...Aeropostale Inc. Company Analysis: Overview, History and Current Structure Davenport University Aeropostale Inc. Company Analysis: Overview, History and Current Structure Aeropostale Incorporated is a “mall-based” retail store chain that caters to 14 to 17 year old young women and men who are interested in “casual apparel and accessories (Aeropostale Inc. Corporate, n.d.). According to Aeropostale website, a Privacy Policy with Canada, states that Aeropostale Inc. has a subsidiary called “P.S. from Aeropostale” that caters to the 7-12 year olds (Aeropostale Inc., 2012, April). Mergent Online disclosed that Aeropostale Inc. “sells a range of apparel, including graphic t-shirts, tops, bottoms, sweaters, jeans, outerwear and accessories” (Mergent, 2012). Mergent’s Online Business Summary of Aeropostale Inc., reports that, “as of Jan 29 2011, [Aeropostale Inc.] Co. operated 965 Aeropostale stores, consisting of 906 stores in 49 states and Puerto Rico, 59 stores in Canada, as well as 47 P.S. from Aeropostale stores in 13 states (Mergent, 2012). Aeropostale was started for Macy’s department store under a private label in 1982 (Shop Aeropostale, n.d.). The name Aeropostale, according to Aeropostale corporate website, dates back to the 1920’s: “Compagnie Generale Aéropostale, a pioneer airmail company, was the first ever to fly between France, South Africa, and South America”, this is who the beginning...
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...TABLE OF CONTENTS INTRODUCTION AEROPOSTALE, INC. VS. ABERCROMBIE AND FITCH CO. PERFORMANCE DURING RECESSION AEROPOSTALE EXPANDING E-COMMERCE SALES BACK TO SCHOOL SEASON INCREASES IN COMMODITY PRICES ANALYSIS PROFITABILITY GROSS PROFIT MARGIN NET PROFIT MARGIN INVENTORY TURNOVER RETURN ON CAPITAL EMPLOYED (ROCE) LIQUIDITY CURRENT RATIO ACID TEST OR QUICK RATIO DEBTOR DAYS CREDITOR DAYS SOLVENCY GEARING VALUATION EARNINGS PER SHARE (EPS) CONCLUSION BIBLIOGRAPHY APPENDICES LIST OF TABLES TABLE 1: FINANCIAL PERFORMANCE INDICATORS ON PROFITABILITY TABLE 2: FINANCIAL PERFORMANCE INDICATORS ON LIQUIDITY TABLE 3: FINANCIAL PERFORMANCE INDICATORS ON SOLVENCY TABLE 4: FINANCIAL PERFORMANCE INDICATORS ON VALUATION 0364693/2 INTRODUCTION Aeropostale, Inc. (ARO) which is frequently referred to as Aeropostale by their consumers is a U.S. based clothing retailer that sells casual clothing with approximately 900 plus stores located in the United States, Canada, Puerto Rico and the United Arab Emirates. ARO stores are primarily based in shopping malls and sells fashion apparel inclusive of printed tees and polos, shirts, jeans, footwear, swimwear, underwear, fleece and accessories. ARO’s teen brand has been extremely successful and as a result of this, they were driven to launch a new brand, P.S. from Aeropostale which sells children’s clothing. AEROPOSTALE, INC. VS. ABERCROMBIE AND FITCH CO. To sell their own brand of apparel and accessories, ARO targets a young demographic...
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...at the end of the seasonal period. Consideration to be hired as part of the store’s core staffing will be given to associates based on performance, availability and the needs of the business. Today’s Date Aéropostale is an equal opportunity employer (First) (Middle) Have you ever worked or attended school under another name that we need to know to verify your records? If yes, name: Yes No Home Phone Number Name (Last) Permanent Address (Number, Street, City, State & Zip) Temporary Mailing Address Social Security Number Business or Temporary Phone Position Desired List names of friends and relatives now employed by Aéropostale Schedule Preferred Full Time (7, 7 1/2 or More Hours Daily - 5 Days) Part Time (Days / Evenings / Weekends) Are you 18 years of age or older? Yes No What days are you NOT available for work? Currently employed? List your interests, hobbies, special skills Full Time Part Time Not Employed Foreign language (s) spoken fluently which would be helpful in position sought List names of all organizations of which you are a member (exclude any organization which would indicate the following: race, color, creed, ancestry, national origin, religion, sex, or marital status) Have you ever been employed by Aéropostale? If yes, under what name were you employed? Store location? Dates employed? From: To: Yes No PREVIOUS EMPLOYMENT List in order of employment starting with your present employment. Please account...
