About AEROPOSTALE, INC.

Despite it name, Aéropostale is more mall-based than mail-based. It operates more than 800 mostly mall-based stores under the Aéropostale and P.S. from Aéropostale (for kids) banners in 50 US states, Puerto Rico, and Canada. It stocks the usual teen outerwear (jeans, T-shirts, accessories), mostly under the Aéropostale and Aéro names. The retailer designs and sources its own merchandise so that it can quickly respond to trends, but has been struggling in a competitive environment in the aftermath of the US recession. In 2016, Aéropostale filed for Chapter 11 bankruptcy protection.

Bankruptcy

As part of its financial restructuring efforts, the chain will close 113 US stores and all 41 stores in Canada. Aéropostale lost money for 13 straight quarters before entering bankruptcy proceedings. The firm expects the bankruptcy to be a relatively brief six-month stint. It is also seeking potential buyers. In June 2016, the company received United States Bankruptcy Court for the Southern District of New York has given final approval for the Company to access $160 million in debtor in-possession (DIP) financing provided by Crystal Financial LLC

Change in Company Type

In 2016, the company was delisted from the New York Stock Exchange and the company began trading on the OTCQX Best Market under the symbol AROP.

Geographic Reach

Aéropostale rang up 95% of its revenue in fiscal 2016 (ended January) in the US. The remainder came from Canada, where it operated about 40 shops nationwide. Beyond North America, licensees operate about 320 Aéropostale and P.S. from Aéropostale shops in Europe, the Middle East, and Latin America.

Operations

The company serves young women and men through its Aéropostale and Aéropostale Factory stores and website and 4 to 12 year-olds through its P.S. from Aéropostale stores and website.
 
It locates its stores primarily in shopping malls, outlet centers and, to a much lesser degree, lifestyle and off-mall shopping centers.

In addition to its main Aéropostale chain, the retailer operates P.S. from Aéropostale, a casual-apparel chain for kids between the ages of 4 and 12. P.S. from Aéropostale operates about two dozen stores in a dozen US states. The company also operates the GoJane.com website, based in Ontario, California.

Sales and Marketing

Aéropostale leases a 315,000 square foot distribution center facility in South River, New Jersey. It also leases a second distribution facility in Ontario, California with 360,000 square feet of space. The company has an agreement with a third party to perform distribution services for Aéropostale stores in Canada.

The company’s external marketing costs, which include e-commerce, print, radio and other media advertising, were $22.4 million in fiscal 2015, and $26.7 million in fiscal 2014.

Financial Performance

Historically a high flier on the youth fashion scene, Aéropostale has seen sales, net income, and cash from operations drop significantly since fiscal 2013 as it struggles with declines in mall traffic, the changing tastes of teens, and intense competition (from the likes of American Eagle and Abercrombie & Fitch, among others). It reported fiscal 2016 revenue of $1.5 billion, down 18% from the prior year, as the company closed nearly 50 stores as part of its turnaround efforts and also decreased due to decline in comparable sales, non-comparable sales and international licensing revenues. Consolidated comparable sales, including the e-commerce channel, decreased by 11% in its young men's and by 7% in its young women's category.
 
Aéropostale has recorded a net loss for the past three years, with a 2016 loss of about $137 million. The company saw 34% decline in net loss in 2016 due to a drop in operating expenses which included lower selling, general and administrative expenses due in part to the closure of stores during fiscal 2015 and expense savings initiatives. It also received restructuring benefit due to reversals of exit cost obligation liabilities resulting from subsequent lease terminations.
 
Unsurprisingly, cash from operations has followed the same trend, dropping to a negative $68 million in fiscal 2016 from a negative $56 million the year before.

Strategy

The retailer is looking to off-mall locations, e-commerce, and international licensing to drive sales growth as it shutters a substantial number of its traditional mall-based locations. Aéropostale saw a lot of activity in its international licensing segment in fiscal 2015 with new markets Chile, Malaysia, and Mexico; Through a licensing agreement with Shuz 4 U International Ltd., Aéropostale opened its first store in Dublin, Ireland in 2015. Turkey is also on the company's plan for expansion, and it has plans for licensed locations in Thailand and Egypt within the next five years. The company also has expansion plans throughout Asia with new licensing agreements in India and Indonesia. The company plans to open stores in India through a licensing agreement with Arvind Lifestyle Brands Limited, and in Indonesia through a licensing agreement with PT Mitra Adiperkasa TBK (MAP).
 
