Case Study: Aeropostale

Introduction

Macy’s stores carried the brand name clothing line called Aeropostale. R.H Macy’s decided to branch out to open his own independent line of clothing in 1987.The founder is R.H. Macy’s and Co. originally. Their main focuses and the trend was on the younger generation, from ages 14-17 and 4-12 years old. Aeropostale line of clothing appeared to become very popular with a high demand. Once the line became so popular they begin to manufacture larger sizes in clothing. It was not just young any more, older people could purchase Aeropostale clothing. They went from size four children thought sixteen in women and men and lager size in some states. Aeropostale clothing can be purchased at their stores of trades. Their product can be purchased

I learned that the corporation was in financial trouble. Due to their competitive teen retail, and environment the shift of customer demand away from Aeropostale product. Their competitive contributed to unfavorable financial performance. The ending year of 2015, Aeropostale loss was 8.6 percent throughout their corporate sales. In 2016 Aeropostale filed bankruptcy due to their loss. While, looking at their overall performance, I got a better understanding about their financial problem. The Aeropostale corporation financial performance declined very rapidly in 2015. Less started with their opening year of 2015 for Aeropostale.

A. Cash Ratio: Cash Equivalents: 151,750 Current Liabilities: 198,849 = 305.599 / 2= 1.52. This late you know the Corporation has a great loss. However, this what Aeropostale Corporation started with at the beginning of 2015.

B. Current Ratio: Loss Current Asset 213.138 - Current Liabilities: 3.944 = -0.56Aeropostale company ratio is at -0.52 and the company has loss 56. Cents per dollar. This is not looking good for the company

These reports give information they need, for profit and loss. Consequently, Aeropostale management-team drop the ball, the value of having a successful business is being effect and efficient. That mean, come outside the company consider economy environment which their company service as a hold. This way their marketing department would had hands on knowledge to bring back to company. This give them the opportunities to help turn their finances around an sale performance. Even learning all they can about their competitor new idea for