Aeropostale plans to add stores, new concept

Geiger spoke at the Piper Jaffray consumer conference in New York, which is being webcast.

He said the New York-based company, which operated 814 stores at the end of last year, could grow to 1,000 with a "couple years' growth." About 85 stores are expected to open this year.

Aeropostale also plans for about 100 stores in Canada eventually. The company now has about 27.

The plan is an "aggressive and well controlled store-opening program," Geiger said.

Aeropostale has in large part outperformed its teen-apparel rivals in recent months amid a difficult retail environment. Last week the company said sales in stores open at least one year, a key retail metric known as same-store sales, rose 6 percent in May, as teens reacted positively to summer merchandise.

Geiger also added that he does not expect product-cost inflation to influence results in 2008, but expects some sourcing pressure in 2009, as companies Aeropostale uses to make its clothes raise prices because of inflation.

However, Geiger said because Aeropostale is such a big client for the companies that make its clothes, "increases will be later than and smaller than competitors."

Geiger did not offer any details about the new store concept it is planning but said that if Aeropostale growth slows in the future, the new store concept, along with the company's Jimmy'Z clothing store line, could pick up the slack.

Aeropostale shares fell 49 cents to $32.94 during afternoon trading.