ARO Liquidation (AROP) 8-K Aéropostale Reports Third Quarter 2008 and November Sales Results

Exhibit 99.1

AÉROPOSTALE REPORTS THIRD QUARTER 2008 AND NOVEMBER SALES RESULTS

New York, New York, December 3, 2008 -- Aéropostale, Inc. (NYSE: ARO), a mall-based specialty retailer of active and casual apparel for young women and men, today reported results for the third quarter ended November 1, 2008.

Third Quarter Results

Diluted earnings per share for the third quarter of fiscal 2008 increased 31% to a record $0.63 per diluted share, compared to net earnings of $0.48 per share in the third quarter of fiscal 2007. Net income for the third quarter increased 18% to a record $42.6 million, compared to net income of $36.0 million in the same period last year.

For the third quarter of fiscal 2008, total net sales increased 17% to $482.0 million, from $412.6 million in the year-ago period.  Same store sales for the third quarter increased 7%, compared to an increase of 2% in the year-ago period.

Julian R. Geiger, Chairman and Chief Executive Officer said, “We are very pleased with the record results we generated in the third quarter.  This accomplishment was particularly impressive given the unprecedented weakness in the macroeconomic environment.  Our performance demonstrates the strength of our brand and the flexibility and resilience of our business model.”

November Sales Results

Total net sales for the four-week period ended November 29, 2008 increased 5% to $200.9 million, from $192.2 million for the four-week period ended December 1, 2007. The Company’s same store sales decreased 5% for the month, compared to a same store sales increase of 7% in the year ago period.  The Company estimates that the timing of a later Thanksgiving holiday had a negative mid-single digit impact on comparable store sales for the month.

Year to date total net sales have increased 17% to $1.396 billion, from $1.192 billion in the year ago period. Year to date same store sales increased 7%, compared to essentially flat same store sales last year.

Fourth Quarter Guidance

The Company announced its earnings guidance for the fourth quarter of fiscal 2008.  The Company expects earnings in the range of $0.84 to $0.90 per diluted share for the fourth quarter.

The Company achieved diluted earnings per share of $0.95 in the fourth quarter last year. Results for the fourth quarter of fiscal 2007 reflected certain special items (Exhibit D). Excluding these special items, diluted earnings per share were $0.93 for the fourth quarter of 2007.  The Company believes that the disclosure of diluted earnings per share excluding the special items, which is a non-GAAP financial measure, provides investors with useful information to help them better understand the Company’s results.

Mr. Geiger concluded, “As we progress through the holiday selling season, we will continue to offer our customers the right fashion at compelling values. We believe that the fundamentals of our business, which are responsible for our record year -to-date results, remain strong.  We are focused on managing the business conservatively while maximizing growth opportunities and continuing to deliver profitable performance.”

Capital Expenditures

The Company expects fiscal 2009 capital expenditures of approximately $55 million, which relate to new and remodeled stores, corporate projects and IT initiatives.   The Company anticipates capital expenditures of approximately $80 million for fiscal 2008

Conference Call Information

The Company will be holding a conference call today at 4:15 P.M EDT to review its third quarter results. The broadcast will be available through the ‘Investor Relations’ link at www.aeropostale.com and www.fulldisclosure.com  To listen to the broadcast your computer must have Windows Media Player installed. If you do not have Windows Media Player go to the latter site prior to the call, where you can download the software for free.

About Aéropostale, Inc.

Aéropostale, Inc. is a mall-based, specialty retailer of casual apparel and accessories, principally targeting 14 to 17 year-old young women and men. The Company provides customers with a focused selection of high-quality, active-oriented, fashion and fashion basic merchandise at compelling values. Aéropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. Aéropostale products can only be purchased in its stores or on-line through its e-commerce website (www.aeropostale.com). The Company currently operates 874 Aéropostale stores in 48 states and Puerto Rico, 29 Aéropostale stores in Canada and 14 Jimmy'Z stores in 11 states.

