Comparing Companies within an Industry: Refer to the financial statements of American Eagle Outfitters in Appendix B and Express in Appendix C (also in bCourses Modules).

1. Total assets is a common measure of the size of a company. Which company had the higher total assets at the end of the most recent year? (Note: Some companies will label a year that has a February year-end as having a fiscal year-end dated one year earlier. For example, a February 2018 year-end may be labeled as Fiscal 2017 since the year actually has more months that fall in the 2017 calendar year than in the 2018 calendar year. Other companies may call this Fiscal 2018.)

2. Net sales is also a common measure of the size of a company. Which company had the higher net sales for the most recent year?

3. Growth during a period is calculated as:

((Ending amount - Beginning amount)/Beginning amount) x 100= Growth rate

Which company had the highest growth in total assets during the most recent year? Which company had the highest growth in net sales during the most recent year?

AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Operations February 3, 2018 3,795,549 For the Years Ended January 28, 2017 $ 3,609,865 January 30, 2016 3,521,848 $ $ (In thousands, except per share amounts) Total net revenue Cost of sales, including certain buying, occupancy and warehousing expenses Gross profit Selling, general and administrative expenses Impairment and restructuring charges Depreciation and amortization expense Operating income Other (expense) income, net Income before income taxes Provision for income taxes Income from continuing operations Discontinued operations, net of tax Net income 2,425,044 1,370,505 879,685 20,611 167,421 302,788 (15,615) 287,173 83,010 204,163 2,242,938 1,366,927 857,562 21,166 156,723 331,476 3,786 335,262 122,813 212,449 2,219,114 1,302,734 834,700 0 148,156 319,878 1,993 321,871 108,580 213,291 4,847 218,138 $ 204,163 $ 212,449 $ AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets February 3, 2018 January 28, 2017 $ (In thousands, except per share amounts) Assets Current assets: Cash and cash equivalents Merchandise inventory Accounts receivable, net Prepaid expenses and other Total current assets Property and equipment, net of accumulated depreciation Intangible assets, net of accumulated amortization Goodwill Deferred income taxes Other assets Total assets 413,613 398,213 78,304 78,400 968,530 724,239 46,666 15,070 9,344 52,464 1,816,313 378,613 358,446 86,634 77,536 901,229 707,797 49,373 14,887 49,250 60.124 1,782,660 $ $ Express 2017* Fiscal Year Ended 2016 2015 2014 2013 (dollars in thousands, excluding net sales per gross square foot and per share data) $ $ $ $ $ $ 2,138,030 $ 1,522,797 $ 615,233 $ 562,088 $ 29,740 $ 19,366 $ $ 2,192,547 $ 1,529,3435 663,204 $ 559,541 $ 103,601 $ 57,417 $ $ 2,350,129 $ 1,554,852 S 795,277 $ 587,747 $ 207,238 $ 116,513 $ $ 2,165,481 $ 1,504,527 $ 660,954 $ 524,041 $ 136,597 $ 68,325$ $ 2,219,125 1,501,418 717,707 504,277 214,259 116,539 S S 0.81 $ 0.25 0.25 78,870 $ $ $ 0.73 $ 0.73 $ 79,049 1.39 $ 1.38 84,591 S 0.81 84.554 1.38 1.37 85,068 Statement of Operations Data: Net sales Cost of goods sold, buying and occupancy costs Gross profit Selling, general, and administrative expenses Operating income Net income Dividends declared per share Earnings per share: Basic Diluted Weighted Average Diluted Shares Outstanding Other Financial and Operating Data: Comparable sales (1) Comparable sales (excluding e-commerce sales) Total gross square feet (in thousands) (average) Number of stores (at year end) Capital expenditures Balance Sheet Data (at period end): Cash and cash equivalents Working capital (2) Total assets Total debt Total stockholders' equity 6% 4% (3)% (10)% 5,487 635 57,435 (9)% (12)% 5,604 656 98,712 $ (5)% (7)% 