The following data are based on information in the 2019 annual reports of Abercrombie & Fitch, Co. and American Eagle Outfitters, Inc. Dollar amounts are in millions.

Abercrombie & Fitch is a specialty retailer of apparel and accessories for men, women, and kids. As of February 2, 2019, it operated 663 stores in the United States and 198 stores outside the United States. American Eagle Outfitters, Inc. is a specialty retailer of clothing and accessories for men and women. As of February 2, 2019, it operated 934 stores in the United States and 115 stores outside the United States.

Required
a. Calculate each company’s net income and retained earnings for 2019.
b. For each company, calculate its net earnings as a percentage of its revenues. Show your computations.
c. Which company performed better in 2019? Explain your answer.

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Assets Liabilities Stockholders' equity Revenues Expenses Dividends Retained earnings at the beginning of the year Abercrombie & Fitch $2,386 1,167 1,219 3,590 3,516 54 2,421 American Eagle Outfitters $ 1,904 616 1,288 4,036 3,774 99 1,884