Aeropostale Inc. generated $1.89 billion in net sales during its fiscal 2008, up 19% from $1.59 billion in fiscal 2007. Its net income rose slightly more slowly – 16% -- from $149.4 million, up from $129.2 million. The year ended Jan. 31.
For the fourth quarter, the apparel retailer pulled in $690 million, 17% higher than the $591.2 million it generated in fourth quarter 2007. Net income rose 5% during the same period, from $64.7 million to $68.2 million.
Total net sales from the company's e-commerce business for the fourth quarter of fiscal 2008 increased 88% to $41.4 million, up from $22 million during fourth quarter 2007. Total net sales from its e-commerce business for the fiscal year increased 85% to $79.1 million, from $42.8 million a year ago.
The company also said the name of its new kids store concept would be P.S. from Aeropostale. The new concept will offer casual clothing and accessories for kids ages 7 to 12. The first P.S. from Aeropostale store is planned to open in June, with an online launch at ps4u.com to follow shortly thereafter.
The Cynic’s Take: Bravo to Aeropostale for doing something – anything – to expand market share in this economy. That said, its decision to go after the 7-12 market is a curious one: This age group can’t be marketed to directly (not that it has great control over its own purse strings.) It’ll be interesting to see how Aeropostale solicits this cohort, aside from using passive mediums such as print and television. Look for a lot of “To the parents of” targeted prospecting, if any.
