Aéropostale (clothing)

Aeropostale Inc.
Type Public
Traded as NYSEARO
Industry Retail
Founded 1987 (fiscal 1987)
Headquarters New York City, U.S.
Number of locations Aéropostale: 1008
Area served United States
Dominican Republic
Puerto Rico
United Arab Emirates
Key people Julian Geiger (Chairman)
Products Apparel and accessories
Revenue increase US$2.4 Billion (FY 2010)[2]
Operating income increase US$387.49 Million (FY 2010)[2]
Net income increase US$231.34 Million (FY 2010)[2]
Total assets increase US$658 Million (FY 2010) [3]
Total equity increase US$432.64 Million (FY 2010)[4]
Employees 17,828 (as of June 2011)[5]
Website www.aeropostale.com

Aéropostale, Inc. (occasionally known as, simply, Aéro) is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14-to-17-year-old young women and men through its Aéropostale stores and 7-to-12-year-old kids through its P.S. from Aéropostale stores. Aéropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. The Company currently operates over 942 Aéropostale stores in the United States, and Puerto Rico and over 65 stores in Canada. P.S. from Aéropostale operates in 70 stores in 19 states. Aero also has a presence in the Middle East and has plans to expand into Asia.



The first Aéropostale store opened in New York City, New York by R.H. Macy & Co., Inc. on August 14, 1987.[5][6] The Aéropostale name is French for "air mail" and originated from the 1920s French/Latin-American airmail firm Compagnie Générale Aéropostale.[5]

Federated Department Stores purchased R.H. Macy & Co., Inc., Aéropostale's parent company, in 1994.[6] In 1998, MSS Delaware Inc. and Bear Stearns purchased Aéropostale and its 119 stores for approximately $15 million.[6] Aéropostale went public in 2002.[6]

Aéropostale launched its e-commerce webstore in early 2005.[7] Total net sales from the webstore for the fiscal year of 2010 was $160.2 million, a 24% increase from the previous year.[8]

In addition to Aeropostale’s financial success, the company has been recognized as one of the "100 Best Companies to Work For" by Fortune magazine for 2011. The Company earned this significant distinction through its commitment to core company values that embrace integrity, respect, teamwork and compassion.

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. Aéropostale now operates 59 stores in major malls across Canada.

In May 2008, Aéropostale opened its first store in Puerto Rico in Plaza Carolina. The following weeks, Aéropostale opened two more stores located in Plaza Las Américas and in Puerto Rico Premium Outlets. By April 2011, Aéro has opened 4 stores, the latest being in Plaza del Norte.

In March 2009, Aéropostale expanded its operations to the Middle East, opening its first store in Dubai, United Arab Emirates. The company plans to open additional stores in the region over the next few years.[9]

On March 8, 2011 Aéropostale signed a licensing agreement with Montreal PTE Ltd., creating a joint venture between Apparel Group LLC and Jay Gee Melwani Group, to open approximately 25 stores across Singapore, Malaysia and Indonesia over the next five years.


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. In winter of 2011, P.S. will be adding apparel for five and six year olds to their collections, being introduced with the Holiday clothings.

The company also offered a secondary brand called Jimmy'Z that focused on surf and skater clothing. The 12 stores were branded as more upscale with higher price points than its parent chain. The company closed all Jimmy'Z in 2009.

Corporate affairs


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 $298.2 million respectively. Old Navy 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.


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.[10][11] 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.[12]

Most recently, Aéropostale partnered with The Black Eyed Peas in April 2011 to sell exclusive T-shirts and CDs.[13] Proceeds from these items benefit the Peapod Foundation, a charity which "helps children worldwide though music." Additionally, Aéropostale has pledged $100,000 to the organization.

Legal issues

  • 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.[14] 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.[15]
  • 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.[16]
  • 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.[17]
  • 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.[18][19]


  1. ^ Aeropostale Reports Results for First Quarter
  2. ^ a b c Aeropostale (ARO) annual SEC income statement filing via Wikinvest
  3. ^ Aeropostale (ARO) annual SEC balance sheet filing via Wikinvest
  4. ^ Cite error: Invalid <ref> tag; no text was provided for refs named 10BalanceSheet; see Help:Cite errors/Cite error references no text
  5. ^ a b c "Aéropostale Investor Relations – For Students!". Aéropostale. Archived from the original on January 13, 2010. http://www.webcitation.org/5mkQsOky9. Retrieved May 21, 2008. 
  6. ^ a b c d "Aéropostale Fact Sheet" (PDF) (Press release). Aéropostale. January 13, 2010. Archived from the original on January 13, 2010. http://www.webcitation.org/5mkS3KPmD. Retrieved January 13, 2010. 
  7. ^ "Aeropostale Reports Record Fourth Quarter Results" (Press release). Aéropostale. March 10, 2005. Archived from Article&ID=684130 the original on January 13, 2010. http://www.webcitation.org/5mkR6Dh30. Retrieved April 13, 2009. 
  8. ^ Aeropostale, 2010 Annual Report
  9. ^ Aeropostale Inc.
  10. ^ "Aeropostale Partners with Do Something to Launch Teens for Jeans" (Press release). Aéropostale. January 16, 2008. Archived from the original on January 13, 2010. http://www.webcitation.org/5mkRmmk3A. Retrieved March 11, 2009. 
  11. ^ "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. http://www.webcitation.org/5mkRoR9Cw. Retrieved March 11, 2009. 
  12. ^ "Aéropostale Scholarship". http://www.noessayscholarshipsonline.com/aeropostale-scholarship. Retrieved September 6, 2011. 
  13. ^ "Aéropostale and The Black Eyed Peas". http://www.aeropostale.com/shop/index.jsp?categoryId=11377424. Retrieved 31 May 2011. 
  14. ^ [1]
  15. ^ "Card Activation Technologies, Inc. Receives Ruling on Claims Construction Issues". Reuters. September 14, 2009. http://www.reuters.com/article/pressRelease/idUS89937+14-Sep-2009+BW20090914. 
  16. ^ [2]
  17. ^ [3]
  18. ^ 2009 Annual Report, p. 44–45
  19. ^ "Former clothing execs face fraud charges". just-style.com. June 15, 2010. http://www.just-style.com/news/former-clothing-execs-face-fraud-charges_id108002.aspx. 

External links

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