Sales analysis refers to a report that shows a company sales over time. It shows if the company is growing or not. After the analysis, a company determines the best course of action depending on the performance. As a business person who wants to open up a clothing line store at the end of this quarter, this paper briefly gives the sales analysis of other similar stores in the industry. Knowledge gained from this industry will help in understanding the market opportunity and maximize the chances of the new product.
The Gap Inc. and American eagle outfitters are both international clothing and accessories retailers based in America. The Gap has an estimated revenue of $16.33 billion, 43.26 revenue per share, and a gross profit of 8billion. The company experienced quarterly revenue growth of -2.20% and a quarterly earnings growth of -47.40%(Yahoo Finance, 2020).On the other hand, American eagle outfitters operate with a revenue of $4.31billion, 25.39 revenue per share, and a gross profit of 1.52billion. The company has experienced quarterly revenue growth of 5.70% and -93.70% of quarterly earnings growth.
However, the normal running in businesses has been affected by the Covid-19 pandemic. For example, Gap Inc. announced that they lost $100 billion dollars during the first fiscal quarter, contributed by china, which makes up only 3% of its sales (Wahba, 2020). The manager also said that it was only the beginning and that the pandemic is likely to have a large impact on the financial situation. Consequently, AEOs stock has declined due to the economic slowdown that has resulted in less customer spending. People are no longer going to shop for luxurious items but necessities (Forbes, 2020). AEO has currently closed down some of the stores in the USA and Canada, therefore, reducing profitability. Additionally, AEO gets most of its products from China, which has been impacted greatly by reducing supplies to the company.
Forbes. (2020, April 1). American Eagle’s Stock Has Fallen Considerably Because the Situation on the Ground Has Changed. https://www.forbes.com/sites/greatspeculations/2020/04/01/american-eagle-outfitters-stock
Yahoo Finance. (2020, May). American eagle outfitters, Inc. (AEO) valuation measures & financial statistics. Yahoo Finance – Stock Market Live, Quotes, Business & Finance News. https://finance.yahoo.com/quote/AEO/key-statistics/
Yahoo finance. (2020, May). Gap, Inc. (The) (GPS) valuation measures & financial statistics. Yahoo Finance – Stock Market Live, Quotes, Business & Finance News.
Gap, Inc. (The) (GPS) valuation measures & financial statistics. (2020, May). Yahoo Finance – Stock Market Live, Quotes, Business & Finance News. https://finance.yahoo.com/quote/gps/key-statistics/
Wahba, P. (2020, March 13). Gap Inc pegs coronavirus losses at $100 million and counting. Fortune. https://fortune.com/2020/03/13/gap-coronavirus-impact-lost-sales-covid-19/
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