Please help! Retrieve the Form 10-K for American Eagle Outfitters for the fiscal
ID: 2334735 • Letter: P
Question
Please help!
Retrieve the Form 10-K for American Eagle Outfitters for the fiscal year ending February 3, 2018. American Eagle’s Form 10-K can be accessed through the SEC EDGAR database at https://www.sec.gov/Archives/edgar/data/919012/000156459018006045/aeo-10k_20180203.htm
Hints: You will need to search the financial statement footnotes to find some of the information. Also, the financial statements are in thousands, except for per share amounts. If a number is in thousands, please indicate this by writing out the full number or writing ‘(in thousands)’. Furthermore, you will not need the information before page 35 in American Eagle’s Form 10-K.
1. What were American Eagle’s impairment and restructuring charges for the fiscal year ending February 3, 2018?
2. Did American Eagle’s gross profit margin increase or decrease for the fiscal year ending February 3, 2018 compared to the fiscal year ending January 28, 2017? Show supporting computations.
3. If the gross profit profit margin decreases, what does this tell a financial statement user?
4. At what point does American Eagle’s e-commerce operation recognize revenue for a sale?
5. How much was American Eagle’s Advertising Expense for the fiscal year ending February 3, 2018 (also called Fiscal 2017)?
6. For American Eagle, list the items that are included in Other (Expense) Income, Net.
7. What was American Eagle’s Diluted Income per Common Share for the fiscal year ending February 3, 2018?
8. What is American Eagle’s gift card ‘breakage’ for the fiscal year ending February 3, 2018 (also called Fiscal 2017)?
9. The difference between American Eagle’s net income and its comprehensive income has been caused by which item?
10. What was the total amount of Cash Dividends and Dividend Equivalents for American Eagle for the year fiscal year ending February 3, 2018?
Explanation / Answer
1. American Eagle’s impairment and restructuring charges for the fiscal year ending February 3, 2018 were:-
Severance and related employee costs
Lease termination and store closure costs
Joint business venture charges
Inventory charges
2) Gross profit margin for year 2017
= 1366927/3609865
=37.87%
Gross profit margin for year 2018
= 1370505/3795549
= 36.11%
Gross profit margin decreased in the year 2018 as compared to 2017.
3) Reson for decrease in gross profit,
The inability to obtain acceptable levels of sales, initial markups or any significant increase in our use of markdowns could have an adverse effect on our gross profit and results of operations
4) American Eagle’s e-commerce operation recognize revenue for a sale upon the estimated customer receipt date of the merchandise.
5) American Eagle’s Advertising Expense for the fiscal year ending February 3, 2018 was $129.8 million.
6) Other (expense) income, net consists primarily of allowances for uncollectible receivables, foreign currency transaction gain/loss, interest income/expense and realized investment gains/losses.
7) American Eagle’s Diluted Income per Common Share for the fiscal year ending February 3, 2018 was $1.13 per share.
8) American Eagle’s gift card ‘breakage’ for the fiscal year ending February 3, 2018 was $10.1 million.
9) Difference between American Eagle’s net income and its comprehensive income has been caused by Foreign currency translation gain for $ 5,667 thousands.
10) The total amount of Cash Dividends and Dividend Equivalents for American Eagle for the year fiscal year ending February 3, 2018 was $0.50 per share. Total amount was $88,548 thousands.