Aeropostale's Profits Rise, Margins Sink

The company was able to make up for the gross margin decline in large part through controlling its sales, general and administrative costs. Such expenses declined 340 basis points from the fourth quarter a year ago to 16.5% of revenue.

Aeropostale's shares closed regular trading on the New York Stock Exchange up 93 cents to $12.28. A spinoff of Federated Department Stores'(FD Quote) Macy's division, Aeropostale raised $225 million in an initial public offering last May.