The e-retailer heads into the holiday shopping season behind a 30% increase in fulfillment spending and a widening net loss. North American sales increased ...
Overall sales also increase, along with net income.
Total sales increased in the third quarter for apparel retailer Aeropostale Inc., aided by a double-digit increase in e-commerce revenue.
For the third quarter ended Oct. 27, Aeropostale, No. 114 in the 2012 Internet Retailer Top 500 reported:
- E-commerce sales of $51.1 million, an 11.8% increase from $45.7 million in the third quarter of fiscal 2011.
- Total sales of $605.9 million, up by about 1.6% from $596.5 million.
- Comparable-store sales declined 1%.
- Net income of $24.9 million, a 3.3% increase from $24.1 million in the third quarter of 2011.
The web represented 8.4% of total sales in Q3 2012, compared with 7.7% in the prior year period.
Aeropostale’s core women’s apparel business “was pressured in the quarter,” says CEO Thomas P. Johnson, though consumers responded well to the retailer’s new fashion offering. “In addition, our men’s and accessories businesses performed well,” Johnson says.
E-commerce sales are expected to continue growing, especially following Aeropostale’s November acquisition of web-only retailer GoJane.com, which sells women’s fashion footwear and apparel, the company says. Aeropostale is excited about the acquisition’s e-commerce potential, Johnson told analysts during the company’s recent conference call. “Overall we feel great about the acquisition,” he said. “It’s something that we will definitely develop over time.”
For the first nine months:
- Web sales were $120.2 million, up by 21.4% from $99.0 million in the same period last year.
- Total sales of $1.58 billion, a 3.3% increase from $1.53 billion.
- Comparable-store sales increased 1%.
- Net income of $35.6 million, an 18.0% decrease from $43.4 million in the first nine months of 2011.
The web represented 7.6% of total sales in the three quarters of 2012, compared with 6.5% in the prior year period.