Targeting teens with style and value

Article Excerpt

AEROPOSTALE INC. $20.08 (New York symbol ARO; SI Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 66.8 million; Market cap: $1.3 billion) is a mall-based specialty retailer of casual clothing and accessories. The company mainly targets 14- to 17-year-old women and men. Aeropostale provides high-quality, active-oriented fashion merchandise at value prices. The company maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. Aeropostale sells its products only in its own stores, on-line thorough its web site or at organized sales events at college campuses. Young women’s fashions make up about 71% of Aeropostale’s sales; young men’s fashions make up the remaining 29%. Aeropostale first sold shares to the public at $8 (adjusted for share splits), and began trading on New York in May 2002. The New York City-based company currently operates 905 stores, including 863 Aeropostale stores in 48 states, 28 stores in Canada and 14 Jimmy’Z stores in 11 states. Jimmy’Z Surf Co. is a..