...Executive Summary: Abercrombie & Fitch, American Eagle, and Urban Outfitters are considered member of the Family Clothing Stores industry, an industry that was hit hard by the economic crisis. Abercrombie & Fitch and American Eagle have similar growth models of expansion through new stores and markets and have seen similar growth and loss in revenues over fiscal years 2005 to 2009. ANF and AEO are in direct competition for the teenage consumer market and have launch competing brands, AEO’s Aerie in 2006 and ANF’s Gillyhicks in 2007, during the five year span. Urban Outfitters has a different marketing strategy that involved expanding brands sold within their current stores. They have seen significant growth in both sales and shareholder value over fiscal years 2005 to 2009, even through the economic crisis. Industry Overview: Abercrombie & Fitch, American Eagle, and Urban Outfitters are all a part of the “Family Clothing Stores” industry. This industry was comprised of 92,400 total clothing stores at the beginning of the analysis in 2005, and had estimated sales of $77.2 billion in the United States. The Family Clothing Stores industry consists of specialty stores (22% of the market), discounters (19%), department stores (17%), off-price stores (7%), mail order (6%), outlets (4%), and other stores (7%), with all three of the companies researched included in the specialty stores category. Research and technology are major players in this industry as quick distribution and...
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...PROPOSAL ABSTRACT Express, LLC is a growing company. It continues to meet and exceeds net sales every year and a program to reward our loyal customers will only make the company better. Express Next is a point-dollar reward system that engages customers into the brand. Companies, such as, American Eagle Outfitters and GUESS have created such programs and with the comparison of before and after financial reports it boosts net sales by more than 30%. INTRODUCTION Express Next is a point-dollar reward system that affiliates each dollar spent with 10 points. The more points a customer accumulates the better a reward they will receive. There will be a two tiers of loyalty. A Base tier, the beginning tier, that rewards a customer with 10 points with every dollar spent. And a A-List tier, the advance tier that is gained when a customer reaches a certain amount of loyalty, that rewards customers with 15 points with every dollar spent. There will be a two quarter beta program to be held at various locations that have the top volume in the company and will be launched in the beginning of the upcoming fiscal year. This loyalty program will increase sales up to 30% percent and start a clientele-esque program. LIST OF SOURCES Berman, B. (2006). Developing an Effective Customer Loyalty Program . California management review , 49(1), 123. Demonstrate how to create an effective program that will increase net sales Chen, M. (2005). Mining changes in customer behavior in retail...
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...Chapter 1: Analytical Problem Step 1: * Industry: Apparel Stores * 1. Buckle (BKE) * 2. Express (EXPR) * 3. American Eagle Outfitters (AEO) Step 2: * Buckle (BKE) * Employees: 8,600 * Income per employee: $19,075.35 * Revenue per employee: $131,390.35 * Receivable turnover: 278.01 * Inventory turnover: 6.19 * Asset Turnover: 2.18 * Express (EXPR) * Employees: 17,000 * Income per employee: $7,625.35 * Revenue per employee: $127,096.53 * Receivable turnover: 230.26 * Inventory turnover: 6.79 * Asset turnover: 2.26 * American Eagle Outfitters (AEO) * Employees: 44,000 * Income per employee: $5,021.68 * Revenue per employee: $78,050.39 * Receivable turnover: 74.71 * Inventory turnover: 4.52 * Asset turnover: 1.93 Step 3: Based on the information that I have found I would say that Buckle has the most productive employees. I know this because of their revenue per employee. I have also shopped in Buckle before and this does not surprise me, they have outstanding customer service 24/7! Express has the best operations and supply chain process. They have the best inventory turnover which shows that they have the best efficiency in turning their inventory into sales. Buckle is the most efficient in its use of credit. They have the best receivable turnover which measures the company’s efficiency in collecting its sales on credit. Express...