To spur sales, Aéropostale is repositioning the brand and working to improve its merchandise and marketing. (It's interesting to note that the chain enjoyed double-digit sales increases during the deep recession, while pricier retailers, notably rival Abercrombie, suffered. Now with the economy improving, value-priced Aéropostale is struggling a bit.)
 
In 2016, the company planned a Factory and Mall Strategies to improve its financials, pursuant to which the company divided its store base into two groups, the Factory Chain and the Mall Chain, based on several factors including customer demographics and store performance. The Factory Chain attracts customers interested in purchasing more basic items at a competitive price while the Mall Chain attracts customers focused on buying fashion merchandise.
 
The Factory channel (60% of the store base), caters to families, as well as young women and men. The Mall Chain stores (40%) are primarily located in higher-end, or A and B, malls.
 
In an effort to right size its store base and optimize itsreal estate portfolio, the company closed 50 stores in the US and Canada during fiscal 2015. It closed 122 Aéropostale stores in the US and Canada during fiscal 2014. During fiscal 2016, Aéropostale closed 6 locations and, in connection with its Chapter 11 filing, it announced that it was closing an additional 113 US locations, as well as all 41 stores in Canada.

Company Background

The Aéropostale name originated from a 1920s airmail firm, Compagnie Generale Aéropostale. The brand was created by R.H. Macy & Co. as a private label in the 1980s and later became a specialty store concept.

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AEROPOSTALE, INC.

112 W 34th St Fl 22
New York, NY 10120-2403
Phone: 1 (646) 485-5410
Fax: 1 (646) 485-5440

Stats

  • Employer Type: Public
  • CEO: Julian R. Geiger
  • Chairman: Karin Hirtler-Garvey
  • EVP and COO: Marc D. Miller

