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American Eagle & Buckle Inc Financial Analysis 2013

Jan 22, 2018

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Business

  1. 1. Abdou Diop Carlos Encarnacion Maceo Lofton Leudy Lugo Sooyeon Park
  2. 2. Agenda BuckleInc.FinancialInformation AmericaEagleFinancialInformation CompanyOverview:BuckleInc. CompanyOverview:AmericanEagleOut7itters CompareAnalysis
  3. 3. AmericanEagleOut7ittersOverview 1977theCirstAmericanEaglewasestablishinTwelveOaksMallin Novi,Michigan Morethan1,000storesineveryUSstate(includingPuertoRico, Canada,MiddleEast,andonline) Providinghigh-qualitymerchandise,on-trendingclothes,accessories, andpersonalcareproductsataffordableprices Thecompanyonlinebusiness,AEODirect,shipstocountries worldwide In2006AmericanEagleranked#1injeanssales(age15-25yearsold) andnamed#1brandofcollegestudents
  4. 4. Agenda BuckleInc.FinancialInformation AmericaEagleFinancialInformation CompanyOverview:BuckleInc. CompanyOverview:AmericanEagleOutCitters CompareAnalysis
  5. 5. CurrentAssets $1,141,800,000 CurrentAssets Cashandcashequivalents Short-terminvestments MerchandiseInventory Assetsheldforsale AccountsReceivable PrepaidexpensesandOther Deferredincometaxes $1,141,800,000 509,119,000 121,873,000 332,452,000 - 46,321,000 73,805,000 58,230,000 Ratio(CurrentAssets:TotalAssets) 0.6502 FinancialInformationCurrentAssets
  6. 6. CurrentLiabilities $1,141,800,000 CurrentLiabilities AccountsPayable Accruedcompensationandpayrolltaxes Accruedrent Accruedincomeandothertaxes Unredeemedgiftcardsandgift certi7icates Currentportionofdeferredleasecredits Otherliabilitiesandaccruedexpenses $435,902,000 176,874,000 65,533,000 77,873,000 29,155,000 46,458,000 13,381,000 26,628,000 Ratio(CurrentLiabilities:TotalLiabilities) 0.815 FinancialInformation-CurrentLiabilities
  7. 7. CurrentAssets CurrentLiabilities Merchandiseinventory Accountsreceivable Prepaidexpensesandother Otherassets Accountspayable Accruedcompensationandpayroll taxes Accruedincomeandothertaxes Unredeemedgiftcardsandgift certi7icates, Deferredleasecredits Accruedliabilities FinancialInformation-CurrentLiabilities
  8. 8. Retained Earnings ($218,406)
  9. 9. NetIncome $232,108,000 FinancialInformation
  10. 10. Dividend ($414,301)
  11. 11. AmericanEagleCompanyAuditorand ReportFinancialStatement Ernest&YoungLLP ErnstandYoungLLPsbelievesAmericanEagleOutCitters,Inc. maintainedeffectiveinternalcontroloverCinancialreportsand Cinancialstatements.
  12. 12. Agenda BuckleInc.FinancialInformation AmericaEagleFinancialInformation CompanyOverview:BuckleInc. CompanyOverview:AmericanEagleOutCitters CompareAnalysis
  13. 13. 1948-FirstBucklestoreopensinKearny,Nebraska Leadingstoreofmediumtoimprovedpricedcasualattire,footwear, andaccessoriesforfashion(towardtoyoungmale&female) Functionsover450storesin43states,underthenameBuckle&the Buckle ThecompanyhighlightsmodiCieddevotiontoitscustomersand providesindividualcustomerserviceslikefreechanges,layaways, andfrequentshopperprograms.
  14. 14. Agenda BuckleInc.FinancialInformation AmericaEagleFinancialInformation CompanyOverview:BuckleInc. CompanyOverview:AmericanEagleOutCitters CompareAnalysis
  15. 15. CurrentAssets $276,873,000 CurrentAssets: $276,873,000 CashandCashequivalent Short-terminvestments(NotesA,B,andC) Receivable Inventory PrepaidexpensesandotherAssets(NoteF) $117,608,000 26,414,000 3,470,000 103,853,000 25,528,000 Ratio:(CurrentAsset/TotalAsset) 0.57926373 FinancialInformation-CurrentAssets
