Aeropostale Inc. (ARO) – a specialty retailer of casual apparel and accessories targeting young women, men and children – recently reported sales results for the five-week period ended January 2, 2010.
 
Aeropostale’s comparable-store sales for December climbed 10% compared to an increase of 12% posted in the same month last year. Year-to-date comps increased 10% compared to an increase of 8% in the same period last year.
 
Net sales for December jumped 17% to $460.8 million from $392.7 million delivered in the same month last year. Year-to-date net sales climbed 18% to $2,118 million from $1,789 million posted in the same period last year.
 
Aeropostale hinted that its merchandise margins for December have increased substantially compared to the same month last year, and inventories were well managed.
 
Better-than-expected results for the month have prompted management to raise its earnings guidance for the fourth quarter of 2009. Aeropostale now expects quarterly earnings in the range of $1.33 to $1.34 a share, an increase of 32% to 33% from $1.01 delivered in the fourth quarter of 2008. The Zacks Consensus Estimate for the quarter is $1.34.
 
Earlier, Aeropostale had forecasted quarterly earnings in the range of $1.20 to $1.24 per share.
 
Aeropostale is based in New York. The mall-based retailer currently operates 952 stores and principally focuses on young women and men in the age bracket of 14 years to 17 years, and kids in the age group of 7 years to 12 years.
Read the full analyst report on “ARO”
Zacks Investment Research