Major Office Locations

  • New York, NY

Other Locations

  • Anniston, AL
  • Birmingham, AL
  • Dothan, AL
  • Florence, AL
  • Foley, AL
  • Gadsden, AL
  • Hoover, AL
  • Huntsville, AL
  • Mobile, AL
  • Spanish Fort, AL
  • Tuscaloosa, AL
  • Fayetteville, AR
  • Fort Smith, AR
  • Jonesboro, AR
  • Little Rock, AR
  • North Little Rock, AR
  • Rogers, AR
  • Anthem, AZ
  • Glendale, AZ
  • Mesa, AZ
  • Phoenix, AZ
  • Tempe, AZ
  • Tucson, AZ
  • Arcadia, CA
  • Bakersfield, CA
  • Brentwood, CA
  • Burbank, CA
  • Calexico, CA
  • Camarillo, CA
  • Canoga Park, CA
  • Capitola, CA
  • Cerritos, CA
  • Chino Hills, CA
  • Chula Vista, CA
  • City Of Industry, CA
  • Commerce, CA
  • Concord, CA
  • Culver City, CA
  • Downey, CA
  • El Centro, CA
  • Folsom, CA
  • Fresno, CA
  • Gilroy, CA
  • Glendale, CA
  • Irvine, CA
  • Lakewood, CA
  • Merced, CA
  • Milpitas, CA
  • Modesto, CA
  • Montclair, CA
  • Montebello, CA
  • Moreno Valley, CA
  • National City, CA
  • Newark, CA
  • Northridge, CA
  • Ontario, CA
  • Orange, CA
  • Palm Desert, CA
  • Palmdale, CA
  • Petaluma, CA
  • Pismo Beach, CA
  • Pleasanton, CA
  • Riverside, CA
  • Roseville, CA
  • Salinas, CA
  • San Diego, CA
  • San Jose, CA
  • San Ysidro, CA
  • Santa Ana, CA
  • Santa Rosa, CA
  • Stockton, CA
  • Tejon Ranch, CA
  • Temecula, CA
  • Torrance, CA
  • Tulare, CA
  • Vacaville, CA
  • Ventura, CA
  • Victorville, CA
  • Visalia, CA
  • West Covina, CA
  • Westminster, CA
  • Yuba City, CA
  • Aurora, CO
  • Broomfield, CO
  • Castle Rock, CO
  • Colorado Springs, CO
  • Grand Junction, CO
  • Lakewood, CO
  • Littleton, CO
  • Loveland, CO
  • Silverthorne, CO
  • Clinton, CT
  • Danbury, CT
  • Farmington, CT
  • Manchester, CT
  • Meriden, CT
  • Trumbull, CT
  • Waterbury, CT
  • Dover, DE
  • Newark, DE
  • Rehoboth Beach, DE
  • Wilmington, DE
  • Altamonte Springs, FL
  • Boca Raton, FL
  • Boynton Beach, FL
  • Brandon, FL
  • Clearwater, FL
  • Coral Springs, FL
  • Cutler Bay, FL
  • Daytona Beach, FL
  • Destin, FL
  • Ellenton, FL
  • Estero, FL
  • Florida City, FL
  • Fort Lauderdale, FL
  • Fort Myers, FL
  • Gainesville, FL
  • Hialeah, FL
  • Jacksonville, FL
  • Jensen Beach, FL
  • Kissimmee, FL
  • Lake Wales, FL
  • Lakeland, FL
  • Melbourne, FL
  • Merritt Island, FL
  • Miami, FL
  • Naples, FL
  • Ocala, FL
  • Orlando, FL
  • Panama City, FL
  • Pembroke Pines, FL
  • Pensacola, FL
  • Port Charlotte, FL
  • Port Richey, FL
  • Saint Augustine, FL
  • Saint Petersburg, FL
  • Sanford, FL
  • Sarasota, FL
  • South Miami, FL
  • Sunrise, FL
  • Tallahassee, FL
  • Tampa, FL
  • Vero Beach, FL
  • West Palm Beach, FL
  • Alpharetta, GA
  • Athens, GA
  • Atlanta, GA
  • Augusta, GA
  • Buford, GA
  • Centerville, GA
  • Commerce, GA
  • Dalton, GA
  • Dawsonville, GA
  • Douglasville, GA
  • Duluth, GA
  • Kennesaw, GA
  • Lithonia, GA
  • Locust Grove, GA
  • Macon, GA
  • Morrow, GA
  • Savannah, GA
  • Snellville, GA
  • Valdosta, GA
  • Woodstock, GA
  • Honolulu, HI
  • Kaneohe, HI
  • Cedar Rapids, IA
  • Sioux City, IA
  • West Des Moines, IA
  • Boise, ID
  • Idaho Falls, ID
  • Twin Falls, ID
  • Algonquin, IL
  • Aurora, IL
  • Bloomingdale, IL
  • Bloomington, IL
  • Bolingbrook, IL
  • Calumet City, IL
  • Carbondale, IL
  • Champaign, IL
  • Chicago, IL
  • Chicago Ridge, IL
  • Fairview Heights, IL
  • Forsyth, IL
  • Huntley, IL
  • Lombard, IL
  • North Riverside, IL
  • Peoria, IL
  • Rockford, IL
  • Rosemont, IL
  • Schaumburg, IL
  • Springfield, IL
  • Vernon Hills, IL
  • West Dundee, IL
  • Bloomington, IN
  • Clarksville, IN
  • Edinburgh, IN
  • Evansville, IN
  • Fort Wayne, IN
