Here’s our Pick of the Month – July 2009

Article Excerpt

AEROPOSTALE INC. $34.67 (New York symbol ARO; SI Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 67.5 million; Market cap: $2.3 billion) is a mall-based retailer of casual clothing and accessories. The company, which now has more than 900 stores, mainly targets 14- to 17-year-old women and men. Its active-oriented clothing has a reputation for high quality and low prices. In the quarter ended May 2, 2009, Aeropostale’s sales rose 21.3%, to $408 million from $336.3 million a year earlier. Earnings rose 81%, to $31.7 million, or $0.47 a share, from $17.5 million, or $0.26. Aeropostale’s strong results continued in May, when it reported that its same-store sales jumped 19% from a year earlier. If you include new stores, its total May sales jumped 30%. In contrast, its main rivals’ sales fell: Abercrombie & Fitch dropped 28%, American Eagle fell 7% and The Gap was down 6%. Aeropostale recently opened its first kids’ store, “P.S. from Aeropostale,” aimed at seven-to-12-year-old elementary-school students. During Aeropostale’s…