0.56)
|
|
$
|
(41,144)
|
|
$
|
(0.52)
|
Company Contact:
Susan Lewis/VP, Investor & Media
Relations
(646) 364-0215 or slewis@aeropostale.com
Media Contact:
Effie Veres, FTI Consulting
(212) 850-5676
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aeropostale-reports-results-for-first-quarter-of-fiscal-2015-300087568.html
SOURCE Aeropostale, Inc.