Close

Form 8-K AEROPOSTALE INC For: Dec 03

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 4/27/2024

1. GOOGL
2. MSFT
3. INTC
4. SNAP
5. SPY
6. GOOG
7. TEAM
8. ROKU
9. TSCO
10. WDC


December 3, 2014 4:06 PM EST



�
�

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section�13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): December 3, 2014

A�ropostale, Inc.
(Exact name of registrant as specified in its charter)

Delaware
�(State or other jurisdiction of incorporation)
�
001-31314
�(Commission File Number)
�
31-1443880
�(IRS Employer Identification No.)
112 West 34th Street, 22nd Floor, New York, New York 10120
(Address of principal executive offices, including Zip Code)

(646)�485-5410
(Registrant's telephone number, including area code)

Not applicable
(Former name or former address, if changed since last report)

�
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

o
�
Written communications pursuant to Rule�425 under the Securities Act (17 CFR 230.425)
�
�
�
o
�
Soliciting material pursuant to Rule�14a-12 under the Exchange Act (17 CFR 240.14a-12)
�
�
�
o
�
Pre-commencement communications pursuant to Rule�14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))
�
�
�
o
�
Pre-commencement communications pursuant to Rule�13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))


�
�

�

�








































ITEM 2.02
Results of Operations and Financial Condition.
�
�
�
On December 3, 2014, A�ropostale, Inc. (the Company) issued a press release announcing third quarter of fiscal 2014 earnings results. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated into this Item 2.02 by reference.
�
�
�
�
The information under this Item in this Current Report on Form 8-K, including the Exhibits 99.1 and 99.2 attached hereto is being furnished to the Securities and Exchange Commission, shall not be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities thereof, nor shall it be deemed to be incorporated by reference into any filing under the Exchange Act or under the Securities Act of 1933, as amended, except to the extent specifically provided in any such filing.
�
�
ITEM 9.01
Financial Statements and Exhibits.
�
(d)�Exhibits
�
�
�
�
99.1 ����
Press release, dated December 3, 2014, announcing third quarter of fiscal 2014 earnings results
�
99.2 ����
Presentation of results for the third quarter of fiscal 2014 made available by A�ropostale, Inc. with the Press Release issued on December 3, 2014




























SIGNATURES
According to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

A�ropostale, Inc.




/s/ Marc D. Miller
Marc D. Miller
Executive Vice President - Chief Financial Officer

Dated: December 3, 2014














































Exhibit Index

Exhibit No.
Exhibit
99.1
Press release, dated December 3, 2014, announcing third quarter of fiscal 2014 earnings results
99.2
Presentation of results for the third quarter of fiscal 2014 made available by A�ropostale, Inc. with the Press Release issued on December 3, 2014





Exhibit 99.1


A�ROPOSTALE REPORTS RESULTS FOR THIRD QUARTER OF FISCAL 2014


New York, New York, December 3, 2014 -- A�ropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of casual apparel for young women and men, today reported results for the third quarter of fiscal 2014, and provided guidance for the fourth quarter of fiscal 2014.

Third Quarter Performance
For the third quarter of fiscal 2014, net sales decreased 12% to $452.9 million, from $514.6 million in the year ago period. Comparable sales, including the e-commerce channel, for the third quarter decreased 11% compared to the corresponding 13-week period ended November 2, 2013.

The Company reported a net loss for the third quarter of fiscal 2014 of $52.3 million, or $0.66 per diluted share, which included:

"
an after-tax charge of $10.9 million, or $0.13 per diluted share, resulting from store asset impairment charges;
"
an after-tax charge of $3.2 million, or $0.04 per diluted share, resulting from lease buyout costs;
"
an after-tax charge of $1.2 million, or $0.01 per diluted share, related to consulting fees;
"
after-tax restructuring charges of $1.5 million, or $0.02 per diluted share, related to the severance costs associated with the exit of the mall-based P.S. from A�ropostale stores;
"
an after-tax charge of $2.0 million, or $0.03 per diluted share, related to severance costs for the Companys former Chief Executive Officer; and
"
an after-tax benefit of $1.8 million, or $0.02 per diluted share, related to the reversal of stock-based compensation expense.

