...2008 Comparison of Two Retail Giants In the fiercely competitive retail industry, Macy’s and Dillard’s hold rank among the largest fashion apparel and home décor retailers. While both compete for the same target market, an examination of each companies’ annual report reveals important differences in their strategies, which inherently differentiates the report presentation, accounting policies, and financial condition of the two corporations. Brief Overview Macy’s, Inc. was founded in 1858 by a Quaker businessperson named Rowland Hussey. The company has since expanded to operate 40 Bloomingdale’s locations and over 810 Macy’s stores, spanning across forty-five states. Seventy years later, William Dillard founded Dillard’s. The company presently has 326 locations in twenty-nine states. Both retailers offer consumers trendy merchandise ranging from fashion apparel for men, women, and children, to accessories cosmetics, home furnishings, and other goods. Annual Report Presentation The beginning of each financial report offers a brief overview of the company, from it’s founding to current economic conditions that are affecting the company. The biggest differences in the initial paragraphs are that Dillard’s jumps right into admitting the competitive nature of their industry and proceed to describe the characteristics of their competition. In comparison, Macy’s reveals information about its subsidiaries and the support functions provided to its retail operating...
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...FOCUSED ON THE CUSTOMER MACY’S, INC. • 20 09 ANNUAL REPORT MACY’S Macy’s, established in 1858, is the Great American Department Store – an iconic retailing brand with about 810 stores operating coast-to-coast and online at macys.com. Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments. MACY’S, INC. IS ONE OF THE NATION’S PREMIER RETAILERS, WITH FISCAL 2009 SALES OF $23.5 BILLION. THE COMPANY OPERATES THE MACY’S AND BLOOMINGDALE’S BRANDS, WITH ABOUT 850 DEPARTMENT STORES IN 45 STATES, THE DISTRICT OF COLUMBIA, GUAM AND PUERTO RICO AND THE MACYS.COM AND BLOOMINGDALES.COM ONLINE SITES. Celebrating the Magic of Macy’s Clearly, Macy’s is distinctly different from other major retailers. Macy’s embraces customers and provides an experience that transcends ordinary shopping. Our heritage includes magical special events – the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations and holiday traditions ranging from the arrival of Santa Claus to tree lightings and animated window displays. But beyond these signature events, Macy’s delivers magical moments every day with our merchandise, a great deal of which is sold exclusively through our stores, as well as our shopping environment and service. You’ll see our newest looks in fashion magazines. Our associates take the extra step to...
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...MACY’S, INC. 2015 ANNUAL REPORT Macy's, Inc. 2015 Annual Report | Macy’s, Inc. is one of the nation’s premier omnichannel retailers, with fiscal 2015 sales of $27.1 billion. As of March 31, 2016, the company operates about 870 stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy’s, Macy’s Backstage, Bloomingdale’s, Bloomingdale’s Outlet and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement. Macy’s, established in 1858, is an iconic retailing brand with about 730 stores operating coast-to-coast, online at macys.com and a Macy’s shopping app for mobile devices. Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments. In 2015, the company opened six pilot Macy’s Backstage off-price stores in the New York City area. CELEBRATING THE MAGIC OF MACY’S Clearly, Macy’s is distinctly different from other major retailers. We sell the most-wanted brands such as Calvin Klein, Charter Club, Estée Lauder, I.N.C, Michael Kors, Ralph Lauren, Sean John, Style&Co.,Thalía Sodi and Tommy Hilfiger. Macy’s embraces customers and strives to provide an experience that transcends ordinary shopping. Our DNA includes special events that are magical – the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows...