  16. 16. BuckleInc.referstoitsIncomeStatementas theConsolidatedStatementsofincome. CurrentLiabilities $128,956,000 CurrentLiabilities AccountsPayable AccruedemployeeCompensation AccruedStoreoperatingexpenses Giftcerti7icatesredeemable Incometaxespayable $128,956,000 34,124,000 42,183,000 10,121,000 22,221,000 20,307,000 Ratio:(CurrentLiabilities/Total liabilities) 0.68475242 FinancialInformation-CurrentLiabilities
  17. 17. Receivables 596,000 Inventory 356,000 Prepaid expenses and other assets (10,281,000) Accounts Payable 6,534,000 Accrued Employee Comp. (671,000) Accrued Store Operating Exp. (1,004,000) Gift Certificate Redeemable 1,935,000 Differed rent liabilities and deferred Comp. 2.463,000
  18. 18. The change in retained earning from 2012 to 2013 was 23,500,000
  19. 19. Net Income $164,305,000 FinancialInformation Increase from previous two years
  20. 20. Dividends $254,633 FinancialInformation
  21. 21. Largest inflow for Investing activities Proceedsfromsales/maturities ofinvestment $37,294,000 LargestOutClowfor Investingactivities Purchaseofpropertyand equipment ($30,297,000) Largestin7lowfor Financingactivities Excesstaxbene7itfrom stockoptionexercises $5,609,000 LargestOutClowfor Financingactivities PaymentofDividends ($254,178,000)
  22. 22. BuckleInc.CompanyAuditorandReport FinancialStatement Deloitte&ToucheLLP Thecompanymaintainedaneffectiveinternalcontrolover CinancialreportingofFebruary2,2013.Therewerenochangesin thecompanysinternalcontroloverCinancialreportingthat occurredduringthecompanyslastCiscalquarter.
  23. 23. Agenda BuckleInc.FinancialInformation AmericaEagleFinancialInformation CompanyOverview:BuckleInc. CompanyOverview:AmericanEagleOutCitters CompareAnalysis
  24. 24. TotalAssets:$1,756,053,000 TotalLiabilities:$534,866,000 NetIncome:$232,108,000 GrossProCit:$1,390,322,000 TotalAssets:$477,974,000 TotalLiabilities:$188,325,000 NetIncome:$164,305,000 GrossProCit:$499,315,000 AmericanEagleOutCittersInc.reportedhighertotalassetsat$1,756,053,000. AmericanEagleOutCittersInc.reportedhighertotalliabilitiesat$534,866,000. VS CompareAnalysis
  25. 25. VS Ifacompanyscapitalstructureisdisproportionatetowardsliabilities andtheyhavealmostasmuchliabilitiesastheydoassetsthanthe companymaybemoreriskytocreditors. AmericanEagleOutCitters,Inc.astheirFinancialLeverageRatioat1.41is actuallylowerthanBucklesFinancialLeverageRatio,whichisat1.55, indicatingthatBuckleCinancesitsassetsthroughahigherproportionof debtthanshareholdersequitythanAmericanEagleOutCittersInc.does. Accordingtothisratio,BuckleisactuallyriskierthanAmericanEagle OutCittersInc.fromacreditorspointofview. CompareAnalysis
  26. 26. TotalAssets:$1,756,053,000 TotalLiabilities:$534,866,000 NetIncome:$232,108,000 GrossProCit:$1,390,322,000 TotalAssets:$477,974,000 TotalLiabilities:$188,325,000 NetIncome:$164,305,000 GrossProCit:$499,315,000 VS CompareAnalysis AmericanEagleOutCittersInc.generateshighernetincome. OneoftheprimaryfactorsthatcontributetothechangeinnetproCitisanincreaseor decreaseofthepriceofthesoldunits.Pricechangesgreatlyaffecthowmanyunitsa companycansell,whichinturninCluencestheoverallproCitnumbers. Inventoryisanotherfactorthatcontributestochangesinacompany'snetproCit (Chartresults)
  27. 27. VS CompareAnalysis InvestorswantmostproCitablecompany FactorstoAnalyze: HowlongthecompanycanmaintainproCitabilityinthemarket Comparisontorecentyears GrowthTrajectory OperatingProCitability-AssetTurnoverRatio AmericanEagle 1.87 Buckle,Inc. 2.22
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