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...Aeropostale used to be the most wanted brand for teens since their prices were lower than Abercrombie and Fitch and American Eagle. One cause of their decline is due to that teenagers are fleeing the brand in multitudes. Aeropostale clothing has been the same for years, and they haven’t really developed any innovation in their clothing for their customers. They don’t carry the same stylish weight it used to, fashion evolves every day, and they got stuck with the same styles. Nowadays, teenagers are not into the labels or logos on clothing as they used to be. Shopping at thrift stores have become very popular nowadays, and even though Aeropostale have reduced their prices they are not ‘cool’...
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...Twitter is a website, owned and operated by Twitter Inc., which offers a social networking and microblogging service, enabling its users to send and read messages called tweets. Tweets are text-based posts of up to 140 characters displayed on the user's profile page. Tweets are publicly visible by default; however, senders can restrict message delivery to just their followers. Users may subscribe to other users' tweets—this is known as following and subscribers are known as followers.[8] All users can send and receive tweets via the Twitter website, compatible external applications (such as for smartphones), or by Short Message Service (SMS) available in certain countries.[9] While the service is free, accessing it through SMS may incur phone service provider fees. The website is based in San Francisco, California. Twitter also has servers and offices in San Antonio, Texas; and Boston, Massachusetts. Since its creation in March 2006, and its launch in July 2006, by Jack Dorsey, Twitter has gained popularity worldwide and is estimated to have 190 million users, generating 65 million tweets a day and handling over 800,000 search queries per day.[clarification needed][10] It is sometimes described as the "SMS of the Internet".[11] Tween Brands (NYSE: TWB) operates retail stores that sell clothing to "tweens", girls between the ages of 7 and 14. TWB's stores sell clothing, jewelry, backpacks, purses, and other accessories.[1] The Limited Too was TWB's first chain, with 586 stores...
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...James Borda Retail Marketing 10/5/12 Case 10 Case Study 1. Over the last decade, American Eagle and Abercrombie and Fitch have been two of the main clothing retailers competing for the affection of young adult shoppers, specifically within the teen-college age range of 18-22 years. While both companies carry a similar assortment of clothing apparel and try to cater to the same demographic, each company’s retail strategy does differ in various ways. A retail strategy is defined as the way in which a firm plans to focus its resources to accomplish its objectives. Being that both companies have the same target market and nature of merchandise, they both attempt to look for ways to gain a competitive advantage through their retail strategies. One main difference in their strategies is that American Eagle attempts to gain an advantage by selling their products at lower prices. By offering apparel that is equivalent to that of Abercrombie and selling it at a cheaper price they are able to attract the consumer who is looking to save money. On the other hand, Abercrombie keeps their prices a little bit higher to give off the appearance of higher quality in hopes to attract the consumer who looks to buy name brand, higher end clothing. Moreover, though it is incredibly important to gain a competitive advantage over other retailers in your market, it is even more crucial to sustain that advantage. Abercrombie has positioned itself strictly within the market of 18-22 year olds; to...
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...Nana Offei University of phoenix Mgt/350 Decision in paradise paper two Professor Michael Caserta January 17, 2011 Decision in paradise part two The Island of kava has many obstacles up until to prevail over deep-sea queen need to work with the Kava administration to Identify proper procedures to have occurred in the recovery effort as well as provide first aid. Foodstuff and protection to all citizens I need will become a major investor in the rebuilding effort and work with government official on a reconstruction plan. In this plan, the subject to identify is specific problem areas and provides an outlet for development and proactive warning mechanism against future nature disaster This effort is a major mission and requires extensive problem classification rebuild Kava to complete with safety stranded that influence the quality of life for everyone in the Islands. Therefore, humanitarian Aid Calamity prevention, housing improvement, rebuilding hotel, and human resources are necessary to rebuild and constriction. Kava faces many challenges and decision-making, queen would share a greater presence in kava through a collaborative agreement with government official and the citizens of the beautiful Island. Evaluate the reimbursement against the operating cost to choose the most profitable choice involves monetary calculation of original and ongoing expenses against predictable return. However, creating sensible actions of the cost and benefits of specific measure...
