Aeropostale Inc. (ARO, Financial) filed Quarterly Report for the period ended 2010-12-08.
Aeropostale Inc. has a market cap of $2.28 billion; its shares were traded at around $24.66 with a P/E ratio of 9.5 and P/S ratio of 1. Aeropostale Inc. had an annual average earning growth of 32.5% over the past 10 years.ARO is in the portfolios of Ronald Muhlenkamp of Muhlenkamp Fund, John Hussman of Hussman Economtrics Advisors, Inc., Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC.
SG&A increased by $7.0 million for the third quarter of 2010 compared to the third quarter of 2009. The increase in SG&A was largely due to an increase of $6.9 million in store-line expenses, the SERP retirement plan charge of $6.4 million, an increase in store and e-commerce transaction expenses of $2.0 million, resulting primarily from new store growth and increased sales, and increased marketing expenses of $1.6 million. These increases were offset by a decrease of $9.9 million in corporate expenses, primarily from lower incentive compensation.
Net income was $58.5 million, or $0.63 per diluted share, for the third quarter of 2010, compared to net income of $62.6 million, or $0.61 per diluted share, for the third quarter of 2009. Earnings per share increased by 3% for the third quarter of 2010. The increase was due to fewer weighted average shares outstanding resulting from our repurchase of our common stock partially offset by a decrease in net income of 7%.
Net sales for the first thirty-nine weeks of 2010 increased by $132.2 million, or by 9% compared to the same period last year. The increase in net sales was driven by an increase in comparable store sales of 3% or $43.8 million and average square footage growth of 6%, primarily from new stores. Comparable store sales increased in both our young women s and young men s categories. The overall comparable store sales increase reflected increases of 3% in the number of sales transactions and 3% in units per sales transaction partially offset by a decrease of 3% in average unit retail. Non-comparable store sales increased by $88.5 million due primarily to 57 more stores open at the end of the first thirty-nine weeks of 2010 compared to the end of the first thirty-nine weeks of 2009. Total non-comparable store sales includes net sales from our e-commerce business which increased by 27% or $17.8 million during the first thirty-nine weeks of 2010 when compared to the same period last year.
SG&A increased by $32.2 million for the first thirty-nine weeks of 2010 compared to the first thirty-nine weeks of 2009. The increase in SG&A was largely due to an increase of $19.1 million in store-line expenses, an increase in store and e-commerce transaction expenses of $6.8 million, an increase in marketing expenses of $6.5 million and the SERP retirement plan charge of $6.4 million. These increases were partially offset by a decrease of $6.7 million in corporate expenses.
Net income was $147.5 million, or $1.57 per diluted share, for the first thirty-nine weeks of 2010, compared to net income of $132.9 million, or $1.30 per diluted share, for the first thirty-nine weeks of 2009. Earnings per share increased by 21% for the first thirty-nine weeks of 2010. The increase was due primarily to the increase in net income of 11% and fewer weighted average shares outstanding resulting from repurchase of our common stock.
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Aeropostale Inc. has a market cap of $2.28 billion; its shares were traded at around $24.66 with a P/E ratio of 9.5 and P/S ratio of 1. Aeropostale Inc. had an annual average earning growth of 32.5% over the past 10 years.ARO is in the portfolios of Ronald Muhlenkamp of Muhlenkamp Fund, John Hussman of Hussman Economtrics Advisors, Inc., Jim Simons of Renaissance Technologies LLC, Jeremy Grantham of GMO LLC, Chuck Royce of Royce& Associates, Bruce Kovner of Caxton Associates, Paul Tudor Jones of The Tudor Group, Steven Cohen of SAC Capital Advisors, George Soros of Soros Fund Management LLC.
Highlight of Business Operations:
We achieved net sales of $602.8 million for the third quarter of 2010, or a 6% increase when compared to the third quarter of 2009. Gross profit, as a percentage of net sales, decreased by 2.7 percentage points and SG&A, as a percentage of net sales remained flat for the third quarter of 2010. The effective income tax rate was 39.2% for the third quarter of 2010 and 40.8% for the third quarter of 2009. Net income for the third quarter of 2010 was $58.5 million, or $0.63 per diluted share, compared to net income of $62.6 million, or $0.61 per diluted share, for the third quarter of 2009.SG&A increased by $7.0 million for the third quarter of 2010 compared to the third quarter of 2009. The increase in SG&A was largely due to an increase of $6.9 million in store-line expenses, the SERP retirement plan charge of $6.4 million, an increase in store and e-commerce transaction expenses of $2.0 million, resulting primarily from new store growth and increased sales, and increased marketing expenses of $1.6 million. These increases were offset by a decrease of $9.9 million in corporate expenses, primarily from lower incentive compensation.
Net income was $58.5 million, or $0.63 per diluted share, for the third quarter of 2010, compared to net income of $62.6 million, or $0.61 per diluted share, for the third quarter of 2009. Earnings per share increased by 3% for the third quarter of 2010. The increase was due to fewer weighted average shares outstanding resulting from our repurchase of our common stock partially offset by a decrease in net income of 7%.
Net sales for the first thirty-nine weeks of 2010 increased by $132.2 million, or by 9% compared to the same period last year. The increase in net sales was driven by an increase in comparable store sales of 3% or $43.8 million and average square footage growth of 6%, primarily from new stores. Comparable store sales increased in both our young women s and young men s categories. The overall comparable store sales increase reflected increases of 3% in the number of sales transactions and 3% in units per sales transaction partially offset by a decrease of 3% in average unit retail. Non-comparable store sales increased by $88.5 million due primarily to 57 more stores open at the end of the first thirty-nine weeks of 2010 compared to the end of the first thirty-nine weeks of 2009. Total non-comparable store sales includes net sales from our e-commerce business which increased by 27% or $17.8 million during the first thirty-nine weeks of 2010 when compared to the same period last year.
SG&A increased by $32.2 million for the first thirty-nine weeks of 2010 compared to the first thirty-nine weeks of 2009. The increase in SG&A was largely due to an increase of $19.1 million in store-line expenses, an increase in store and e-commerce transaction expenses of $6.8 million, an increase in marketing expenses of $6.5 million and the SERP retirement plan charge of $6.4 million. These increases were partially offset by a decrease of $6.7 million in corporate expenses.
Net income was $147.5 million, or $1.57 per diluted share, for the first thirty-nine weeks of 2010, compared to net income of $132.9 million, or $1.30 per diluted share, for the first thirty-nine weeks of 2009. Earnings per share increased by 21% for the first thirty-nine weeks of 2010. The increase was due primarily to the increase in net income of 11% and fewer weighted average shares outstanding resulting from repurchase of our common stock.
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