Excluding the aforementioned charges, the Company reported an adjusted net loss of $35.2 million, or $0.45 per diluted share in the third quarter of fiscal 2014 (see Exhibit D).

Julian R. Geiger, Chief Executive Officer, commented, During my first 100 days back at A�ropostale, I have developed and begun executing my vision of, and game plan for, positioning and returning the Company to profitability. In that time, we have also continued to support and accelerate a variety of well conceived and executed merchandising, marketing, operational and financial initiatives that started before my arrival. We have made small but measureable steps in the right direction, which led to third quarter results that were in line with our guidance. We ended the quarter with inventories well-controlled, positioning us appropriately as we progress through the fourth quarter.

The Company ended the quarter with cash and cash equivalents of $109.2 million and long-term debt of $136.0 million.

The Company opened three A�ropostale stores and closed 16 A�ropostale and seven P.S. from A�ropostale stores during the quarter. For the third quarter, the Company invested $5.9 million in planned capital expenditures

Fourth Quarter Guidance
For the fourth quarter of fiscal 2014, the Company expects operating losses in the range of $28.0 to $34.0 million, which translates to a net loss in the range of $0.37 to $0.44 per diluted share. The effective tax rate for the fourth quarter is projected to be approximately 4.0%. This earnings guidance does not include the impact of any store impairments, accelerated store closure costs, or real estate consulting fees.

1



Mr. Geiger continued, The history of A�ropostale is one steeped in determination and overcoming adversity. We believe that we understand what has been wrong with the business, that we know how to fix it and that we have the resources to do so. Through changes in organizational structure, discipline, brand positioning, and assortments, assortment planning and allocation, I believe that our organization is capable of winning once again. Together, we will solve our current problems and jointly author our future success. Our goal is clear - to return to profitability.

Use of Non-GAAP Measures
The Company believes that the disclosure of adjusted net loss and adjusted loss per diluted share, which are non-GAAP financial measures, provides investors with useful information to help them better understand the Companys results (see Exhibit D).

Conference Call Information
The Company will be holding a conference call today at 4:15 P.M. ET to review its third quarter results. The broadcast will be available through the Investor Relations link at www.aeropostale.com or by dialing 877-407-9039 approximately 10 minutes prior to the scheduled time with the passcode Aeropostale. A replay will be available approximately one hour after the recording through Wednesday, December 10, 2014 and can be accessed by dialing 877-870-5176, using the required passcode 13596170. An archive will also be available at the Aeropostale website for 12 months.

About A�ropostale, Inc.
A�ropostale�, Inc. is a primarily mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men through its A�ropostale� stores and 4 to 12 year-olds through its P.S. from A�ropostale� stores. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting store environment. A�ropostale� maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. A�ropostale� products can be purchased in A�ropostale� stores and online at www.aeropostale.com. P.S. from A�ropostale� products can be purchased in P.S. from A�ropostale� stores and online at www.ps4u.com and www.aeropostale.com. The Company currently operates 842 A�ropostale� stores in 50 states and Puerto Rico, 69 A�ropostale stores in Canada and 141 P.S. from A�ropostale� stores in 31 states and Puerto Rico. In addition, pursuant to various licensing agreements, our licensees currently operate 233 A�ropostale� and P.S. from A�ropostale� locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, A�ropostale, Inc. has operated GoJane.com, Inc., an online womens fashion footwear and apparel retailer.

SPECIAL NOTE: THIS PRESS RELEASE AND ORAL STATEMENTS MADE FROM TIME TO TIME BY REPRESENTATIVES OF THE COMPANY CONTAIN CERTAIN "FORWARD-LOOKING STATEMENTS" MADE IN RELIANCE UPON THE SAFE HARBOR PROVISIONS OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, CONCERNING EXPECTATIONS FOR SALES, STORE OPENINGS, GROSS MARGINS, EXPENSES, STRATEGIC DIRECTION AND EARNINGS. ACTUAL RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER INCLUDE, CHANGES IN THE COMPETITIVE MARKETPLACE, INCLUDING THE INTRODUCTION OF NEW PRODUCTS OR PRICING CHANGES BY OUR COMPETITORS, CHANGES IN THE ECONOMY AND OTHER EVENTS LEADING TO A REDUCTION IN DISCRETIONARY CONSUMER SPENDING; SEASONALITY; RISKS ASSOCIATED WITH CHANGES IN SOCIAL, POLITICAL, ECONOMIC AND OTHER CONDITIONS AND THE POSSIBLE ADVERSE IMPACT OF CHANGES IN IMPORT RESTRICTIONS; RISKS ASSOCIATED WITH UNCERTAINTY RELATING TO THE COMPANY'S ABILITY TO IMPLEMENT ITS STRATEGIES; RISKS ASSOCIATED WITH THE COMPANYS ABILITY TO IMPLEMENT AND REALIZE THE ANTICIPATED BENEFITS OF THE COMPANYS STRATEGIC INITIATIVES AND COST REDUCTION PROGRAM, AS WELL AS THE OTHER RISK FACTORS SET FORTH IN THE COMPANY'S FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.