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...Integrated Financial Analysis Urban Outfitters URBN Stephanie Stowers Table of Contents Executive summary 3 Company Overview 7 HISTORICAL FINANCIAL STATEMENT ANALYSIS 14 RATIO ANALYSIS 16 THREE-YEAR PRO-FORMA 18 SUMMARY OF VALUATION 20 MD&A AND TRANSPARENCY 22 CORPORATE GOVERENCE 22 CONCLUSION 24 REFERENCES 25 Executive Summary Urban Outfitters, Inc. is a lifestyle retail company that operates retail-clothing stores. It operates through two reportable business segments: Retail and Wholesale. The Retail segment consists of Urban Outfitters, Anthropologie, Free People, Terrain, Leifsdottir and BHLDN brands, whose merchandise is sold directly through stores, catalogs, call centers and web sites. The Wholesale segment consists of two divisions: Free People and Leifsdottir. The Free People division designs, develops and markets young women's contemporary casual apparel. The Leifsdottir division designs, develops and markets sophisticated women's contemporary apparel, including dresses, tops, bottoms, as well as shoes and accessories. The company was founded by Richard A. Hayne and Scott A. Belair in 1970 and is headquartered at 5000 South Broad Street, Philadelphia, Pennsylvania 19112-1495, Phone: 1- 215-454-5500. Urban Outfitters is an Apparel Retailer in the consumer services sector with a projected Revenue of $2,441,876.80, Net Income of $265,353.48 and an estimated...
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...com/shop/mg-670-finance-term-project/ MG 670 Finance Term Project Company : Costco and Walmart MG 670 Finance Term Project Guidelines There is a lot to be said for valuing a company, it is no easy task. If you have yet to discover this moneymaker, the satisfaction one gets from tearing apart a company’s financial statements and analyzing it on a whole different level is great – especially if you make or save yourself money for your efforts. In this project, you will analyze the fundamental financial ratios. The ratios should be presented in a simplified manner to make them easier to understand. Sure some of the ratios have different varieties, but by the end you will understand the basic premise and reasons for fundamental analysis. You will work in groups of three or four people for this project. You will be analyzing two public traded companies within the same industry; as well, you will also evaluate these companies against their industry standards for performance. To find the data for your ratio analysis, you will need each company’s latest financial figures. Finding these financial reports can done by searching the internet through some of these sources, but not limited to: • Company Websites – Almost every public company has a website or investor relations department. For the most current quarterly or annual report you might want to check in these places first. Walt Disney is an excellent example of a company that uses the web to get information out to shareholders...
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...Financial Analysis of American Eagle Outfitters, Inc. and The Buckle, Inc. As requested, I gathered, evaluated, and processed information on American Eagle Outfitters, Inc. (NYSE: AEO) and The Buckle, Inc. (NYSE: BKE). I considered both the recent and the expected future financial performance of each factoring in sector risk to support my recommendation of which entity is the better investment at this time. I prepared a financial ratio analysis of each entity with the understanding that the ratios are a snapshot of current performance and not a guarantee of future success. The U.S. equity markets are fluid and subject to unforeseen macro events; the retail sector in general is especially sensitive to consumer discretion that at times is fickle. I considered all input while reviewing our corporate investment parameters and tested my results across a mid-term horizon. Using my base criteria of a strong management team, solid corporate strategy, competitive advantage and balance sheet strength, I reviewed management’s discussion of its own analysis of financial performance as presented in the Form 10-K. BKE has a better return on assets than its competitor and is driving sales growth that is evident in a higher gross profit margin. Although BKE has a higher debt to equity ratio than AEO, management is aggressive in opening new stores as well as remodeling older footprints. Such a strategy increases revenue and accompanying net profit while generating net...
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...makers. 2. Financial accounting involves preparation of the four basic financial statements and related disclosures for external decision makers. Managerial accounting involves the preparation of detailed plans, budgets, forecasts, and performance reports for internal decision makers. 3. Financial reports are used by both internal and external groups and individuals. The internal groups are comprised of the various managers of the entity. The external groups include the owners, investors, creditors, governmental agencies, other interested parties, and the public at large. 4. Investors purchase all or part of a business and hope to gain by receiving part of what the company earns and/or selling the company in the future at a higher price than they paid. Creditors lend money to a company for a specific length of time and hope to gain by charging interest on the loan. 5. In a society each organization can be defined as a separate accounting entity. An accounting entity is the organization for which financial data are to be collected. Typical accounting entities are a business, a church, a governmental unit, a university and other nonprofit organizations such as a hospital and a welfare organization. A business typically is defined and treated as a separate entity because the owners, creditors, investors, and other interested parties need to evaluate its performance and its potential separately from other entities and from its owners. ...
