Sales take a dive at Aeropostale

NEW YORK — Aeropostale reported that net sales for the fourth quarterdecreased 1% to $797.7 million, from $808.4 million in the year ago period. Fourth quarter comparable sales, including the e-commerce channel, decreased 8% compared with a 7% decrease for the corresponding 14-week period of the prior year. Fourth quarter comparable store sales, excluding the e-commerce channel, decreased 9%, compared to a decrease of 9% for the corresponding 14-week period of the prior year.

The company reported a net loss for the fourth quarter of fiscal 2012 of $0.7 million, or 1 cent per diluted share, compared with net income of $26.1 million, or 32 cents per diluted share, for the fourth quarter of 2011.

Net sales for fiscal 2012 increased 2% to $2.386 billion, from $2.342 billion in the year ago period. Fiscal 2012 comparable sales, including the e-commerce channel, decreased 2% compared with an 8% decrease for the comparable 53-week period of the prior year. Fiscal 2012 comparable-store sales, excluding the e-commerce channel, decreased 4%, compared to a decrease of 9% for the comparable 53-week period of the prior year.

Net income for fiscal 2012 was $34.9 million, or 43 cents per diluted share, compared withnet income of $69.5 million, or 85 cents per diluted share, for the same period last year.

Thomas Johnson, CEO, commented, "Our results for the fourth quarter and fiscal year were disappointing; however, we made progress during 2012 against our strategic initiatives. We added new talent to our team, injected more relevant fashion into our assortments, and developed our next generation store model. Further, we continued to build positive momentum in our P.S. business, extended our global reach by opening in new markets, and grew our e-commerce business, which included the successful acquisition of GoJane.com. While we have not reached the level and consistency in our performance for which we strive, we are committed to evolving and transforming our product to position ourselves as a true lifestyle brand."

For the first quarter of fiscal 2013, the company expects to report a loss in the range of 15 cents to 20 cents per diluted share, compared with earnings of 13 cents per diluted share last year.

For fiscal 2013, the company plans to open approximately 14 Aeropostale stores, approximately 60 P.S. from Aeropostale stores, remodel approximately 30 stores, and close approximately 15 to 20 Aeropostale stores.