Aeropostale Lifts Guidance

Aeropostale Inc. (ARO) – a specialty retailer of casual apparel and accessories, targeting children, young men and women – recently raised its fourth quarter 2009 earnings outlook.
 
The mall-based retailer now expects fourth-quarter earnings in the range of $1.41 to $1.42 per share, up from its previous view of $1.33 to $1.34, which reflects an increase of 40% to 41% from $1.01 posted in the fourth quarter of last year.
 
The better-than-expected results for the four-week period ended Jan 30, 2010 have prompted management to boost its fourth-quarter earnings guidance.
 
Aeropostale’s comparable-store sales for January jumped 6%, compared to an increase of 11% in the same month a year ago. Year-to-date comps climbed 10%, compared to a rise of 8% posted in the same period last year.
 
New York-based Aeropostale said that total sales for January surged 15% to $111.2 million from $96.5 million in the same month last year. Year-to-date sales soared 18% to $2,229 million from the previous year’s $1,886 million.
 
Total sales for the fourth quarter grew 16% to $799.9 million from last year’s $690 million. Comparable-store sales for the quarter rose 9% versus an increase of 6% in the year-ago quarter.
 
Aeropostale currently operates 952 stores and principally focuses on young women and men in the age bracket of 14 years to 17 years, as well as kids in the age group of 7 years to 12 years.

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