posted by
vivian
at
3:16 PM
Eddie Bauer is owned and operated by Eddie Bauer Holdings, Inc. (EBHI) and sells outerwear, accessories and other items for men and women with an outdoors lifestyle. (S&P, 2009)
Like many retailers in the spiraling economy, Eddie Bauer has not been spared of falling stock prices and value. In mid-year 2005, the company had stock prices near $30 per share (chart 1) but today, their stocks are trading under 60 cents (chart 2). Cost reductions of $15 million, 193 job cuts, reduced executive salaries as well as board member compensations are some steps the retailer has taken to brace itself against the downward economy. (Saranow, 2009)
Chart 1: 5 year overview
Chart 2: 5 day overview
Many reasons could exist as to why the retailer is failing. The failing economy is a large part of it, with many people losing jobs, there is not much money left for extracurricular activities (like camping or hiking).
The company has also been catering to women's casual apparel (Saranow, 2009) and less to their original target market. According to the Wall Street Journal and BloggingStocks.com, Eddie Bauer has plans to return to its roots with a new line of high-performance mountaineering apparel and gear. (2009) The new line is called First Ascent and "combines Eddie Bauer's legacy as the original expedition outfitter with the expertise of some of today's most renowned mountain guides and climbers". (Bissonnette, 2009) Prices range from $16.50 (pocket knife) to $999 (goose down suit); First Ascent will be available in over 100 stores beginning in April. (Saranow, 2009)
Eddie Bauer's CEO hopes First Ascent will allow the company to compete with other outdoor apparel companies such as North Face and Columbia. (Saranow, 2009)
Saranow, J. (2009, Feb. 27). Eddie Bauer Returns to Roots. Wall Street Journal, pB8. Retrieved from ProQuest database.
Standard and Poor's. (2009, Mar. 05). Eddie Bauer. Business Summary. Retrieved from http://www.netadvantage.standardandpoors.com/.
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