Aéropostale Q3 Profit, Sales Exceed Expectations

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New York—Aéropostale posted Thursday third quarter sales and earnings better-than-analysts expected.

For the quarter ended Oct. 27, the teen oriented specialty retailer posted a net income increase of 4.1% to $24.95 million, or 31 cents a share, compared with $24.2 million, or 30 cents a share, in the prior year period.

Net revenue rose 1.6% to $605.9 million. Comparable store sales declined 1% compared with a 7% decline a year ago.

The earnings came in ahead of the retailer’s own August projects for per-share earnings of 25 to 30 cents. They also beat analysts’ average estimate for 29 cents a share on sales of $600.4 million.

“Although we experienced pressure on our women’s core basics business, she responded positively to our fashion offering,” said Thomas Johnson, chief executive. “In addition, our men’s and accessories businesses performed well.”

The company noted that a rise of 3% in units per transaction coupled with a 2% increase in transactions were more than offset by a fall of 5% in average unit retail. Meanwhile, gross margin widened to 27.9% of sales from 27.1% last year.

Online revenue made a stellar increase, rising 12% to $51.1 million in the quarter, helping Aéropostale to broaden its customer base worldwide.