"We're going to invest in the building of the future," chairman and chief executive officer Julian R. Geiger told participants at Thursday's 2006 ICR XChange Conference Presentation in Naples, FL.
For Aeropostale, that means refocusing its assortment of clothing and accessories geared toward the 11- to 18-year-old group by upgrading its selection to include more trendy fashions at better price points. A new line of fashion styles dubbed Veneer should help, the company said. Also planned is an alignment of Aeropostale's marketing and design departments to forge a working relationship that will keep the company on track with the latest fashion trends.
"What Veneer will do will make us trend-right," executive vice president and chief merchandising officer Christopher L. Finazzo said of the new fashion focus. "It will take us from being a follower to being on-trend with our peers in the marketplace." The company said it will also institute a new ticketing strategy to put everyday pricing at more appealing levels with discount pricing on some items at the $9.99 mark.
The changes come as Aeropostale attempts to assert an even bigger influence on teen buyers, who last year pushed company-wide sales to $1.1 billion. Aeropostale's revamped strategy is the first significant change to the company's successful marketing formula since 1999, Geiger said. He added that the firm's new focus should make Aeropostale "a stronger, smarter more nimble organization than it has been in the past."
The company already has a strong influence in the teen marketplace. In December alone, sales increased 32.7% to $236.8 million while comparable store sales were up 11.4%, marking the seventh consecutive year of positive comp-store increases. The company also has expanded significantly since its inception in 1987, growing by 500 stores to today's 610 outlets in 47 states.
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