Aeropostale

Aeropostale
ANALYSIS for NYSE : ARO MAY 15, 2011

AEROPOSTALE STORES

$

50.09
$4.6 B MKT CAP
Trefis Estimate

$

21.57
Market Price

Aeropostale Revenue per Square Foot 3 Number of Aeropostale Stores 4 Square Feet per Aeropostale Store 5 Aeropostale Stores EBITDA Margin 6
INTERNET & CATALOG ORDERS

$1.8 B MKT CAP

— CORPORATE SNAPSHOT —

Internet & Catalog Orders Revenues 8 Internet & Catalog Orders EBITDA Margin 9
APPENDICES

Aeropostale is a mall based specialty retailer of casual apparel and accessories. It designs, markets and sells its own brand of merchandise through its retail stores and the internet. Aeropostale provides customers with a focused selection of high quality, active oriented, fashion at competitive prices. The average Aeropostale store is generally smaller than that of many of its mallbased competitors. However, unlike many of its competitors, its revenues were not impacted by the recent economic downturn. Instead, Aeropostale's revenues increased significantly from 2005 to 2010. 1. Aeropostale Stores constitute 79% of the Trefis price estimate for Aeropostale's stock. 2. Internet & Catalog Orders constitute 16% of the Trefis price estimate for Aeropostale's stock.

Summary P&L for Aeropostale 11 Detailed Aeropostale Stores P&L 12 Detailed Internet & Catalog Orders P&L 13

Our share price estimate and the overall company value is derived by summing-up the values of individual divisions/businesses in a sum-of-theparts analysis. The value of each division is calculated using a discounted cash flow (DCF) methodology. We forecast fundamental drivers like pricing, market share, and profit margins for different businesses in estimating the division’s value within the DCF framework. The analysis below primarily focuses on those important forecasts that drive our share price and value estimate. Our complete analysis, including sources of historical data, underlying equations and additional discussion are available on...