5.529 5,573 653 115,343 $ 3% (1)% 5,439 632 105,368 641 115,088 $ S 236,222 $ 38,050 1,187,607 207,373 $ 24,363 1,185,189 186,903 $ 19,113 1,178,644 346,159 $ 20,618 1,278,150 199,527 556,339 $ 311,884 (27,630) 1,182,670 199,170 474,569 S 654,000 $ 635,687 $ 617,953 $ * 2017 represents a 53-week year. Comparable sales have been calculated based upon stores that were open at least twelve full months as of the end of the reporting period. For 2017, comparable sales were calculated based upon the 53-week period ended February AMERICAN EAGLE OUTFITTERS, INC. Consolidated Statements of Operations February 3, 2018 3,795,549 For the Years Ended January 28, 2017 $ 3,609,865 January 30, 2016 3,521,848 $ $ (In thousands, except per share amounts) Total net revenue Cost of sales, including certain buying, occupancy and warehousing expenses Gross profit Selling, general and administrative expenses Impairment and restructuring charges Depreciation and amortization expense Operating income Other (expense) income, net Income before income taxes Provision for income taxes Income from continuing operations Discontinued operations, net of tax Net income 2,425,044 1,370,505 879,685 20,611 167,421 302,788 (15,615) 287,173 83,010 204,163 2,242,938 1,366,927 857,562 21,166 156,723 331,476 3,786 335,262 122,813 212,449 2,219,114 1,302,734 834,700 0 148,156 319,878 1,993 321,871 108,580 213,291 4,847 218,138 $ 204,163 $ 212,449 $ AMERICAN EAGLE OUTFITTERS, INC. Consolidated Balance Sheets February 3, 2018 January 28, 2017 $ (In thousands, except per share amounts) Assets Current assets: Cash and cash equivalents Merchandise inventory Accounts receivable, net Prepaid expenses and other Total current assets Property and equipment, net of accumulated depreciation Intangible assets, net of accumulated amortization Goodwill Deferred income taxes Other assets Total assets 413,613 398,213 78,304 78,400 968,530 724,239 46,666 15,070 9,344 52,464 1,816,313 378,613 358,446 86,634 77,536 901,229 707,797 49,373 14,887 49,250 60.124 1,782,660 $ $ Express 2017* Fiscal Year Ended 2016 2015 2014 2013 (dollars in thousands, excluding net sales per gross square foot and per share data) $ $ $ $ $ $ 2,138,030 $ 1,522,797 $ 615,233 $ 562,088 $ 29,740 $ 19,366 $ $ 2,192,547 $ 1,529,3435 663,204 $ 559,541 $ 103,601 $ 57,417 $ $ 2,350,129 $ 1,554,852 S 795,277 $ 587,747 $ 207,238 $ 116,513 $ $ 2,165,481 $ 1,504,527 $ 660,954 $ 524,041 $ 136,597 $ 68,325$ $ 2,219,125 1,501,418 717,707 504,277 214,259 116,539 S S 0.81 $ 0.25 0.25 78,870 $ $ $ 0.73 $ 0.73 $ 79,049 1.39 $ 1.38 84,591 S 0.81 84.554 1.38 1.37 85,068 Statement of Operations Data: Net sales Cost of goods sold, buying and occupancy costs Gross profit Selling, general, and administrative expenses Operating income Net income Dividends declared per share Earnings per share: Basic Diluted Weighted Average Diluted Shares Outstanding Other Financial and Operating Data: Comparable sales (1) Comparable sales (excluding e-commerce sales) Total gross square feet (in thousands) (average) Number of stores (at year end) Capital expenditures Balance Sheet Data (at period end): Cash and cash equivalents Working capital (2) Total assets Total debt Total stockholders' equity 6% 4% (3)% (10)% 5,487 635 57,435 (9)% (12)% 5,604 656 98,712 $ (5)% (7)% 5.529 5,573 653 115,343 $ 3% (1)% 5,439 632 105,368 641 115,088 $ S 236,222 $ 38,050 1,187,607 207,373 $ 24,363 1,185,189 186,903 $ 19,113 1,178,644 346,159 $ 20,618 1,278,150 199,527 556,339 $ 311,884 (27,630) 1,182,670 199,170 474,569 S 654,000 $ 635,687 $ 617,953 $ * 2017 represents a 53-week year. Comparable sales have been calculated based upon stores that were open at least twelve full months as of the end of the reporting period. For 2017, comparable sales were calculated based upon the 53-week period ended February