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...aligned with the CUSTOMER, prepared for GROWTH MACY’S, INC. 2014 ANNUAL REPORT Macy’s, Inc. is one of the nation’s premier omnichannel retailers, with fiscal 2014 sales of $28.1 billion. As of March 31, 2015, the company operates about 885 stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy’s, Bloomingdale’s, Bloomingdale’s Outlet and Bluemercury, as well as the macys.com, bloomingdales.com and bluemercury.com websites. Bloomingdale’s in Dubai is operated by Al Tayer Group LLC under a license agreement. Macy’s, established in 1858, is an iconic retailing brand with about 775 stores operating coast-tocoast, online at macys.com and a Macy’s shopping app for mobile devices. Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments. Celebrating the Magic of Macy’s Clearly, Macy’s is distinctly different from other major retailers. We sell the most-wanted brands such as Calvin Klein, Charter Club, Estée Lauder, I.N.C, Michael Kors, Ralph Lauren, Sean John, Style&Co.,Thalía Sodi and Tommy Hilfiger. Macy’s embraces customers and strives to provide an experience that transcends ordinary shopping. Our DNA includes special events that are magical – the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations and holiday...
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...Introduction: Macy’s Inc. Quality Management Related Problem: Customer Service over the phone and within the store front. Employees need to be visible and provide more customer service. Customer service is very vital and it goes a long way. Macy’s has great vendors and partnerships and there is quality within those 2 important factors. However, the customer service factor overall is lacking and it falls short. Great customer service brings customers back for more. Recommended Direction to Implement/Quality Management: The recommended direction is to revamp their customer service techniques and strategies. Starting with upper management and working the system all the way down, keeps everything in perspective with the support of upper management. Macy’s employees will also need to see this change being supported by upper management. We perceive change by seeing in order to support and believing. Changing with the times keeps organizations above water; with changes new approaches and strategies must be evaluated and implemented. In the retail industry, organizations who are consistent and lead take risks however they set a forecast report. This report gives them a heads up on planning for the next season and what decision needs to be made to keep their organization relevant. This course paper will show you how Macy’s is a steady leader within the retail industry, how they are consistent as a company, how they build their partnership, quality in their venders, along with a SWOT...
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...as styling salons, optical, portrait photography, and custom decorating. The company offers various products and services online via its website, a platform that has been the nursery for industry giants like Amazon (AMZN) and eBay (EBAY). Its direct rivals include Kohl's (KSS) and Macy's (M), among others. J.C Penney's most recent quarter results least impressive among peers The company announced December quarter results on Wednesday, February 27, an event that sent the company's shares down the charts at Wall Street. The company's sales and revenues declined shamefully by huge margins. Revenues were down 25 percent for the quarter while Internet sales dipped 34 percent. On the other hand, Macy's online business soared 48 percent and looks set to take over what J.C Penney leaves behind. Last year, J.C Penney sent home 19,000 staff, and recently trimmed its workforce by 2,200 employees as it sought to cut fixed costs following a tough campaign. Customers are losing trust in the Texas-based company despite the massive experience garnered over the years. The company did not impress in terms of market share, with fewer than 17 percent approaching the retailer's stores. Contrary to J.C Penney, Macy's Q4 results tramped analyst expectations with sales increasing by 7.2 percent year-over-year to $9.35 billion. This included the extra weeks in the 2012 calendar. However, the management noted that, comparing the same number of weeks as 2011 sales grew by 3.9 percent. Operating income...
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...2007 Deloitte Tax Case Study Competition Regional Case Study This is the story of the Vitalité health and fitness phenomenon created by three American heroes. You’ve worked out in their gyms, bought their nutrition books, and devoured their frozen entrees – and you’ve seen them a hundred times on The Ophira Show! You even spent months wearing their “Cal Pal” to find out how many calories you burned. Here’s the story of how they rocketed to the top and the fallout of their success. Macy. When she was in her mid-20s, Macy Vitale was the picture of confidence and, in keeping with her name, Vitality, with a capital V! She graduated from college with a degree in journalism, and, by the time she was 32, her gorgeous face, perky attitude, and deep understanding of current affairs landed her the position of anchor for the Channel 8 evening news. Macy never took anything too seriously. She was such a natural on camera that it couldn’t count as “work.” Her carefree attitude ended one morning when she overheard the director tell the camera man to shoot Macy only when she was seated behind the desk. He whispered, “She’s starting to look a bit wide in the hips.” As soon as they were off the air Macy, picked up the phone and called Mark Newcomb from “Mad Mark’s Gym.” Mark. Mark isn’t your typical trainer. He is serious! He served in the Special Forces in Kuwait in the early 90s, has Masters Degrees in Health Sciences and Nutrition, and a Ph.D. in Kinesiology and Physiology. He has spent the...