  • Fremont, IN
  • Greenwood, IN
  • Indianapolis, IN
  • Kokomo, IN
  • Michigan City, IN
  • Mishawaka, IN
  • Muncie, IN
  • Noblesville, IN
  • Plainfield, IN
  • Richmond, IN
  • Terre Haute, IN
  • Kansas City, KS
  • Manhattan, KS
  • Overland Park, KS
  • Wichita, KS
  • Ashland, KY
  • Bowling Green, KY
  • Florence, KY
  • Lexington, KY
  • Louisville, KY
  • Paducah, KY
  • Alexandria, LA
  • Baton Rouge, LA
  • Bossier City, LA
  • Gonzales, LA
  • Gretna, LA
  • Houma, LA
  • Lafayette, LA
  • Mandeville, LA
  • Metairie, LA
  • Monroe, LA
  • Shreveport, LA
  • Slidell, LA
  • Auburn, MA
  • Brockton, MA
  • Cambridge, MA
  • Hadley, MA
  • Holyoke, MA
  • Hyannis, MA
  • Lanesborough, MA
  • Lee, MA
  • Leominster, MA
  • Marlborough, MA
  • Natick, MA
  • North Attleboro, MA
  • North Dartmouth, MA
  • Peabody, MA
  • Springfield, MA
  • Watertown, MA
  • Worcester, MA
  • Wrentham, MA
  • Annapolis, MD
  • Baltimore, MD
  • Bel Air, MD
  • Bethesda, MD
  • Frederick, MD
  • Glen Burnie, MD
  • Hagerstown, MD
  • Hanover, MD
  • Lavale, MD
  • Nottingham, MD
  • Ocean City, MD
  • Owings Mills, MD
  • Queenstown, MD
  • Salisbury, MD
  • Silver Spring, MD
  • Waldorf, MD
  • Bangor, ME
  • Kittery, ME
  • Ann Arbor, MI
  • Auburn Hills, MI
  • Battle Creek, MI
  • Birch Run, MI
  • Dearborn, MI
  • Flint, MI
  • Grandville, MI
  • Howell, MI
  • Lansing, MI
  • Monroe, MI
  • Muskegon, MI
  • Novi, MI
  • Okemos, MI
  • Portage, MI
  • Roseville, MI
  • Saginaw, MI
  • Sterling Heights, MI
  • Taylor, MI
  • Troy, MI
  • Westland, MI
  • Albertville, MN
  • Burnsville, MN
  • Duluth, MN
  • Mankato, MN
  • Minneapolis, MN
  • Rochester, MN
  • Saint Cloud, MN
  • Saint Paul, MN
  • Woodbury, MN
  • Branson, MO
  • Columbia, MO
  • Hazelwood, MO
  • Independence, MO
  • Joplin, MO
  • Kansas City, MO
  • Osage Beach, MO
  • Saint Louis, MO
  • Saint Peters, MO
  • Springfield, MO
  • Biloxi, MS
  • Flowood, MS
  • Gulfport, MS
  • Hattiesburg, MS
  • Meridian, MS
  • Ridgeland, MS
  • Southaven, MS
  • Tupelo, MS
  • Missoula, MT
  • Asheville, NC
  • Cary, NC
  • Charlotte, NC
  • Concord, NC
  • Durham, NC
  • Fayetteville, NC
  • Goldsboro, NC
  • Greenville, NC
  • Hickory, NC
  • High Point, NC
  • Jacksonville, NC
  • Raleigh, NC
  • Rocky Mount, NC
  • Smithfield, NC
  • Wilmington, NC
  • Winston Salem, NC
  • Fargo, ND
  • Lincoln, NE
  • Omaha, NE
  • Manchester, NH
  • Merrimack, NH
  • Newington, NH
  • North Conway, NH
  • Salem, NH
  • Tilton, NH
  • Atlantic City, NJ
  • Bridgewater, NJ
  • East Brunswick, NJ
  • Eatontown, NJ
  • Edison, NJ
  • Elizabeth, NJ
  • Freehold, NJ
  • Jackson, NJ
  • Jersey City, NJ
  • Livingston, NJ
  • Lyndhurst, NJ
  • Mays Landing, NJ
  • Monroe Township, NJ
  • North Brunswick, NJ
  • Paramus, NJ
  • Rockaway, NJ
  • South River, NJ
  • Tinton Falls, NJ
  • Toms River, NJ
  • Trenton, NJ
  • Vineland, NJ
  • Voorhees, NJ
  • Wayne, NJ
  • Woodbridge, NJ
  • Woodbury, NJ
  • Albuquerque, NM
  • Farmington, NM
  • Las Cruces, NM
  • Santa Fe, NM
  • Henderson, NV
  • Jean, NV
  • Las Vegas, NV
  • Reno, NV
  • Albany, NY
  • Amherst, NY
  • Bay Shore, NY
  • Bayside, NY
  • Brooklyn, NY
  • Buffalo, NY
  • Central Valley, NY
  • Clay, NY
  • Elmhurst, NY
  • Garden City, NY
  • Hicksville, NY
  • Horseheads, NY
  • Ithaca, NY
  • Johnson City, NY
  • Kingston, NY
  • Lake Grove, NY
  • Massapequa, NY
  • Middletown, NY
  • New Hartford, NY
  • Niagara Falls, NY
  • Plattsburgh, NY
  • Poughkeepsie, NY
  • Riverhead, NY
  • Rochester, NY
  • Saratoga Springs, NY
  • Schenectady, NY
  • Staten Island, NY
  • Victor, NY
  • Waterloo, NY