2


EXHIBIT A



A�ROPOSTALE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)


�
November 1,
2014
�
February 1,
2014
�
November 2,
2013
�
�
�
�
�
�
ASSETS
�
�
�
�
�
Current Assets:
�
�
�
�
�
Cash and cash equivalents
$
109,198

�
$
106,517

�
$
68,018

Merchandise inventory
211,136

�
172,311

�
262,587

Other current assets
57,156

�
97,793

�
102,573

Total current assets
377,490

�
376,621

�
433,178

�
�
�
�
�
�
Fixtures, equipment and improvements, net
151,196

�
235,401

�
274,402

Goodwill and intangible assets
28,016

�
28,580

�
28,768

Other assets
21,622

�
7,039

�
5,965

�
�
�
�
�
�
TOTAL ASSETS
$
578,324

�
$
647,641

�
$
742,313

�
�
�
�
�
�
LIABILITIES AND STOCKHOLDERS EQUITY
�
�
�
�
�
Current Liabilities:
�
�
�
�
�
Accounts payable
$
143,354

�
$
138,245

�
$
179,821

Accrued expenses
99,319

�
102,116

�
86,644

Total current liabilities
242,673

�
240,361

�
266,465

�
�
�
�
�
�
Long-term debt
136,042

�


�


�
�
�
�
�
�
Other non-current liabilities
95,766

�
126,588

�
128,981

�
�
�
�
�
�
Stockholders equity
103,843

�
280,692

�
346,867

�
�
�
�
�
�
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
$
578,324

�
$
647,641

�
$
742,313



















3


EXHIBIT B

A�ROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
SELECTED STORE DATA
(In thousands, except per share and store data)
(Unaudited)
�
13 weeks ended
�
November 1,
2014
�
November 2,
2013
�
�
�
% of sales
�
�
�
% of sales
Net sales
$
452,889

�
100.0
�%
�
$
514,588

�
100.0
�%
Cost of sales (including certain buying, occupancy and warehousing expenses) 1
384,011

�
84.8
�%
�
426,699

�
82.9
�%
Gross profit
68,878

�
15.2
�%
�
87,889

�
17.1
�%
Selling, general and administrative expenses 2
121,250

�
26.8
�%
�
128,923

�
25.1
�%
Restructuring charges 3
1,713

�
0.3
�%
�


�

�%
Loss from operations
(54,085
)
�
(11.9
)%
�
(41,034
)
�
(8.0
)%
Interest expense
3,035

�
0.7
�%
�
314

�
0.0
�%
Loss before income taxes
(57,120
)
�
(12.6
)%
�
(41,348
)
�
(8.0
)%
Income tax benefit 4
(4,797
)
�
(1.0
)%
�
(15,725
)
�
(3.0
)%
Net loss
$
(52,323
)
�
(11.6
)%
�
$
(25,623
)
�
(5.0
)%
Basic loss per share
$
(0.66
)
�
�
�
$
(0.33
)
�
�
Diluted loss per share
$
(0.66
)
�
�
�
$
(0.33
)
�
�
Weighted average basic shares
79,015

�
�
�
78,488

�
�
Weighted average diluted shares
79,015

�
�
�
78,488

�
�
�
�
�
�
�
�
�
�
STORE DATA:
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Comparable sales change (including e-commerce channel)
(11
)%
�
�
�
(15
)%
�
�
Stores open at end of period
1,052

