COMPANY PROFILEAmerican EagleOutfitters IncREFERENCE CODE 8EC0F56BA67840A28FC33F2C0BAB23D8PUBLICATION Essay
Submitted By sadiedawn411
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COMPANY PROFILE
American Eagle
Outfitters, Inc.
REFERENCE CODE: 8EC0F56B-A678-40A2-8FC3-3F2C0BAB23D8
PUBLICATION DATE: 29 Apr 2014 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.
American Eagle Outfitters, Inc.
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview..............................................................................................3
Key Facts...............................................................................................................3
SWOT Analysis.....................................................................................................4
COMPANY OVERVIEW
American Eagle Outfitters, Inc. (American Eagle or ’the company’) is one of the largest specialty retailers that sells clothing, accessories and personal care products. The company designs, markets and sells its own brand of clothing under American Eagle Outfitters and aerie by American Eagle
Outfitters (aerie) labels. American Eagle primarily operates in the US and Canada. It is headquartered in Pittsburgh, Pennsylvania and employed about 44,000 people as of February 2, 2013, of whom
37,000 were part-time employees.
The company recorded revenues of $3,475.8 million in the financial year ended January 2013
(FY2013), an increase of 11.4% over FY2012. The operating profit of the company was $394.6 million in FY2013, an increase of 46.5% over FY2012. The net profit was $232.1 million in FY2013, an increase of 53% over FY2012.
The company’s financial year ends on the Saturday closest to January 31. FY2013 was a 53-week period and FY2012 was a 52-week period.
KEY FACTS
Head Office
American Eagle Outfitters, Inc.
77 Hot Metal Street
Pittsburgh
Pennsylvania 15203 2329
USA
Phone
1 412 432 3300
Fax
Web Address
http://www.ae.com
Revenue / turnover 3,475.8
(USD Mn)
Financial Year End
SWOT ANALYSIS
American Eagle is one of the largest specialty retailers that sells clothing, accessories and personal care products. Favorable brand image and low debt will enable the company to weather the economic downturn effectively and places it in a competitively advantageous position. However, intense competition in the market could limit the growth opportunities for the company.
Strengths
Weaknesses
Strong brand with no debt will enable the company to weather turbulent economic conditions Strong multi-channel operations will drive sales aerie establishes a niche in the underserved teen intimate apparel market
Weak competitive position as the prominence of value retailers and premium luxury brands increases
Opportunities
Threats
Growing e-commerce channel in the US
Growing apparel and footwear markets in the US
Expansion in emerging markets through franchises Intense competition will impact the market share growth negatively
Increasing labor wages in the US
Strengths
Strong brand with no debt will enable the company to weather turbulent economic conditions
American Eagle has focused on establishing itself as a fast fashion retailer. The brand was ranked among the most valuable retail brands in the US in 2013 by an independent agency specializing in brand services and activities. Brand is a key differentiator in a competitive market and it enables the company to penetrate new categories quickly and easily. Favorable brand image reduces markdowns and also facilitates premium which converts into better merchandise margins. Strong brand image will enable American Eagle to cater to the pent up demand as the consumer spending starts recovering. Additionally, American Eagle is in good financial health, with no long-term debt at the end of FY2013.
The total revenues increased 11.4% to $3,475.8