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...CHAPTER 9 COVERAGE OF LEARNING OBJECTIVES |LEARNING OBJECTIVES |QUESTIONS |EXERCISES |PROBLEMS |OTHER | |LO1: Account for current liabilities. |1,2,3,4 |34,35,36,37, 38,39 |53,54 | | |LO2: Measure and account for long-term |5,6,7,8,9,10, 11,12,13, |38,39,40 |54,55,56, |87,91 | |liabilities. |30,31 | |84,85 | | |LO3: Account for bond issues over their entire |14,15,16, |41 |57,58,59, 60,61,62, | | |life. |17,31 | |63,64,65, 66,67,68, | | | | | |69,70 | | |LO4: Value and account for long-term lease |18,19,20, |42 |71,72,73,74, 75,76,77 |89,91 | |obligations. |21,22 | | | | |LO5: Evaluate pensions and other postretirement |23 |43 |78,79 |88,91 | |benefits. | ...
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...Retail Giants: JCPenney vs. Target Kelly Greenwood October 2, 2011 Columbia College JCPenney: History In business since April 1902, when James Cash Penney opened “The Golden Rule, a dry good and clothing store in Kemmerer, Wyoming. Although the name of the store was changed to JCPenney, in 1907, the company’s “Golden Rule” philosophy (do unto others as you would have them do unto you) remains unchanged. In 1927, JCPenney was listed on the NY Stock Exchange. Currently, JCPenney operates 1,108 department stores thoughout the U.S. and Puerto Rico, providing 112 million square feet of selling space. JCPenney offers private, exclusive and national brands. Its private brands are “developed, designed and sourced in-house, generating nearly 50 percent of the Company’s annual revenue.” (JCPenney, 2011) JCPenney has partnered with Sephora, Call It Spring™, MNG by Mango® and Modern Bride® to create a boutique style shopping experience within the JCPenney store. JCPenney “sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating.” (Yahoo Finance, 2011) It hosts one of the largest apparel and home furnishings e-commerce sites, posting revenues in excess of $1.5 billion in 2010. JCPenney posted approximately $17.8 billion in total revenues in 2010. “JCPenney has a balance of both mall-based and off-mall stores. Productivity...
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...Industry Surveys Retailing: General Jason Asaeda, Department & General Merchandise Stores Equity Analyst JUNE 2013 Current Environment ............................................................................................ 1 Industry Profile .................................................................................................... 12 Industry Trends ................................................................................................... 13 How the Industry Operates ............................................................................... 23 Key Industry Ratios and Statistics ................................................................... 29 How to Analyze a Retail Company ................................................................... 31 Glossary ................................................................................................................ 36 Industry References ........................................................................................... 37 Comparative Company Analysis ...................................................................... 38 This issue updates the one dated November 2012. The next update of this Survey is scheduled for December 2013. CONTACTS: INQUIRIES & CLIENT RELATIONS 800.852.1641 clientrelations@ standardandpoors.com SALES 877.219.1247 wealth@spcapitaliq.com MEDIA Marc Eiger 212.438.1280 marc.eiger@spcapitaliq.com S&P CAPITAL IQ 55 Water Street New York, NY 10041 ...
