USA:Casual apparel retailer Aeropostale net sales rise 19.5% in Q2

Mall-based specialty retailer of active and casual apparel company Aeropostale Inc reported results for the second quarter ended July 30, 2005.

Net income for the second quarter of fiscal 2005 was $7.5 million or $0.13 per diluted share versus net income of $10.9 million or $0.19 per diluted share in the second quarter of last year.

Net sales for the second quarter of fiscal 2005 increased 19.5 percent to $232.8 million versus net sales of $194.9 million in the second quarter of last year. Comparable store sales for the second quarter decreased 2.2 percent versus an increase of 20.0 percent last year.

Julian R. Geiger, Chairman and Chief Executive Officer said, "They are clearly disappointed with performance for the second quarter. While they were able to manage expenses carefully, the sales and gross margins in certain key classifications were significantly below the plan. As a result of this shortfall, our inventories at the end of the second quarter were higher than they initially anticipated."

Mr. Geiger, concluded, "Company objective during the third quarter will be to maximize earnings and return to normalized inventory levels. Accordingly, they have revised third and fourth quarter guidance reflecting increased promotional activity."

Aeropostale Inc is a specialty retailer of casual apparel and accessories, principally targeting 11 to 18 year-old young women and men. The company offers customers with a focused selectionof high-quality, active-oriented, fashion basic merchandise at compelling values. Aeropostale maintains control over its proprietary brands by designing, marketing and selling all of its own merchandise.

Jimmy''Z, a wholly owned subsidiary of Aeropostale Inc is a California lifestyle-oriented brand targeting fashion-aware young women and men ages 18 to 25. Jimmy''Z offers customers trend-right apparel in an innovative and unique store environment.