• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Financial Analysis of Abercrombie & Fitch vs Polo Ralph Lauren
 

Financial Analysis of Abercrombie & Fitch vs Polo Ralph Lauren

on

  • 1,930 views

Company Analysis of Polo Ralph Lauren Corp. versus Abercrombie & Fitch (financial ratios, ERR/RRR, beta, companies profiles and financial statements)

Company Analysis of Polo Ralph Lauren Corp. versus Abercrombie & Fitch (financial ratios, ERR/RRR, beta, companies profiles and financial statements)

Statistics

Views

Total Views
1,930
Views on SlideShare
1,930
Embed Views
0

Actions

Likes
0
Downloads
14
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Two slides on Beta
  • ANF: Advertising costs consist of in−store photographs and advertising in selected national publications and billboards.RL: We advertise in consumer and trade publications, and participate in cooperative advertising on a shared cost basis with some ofour retailer partners.Look at Annual Report for ANF Impairment of asset!!!
  • ANF: Advertising costs consist of in−store photographs and advertising in selected national publications and billboards.RL: We advertise in consumer and trade publications, and participate in cooperative advertising on a shared cost basis with some ofour retailer partners.Look at Annual Report for ANF Impairment of asset!!!
  • Go on Annual Report 2005!!!

Financial Analysis of Abercrombie & Fitch vs Polo Ralph Lauren Financial Analysis of Abercrombie & Fitch vs Polo Ralph Lauren Presentation Transcript

