Oppenheimer Reports Aeropostale FY4Q10 Slightly Below Consensus

In a report published by Oppenheimer, Aeropostale ARO reported FY4Q10 EPS of $0.95, slightly below its/consensus $0.96.

Oppenheimer said that revenues rose 5.0% on a -3% comp (vs. +9%) a year ago while UPT, transactions and AUR were +5%, -1%, -7%, respectively. “GM declined 330 bps due to merchandise margin deleverage (260 bps) and an increase in occupancy and depreciation. SG&A leveraged 50 bps from lower incentive/stock-based compensation and offset by higher e-commerce, marketing and store-level expenses. Net/net, management performed well in a challenging environment and has applied learnings to its go-forward model. Combined with reversion to value player positioning, less fashion risk relative to peers and strong vendor relationships, we believe ARO's well suited to navigate the difficult retail landscape.”

Aeropostale closed yesterday at $24.63.