Running Header: AEROPOSTALE INC

Aeropostale Inc

Aeropostale Inc

Company Introduction

Aeropostale Inc is an accessories and casual specialty retailer targeting young women and men in the age bracket of 7 to 17 years. US, Puerto Rico and Canada are the places where the company operates primarily. In New York City, there is the headquarter of Aeropostale which has 17,828 employees.

Discussion

SWOT Analysis

Strengths

Strong presence in the teen apparel segment

Aeropostale is one of the largest retailers of teen casual apparel and accessories in the US. It specifically targets 14 to 17 year old young women and men, and 7 to 12 year old kids. It has a strong presence in the American teen market with 965 Aeropostale stores and 47 P.S. from Aeropostale stores spread throughout the US, Puerto Rico and Canada. The company's strong presence in the US teen apparel market helps it to explore new avenues for growth and expansion.

Internet and catalog orders exhibit strong growth

Aeropostale's e-commerce and catalog business has been recording high growth over a period of time. E-commerce revenues recorded a 24% growth in FY2011. The company's online and catalog business is very strong, with profit margins of about 27% when compared to its brick and-mortar stores with a profit margin of 18%.

Weaknesses

Overdependence on domestic market

Aeropostale is largely dependent on its domestic market, the US, for a major chunk of its revenues. The US accounted for 95% of the total revenues in FY2011 and Canada accounted for 5% of the total revenues. The company's business is highly concentrated in the US which makes it susceptible to the economic conditions in the country. Given the current uncertain economic conditions in the US, sales and revenues of the company might take a hit. The unemployment rate in the US has been high in the past few years. According to Bureau of ...