Aéropostale (clothing)

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Not to be confused with Aérospatiale.
Aeropastale, Corp.
Type Public
Traded as NYSEARO
Industry Retail
Founded 1973 (fiscal 1987)
Headquarters New York City, New York, U.S.
Number of locations 1091[1]
Area served
Key people Thomas P. Johnson (CEO) Karin Hirtler-Garvey (COB)
Products Apparel & accessories
Revenue Decrease US$2.342 billion (FY 2011)[2]
Operating income Decrease US$113.515 million (FY 2011[2]
Net income Decrease US$69.515 million (FY 2011[2]
Total assets Decrease US$735.233 million (FY 2011)[2]
Total equity Decrease US$409.434 million (FY 2011)[2]
Employees 25,766 (Jan. 2012)[2]
Website www.aeropostale.com

Aéropostale, Inc. (occasionally known as Aéro) is an American shopping mall-based specialty retailer of casual apparel and accessories, principally targeting 14-to-21-year-old young women and men through its Aéropostale stores and 4-to-8-year-old children through its P.S. from Aéropostale stores.[1] Aéropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. The company operates over 992 Aéropostale stores in 50 states in the U.S. and Puerto Rico, and over 78 stores in Canada. P.S. from Aéropostale operates 99 stores in 22 states.[1] Aéropostale's licensees operated 31 Aéropostale and P.S. from Aéropostale stores in the Middle East, Asia, Europe, Mexico, and Panama.

The first store was opened by Macy's in 1987 at Westside Pavilion in West Los Angeles, California in 1987.[3]

Subsidiaries[edit]

To leverage the strength of the Aéropostale teen brand, the company has expanded its namesake chain to a new chain called "P.S. from Aéropostale", geared at children. P.S., from Aéropostale, began in 2009, and originally only offered apparel at value prices to the 7–12 age market.[4] In winter of 2011, P.S. added apparel for Four, five and six year olds to their collections, being introduced with the Holiday clothings. Beginning in November 2013, the Bethany Mota collection was added to Aeropostale stores, featuring clothing and accessories designed by American video blogger Bethany Mota. Also beginning in the fall of 2013, the Live Love Dream collection (LLD) was added to Aeropostale stores. Live Love Dream features lounge and activewear geared to girls.

The company also offered a secondary brand called Jimmy'Z that focused on surf and skater clothing. The 14 stores were branded as more upscale with higher price points than its parent chain. The company closed all Jimmy'Z in fiscal 2009.[5][6]

Corporate affairs[edit]

Competition[edit]

Aéropostale mainly competes with other outfitters, Abercrombie & Fitch and its subsidiary retailer Hollister Co., and American Eagle as well as a few smaller brands. In 2010, Aéropostale generated $2.4 billion in net sales, while its demographic-specific competitors, American Eagle, Abercrombie & Fitch and Hollister reported sales of $2.97 billion, $3.037 billion and $1.55 billion respectively. American Eagle reported sales of $5.37 billion within the same time period. Aéropostale's younger brand, P.S. from Aéropostale, competes with brands such as A&F's younger subsidiary abercrombie and American Eagle's 77kids.

Promotions[edit]

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 Christmas 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 their fifth year they collected over a million pairs in 2012. In 2008 and 2009, Aéropostale donated 10,000 pairs of new jeans to the campaign.[7][8] In 2010, after the aftermath of the earthquake in Haiti, for every pair of jeans that was donated by customers, Aéropostale sent a brand new pair to Haiti. Also they promoted the show Greek Season 1 DVD with a free T-shirt with a $50 purchase. In the same year, Aéropostale organized Real Teen contest to discover new talent among teenagers. The top 8 winners of the contest received $5,000 personal college scholarship.[9] In April 2011, Aéropostale partnered with Black Eyed Peasto sell exclusive T-shirts and CDs.[10] Proceeds from these items benefit the Peapod Foundation, a charity which "helps children worldwide through music." Additionally, Aéropostale has pledged $100,000 to the organization.

Awards and honors[edit]

The company was named by Fortune magazine as one of the top 100 companies to work for in 2013.[11]

Legal issues[edit]

  • 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.[12] 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.[13]
  • 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.[14]
  • 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.[15]
  • Executive Vice President and Chief Merchandising Officer Christopher Finazzo was terminated in November 2006 after an investigation by the Board of Directors revealed that he had concealed and failed to disclose personal and business interests with South Bay Apparel, a major vendor. The SEC issued an investigation on the Finazzo matter in January 2008. A criminal indictment was unsealed and announced June 11, 2010 in U.S. Court in Brooklyn, NY charging Finazzo and Doug Dey, the owner of South Bay with wire and mail fraud conspiracy.[16][17] Finazzo was convicted on 16 counts, including 14 counts of mail fraud and one each for wire fraud and conspiracy on April 25, 2013.[18]

References[edit]

  1. ^ a b c "Aéropostale, Form 10-Q, Quarterly Report, Filing Date Dec 3, 2012". secdatabase.com. Retrieved Dec 30, 2012. 
  2. ^ a b c d e f "Aéropostale, Form 10-K, Annual Report, Filing Date Mar 28, 2012". secdatabase.com. Retrieved Dec 30, 2012. 
  3. ^ Groves, Martha (July 14, 1989). "Aeropostale Takes Flight : Macy has joined the crowded specialty retail arena in Southern California". Los Angeles Times. 
  4. ^ "Aéropostale, Form 8-K, Current Report, Filing Date Mar 13, 2009". secdatabase.com. Retrieved Dec 30, 2012. 
  5. ^ "Aéropostale, Form 8-K, Current Report, Filing Date Mar 10, 2005". secdatabase.com. Retrieved Dec 30, 2012. 
  6. ^ "Aéropostale, Form 10-K, Annual Report, Filing Date Mar 29, 2010". secdatabase.com. Retrieved Dec 30, 2012. 
  7. ^ "Aeropostale Partners with Do hi Something to Launch Teens for Jeans" (Press release). Aéropostale. January 16, 2008. Archived from the original on January 13, 2010. Retrieved March 11, 2009. 
  8. ^ "Over 200,000 Teens Expected to Donate Jeans for Homeless Teens" (Press release). Aéropostale. January 26, 2009. Archived from the original on January 13, 2010. Retrieved March 11, 2009. 
  9. ^ "Aéropostale Scholarship". Retrieved September 6, 2011. 
  10. ^ "Aéropostale and The Black Eyed Peas". Retrieved May 31, 2011. 
  11. ^ "100 Best Companies to Work For 2013 - Aéropostale - Fortune". CNN. 
  12. ^ "Card Activation Technologies Inc v. Barnes & Noble Inc et al :: Justia Dockets & Filings". Dockets.justia.com. March 2, 2007. Retrieved April 10, 2012. 
  13. ^ "Card Activation Technologies, Inc. Receives Ruling on Claims Construction Issues". Reuters. September 14, 2009. 
  14. ^ "Picture Patents, LLC. v. Aeropostale, Inc. :: Justia Dockets & Filings". Dockets.justia.com. Retrieved April 10, 2012. 
  15. ^ "Furnace Brook LLC v. Aeropostale, Inc. et al :: Justia Dockets & Filings". Dockets.justia.com. Retrieved April 10, 2012. 
  16. ^ "2009 Annual Report, p. 44–45". Retrieved April 10, 2012. 
  17. ^ "Former clothing execs face fraud charges". just-style.com. June 15, 2010. 
  18. ^ "Ex-Aeropostale Executive Found Guilty in Vendor Deal". Bloomberg. April 25, 2013. 

External links[edit]