SPECIAL NOTE: THIS PRESS RELEASE AND ORAL STATEMENTS MADE FROM TIME TO TIME BY REPRESENTATIVES OF THE COMPANY CONTAIN CERTAIN "FORWARD-LOOKING STATEMENTS" CONCERNING EXPECTATIONS FOR SALES, STORE OPENINGS, GROSS MARGINS, EXPENSES, STRATEGIC DIRECTION AND EARNINGS.  ACTUAL RESULTS MIGHT DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. AMONG THE FACTORS THAT COULD CAUSE ACTUAL RESULTS TO MATERIALLY DIFFER INCLUDE, CHANGES IN THE COMPETITIVE MARKETPLACE, INCLUDING THE INTRODUCTION OF NEW PRODUCTS OR PRICING CHANGES BY OUR COMPETITORS, CHANGES IN THE ECONOMY AND OTHER EVENTS LEADING TO A REDUCTION IN DISCRETIONARY CONSUMER SPENDING; SEASONALITY; RISKS ASSOCIATED WITH CHANGES IN SOCIAL, POLITICAL, ECONOMIC AND OTHER CONDITIONS AND THE POSSIBLE ADVERSE IMPACT OF CHANGES IN IMPORT RESTRICTIONS; RISKS ASSOCIATED WITH UNCERTAINTY RELATING TO THE COMPANY'S ABILITY TO IMPLEMENT ITS GROWTH STRATEGIES, AS WELL AS THE OTHER RISK FACTORS SET FORTH IN THE COMPANY'S FORM 10-K AND QUARTERLY REPORTS ON FORM 10-Q, FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.

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EXHIBIT A

AÉROPOSTALE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	November 1, 2008		February 2, 2008		November 3, 2007
ASSETS
Current Assets:
Cash and cash equivalents	$	107,198	$	111,927	$	122,553
Merchandise inventory		206,857		136,488		192,301
Other current assets		45,824		36,272		33,957
Total current assets		359,879		284,687		348,811
Fixtures, equipment and improvements, net		258,353		213,831		225,364
Other assets		20,236		15,651		9,232
TOTAL ASSETS	$	638,468	$	514,169	$	583,407
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	136,738	$	99,369	$	133,475
Accrued expenses		87,695		98,018		77,006
Total current liabilities		224,433		197,387		210,481
Other non-current liabilities		128,903		119,506		118,110
Stockholders’ equity		285,132		197,276		254,816
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	638,468	$	514,169	$	583,407

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EXHIBIT B

AÉROPOSTALE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

SELECTED STORE DATA

(in thousands, except per share and store data)

	13 weeks ended
	November 1, 2008						November 3, 2007
				% of sales							% of sales
Net sales	$	482,037			100.0	%	$	412,576				100.0	%
Cost of sales (including certain buying, occupancy and warehousing expenses)		308,586			64.0			268,732				65.1
Gross profit		173,451			36.0			143,844				34.9
Selling, general and administrative expenses		103,084			21.4			86,261				20.9
Income from operations		70,367			14.6			57,583				14.0
Interest income, net		210			0.0			1,989				0.4
Income before income taxes		70,577			14.6			59,572				14.4
Income taxes		27,931			5.8			23,564				5.7
Net income	$	42,646			8.8	%	$	36,008				8.7	%
Basic earnings per share	$	0.64					$	0.48
Diluted earnings per share	$	0.63					$	0.48
Weighted average basic shares		66,851						74,659
Weighted average diluted shares		67,646						75,016
STORE DATA:
Comparable store sales increase		7	%					2	%
Stores open at end of period		905						823
										��
Total square footage at end of period		3,242,086						2,918,810
Average square footage during period		3,202,710						2,886,074

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EXHIBIT C

AÉROPOSTALE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND

SELECTED STORE DATA

(in thousands, except per share and store data)

	39 weeks ended
	November 1, 2008						November 3, 2007
				% of sales						% of sales
Net sales	$	1,195,514			100.0	%	$	999,594			100.0	%
Cost of sales (including certain buying, occupancy and warehousing expenses)		784,849			65.6			670,169			67.0
Gross profit		410,665			34.4			329,425			33.0
Selling, general and administrative expenses		275,828			23.1			229,013			23.0
Income from operations		134,837			11.3			100,412			10.0
Interest income, net		530			0.0			5,963			0.6
Income before income taxes		135,367			11.3			106,375			10.6
Income taxes		54,170			4.5			41,913			4.2
Net income	$	81,197			6.8	%	$	64,462			6.4	%
Basic earnings per share	$	1.21					$	0.84
Diluted earnings per share	$	1.20					$	0.84
Weighted average basic shares		66,835						76,590
Weighted average diluted shares		67,556						77,130
STORE DATA:
Comparable store sales increase		9	%					0	%
Average square footage during period		3,085,989						2,774,985

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EXHIBIT D

AÉROPOSTALE, INC.

RECONCILIATION OF FOURTH QUARTER 2007 NET INCOME AND DILUTED EARNINGS PER SHARE

(in thousands, except per share data)

	13 weeks ended
	February 2, 2008
	Net income			Per diluted share
As reported	$	64,735		$	0.95
Asset impairment charges		5,694			0.08
Gift card breakage income		(4,847	)		(0.06	)
Other income		(2,573	)		(0.04	)
Excluding above income items	$	63,009		$	0.93

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