In a time where young, fiscally-minded shoppers still want to look trendy, they are fleeing across the shopping centers from Abercrombie & Fitch Co (NYSE: ANF), they are heading to the likes of The Buckle, Inc. (NYSE: BKE) and Aeropostale, Inc. (NYSE: ARO). Both delivered impressive earnings on Thursday and both are still in the green as the week winds up. BKE said first-quarter earnings reached 58 cents per share, topping estimates by eight cents. Revenue surged 24.6%. ARO, meanwhile, banked per-share earnings of 49 cents, edging past Street estimates by a penny. Revenue jumped 21% to $408 million, while same-store sales for the first-quarter reporting period surged 11%.
ARO also boosted its second-quarter guidance to a range of 46-48 cents per share. Julian R. Geiger, company Chairman and CEO, released a statement: "The last three months, like the ten consecutive quarters that preceded it, was a period of record sales and record earnings ... we all know these results are extraordinary given the macro-economic climate in which we are operating."
ARO has gained more than 4% today and is up more than 110% in 2009. ANF, on the other hand, ARO's more expensive rival, has seen its sales steadily slip (same-store sales fell 22% in April), while its shares have managed just a 16% gain in 2009 despite the market's strong rally.
Beth works for The Options News Network (www.ONN.tv), which provides daily options commentary. The above comments are not intended as trading advice.
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