Analysis American Eagle Outfitters

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In comparing the two companies finances American Eagle Outfitters has almost four hundred million more money in cash operations, while Aeropostale is in the negative for net income and cash for operations. As per the Annual Statement of American Eagle Outfitters is the total sales have declined 1% making the net revenue down by the same percentage but as you can see from the above their gross profit is the steady for the two year period. The balance sheet shows an decrease of equity of about 76 million however, their Total Cash Operation is up by about 109 million. American Eagle Outfitters has managed to decrease their lowered the operating cost by bypassing their distribution centers because they are shipping directly from the manufactures to the stores. The Annual Statement also say “The retail landscape was volatile throughout the year, resulting in a difficult spring season with financial performance well below our targets and historical performance. Our improved merchandise assortment, reduced expenses and improved execution caused the business to stabilize by mid-year, with financial improvement in the third and fourth quarters.”1…show more content…
Our country is large and diverse, and the demand patterns in our stores are equally disparate. Over the last several months, we have invested significant time and energy in creating tools and disciplines that will enable us to understand the special needs of all our stores, and allocate goods to them in a much more sophisticated manner.”2 She also states that they are not happy with the financial performance, but she has developed a game plan to address this. She says they will be launching in Ireland in 2015. This year they launched in Chile, Malayia and Mexico which have prospered this

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