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...styles that will draw the teen into buying that select style because it was specifically made for them. For instance, on the Forever21 website (clothing store that sells teen clothes) they have sections such as “trending now”, “new arrivals”, and a summer collection “sunny days”. Also if you were to look at clothing store websites that sell clothes directed towards teens such as “Aeropostale, Hollister, Hot Topic, and/or Justice”, you would see that they also have specified sections for individuals such as the one’s shown on Forever 21’s website. When looking at the majority of the mainstream clothing stores you will see that they sell their clothes to a wide range of individuals, no matter what the race shall be. They do have individual sections that are designated to “men” and/or “women”, but they do not specify on race nor target a certain race. They intend on their clothing products to be bought by all not to be bought by those on an specific ethical stance. Title, URL, and Date of Access Central Idea · Forever 21, http://www.forever21.com/, 6/22/2015 teen clothing store · Aeropostale, http://www.aeropostale.com/shop/index.jsp?categoryId=3534619, teen clothing store 6/22/2015 · Hollister, http://www.hollisterco.com/shop/us, 6/22/2015 teen clothing store · Hot Topic, http://www.hottopic.com/hottopic/Homepage.jsp, 6/22/2015...
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...[pic] SWOT Analysis of Hollister Co. By: Jessica Gray, Mehrosh Hasher, Lydia Russo, Rachael Ware, and Desiree Urban October 4, 2009 AA 381 Fashion Buying Introduction: Hollister Co. was launched by Abercrombie & Fitch Company CEO Michael Jeffries in July 2000, and is a lifestyle brand that markets apparel and fragrances reminiscent of the southern California way of life (Palmer, 2009). Hollister Co., whose clothing is known for their signature seagull logo embroideries, has become widely recognizable due to its success in creating a strong brand image (Palmer, 2009). Hollister Co.’s retail stores, featuring only its own private label merchandise, are usually located in malls and generate significant traffic due to its unique atmosphere complete with ultra-dimmed lights and blaring popular music (Palmer, 2009). The brand’s target market consists of both males and females between 14-24 years of age (Palmer, 2009). Hollister Co. is known for the model-like staff it employs, and the sensual advertisements and store décor that accompany them (Palmer, 2009). Their clothing reflects this ideal, running in notoriously small sizes and only consisting of a very limited collection of casual beach-ready graphic t-shirts, jeans, thermals, swimwear, leggings, shorts, and sweatshirts (Palmer, 2009). Though Hollister Co. has recently been suffering large net losses, it has ranked first place for the Teen’s Top Clothing Brand for four consecutive seasons since 2007, and...
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...Pacific Sunwear, Inc. – Valuation Analysis Valuation Method | Weight | Implied Value | Relative Valuation | 30% | $2.69; Range of $2.04 - $3.06 | Regression | 35% | $2.30; Range of $2.10 - $2.50 | Discounted Cash Flow | 15% | $2.37; Range of $1.92 - $3.18 | Precedent Transaction Analysis | 20% | $2.30; Range of $1.47 - $3.66 | | Value Range | $1.47 - $3.66 | | Estimated Price | $2.43 | | Market Price (04/19/13) | $2.40 | | Conclusion | Slightly Undervalued* | | Recommendation | Hold | * It should be noted that since the analysis was completed the stock price has risen to $2.76; however, certain data used in the analysis that is affected by price was pulled as of 04/19/13. Summary: Based on the weighted valuations that I performed, Pacific Sunwear’s stock is somewhat undervalued. Because of the company’s cash flow struggles and changing business, the DCF analysis was considered to be the poorest indicator of value, followed by the precedent transaction analysis. The regression and relative valuation methods were thought to be the best indicators. Based on this, I concluded a fair value of $2.43 using various weights for the method as each method is based on certain assumptions that may result in a flawed value. For example, the regression and relative valuation, which were given the highest weights, are based on the assumption that the companies chosen for the peer group are comparable to Pacific Sunwear, despite differences in their financial performance...
