Aeropostale 3Q Net Up 18%, Sees 4Q Profits Below Views
But the company projected earnings for the current quarter below analysts' expectations as it said capital spending in the coming year will fall, and Aeropostale reported November same-store sales fell 5%. The company said the drop, more than double what analysts forecast, was largely due to one less week of post-Thanksgiving days compared with the November 2007 reporting period.
Shares were down 2.9% in after-hours trading to $14.50.
For the quarter ended Nov. 1, Aeropostale reported net income of $42.6 million, or 63 cents a share, up from $36 million, or 48 cents a share, a year earlier. The company raised its view last month to a range of 61 cents to 62 cents. At that time, Aeropostale said revenue rose 17% to $482 million, with same-store sales up 7%.
Gross margin rose to 36% from 34.9% amid the sales increase.
Chairman and Chief Executive expressed pleasure with the "record" results, which were "particularly impressive given the unprecedented weakness in the macroeconomic environment."
Last month, Abercrombie & Fitch Co. (ANF) and American Eagle Outfitters Inc. (AEO) reported profit drops for the latest quarter as many retailers that target teens and young adults have been hurt by slumping mall traffic tied to tighter credit and a slowdown in spending. But lower-priced companies like Aeropostale are seen by many industry observers as being in a better position to weather the difficult consumer environment.
But that doesn't mean all is rosy for Aeropostale. It projected fiscal fourth-quarter earnings of 84 cents to 90 cents a share; analysts surveyed by Thomson Reuters had expected 98 cents.
-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com
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(END) Dow Jones Newswires
December 03, 2008 16:50 ET (21:50 GMT)
Publié le 03 Décembre 2008 Copyright © 2008 Dowjones
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