�
�
�
1,124

�
�
Total square footage at end of period
3,912,039

�
�
�
4,158,414

�
�
Average square footage during period
3,988,975

�
�
�
4,161,390

�
�

1 Cost of sales for the third quarter of 2014 was unfavorably impacted by asset impairment charges of $12.5 million ($10.9 million after tax, or $0.13 per diluted share) and lease buyout costs of $3.7 million ($3.2 million after tax, or $0.04 per diluted share). Cost of sales for the third quarter of 2013 was unfavorably impacted by store asset impairment charges of $5.1 million ($2.8 million after tax, or $0.04 per diluted share)

2 Selling, general and administrative expenses for the third quarter of 2014 was unfavorably impacted by consulting fees of $1.4 million ($1.2 million after tax, or $0.01 per diluted share) and severance costs for our former Chief Executive Officer of $2.3 million ($2.0 million after tax, or $0.03). It was favorably impacted by the reversal of stock-based compensation related to the departure of our former Chief Executive Officer of $2.0 million ($1.8 million after tax, or $0.02 per diluted share).

3 Restructuring charges for the third quarter of 2014 increased by $1.7 million ($1.5 million after tax, or $0.02 per diluted share).





4


EXHIBIT C

A�ROPOSTALE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
SELECTED STORE DATA
(In thousands, except per share and store data)
(Unaudited)
�
39 weeks ended
�
November 1,
2014
�
November 2,
2013
�
�
�
% of sales
�
�
�
% of sales
Net sales
$
1,244,902

�
100.0
�%
�
$
1,420,895

�
100.0
�%
Cost of sales (including certain buying, occupancy and warehousing expenses) 1
1,042,977

�
83.8
�%
�
1,150,400

�
81.0
�%
Gross profit
201,925

�
16.2
�%
�
270,495

�
19.0
�%
Selling, general and administrative expenses 2
361,877

�
29.1
�%
�
375,827

�
26.5
�%
Restructuring charges 3
39,221

�
3.1
�%
�


�

�%
Loss from operations
(199,173
)
�
(16.0
)%
�
(105,332
)
�
(7.4
)%
Interest expense
5,808

�
0.5
�%
�
705

�
0.0
�%
Loss before income taxes
(204,981
)
�
(16.5
)%
�
(106,037
)
�
(7.4
)%
Income tax benefit 4
(12,057
)
�
(1.0
)%
�
(34,512
)
�
(2.4
)%
Net loss
$
(192,924
)
�
(15.5
)%
�
$
(71,525
)
�
(5.0
)%
Basic loss per share
$
(2.45
)
�
�
�
$
(0.91
)
�
�
Diluted loss per share
$
(2.45
)
�
�
�
$
(0.91
)
�
�
Weighted average basic shares
78,775

�
�
�
78,442

�
�
Weighted average diluted shares
78,775

�
�
�
78,442

�
�
�
�
�
�
�
�
�
�
STORE DATA:
�
�
�
�
�
�
�
�
�
�
�
�
�
�
�
Comparable sales change (including e-commerce channel)
(12
)%
�
�
�
(15
)%
�
�
Average square footage during period
4,028,731

�
�
�
4,111,534

�
�

1 Cost of sales for the first thirty-nine weeks of 2014 was unfavorably impacted by asset impairment charges of $34.1 million ($31.9 million after tax, or $0.41 per diluted share) and lease buyout costs of $4.0 million ($3.5 million after tax, or $0.04 per diluted share). Cost of sales for the first thirty-nine weeks of 2013 was unfavorably impacted by store asset impairment charges of $13.6 million ($8.3 million after tax, or $0.10 per diluted share).

2 Selling, general and administrative expenses for the first thirty-nine weeks of 2014 was unfavorably impacted by consulting fees of $4.4 million ($4.1 million after tax, or $0.05 per diluted share) and severance costs for our former Chief Executive Officer of $2.3 million ($2.0 million after tax, or $0.03). It was favorably impacted by the reversal of stock-based compensation related to the departure of our former Chief Executive Officer of $2.0 million ($1.8 million after tax, or $0.02 per diluted share).

3 Restructuring charges for the first thirty-nine weeks of 2014 included store asset impairment charges of $30.5 million ($29.1 million after tax, or $0.37 per diluted share) and other restructuring charges of $8.7 million ($8.2 million after tax, or $0.10 per diluted share).

