COMPARATIVE ANALYSIS: ABERCROMBIE & FITCH vs.

AEROPOSTALE Refer to the financial statements of Abercrombie & Fitch and Aeropostale that are supplied with this text.

Common Stock Price January 28, 2006 February 3, 2007 Abercrombie & Fitch $64.06 $80.77 Aeropostale 20.32 24.05 Required:

. Both Abercrombie & Fitch (Note 13) and Aeropostale (Note 15) have notes that discuss contingencies. What contingencies do they disclose? Do you think any of these contingencies are included in the income statement or on the balance sheet?

Why or why not?

. Calculate Abercrombie & Fitch’s and Aeropostale’s dividend yield and dividend layout for the years ended February 3, 2007 and January 28, 2006.

. Calculate Abercrombie & Fitch’s and Aeropostale’s total payout and stock repurchase payout for the years ended February 3, 2007 and January 28, 2006.

. Compare Abercrombie & Fitch’s and Aeropostale’s stockholder payouts based on the values and trends identified in these stockholder payout ratios.

. Calculate Abercrombie & Fitch’s and Aeropostale’s return on common equity and earnings per share for the years ended February 3, 2007 and January 28, 2006.

. Compare the values and trends of these stockholder profitability ratios for Abercrombie & Fitch and Aeropostale.