The average ratio for the operating margin in the retail apparel industry presents an average of 0.19% and American Eagle stands in a higher range. The highest ratio for American Eagle is 11.35% in 2013. The operating profit was relatively high due to the high total net revenue gained during that fiscal year. For the period 2014-2015, the ratios went down. This significant decline was primarily due to the discontinuous operation of 77kids that included several charges for exiting the market affecting so these fiscal periods (Annual Report 2013, p.26). However, in the 2016-2017, the company increases its ratios because of the “Credit Agreement” which lead the company to reduce costs and increase savings. A&F had a lower ratio compare to AEO
