The following data are based on information in the 2013 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 February 2, 2013, it operated 1,006 stores in 50 states Puerto Rico, and Canada. American Eagle Outfitters, Inc., is a retailer of clothing and accessories, targeting 15- to 25-year-old customers. As of February 2, 2013, it operated 1,044 American Eagle Outfitters stores in the United States, Puerto Rico, and Canada.
a. Calculate each company’s net income and retained earnings for 2013.
b. For each company, calculate its net earnings as a percentage of its revenues. Show your computations.
c. Which company performed better in 2013? Explain your answer.

  • CreatedApril 20, 2015
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