Aeropostale, Inc. (ARO) analysts and the share price can not keep up with the good news flowing out of this niche retailer.

Company Description

Aeropostale 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.

A Retailer is Growing?!

On Mar 12 Aeropostale announced a 5% increase in net income to a company record of $68.2 million. The record levels lead to earnings per share of $1.01, 6 cents higher than the comparable quarter last year.

While the retailer beat estimates by just 1 penny, it was the third surprise in the past 4 quarters. Aeropostale met expectations in the remaining quarter.

Analysts are Bullish

Aeropostale released earnings guidance of 22 cents to 24 cents for the first quarter of 2009 in the same press release previously mentioned. However, since then analysts have raised estimates for to 35 cents per share.

Full-year estimates are also climbing. The consensus for 2009 is now $2.28, up from $2.10 over the past 2 months. Estimates for 2010 are now $2.42, up from $2.33 over the same time period.

If these expectations are met the company’s earnings will have a year-over-year growth rate of 3.3% and 6.2%, respectively. Not bad for a retailer in a struggling economy.

Expanding Demographic

The company also announced that it will launch a new concept targeting kids from 7 to 12 years old. “P.S. from Aeropostale” will be the name of the store that aims to offer a fun experience for both kids and parents.

The Chart

Shares have been barreling through levels of resistance thanks to strong momentum. The stock has been surging all year as the company defies the economic woes weighing on the rest of retailers. Take a look at the chart below.

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