4 Income tax benefit for the first thirty-nine weeks of fiscal 2014 was unfavorably impacted by the establishment of reserves against net deferred tax assets of $3.4 million after tax, or $0.04 per diluted share.




5


EXHIBIT D

A�ROPOSTALE, INC.
RECONCILIATION OF NET LOSS AND DILUTED LOSS PER SHARE
(In thousands, except per share)
(Unaudited)

The following table presents a reconciliation of net loss and diluted loss per share (EPS) on a GAAP basis to the non-GAAP adjusted basis discussed in this release.
�
13 weeks ended
�
November�1,
2014
�
November�2,
2013
�
Net Loss
�
Diluted EPS
�
Net Loss
�
Diluted EPS
�
�
�
�
�
�
�
�
As reported
$
(52,323
)
�
$
(0.66
)
�
$
(25,623
)
�
$
(0.33
)
Asset impairment charges 1
10,929

�
0.13

�
2,769

�
0.04

Lease buyout costs 2
3,206

�
0.04

�


�


Other restructuring charges
1,500

�
0.02

�


�


Consulting fees 3
1,195

�
0.01

�


�


Severance for former CEO
2,027

�
0.03

�


�


Reversal of stock-based compensation related to departure of CEO
(1,781
)
�
(0.02
)
�


�


As adjusted
$
(35,247
)
�
$
(0.45
)
�
$
(22,854
)
�
$
(0.29
)

�
39 weeks ended
�
November�1,
2014
�
November�2,
2013
�
Net Loss
�
Diluted EPS
�
Net Loss
�
Diluted EPS
�
�
�
�
�
�
�
�
As reported
$
(192,924
)
�
$
(2.45
)
�
$
(71,525
)
�
$
(0.91
)
Asset impairment charges 4
60,977

�
0.78

�
8,283

�
0.1

Other restructuring charges
8,231

�
0.1

�


�


Consulting fees 3
4,124

�
0.05

�


�


Lease buyout costs 2
3,529

�
0.04

�


�


Establishment of reserves against net deferred tax assets
3,440

�
0.04

�


�


Severance for former CEO
2,027

�
0.03

�


�


Reversal of stock-based compensation related to departure of CEO
(1,781
)
�
(0.02
)
�


�


As adjusted
$
(112,377
)
�
$
(1.43
)
�
$
(63,242
)
�
$
(0.81
)

1 Recorded in cost of sales in the statement of operations for the third quarter of 2014 and third quarter of 2013.

2 Recorded in cost of sales in the statement of operations for the third quarter of 2014 and the first thirty-nine weeks of 2014.

3 Recorded in selling, general and administrative expenses in the statement of operations for the third quarter of 2014 and the first thirty-nine weeks of 2014.

4 Includes $29.1 million, after tax recorded in restructuring charges and $31.9 million, after tax recorded in cost of sales in the statement of operations for the first thirty-nine weeks of 2014. Includes $8.3 million, after tax recorded in cost of sales for the first thirty-nine weeks of 2013.

6
1 Third Quarter 2014 Financial Results

�

�
Condensed Consolidated Balance Sheets (unaudited) 3 November 1, 2014 February 1, 2014 November 2, 2013 ASSETS Current Assets: Cash and cash equivalents $ 109,198 $ 106,517 $ 68,018 Merchandise inventory 211,136 172,311 262,587 Other current assets 57,156 97,793 102,573 Total current assets 377,490 376,621 433,178 Fixtures, equipment and improvements, net 151,196 235,401 274,402 Goodwill and intangible assets 28,016 28,580 28,768 Other assets 21,622 7,039 5,965 TOTAL ASSETS $ 578,324 $ 647,641 $ 742,313 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 143,354 $ 138,245 $ 179,821 Accrued expenses 99,319 102,116 86,644 Total current liabilities 242,673 240,361 266,465 Long-term debt 136,042 - - Other non-current liabilities 95,766 126,588 128,981 Stockholders' equity 103,843 280,692 346,867 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 578,324 $ 647,641 $ 742,313 _ (In thousands)

