American eagle vs urban outfitters

American eagle vs urban outfitters

Their target audience young consumers are more likely to use online channels for their shopping and hence a balance between digital initiatives and physical store expansion is critical.

For both these companies, keeping the store expansion in check is critical for long term profitability.

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By the mids, two of the Silverman brothers—from the third generation of Silvermans in the family business—were running the family business. A store in CairoEgyptopened in late The company can use this cash balance for inorganic growth acquisitions or is likely to initiate dividends in future.

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As of Decemberthere are currently stand-alone aerie stores in the United States and in Canada. While AEO has higher margins, both companies are likely to experience a similar revenue growth in the next five years.

Urban Outfitters has more opportunities for growth in physical stores and it is likely to leverage them. Which stock do you consider the better long-term bet? The floors are typically wood or concrete.

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I can tell you right now it has not affected our business. This entails their slogan AerieREAL and adding to their advertisements that models seen have not been retouched. However, given that it is smaller in size compared to AEO, Urban Outfitters is likely to experience higher growth in number of stores over our forecast period. We expect its other stores to increase from around in to nearly by the end of our forecast period. AEO already has more than namesake stores and we do not expect any significant growth in this number over the next few years. From October through June , she managed the real-money Prosocial Portfolio, which integrated socially responsible investing factors into stock analysis. A store in Cairo , Egypt , opened in late Alshaya, one of the leading retailers of the Middle East. The addresses of the buildings are "19 Hot Metal Street" and "77 Hot Metal Street", with the numbers symbolizing the first store opening in The theme and displays change based on seasonal lines and promotions. Our only involvement with NLS is basically as a customer, and there have been some allegations made, I think, to some of, to the public about it affecting our business. AEO landed in the Chilean market in September , with the opening of its first store in the Parque Arauco shopping center.

While Urban Outfitters missed consensus estimates in Q3it registered a 4. Better chances for growth? When the company began trading on the NASDAQ stock exchange in the second quarter ofit had stores and a healthy cash flow.

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The company can use this cash balance for inorganic growth acquisitions or is likely to initiate dividends in future. However, the key for profitability for both companies is to generate higher revenues per square foot and managing inventories better. AEO enjoys higher margins compared to Urban Outfitters due to a better operating leverage and we expect these margins to remain steady over our forecast period. Personally, I'll stick with Urban Outfitters shares. What started as a sub-brand quickly became a standalone concept in its own right, featuring a complete fitness line, called aerie f. Both companies are likely to maintain this balance and, hence from a larger base of more than stores, AEO is not likely to expand physical stores rapidly. The undoubtedly hip bridal brand will join Urban Outfitter's already robust portfolio, which includes Anthropologie, Free People, Terrain, Leifsdottir, and of course, its namesake stores. There is usually a flat screen television hanging in the back of the store or behind the cash wrap. Urban Outfitters has a stable of strong brands and a solid track record of expanding with exciting new ones. Expansion continued throughout FY This change in leadership resulted in American Eagle finding its present niche: casual clothing for men and women selling private label clothes. At that time, there were American Eagle Outfitters stores in 36 different states.
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Retail Smackdown: American Eagle Vs. Urban Outfitters