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...that significantly impact Coach’s financial outlook as the company has experienced declines in both same store sales as well as earnings from fiscal 2008 to fiscal 2009. Coach’s gross margins are also shrinking as the company has had to increasingly rely upon its factory outlet stores to sell its products[1]. This also presents the problem of brand dilution. From a valuation perspective Coach’s P/E ratio, currently at 18.23, is well above the apparel industry average of 3.26, which suggests that from a relative valuation perspective the company may be overpriced[2]. Furthermore, the DCF analysis indicates an intrinsic value of approximately $35.00 while the current share price is $38.27 (3/11/10 close). Based on this quantitative data the stock is currently overpriced and has very little upward potential within our investment horizon. The stock’s price has increased over 200% in the past year and has been fluctuating between $34.00 and $37.00 since October (please see Appendix 1). The alpha from this stock was fully extracted in 2009 and the Coach holdings have run their course. The intent of this report is to illustrate that based on a combination of qualitative and quantitative factors this stock is currently overvalued and it is preferable to sell Coach and seek another stock to replace its value. Company Overview Coach Inc. specializes in the production of premium lifestyle accessories and is one of the most recognizable luxury brands in both the...
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...that significantly impact Coach’s financial outlook as the company has experienced declines in both same store sales as well as earnings from fiscal 2008 to fiscal 2009. Coach’s gross margins are also shrinking as the company has had to increasingly rely upon its factory outlet stores to sell its products[1]. This also presents the problem of brand dilution. From a valuation perspective Coach’s P/E ratio, currently at 18.23, is well above the apparel industry average of 3.26, which suggests that from a relative valuation perspective the company may be overpriced[2]. Furthermore, the DCF analysis indicates an intrinsic value of approximately $35.00 while the current share price is $38.27 (3/11/10 close). Based on this quantitative data the stock is currently overpriced and has very little upward potential within our investment horizon. The stock’s price has increased over 200% in the past year and has been fluctuating between $34.00 and $37.00 since October (please see Appendix 1). The alpha from this stock was fully extracted in 2009 and the Coach holdings have run their course. The intent of this report is to illustrate that based on a combination of qualitative and quantitative factors this stock is currently overvalued and it is preferable to sell Coach and seek another stock to replace its value. Company Overview Coach Inc. specializes in the production of premium lifestyle accessories and is one of the most recognizable luxury brands in both the...
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...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 continued Sales Growth rate of 10% through 2012. In the following report, you will find a detailed company overview of Urban Outfitters, compiled of business markets, executive...
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...M&A Project Table of Contents 1. Executive Summary 1 2. Introduction 2 2.1. History 2 2.2. Company structure 3 2.3. Products 4 2.4. Stock analysis 4 2.5. Competitors 5 2.6. Industry and Economic Trends Analysis 6 3. SWOT Analysis 7 4. Valuation 11 4.1. Weighted Average Cost of Capital 11 4.1.1. Re: Cost of Equity 12 4.1.2. Rd * (1-Tc): Cost of Debt 14 4.2. Pro Forma Forecasting 16 4.3. Discounted Cash Flow Valuation 19 4.4 Earning Valuation 21 4.5 Relative P/E Ratio Model 23 4.6 Synergy 26 5. Outcome and process of negotiations 28 6. References 30 7. Appendices 31 Executive Summary The purpose of this paper is to evaluate and negotiate an acquisition of Jos. A Bank by Men’s Wearhouse. The first step of this process is to use fundamental analysis to value the equity per share value of Jos. A Bank. The second step is to value the synergy between Men’s Wearhouse and Jos. A Bank to estimate the value that would be added to Men’s Wearhouse if they were to acquire Jos. A Bank. Lastly, the paper will address the process of the negotiation with Jos. A Bank management for the proposed acquisition and the ultimate outcome of the process. The North American Industry Classification System (NAICS) classifies Men’s Wearhouse as a clothing and clothing accessories store and this subsector of the retail industry has approximately 2.5 million employees. The firm was founded by George Zimmer in 1973 in...
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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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