�
Condensed Consolidated Statements of Operation (unaudited) 4 November 1, 2014 % of sales November 2, 2013 % of sales Net sales $ 452,889 100.0 % $ 514,588 100.0 % Cost of sales (includes certain buying, occupancy and warehousing expenses) 1 384,011 84.8 % 426,699 82.9 % Gross profit 68,878 15.2 % 87,889 17.1 % Selling, general and administrative expenses 2 121,250 26.8 % 128,923 25.1 % Restructuring charges 3 1,713 0.3 % - 0.0 % Loss from operations (54,085) (11.9)% (41,034) (8.0)% Interest expense 3,035 0.7 % 314 0.0 % Loss before income taxes (57,120) (12.6)% (41,348) (8.0)% Income tax benefit (4,797) (1.0)% (15,725) (3.0)% Net loss $ (52,323) (11.6)% $ (25,623) (5.0)% Basic loss per share $ (0.66) $ (0.33) Diluted loss per share $ (0.66) $ (0.33) Weighted average basic shares 79,015 78,488 Weighted average diluted shares 79,015 78,488 13 Weeks Ended 2 Selling, general and administrative expenses for the third quarter of 2014 was unfavorably impacted by consulting fees of $1.4 million ($1.2 million after ax, or $0.01 per diluted share) and severance costs for our former Chief Executive Officer of $2.3 million ($2.0 million after tax, or $0.03). It was favorably impacted by the reversal of stock-based compensation related to the departure of our former Chief Executive Officer of $2.0 million ($1.8 million after tax, or $0.02 per diluted share). 3 Restructuring charges for the third quarter of 2014 increased by $1.7 million ($1.5 million after tax, or $0.02 per diluted share). (In thousands, except per share data) 1 Cost of sales for the third quarter of 2014 was unfavorably impacted by asset impairment charges of $12.5 million ($10.9 million after tax, or $0.13 per diluted share) and lease buyout costs of $3.7 million ($3.2 million after tax, or $0.04 per diluted share). Cost of sales for the third quarter of 2013 was unfavorably impacted by store asset impairment charges of $5.1 million ($2.8 million after tax, or $0.04 per diluted share)

�
Reconciliation of Net Loss and Diluted Loss Per Share (In thousands, except per share data) (Unaudited) 5 Net Loss Diluted EPS Net Loss Diluted EPS As reported $ (52,323) $ (0.66) $ (25,623) $ (0.33) Asset impairment charges 1 10,929 0.13 2,769 0.04 Lease buyout costs 1 3,206 0.04 - - Other restructuring charges 1,500 0.02 - - Consulting fees 2 1,195 0.01 - - Severance for former CEO 2,027 0.03 - - Reversal of stock-based compensation related to departure of CEO (1,781) (0.02) - - As adjusted $ (35,247) $ (0.45) $ (22,854) $ (0.29) 2 Rec r ed in selling, general and administrative expenses in the statement of operations for the third quarter of 2014. The following table presents a reconciliation of net loss and diluted loss per share ("EPS") on a GAAP basis to the non-GAAP adjusted basis: November 1, 2014 November 2, 2013 13 weeks ended 1 Recorded in cost of sales in the statement of operations for the respective periods. The Company believes that the disclosure of adjusted net loss and adjusted loss per diluted share, which are non-GAAP financial measures, provides investors with useful information to help them better understand the Company's results.

�
6 Third Quarter Metrics Fiscal 2014 Fiscal 2013 Comparable sales change (11)% (15)% Comparable units per transaction change (4)% 2% Comparable sales transactions change (11)% (10)% Comparable average unit retail change 3% (7)% Third Quarter

�
Third Quarter Metrics 7 November 1, 2014 November 2, 2013 Average square footage change (4)% 3 % Stores open at end of period 1,052 1,124 Total square footage at end of period 3,912,039 4,158,414 Change in total inventory over comparable period (20)% (5)% Change in inventory per retail square foot (16)% (11)% over comparable period 13 Weeks Ended

�
8 Third Quarter 2014 Store Count Q2 Additions Closures Q3 A�ropostale U.S. 848 2 (8) 842 A�ropostale Canada 76 1 (8) 69 Total A�ropostale 924 3 (16) 911 P.S. from A�ropostale 148 - (7) 141 Total stores 1,072 3 (23) 1,052 _

�

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings