Aeropostale 2013 net sales decrease by 12 percent

REPORT_ Aeropostale reported that its net sales for fiscal 2013 decreased 12 percent to 2.091 billion dollars, from 2.386 billion dollars in the year ago period. Fiscal 2013 comparable sales, including the e-commerce channel, decreased 15 percent compared to a 2 percent decrease for

the corresponding period of the prior year. For the fourth quarter of fiscal 2013, net sales decreased 16 percent to 670 million dollars, from 797.7 million dollars in the year ago period.

Commenting

on the results, Thomas P. Johnson, Chief Executive Officer, said, “The results we generated in 2013 are not acceptable nor are they a reflection of the progress we believe we have made in transforming our brand. Having evaluated what we set out to do in 2013 and what we learned, we believe our strategy surrounding product, brand projection, process and growth is even more crucial to winning in today's challenging retail landscape.”

Fourth quarter comparable sales, including the e-commerce channel, decreased 15 percent, compared to a decrease of 8 percent for the corresponding period of the prior year. Net revenue from the New York-based company's e-commerce business for the fourth quarter of fiscal 2013, including net revenues from the GoJane.com business, which was acquired on November 13, 2012, decreased 12 percent to 85.6 million dollars, from 96.8 million dollars in the year ago period.

The company reported a net loss for the fourth quarter of fiscal 2013 of 70.3 million dollars, or 0.90 dollars per diluted share, which included an after-tax charge of 21.3 million dollars, or 0.27 dollars per diluted share. The company opened 5 Aeropostale and 3 P.S. from Aeropostale stores, and closed 32 Aeropostale stores during the quarter.

Net revenues from the company's e-commerce business for fiscal 2013, including net revenues from the GoJane.com business, which was acquired on November 13, 2012, was essentially flat at 217.6 million dollars, from 217 million dollars in the year ago period. Net loss for fiscal 2013 was 141.8 million dollars, or 1.81 dollars per diluted share, which included an after-tax charge of 29.5 million dollars, or 0.38 dollars per diluted share.

The company also announced that it has signed a commitment letter with Sycamore Partners and its affiliates for a strategic partnership and 150 million dollars in senior secured credit facilities. For the first quarter of fiscal 2014, the company expects operating losses in the range of 64 to 68 million dollars, which translates to a net loss in the range of 0.70 dollars to 0.75 dollars per diluted share. For fiscal 2014, the company plans to open approximately seven Aeropostale stores and remodel, either partial or full, approximately ten Aeropostale stores, and expects to open one new P.S. store.