Updating AEROPOSTALE INC., ALIMENTATION COUCHE-TARD and CHESAPEAKE ENERGY

Article Excerpt

AEROPOSTALE INC. $34.54 (New York symbol ARO; SI Rating: Extra Risk) (646-485-5410; www.aeropostale.com; Shares outstanding: 66.1 million; Market cap: $2.3 billion; No dividends paid) reports that its December same-store sales rose 10% from a year earlier. Same-store sales compare results from stores that have been open for a year or more. This lets investors see how much of a retailer’s sales gains come from internal growth, and how much from new-store openings. For the five-week period ended January 2, 2009, the company’s total sales (which includes new stores) rose 17%, to $460.8 million. Aeropostale’s profit margins rose, as well. That’s because it’s doing a better job of managing its inventory. Despite the weak economy, the teen-clothing retailer continued to outperform its rivals, mainly on the strength of its lower prices. While Aeropostale posted 10% higher same-store sales during the month, Abercrombie & Fitch fell 19%, American Eagle rose 7%, and The Gap rose just 2%. Fashion trends are fickle, and young people are especially…