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Aéropostale Inc.
Type Public NYSEARO
Founded 1987
Headquarters New York City, U.S.
Number of locations over 900 (as of April 2009)[1]
Area served United States
Canada
Dominican Republic
Puerto Rico
Peru
United Arab Emirates
Key people Julian R. Geiger (Chairman & CEO)
Industry Retail
Products Apparel and accessories
Revenue US$1.886 billion (2008)
19% from 2007[2]
Net income US$149.4 million (2008)
16% from 2007[2]
Employees 10,756 (as of November 2008)[3]
Website www.aeropostale.com

Aéropostale, Inc. (pronounced /ˌɛəroʊpɵˈstæl/, us dict: ār′·ō·pō·stâl′[4]), usually referred to as Aéropostale or Aéro, is an American clothing retailer that sells casual clothing with over 900 stores in the United States, Canada, the Dominican Republic, Puerto Rico, Peru, and the United Arab Emirates.[1] Their stores tend to be located in shopping malls and large marketing areas. Aéropostale sells fashion apparel including shirts, jeans, bras and thongs, accessories, fleece, etc. Their clothing is targeted at teenagers and young adults[3] and typically sold at prices under $50. Aéropostale formerly operated a surf clothing brand called "Jimmy'Z" that was a 14-store chain launched in 2005 and ended operations in early 2009. Building on the success of the Aéropostale teen brand the company has now launched a new brand, P.S. from Aéropostale, that sells quality clothing for children.

Contents

[edit] History

The first Aéropostale store was opened in 1987 in New York City, New York. [3] The Aéropostale name is French for "air mail" and originated from the 1920s French/Latin-American airmail firm Compagnie Générale Aéropostale.[3]

The company was created and owned by Federated Department Stores. It was sold off in 1998 to MSS Delaware Inc., a private investment group which later took the company public.

Aéropostale launched its e-commerce webstore in early 2005.[5] Total net sales from the webstore for the fiscal year of 2008 was $79.1 million.[2]

[edit] International expansion

Aéropostale at Easton Town Center

In the summer of 2006, it was announced that Aéropostale would enter the Canadian market. On August 3, 2007, the first Canadian Aéropostale store opened in White Oaks Mall in London, Ontario.

In September 2006, Aéropostle opened its first store in the Dominican Republic, located in Acropolis Plaza in Santo Domingo. In May 2008, Aéropostale opened its first store in Puerto Rico at Plaza Carolina. The following weeks, Aéropostale opened two more stores located in Plaza Las Américas and in Prime Outlets, Puerto Rico. The company plans to open 12 to 14 more stores in Puerto Rico by 2010.[6] As of April 2009, Aéropostale also has an operating store located in the Jockey Plaza shopping center in Lima, Peru.[7] Also they have one store in Costa Rica, located in Paseo de las Flores in Heredia

In March 2009, Aéropostale expanded its operations to the Middle East, opening its first store in Dubai, United Arab Emirates.[8] The company plans to open over 20 stores in the region over the next few years, including stores in Kuwait, Bahrain, Qatar, and another store in the United Arab Emirates.[8]

[edit] Subsidiaries

Aéropostale had a surf clothing brand called "Jimmy'Z", which launched in 2005.[5] In early 2009, Aéropostale closed its 14-store Jimmy'Z chain. The Jimmy'Z stores were based originally on a surf lifestyle and later evolved into Hollywood and celebrity-inspired lines. The Jimmy'Z stores, located in New York, Pennsylvania, Missouri, Illinois, and Texas were designed to look like nightclubs with music, video, and lounge areas to enhance the ambiance of the stores. To leverage the strength of the Aéropostale teen and adult brand, the company plans to focus its energies on its namesake chain and a new chain called "P.S. from Aéropostale", geared at children.[9] "P.S. from Aéropostale" will offer apparel at value prices to the 7–12 age market. The company plans to open the first P.S. stores in June 2009 and approximately nine more P.S. stores in the fiscal year of 2009.[2]

[edit] Corporate affairs

[edit] Competition

Aéropostale's mainly competes with other young fashion companies, including: American Eagle Outfitters, Hollister Co., abercrombie, and Abercrombie & Fitch,[10] all of which generate more in net sales than Aéropostale. In 2007, Aéropostale generated $1.59 billion in net sales, while its larger competitors, American Eagle and Abercrombie & Fitch, reported sales of $3.7 billion and $3 billion, respectively.

