Investing in stocks: Aeropostale sales and earnings rise in latest quarter

Aeropostale Inc., symbol ARO on New York, is a mall-based retailer of casual clothing and accessories. The company has 965 Aeropostale stores in the U.S., Canada and Puerto Rico. It mainly sells its clothing to 14-to-17-year-olds. Aeropostale’s 47 “P.S. from Aeropostale” stores in the U.S. are aimed at seven-to-12-year-old elementary-school children. In the fiscal year ended January 29, 2011, Aeropostale’s sales rose 7.6% to $2.4 billion from $2.2 billion the previous year. Same-store sales rose only 1%, compared to a gain of 10% in the prior year, but online sales rose 24.2% to $160.2 million from $129.0 million. The company’s earnings rose 0.8%, to $231.3 million from $229.5 million. Earnings per share rose 9.7%, to $2.49 from $2.27, on fewer shares outstanding. In the latest fiscal year, Aeropostale bought back 10.3 million shares for $257.5 million. The company forecasts earnings per share of between $2.20 and $2.40 this year. The stock trades at 10.4 times the midpoint of that range. If you’re interested in investing in stocks like Aeropostale, you should subscribe to our Stock Pickers Digest newsletter. What’s more, you can get one month free when you subscribe now. Click here to learn how.

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.