American Eagle Company Essay Example | Topics and Well Written Essays - 1500 words

American Eagle Company - Essay Example It also ships them worldwide through the website. AE has introduced a new label called â€Å"aerie by American Eagle† targeting young female customers with a collection of dormwear and intimates that includes bras, undies, camis, hoodies, robes, boxers, sweats and leggings. They are specifically designed to be sweetly sexy for everyday stylish wear. These are currently sold in 19 exclusive stores as well as on its website called Apart from this AE has now targeted 25 to 40 year old customers with yet another brand called MARTIN+OSA using denim and sportswear as a base covering apparel, accessories and footwear. This is sold in 13 stores as well through its website www.martinandosa.com. AE had a sale of $ 2.98523 billion with profits of $ 411 million during the last financial year and expects a slight fall this year due to extended warm weather. A SWOT analysis displays the company outlook in detail. 6. Compared with competition it has fared better in the 2nd quarter of 2007 as it suffered a fall in sales of only 2% compared to industry suffering between 2 and 11 per cent. This shows that it is more popular than others. 1. Due to Global Warming warm weather has been extended in 2007 resulting in a longer summer. This resulted in a fall in sale of abut 2% in the 2nd quarter and the forecast of sales in 3rd quarter has been reduced. This will impact year on year sales and profitability. 3. It went on expansion through the takeover and merger route and in one case it backfired badly. Bluenotes of Canada with 100 stores was acquired in 2001 but since this too served nearly the same segment, 12-22 year olds, it failed and had to be sold off in 2004. 6. By sticking to one demographic segment (15-25 year) predominantly has made the company kaleidoscopic and the market also perceives it as a one segment player. Fresh competition will eat away