Thursday, August 5, 2010
Fashionable young people, Aéropostale shop here
If the hip is hot, helps low-rise pants, which in this case, use the budget Aeropostale clothing store chain. Its shops, even indistinguishable from the likes of others have in the mall, is a must for fashion-conscious teens and preteens.
The investors are not completely within the scope of this fashion trend. Sure, Aeropostal outperformed the overall index. However, at about $ 28 per share, the population has hardly returned to the level of autumn, passing close by, and now is trading on prospective price-earnings multiple of 11 for 2010 and 10 in 2011.
The rise in profits
In the first quarter of fiscal 2010, an increase of 14% in sales and an increase of three points, profit margins slipped to 55% to 48 cents per share. For the full year, Wall Street expects earnings per share by approximately $ 2.80. For 2011, estimates range from $ 3.05 to $ 3.75 per share. Same-store sales rose 8%, a good performance considering that Co-CEO Tom Johnson said it was "a very high level of promotional activity [OFF] in the mall."
In this difficult economic environment, Aeropostale rivals are normally more American Eagle Outfitters and Abercrombie & Fitch for 10 consecutive quarters of growth in same-store sales hit, but freer trade projected P / ES.
No debt, lots of money
Aeropostal financial solid rock, no debt and a balance sheet is flush with $ 313,000,000 cash. Analysts and portfolio managers for the action of the 12-month target price of $ 35 to $ 50
concentrated under the leadership of the two CEOs, added Mr. Johnson, and former Victoria's Secret executive Mindy Meads, Aeropostale because cutting-edge fashion and has invested in technology to register the length of the sales almost always for them. This enables the company to adjust its inventory not only in response to changes in demand, but to also save variations in size and color and region. The dynamics of flexible, model-based Aeropostal device market share to 11% in 2009, helped by 8% in 2005.
The most exciting aspect is its push into the space Aeropostal stores through its own PS preteen new Aéropostale. Since May last year the company had 22 shops HP. It plans another 22-30 starts this year, is expected to accelerate the pace of openings in 2011 and 2012.
"Supporting the demographic growth of the markets preteens are very good," says Christine Chen, who remains Aéropostale Needham & Co. "The grandchildren of baby boomers and older generations younger children together a large market. Aéropostale plays very well done."