Aeropostale Posts 18 Percent Rise In Q3 Earnings

December 3, 2008 7:25 p.m. EST

New York, NY (AHN) - Aeropostale Inc. announced Wednesday fiscal third quarter earnings rose 18 percent as revenue was strong on a 7 percent increase in same-store sales.

The teen apparel retailer posted third quarter earnings of $42.6 million or 63 cents a share, up from $36 million or 48 cents a share in the same period a year earlier. Revenue jumped 17 percent to $482 million from $412.6 million last year.

Results were generally in-line with 62 cents a share on revenue of $482.7 million that analysts estimated, according to Thomson Reuters.

"We are very pleased with the record results we generated in the third quarter. This accomplishment was particularly impressive given the unprecedented weakness in the macroeconomic environment," said CEO Julian R. Geiger, according to the PRNewswire.

Although same-store sales rose 7 percent for the third quarter ended Nov. 1. Aeropostale said same-store sales reversed in November, falling 5 percent.

Looking forward, Aeropostale expects fourth quarter earnings to be 84 to 90 cents a share. The company earned 95 cents a share in the fourth quarter last year. Analysts are expecting earnings of 98 cents a share.

The company plans to cut capital expenditures in 2009 by 31 percent to $55 million.

Shares of Aeropostale rose 6.7 percent on Wednesday to close at $14.94.