Aeropostale's CEO: the Secret of His Success

Apparel retail has been a no-man's land for investors over the past year. Margins are deteriorating due to steep discounts. Fashion is bland, with few brands willing to experiment in the tough market. And the consumer? Well, the consumer is just not consuming. The S&P Retail Index is only starting to rebound after its $213.50 low on Nov. 20.

Even teen retail, a sector once believed by many investors and analysts to be recession-proof, has taken major hits.

Somehow Aeropostale(ARO Quote) has managed to overcome all this -- posting an 81% surge in first quarter earnings on Thursday.

In April same-store sales jumped 20%, the company has more than doubled its share price in the year-to-date period and, as others shutter stores, plans to launch a new children's concept in June.

Aeropostale will release first-quarter earnings after-market today, and analysts are expecting the company to continue to rise above the pack.

In comparison, rival Abercrombie & Fitch(ANF Quote) said it is reevaluating its Reuhl concept, plans to cut 170 jobs at its headquarters and recorded a loss in its first quarter. American Eagle Outfitters(AEO Quote) saw a 5% drop in April comparable sales.

So how has Julian Geiger, Aeropostale's chairman and chief executive officer, pulled it off? He spoke with TheStreet.com and offered his take on how apparel retailers can keep from losing the shirt off their backs.

TheStreet.com: To what do you attribute the 20% jump in April same-store sales and continued quarterly profit growth?

You really have to look back in time. Nothing in retail happens quickly. We have been willing to look at ourselves and realize what we like about ourselves and what we don't and make appropriate changes. It's about a balance of assortment and store design. What you see now is the cumulative affects of adding fashion merchandise to our assortment, while maintaining a promotional stance. Last year was terrific and this year the first quarter was great.