Comparison Between Abercrombie And Fitch

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5. Performance and Profitability: Profitability is a major focus in having a successful and prosperous company. Over the last three to five years, American Eagle Outfitters has remained almost unchanged in their profitability. This section will go over American Eagle’s gross margin, net income, and compare the data to the company’s primary competitor, Abercrombie and Fitch. (Cooper, 2015) The following graphs shows a comparison between American Eagle and Abercrombie and Fitch’s revenue, income, and operating margin broken up by year. Analyzing the company’s gross profit margin over the last three to five years, not much has changed. In 2010, the gross profit margin reached its height in the fourth quarter, with 41.56%. In 2011, the …show more content…

Recently, Abercrombie’s stock has dropped dramatically, while American Eagle has stayed up (NASDAQ). In addition, American Eagle has an advantage over Abercrombie in attracting the target market because they have more competitive prices that allow them to expand their market in some ways (MarketWatch). Abercrombie has unsuccessfully attempted to compete by lowering retail prices, but many in the target market still find the company too expensive (MarketWatch). This gives American Eagle an advantage over its competitors because its target market is teenagers, most of whom don’t have an abundance of disposable income, and want quality clothing for a reasonable …show more content…

They needed to start selling merchandise not only in physical stores but also by internet, mobile, catalog and more. This opens up the availability to reach customers they might not otherwise obtain. Likewise, it is more convenient for customers to not have to go to a physical store but rather just get on a computer or mobile device. Later that year, American Eagle started to use a Teradata CRM system to provide a more individualized customer data. They also implemented a IBM Sterling Order Management System to have a better idea of supply and demand in order to have a more personalized source of storing the collected information. This will save the company time and money by protecting them from over or under ordering to specific stores, thus resulting in a higher customer satisfaction. In 2014, they also installed 100 of Apple’s iBeacons for iPhone users to receive notifications on discounts and offers while in store (Trefis Team,

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