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...ABERCROMBIE AND FITCH OVERVIEW Abercrombie and Fitch Co. (ANF) is a specialty retailer that operates stores selling casual apparel, sportswear apparel, personal care products and accessories for men, women and kids under the Abercrombie and Fitch, Abercrombie, Hollister and RUEHL brands. With a customer base that is primarily under thirty years old, ANF was established in 1892 by David Abercrombie and Ezra Fitch. ANF operates in the US, the UK and Canada and is headquartered I New Albany, Ohio with over 20,000 employees. As a “near to luxury” retailer, ANF operates in an apparel industry which straddles high to low end merchandise. Its’ main competitors include : American Eagle, Aeropostale, Gap and J- Crew. Their focus on capturing a young market has created a rivalry, which forces them to be innovative and creative in delivering fashionable mechandise. As a result, their competitive strategy involves not only marketing their products through stores, but via catalogs and e- commerce activites. SWOT ANALYSIS, ABERCROMBIE AND FITCH A scan of the internal and external environment is essential in any firm’s strategic planning process. A SWOT analysis defines the internal and external environmental issues with which a firm must address in its strategic planning process. This type of analysis specifies the internal and external factors that are favourable and or unfavourable to the firm achieving its business objectives. It guides the firm in matching its resources and other...
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...Abercrombie & Fitch Marketing Assignment Executive Summary Established in 1892, Abercrombie & Fitch marketing strategy has always been to target those between the ages of 18 and 22. A&F’s gross sales have been $539 million in 2008; however sales have dropped by 5% from the previous year due to the recession. In order for sales to improve our marketing consulting team has developed an internal analysis, which identifies, assesses, predicts, and accommodates the human resources, technology, finances and operations that A&F possesses. The internal analysis explains how these possessions, which have helped the organization until present time, can be used to help increase sales during this recession. Furthermore, the report analyzes A&F externally showing what kind role each factor, such as price and quality, plays in A&F and its competitors. The external analysis describes the political, economic, social, and technological factors in A&F’s environment and how each of these factors can be used for the benefit of the company during this recession. To further clarify A&F’s positioning, a perceptual map has been developed in which A&F shown as a high priced and high quality retail organization. It can be noted at this point that all of A&F’s competitors are willing to promote its employees and give discounts while A&F chooses not to, and yet they have the highest drop in sales growth. Moreover, the report’s most important part being the...
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...opportunities for commercial advantages and delegating work to staff to ensure manageable day-to-day workload and exceptional in store experience. * Checking and signing invoices and credit notes on a weekly basis. * LIDS November ‘13 – January ‘15 Store Manager Completes store operational requirements by scheduling and assigning employees; following up on work results. Maintains store staff by recruiting, selecting, orientating, and training new employees. Achieves financial objectives by preparing an annual budget; scheduling expenditures; analyzing variances; initiating corrective actions. Maintains operations by initiating, coordinating, and enforcing program, operational, and personal policies and procedures. * Aeropostale January ’13 – November ‘13 SENOR MECH. FLOW (Stock manager) Keep customers satisfied and willing to return/recommend by providing a rewarding experience. Clean and maintain...
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...I went to caribou coffee yesterday, after I order my drink, I set down by the window. As I was observing the music playing in the background, the first thing I notice was that, it was played at a lower volume. It was a much softer kind of music, the music was slower and relaxing. I didn’t know the song that was playing but it was definitely a song that fit the atmosphere in the shop. It was nice and quiet in there. There weren’t many people there, but the ones who were there, they were reading or was on their laptop working on stuff. The music in the background brings a nice relaxing feeling in there. I felt like the music in there really helps me concentrate on the things that has been going through my mind as i set there and just take that...
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...The importance of Purchase and Supply management INF 336 Instructor: Lori Deere In my time of jobs, I’ve had some experience of dealing with projects, vendors (suppliers) and some of the business. When I worked for Whole Foods, I dealt with different vendors and dabbed in some of the project aspect of the work. In later time, I became the bulk buyer and got more involved. At that time I really didn’t know how vital purchasing and supply management were in business. In an organization, buying supplies and keeping them in order is very important to help the business run correct. For this paper, I’ll discuss the aspects of purchasing and supply management and why it’s important. It will go over some of the important parts with explanation. In the process, I’ll do my best to give examples from my past experiences and other examples. SO that being stated, let’s go into what exactly is purchasing and supply management. “Supply management is focused on the acquisition process recognizing the supply chain and organizational contexts” (Johnson, P. F., Leenders, M. R., & Flynn, A. E. 2010). Purchasing and supply management is a complex matter that requires more than what most think. It’s stated that there is no easy way to organize the functions of supply, integrate suppliers correctly, and conduct the activities involved. It’s actually more of challenge of anything. In addition, each organization needs its own unique method. “It is also challenging because every supply...
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