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...Malaysia, the Philippines, Oman, Qatar, Saudi Arabia, Singapore, South Korea, Turkey, the United Arab Emirates, Greece, Romania, Bulgaria, Cyprus, Mexico, Egypt, Jordan, and Croatia, and Israel. In 2009 they had the highest market share in the U.S. family apparel industry. Five Forces Analysis 1. Competition from rival sellers is strong. The rapid introduction of new trends in fashion causes the clothing industry to be in a state of constant change. The myriad of options for consumers of stores to purchase clothing causes switching costs to be low. It is essential the companies are able to respond quickly to new trends in order to appeal to consumers and create brand loyalty due to the high amount of competition in the industry. 2. Competition from potential new entrants is weak. In the apparel industry the barriers to entry is very high. It is imperative for a company to have high brand loyalty, due to the low switching costs. This makes it difficult for new entrants to survive, because they will not have brand loyalty. Consumers tend to stick to clothing brands that they like and to continue to shop there if they trust the company. This is why it is important for a company to always be building their brand loyalty. 3. Competition from substitute products is weak. There are not many substitute methods to attaining clothes other than shopping at clothing stores and it is because of this that competition from substitute products is weak. Some substitutes...
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...decision makers. 2. Financial accounting involves preparation of the four basic financial statements and related disclosures for external decision makers. Managerial accounting involves the preparation of detailed plans, budgets, forecasts, and performance reports for internal decision makers. 3. Financial reports are used by both internal and external groups and individuals. The internal groups are comprised of the various managers of the entity. The external groups include the owners, investors, creditors, governmental agencies, other interested parties, and the public at large. 4. Investors purchase all or part of a business and hope to gain by receiving part of what the company earns and/or selling the company in the future at a higher price than they paid. Creditors lend money to a company for a specific length of time and hope to gain by charging interest on the loan. 5. In a society each organization can be defined as a separate accounting entity. An accounting entity is the organization for which financial data are to be collected. Typical accounting entities are a business, a church, a governmental unit, a university and other nonprofit organizations such as a hospital and a welfare organization. A business typically is defined and treated as a separate entity because the owners, creditors, investors, and other interested parties need to evaluate its performance and its potential separately from other entities and from its owners. 6. Name of Statement Alternative...
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...Pacific Sunwear, Inc. – Valuation Analysis Valuation Method | Weight | Implied Value | Relative Valuation | 30% | $2.69; Range of $2.04 - $3.06 | Regression | 35% | $2.30; Range of $2.10 - $2.50 | Discounted Cash Flow | 15% | $2.37; Range of $1.92 - $3.18 | Precedent Transaction Analysis | 20% | $2.30; Range of $1.47 - $3.66 | | Value Range | $1.47 - $3.66 | | Estimated Price | $2.43 | | Market Price (04/19/13) | $2.40 | | Conclusion | Slightly Undervalued* | | Recommendation | Hold | * It should be noted that since the analysis was completed the stock price has risen to $2.76; however, certain data used in the analysis that is affected by price was pulled as of 04/19/13. Summary: Based on the weighted valuations that I performed, Pacific Sunwear’s stock is somewhat undervalued. Because of the company’s cash flow struggles and changing business, the DCF analysis was considered to be the poorest indicator of value, followed by the precedent transaction analysis. The regression and relative valuation methods were thought to be the best indicators. Based on this, I concluded a fair value of $2.43 using various weights for the method as each method is based on certain assumptions that may result in a flawed value. For example, the regression and relative valuation, which were given the highest weights, are based on the assumption that the companies chosen for the peer group are comparable to Pacific Sunwear, despite differences in their financial performance...
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...American Apparel is a vertically integrated business located in Los Angeles, California. They are a retail company targeting individuals of all ages. They perform all aspects of the business from raw materials all the way to the customer’s shopping bag. ------------------------------------------------- Marketing Strategy and Supply Chain Product In 1989 when American Apparel was founded they began as a wholesale brand selling t-shirts to screen printers and boutiques. Since then it has grown to become a clothing manufacturer, wholesaler, and retailer. As the company grew American Apparel became a duel gender company selling products for men, woman, children, babies and even household pets. CEO Dov Charney uses his creative and almost sometimes wacky mindset to create fashion styles that are very unique that don’t follow the usual fashion trends for customers between the ages of 20-32. Since their wholesale days of selling T-shirts and underwear expressed has branched out by selling products for women including, leggings, leotards, tank tops, denim jeans and vintage clothing. For men products vary from denim jeans, belts, t-shirts, hooded sweatshirts and even shoes. Accessories include nail polish, sunglasses, and even bedding. With a plethora of clothing options and styles, APP always comes to the minds of the more young and free spirited people who are looking for something new and unique to wear. Place Contents * 1 Marketing Strategy and Supply Chain * 1.1 Product...
