Since its inception, American Eagle Outfitters had maneuvered through significant changes, including periods of strength and weakness. Although 2004 was off to an encouraging start, the company was concerned about maintaining good momentum. Many elements of the company's latest turnaround strategy were similar to past efforts to revive the business, but the situation was different. The teen apparel market had become very competitive, and American Eagle was no longer the only retailer with a value positioning. American Eagle had grown much larger and made a questionable acquisition in Canada. And in addition to strategic considerations, it now had to decide how to deploy its growing cash balance.