Aeropostale and Abercrombie & Fitch: Are Teen Retailers Immune to Easter?

Small Cap Watch List member Aeropostale (ARO) reported strong March sales and upped their guidance:

Aeropostale, Inc. (ARO), a mall-based specialty retailer of casual and active apparel for young women and men, today announced that total net sales for the five-week period ended April 7, 2007 increased 31.5% to $124.8 million, from $94.9 million for the five-week period ended April 1, 2006. Same store sales for the month increased 15.9%, compared to the corresponding five-week period ended April 8, 2006.

While the Company said they saw a benefit to comparable store sales in March due to the early timing of Easter, they also raised guidance for the quarter, which ends in April:

The company now expects net earnings in the range of $0.22-$0.23 per diluted share, versus its previously issued guidance of $0.19-$0.21 per diluted share. This compares to net earnings of $0.15 per diluted share in the first quarter last year.

Mid Cap Watch List member Abercrombie & Fitch (ANF) also reported strong results, and said nothing whatsoever about Easter:

Abercrombie & Fitch (ANF) today reported net sales of $331.2 million for the five-week period ended April 7, 2007, a 29% increase over net sales of $256.7 million for the five-week period ended April 1, 2006. March comparable store sales increased 7% for the five-week period ended April 7, 2007, compared to the five-week period ended April 8, 2006. Total Company direct-to-consumer net sales increased 47% to $17.7 million for the five-week period ended April 7, 2007, compared to the five-week period ended April 1, 2006. Year-to-date, the Company reported a net sales increase of 20% to $537.8 million from $449.5 million last year. Comparable store sales increased 1% for the year-to-date period. Year-to-date, total Company direct-to-consumer net sales increased 41% to $29.8 million.

By contrast, Target (TGT) said yesterday that while March results were very strong, it expects sales at its stores open at least a year to decline 2% to 4% in April due to the earlier timing of Easter.

Today it was Cato (CTR) and others saying that March sales were favorably impacted by the shift of Easter to April 8 this year versus April 16 last year, while April sales are expected to be unfavorably impacted by this shift.

So, are teen retailers insulated from Easter fluctuations or are the other companies just using Easter as an excuse?

ARO and ANF 1-yr chart