The following data are based on information in the 2010 annual reports of Aéropostale, Inc., and American Eagle Outfitters, Inc. Dollar amounts are in thousands.
Aéropostale, Inc. is a retailer of casual apparel and accessories, targeting 14- to 17-year-old young women and young men. As of January 31, 2010, it operated 894 stores in 49 states and Puerto Rico, and 44 in Canada.
American Eagle Outfitters, Inc., is a retailer of clothing, accessories targeting 15- to 25-year-old customers. As of January 31, 2010, it operated 938 American Eagle Outfitters stores in the United States and Canada.

a. Calculate each company’s net income and retained earnings for 2010.
b. For each company, calculate its net earnings as a percentage of its revenues. Show your computations.
c. Which company performed better in 2010? Explain youranswer.

  • CreatedOctober 12, 2013
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