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...information to decision makers. 2. Financial accounting involves preparation of the four basic financial statements and related disclosures for external decision makers. Managerial accounting involves the preparation of detailed plans, budgets, forecasts, and performance reports for internal decision makers. 3. Financial reports are used by both internal and external groups and individuals. The internal groups are comprised of the various managers of the entity. The external groups include the owners, investors, creditors, governmental agencies, other interested parties, and the public at large. 4. Investors purchase all or part of a business and hope to gain by receiving part of what the company earns and/or selling the company in the future at a higher price than they paid. Creditors lend money to a company for a specific length of time and hope to gain by charging interest on the loan. 5. In a society each organization can be defined as a separate accounting entity. An accounting entity is the organization for which financial data are to be collected. Typical accounting entities are a business, a church, a governmental unit, a university and other nonprofit organizations such as a hospital and a welfare organization. A business typically is defined and treated as a separate entity because the owners, creditors, investors, and other interested parties need to evaluate its performance and its potential separately from other entities and from its owners. 6. Name of Statement (a) Income...
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...[pic] SWOT Analysis of Hollister Co. By: Jessica Gray, Mehrosh Hasher, Lydia Russo, Rachael Ware, and Desiree Urban October 4, 2009 AA 381 Fashion Buying Introduction: Hollister Co. was launched by Abercrombie & Fitch Company CEO Michael Jeffries in July 2000, and is a lifestyle brand that markets apparel and fragrances reminiscent of the southern California way of life (Palmer, 2009). Hollister Co., whose clothing is known for their signature seagull logo embroideries, has become widely recognizable due to its success in creating a strong brand image (Palmer, 2009). Hollister Co.’s retail stores, featuring only its own private label merchandise, are usually located in malls and generate significant traffic due to its unique atmosphere complete with ultra-dimmed lights and blaring popular music (Palmer, 2009). The brand’s target market consists of both males and females between 14-24 years of age (Palmer, 2009). Hollister Co. is known for the model-like staff it employs, and the sensual advertisements and store décor that accompany them (Palmer, 2009). Their clothing reflects this ideal, running in notoriously small sizes and only consisting of a very limited collection of casual beach-ready graphic t-shirts, jeans, thermals, swimwear, leggings, shorts, and sweatshirts (Palmer, 2009). Though Hollister Co. has recently been suffering large net losses, it has ranked first place for the Teen’s Top Clothing Brand for four consecutive seasons since 2007, and...
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...May 28, 2013 Future Trends of the Company Abercrombie & Fitch This research paper that including three different sources is aim to point out the future trends of the company Abercrombie & Fitch. From the Wall Street Journal, we can find a great article “U.S. Retail Sales Growth Expected To Pull Back in 2013” that written by Joan E. Solsman, and then realize the future trend of A&F. U.S. retail sales are expected to rise 3.4% in 2013, their slowest rate since 2010, as consumers shift to lower spending because of a bigger tax bite to their paychecks and bickering among policymakers over fiscal matters, according to the industry's biggest trade group. The National Retail Federation's projection for 2013 is below its preliminary 4.2% growth rate for 2012. It expects many of the issues that affected retail sales during a lackluster 2012 holiday season--worries about the economy's direction and increasing online competition--to remain foremost in shopper's minds early this year. The forecast excludes automobiles, gasoline stations and restaurants. Debates about the health of the economy and fiscal policy are "having a real impact on household budgets and consumer spending," said Matthew Shay, chief executive of the trade organization. He called on Congress and President Barack Obama's administration to show leadership and take concrete actions "enlarging the size of the economic pie, not just having a continuing debate about dividing up the pie in different...
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...Abercrombie & Fitch Marketing Assignment Executive Summary Established in 1892, Abercrombie & Fitch marketing strategy has always been to target those between the ages of 18 and 22. A&F’s gross sales have been $539 million in 2008; however sales have dropped by 5% from the previous year due to the recession. In order for sales to improve our marketing consulting team has developed an internal analysis, which identifies, assesses, predicts, and accommodates the human resources, technology, finances and operations that A&F possesses. The internal analysis explains how these possessions, which have helped the organization until present time, can be used to help increase sales during this recession. Furthermore, the report analyzes A&F externally showing what kind role each factor, such as price and quality, plays in A&F and its competitors. The external analysis describes the political, economic, social, and technological factors in A&F’s environment and how each of these factors can be used for the benefit of the company during this recession. To further clarify A&F’s positioning, a perceptual map has been developed in which A&F shown as a high priced and high quality retail organization. It can be noted at this point that all of A&F’s competitors are willing to promote its employees and give discounts while A&F chooses not to, and yet they have the highest drop in sales growth. Moreover, the report’s most important part being the...
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