Aeropostale Reports January Sales Results

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NEW YORK--(BUSINESS WIRE)--Feb. 2, 2005--Aeropostale, Inc. (NYSE: ARO - News), a mall-based specialty retailer of casual and active apparel for young women and men, today announced that total net sales for the four-week period ended January 29, 2005 increased 23.7% to $43.8 million, compared to $35.4 million for the four-week period ended January 31, 2004. The company's comparable store sales increased 2.5% for the month, versus a comparable store sales increase of 17.7% in the year ago period.
For the fourth quarter, total net sales have increased 20.4% to $328.3 million, compared to $272.6 million in the year ago quarter. Fourth quarter comparable store sales increased 1.9%, compared to a comparable store sales increase of 8.5% last year. Year-to-date, total net sales increased 31.4% to $965.4 million, compared to $734.9 million in the year-ago period. Year to date, comparable store sales increased 8.7%, compared to an increase of 6.6% last year.

Julian R. Geiger, Chairman and Chief Executive Officer said, "We are very pleased with our January results which were characterized by a reduction in clearance activity versus last year. As a result, we ended the month and quarter with gross margins significantly ahead of last year. More importantly, we have made a smooth transition into our spring floor set. The initial reaction to our spring merchandise assortment has been encouraging."

The company also updated guidance for the fourth quarter. The company believes it will now report earnings of $0.65 per fully diluted share, compared to $0.47 per share in the year ago quarter. The new guidance exceeds the company's previously issued guidance of $0.63 per share and the current First Call consensus of $0.64 per share.