Aeropostale (NYSE: ARO ) has pulled off an immensely tricky feat among its fellow retailers: It's thriving in the tough consumer climate, as its latest quarterly results reveal.
The retailer's second-quarter net income increased 43% to $21.1 million, or $0.31 per share. Total sales increased 21% to $377.1 million, while same-store sales surged by 11%. (Comps had a slightly easy comparison, since they dipped 4% this time last year.)
Given the dramatic rise of Zumiez (Nasdaq: ZUMZ ) shares today on far less bullish results and outlook, it may seem strange that investors would consider Aeropostale's tidings a bummer. Aeropostale dubbed both its second-quarter earnings and third-quarter outlook "in line," which basically means it didn't beat or lag anyone's expectations.
Still, with Aeropostale succeeding for months now in the midst of a tough consumer climate, its shares have enjoyed similarly robust returns. The stock's up 47% in the last year, the kind of achievement precious few other retailers can boast these days. Only Buckle (NYSE: BKE ) and Children's Place (Nasdaq: PLCE ) spring readily to mind, having risen 37% and 49%, respectively.
But really, who cares about short-term stock moves? We Fools are all about finding great long-term investments at solid prices. In that regard, Aeropostale's trading at just around 18 times trailing earnings, and it has a PEG ratio of 0.98. I think those multiples look pretty compelling, given how widely its outperformed its retail rivals lately. I think Aeropostale's ability to fly steady amid economic turbulence makes it a stock worth Fools' attention.
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