[edit] Promotions

In 2007, the company began doing promotions with successful figures to increase brand awareness. The first promotion was selling the Fall Out Boy album Infinity on High with a store-exclusive T-shirt. Other offers include a free beach towel with every $50 purchase and a free holiday bear with a purchase of over $100, each promotion in its respective season. These holiday bears are also donated by Aéropostale stores to local charities in their respective communities. In 2008, Aéropostale, along with not-for-profit youth organization Do Something, launched "Teens for Jeans", a campaign to raise awareness of teen homelessness. Stores would collect lightly used jeans and donate them to local charities. In return, donators received a 20% (2008) or 25% (2009) discount on a new pair of Aéropostale jeans. In 2008, the campaign raised over 125,000 pairs of jeans. In 2008 and 2009, Aéropostale donated 10,000 pairs of new jeans to the campaign.[11][12] Also they promoted the show Greek Season 1 DVD with a free T-shirt with a $50 purchase.

[edit] Lawsuits

  • In March 2007, Aéropostale was accused of infringing a patent owned by Card Activation Technologies, Inc. in a lawsuit filed in the Northern District of Illinois.[13] The court is expected to rule on claim construction issues in late 2009. However, in a separate lawsuit on the same patent, Card Activation received a ruling on claim construction which it interpreted as "extremely favorable" to its interpretation of the patent and its "pursuit of infringers" of the patent.[14]
  • In June 2007, Aéropostale was accused of infringing a patent owned by Picture Patents, LLC in a lawsuit filed in the Southern District of New York.[15]
  • In July 2009, Aéropostale was accused of infringing a patent owned by Furnace Brook, LLC in a lawsuit filed in the Northern District of Illinois.[16]

[edit] References

  1. ^ a b Aéropostale (2009-04-09). "Aeropostale Reports Record March Sales Results". Press release. http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=1274905. Retrieved 2009-04-13. 
  2. ^ a b c d Aéropostale (2009-03-12). "Aeropostale Reports Record Results for Fourth Quarter and Fiscal 2008". Press release. http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=1265738. Retrieved 2009-04-13. 
  3. ^ a b c d "Aéropostale Investor Relations - For Students!". Aéropostale. http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-faq. Retrieved 2008-05-21. 
  4. ^ Teresa F. Lindeman (2001-08-02). "Aeropostale helps Pitt's coaches, athletes sport hipper styles". Pittsburgh Post-Gazette. http://news.google.com/newspapers?id=SokNAAAAIBAJ&sjid=fHADAAAAIBAJ&dq=aeropostale%20pronounced&pg=4962%2C679562. Retrieved 2009-03-30. 
  5. ^ a b Aéropostale (2005-03-10). "Aeropostale Reports Record Fourth Quarter Results". Press release. http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=684130. Retrieved 2009-04-13. 
  6. ^ Aéropostale (2008-05-05). "Aeropostale Opens in Puerto Rico". Press release. http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=1139467. Retrieved 2008-05-21. 
  7. ^ "Aeropostale in Peru.". Jockey Plaza s.c.. http://www.jockey-plaza.com.pe/web/el/tiendas_detalle.aspx?IDLocal=188. Retrieved 2009-04-12. 
  8. ^ a b Aéropostale (2009-03-31). "Aeropostale Expands Internationally". Press release. http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=1271376. Retrieved 2009-04-13. 
  9. ^ Aéropostale (2009-02-23). "Aeropostale Announces Plans to Close Its Jimmy'Z Concept". Press release. http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=1259090. Retrieved 2009-03-11. 
  10. ^ Johnston, Chris (2009-02-14). "Abercrombie & Fitch refuses to reduce prices". The Times. http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article5728632.ece. Retrieved 2009-03-11. 
  11. ^ Aéropostale (2008-01-16). "Aeropostale Partners with Do Something to Launch Teens for Jeans". Press release. http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=1097141. Retrieved 2009-03-11. 
  12. ^ Aéropostale (2009-01-26). "Over 200,000 Teens Expected to Donate Jeans for Homeless Teens". Press release. http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-newsArticle&ID=1249460. Retrieved 2009-03-11. 
  13. ^ [1]
  14. ^ [2]
  15. ^ [3]
  16. ^ [4]

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