  • Watertown, NY
  • West Nyack, NY
  • White Plains, NY
  • Yonkers, NY
  • Yorktown Heights, NY
  • Aurora, OH
  • Beavercreek, OH
  • Burbank, OH
  • Cincinnati, OH
  • Columbus, OH
  • Dayton, OH
  • Dublin, OH
  • Jeffersonville, OH
  • Lancaster, OH
  • Lima, OH
  • Maumee, OH
  • Mentor, OH
  • Monroe, OH
  • Newark, OH
  • North Olmsted, OH
  • Parma, OH
  • Sandusky, OH
  • Strongsville, OH
  • Toledo, OH
  • Youngstown, OH
  • Zanesville, OH
  • Norman, OK
  • Oklahoma City, OK
  • Shawnee, OK
  • Tulsa, OK
  • Lincoln City, OR
  • Medford, OR
  • Portland, OR
  • Woodburn, OR
  • Altoona, PA
  • Butler, PA
  • Camp Hill, PA
  • Chambersburg, PA
  • Erie, PA
  • Gettysburg, PA
  • Greensburg, PA
  • Grove City, PA
  • Harrisburg, PA
  • Hershey, PA
  • Indiana, PA
  • Johnstown, PA
  • King Of Prussia, PA
  • Lancaster, PA
  • Langhorne, PA
  • Moosic, PA
  • Muncy, PA
  • Philadelphia, PA
  • Pittsburgh, PA
  • Pottstown, PA
  • Reading, PA
  • Scranton, PA
  • Selinsgrove, PA
  • Springfield, PA
  • Stroudsburg, PA
  • Tannersville, PA
  • Uniontown, PA
  • Washington, PA
  • Whitehall, PA
  • Wilkes Barre, PA
  • Willow Grove, PA
  • York, PA
  • Providence, RI
  • Warwick, RI
  • Anderson, SC
  • Columbia, SC
  • Florence, SC
  • Gaffney, SC
  • Greenville, SC
  • Myrtle Beach, SC
  • North Charleston, SC
  • Rock Hill, SC
  • Spartanburg, SC
  • Rapid City, SD
  • Sioux Falls, SD
  • Chattanooga, TN
  • Clarksville, TN
  • Cleveland, TN
  • Franklin, TN
  • Goodlettsville, TN
  • Jackson, TN
  • Johnson City, TN
  • Kingsport, TN
  • Knoxville, TN
  • Lebanon, TN
  • Memphis, TN
  • Morristown, TN
  • Murfreesboro, TN
  • Nashville, TN
  • Sevierville, TN
  • Abilene, TX
  • Amarillo, TX
  • Arlington, TX
  • Austin, TX
  • Beaumont, TX
  • Brownsville, TX
  • Cedar Hill, TX
  • Cedar Park, TX
  • College Station, TX
  • Corpus Christi, TX
  • Cypress, TX
  • Dallas, TX
  • Denton, TX
  • El Paso, TX
  • Fort Worth, TX
  • Friendswood, TX
  • Frisco, TX
  • Garland, TX
  • Grand Prairie, TX
  • Grapevine, TX
  • Harlingen, TX
  • Houston, TX
  • Humble, TX
  • Hurst, TX
  • Irving, TX
  • Killeen, TX
  • Laredo, TX
  • Lewisville, TX
  • Longview, TX
  • Lubbock, TX
  • Mcallen, TX
  • Mercedes, TX
  • Mesquite, TX
  • Midland, TX
  • Pearland, TX
  • Plano, TX
  • San Angelo, TX
  • San Antonio, TX
  • San Marcos, TX
  • Southlake, TX
  • Sugar Land, TX
  • Texarkana, TX
  • Texas City, TX
  • The Woodlands, TX
  • Tyler, TX
  • Victoria, TX
  • Wichita Falls, TX
  • Layton, UT
  • Murray, UT
  • Ogden, UT
  • Orem, UT
  • Park City, UT
  • Provo, UT
  • Sandy, UT
  • St George, UT
  • West Jordan, UT
  • Charlottesville, VA
  • Chesapeake, VA
  • Christiansburg, VA
  • Colonial Heights, VA
  • Danville, VA
  • Dulles, VA
  • Fairfax, VA
  • Fredericksburg, VA
  • Glen Allen, VA
  • Harrisonburg, VA
  • Leesburg, VA
  • Lynchburg, VA
  • Mc Lean, VA
  • Newport News, VA
  • Norfolk, VA
  • Roanoke, VA
  • Virginia Beach, VA
  • Williamsburg, VA
  • Winchester, VA
  • Woodbridge, VA
  • South Burlington, VT
  • Auburn, WA
  • Bellevue, WA
  • Bellingham, WA
  • Puyallup, WA
  • Seattle, WA
  • Spokane, WA
  • Tukwila, WA
  • Vancouver, WA
  • Appleton, WI
  • Baraboo, WI
  • Brookfield, WI
  • Eau Claire, WI
  • Fond Du Lac, WI
  • Green Bay, WI
  • Greendale, WI
  • Johnson Creek, WI
  • Kenosha, WI
  • La Crosse, WI
  • Madison, WI
  • Oshkosh, WI
  • Wausau, WI
  • Barboursville, WV
  • Bridgeport, WV
  • Charleston, WV
  • Morgantown, WV
  • Parkersburg, WV
  • Prosperity, WV
  • Casper, WY
  • Kingston, Canada
  • New Westminster, Canada
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