  • Financial Analysis VS
  • Industry Overview Sector: Services Sector: Consumer Goods Industry: Apparel Stores Industry: Textile – Apparel Clothing Market Cap.: $5.17bn $12.08bn Market Cap.: $12.08bn Specialty Retailer: X 2.3 Premium Lifestyle Products:Casual Sportswear Apparel Clothing Apparel Personal Care Products Accessories Accessories Fragrances Home Furnishing Targets: Targets: Men, Women & Kids Men, Women & Kids Mainly Teenagers
  • Past Year’s Major EventClosing of Ruehl division Recession / Expensive Clothes Prices $58M Pretax Loss for Ruehl in 2008A&F refused lowering prices during 2009 first months  Overall sales -28% in May yoy (-33% for Ruehl)
  • Current Economic Situation “U.S. retail sales climb 4.2% in February beating expectations for a 3.6% rise yoy” LATimes.com +4.2%
  • Market Share Market Share compared to S&P 2009 Teens Buying Behavior in 500s Overall Revenues Clothing Industry ($bn) 12.28,0007,000 Teens Income6,000 Teens Buying Behavior (Spending in Clothing)5,000 91.1 2008 (for Q.2, Q.3, & Q.4)4,000 2009 (for Teens Spendings as % of 2009 Q.1, Q.2, & Q.3)3,000 Overall Retail Clothing Industry 12.2 Revenue2,000 Teens Buying Behavior (Spending in Clothing)1,000 Overall Retail Clothing 0 Industry (Revenue) S&P 500 ($bn) Abercrombie & Polo Ralph Fitch Co. Lauren Co. 150
  • Stores Location by Continent Europe, Polo Ralph LaurenAbercrombie & Fitch 1.4% Europe, Asia, 1.3 Asia, 0.1 49.5% % % North NorthAmerica, America, 98.5% 49.2%
  • EUR/USD Weekly Fiscal Year 2009Open: 1.2962 Close: 1.4141
  • Revenue By Area 2009 InternationalInternational 8% United States Europe; Asia; 30.5% / Canada 21.1% 9.2% 69.5% Other Regions 0.1% United States; 92%
  • Revenue By Segment 2009 Licensing, 4 % Retail, 45% Wholesale, 51%Retail100%
  • Stores, Sales, Sales per Store & Sales per Square Foot 10,000 8,918 8,940 9,0004,000 3 3,484.1 484.1 8,000 +63,7%3,500 22,928.6 928.6 7,0003,000 6,0002,500 4,823.7 4,795.5 4 823.7 4 795.5 5,000 20082,000 2008 4,000 20091,500 2009 3,000 1,097 1,0961,000 2,000 449.0 373.2 500 1,000 3.2 2.7 0.54 0.54 115.1 114.2 0 0 Stores Sales ($M) Sales per Sales per Stores Sales Sales per Store Sales per Store ($M) Square Foot ($M) Square Foot ($) ($) X 2.3 Abercombie & Fitch Polo Ralph Lauren
  • Top Competitors GAP Inc: • Market Cap: $14.14bn American Eagle Outfitters, Inc: • Market Cap: $3.15 bn J. Crew Group, Inc: • Market Cap: $2.79 bn
  • Top Competitors (Cont’d) Phillips-Van Heusen Corp.: • Market Cap: $3.97bn x 3 = RL Jones Apparel Group: • Market Cap: $1.21 bn LIZ Claiborne Inc: • Market Cap: $472.37 M x 25.5 = RL
  • State of the Industry• Gap • Calvin Klein• Calvin Klein • Diesel• DKNY • Quicksilver Clothing Accessories Apparel Home Fragrances Furnishing• Hermès • Haverty Furniture• Cartier Companies• Chanel • Pier 1 Imports • Williams-Sonoma
  • Beta Analysis +95.59% +141.18S&P500 Sector % Industry ANF: β=0.68 β= 1.33 +14.29% β= 0.95 RL: β=0.86 +54.65% +23.31% +76.74% ANF RL β= 1.64 β= 1.52 +7.89%
  • Similar Marketing Strategies High Competition:  Constant changes in products  Constant design renewal (fashion perpetuity) Quality, design, brand, and image-focusing:  products quality  long-term similarity in design, style  advertising similarity (magazines, e-marketing)  seasonal marketing campaigns (Spring & Fall)  large products availability  corporate image  brand affiliation Price segmentation:  Ralph Lauren and Abercrombie & Fitch can both be competitors (or not) according to the prices they practice onto the market
  • Product Differentiation Home LineMen’s, Women’s, & Kid’s Clothes Men’s Clothes Fragrances WatchesAccessories Fragrances Women’s & Kid’s Clothes
  • Teen Market Establish fashion and overall trends and express specific lifestyles A representation of present/future society Big buying potential = discretionary income Spend household’s money / Influence households’ buying behaviors Importance of physical appearance Constancy (even progression) of teens’ spendings thanks to constancy (even progression) of received ‘’income’’ Constancy on same-targets spending (the 3 C’s)
  • Different Marketing Strategies vs.Similarity among time Continual trademarks’ own styles , keeping the same style among time Prices, styles, and consumer-focusingConsumer-confidence focusing Lowering the importance of Among trademarks diversification advertising and basing its marketing strategy Ambiance-similarity between products, lifestyles, and shops Keeping Ralph Lauren’s andLess consumer-targeting among products Much and shops design and lifestyles product, style, and lifestyle orientations through only 4 trademarks Advertising diversification Through famous magazines & fashion shows
  • Different Marketing Approaches Low Higher average Much higher importance given to (lesssophisticated in design) Larger consumer Smaller consumer targeting Larger of trademarks Very (only 2.55% of A&F Biggerstores are located outside the (8,940 doors around the world)United States)
  • WHAT’S UP INSIDE OURCOMPANIES?
  • Quarterly Loading of Sales and Income Abercrombie & Fitch: Quarterly Sales as Percent of Year Sales Polo Ralph Lauren : Quarterly Sales as Percent of Year Sales35% 32% 30% 27% 28% 28% 28% 24% 25% 25%30% 25% 26% 25% 22% 24% 21%25% 23% 22% 21% 20%20% 2009 15% 200915% 2008 2008 10%10% 5% 5% Spread+11% Spread+7% 0% 0% Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Abercrombie & Fitch: Quarterly Net Income as Percent of Polo Ralph Lauren: Quarterly Net Income as Percent of Year Year Net Income Net Income25000% 30% 45%20000% 28% 18467% 40% 25% 40% 37%15000% 25% 25% 15091% 35%10000% 22% 20% 30% 26% 5000% 24% 23% 23% 25% 0% 2009 2009 15% 20% 16%-5000% Q1 Q2 Q3 Q4 2008 -10407% 15% 11%-10000% 2008 10% 10%-15000% 5%-20000% -23050% 5% 0%-25000% Q4 Q1 Q2 Q3-30000% 0%
  • Comparative Income StatementHorizontal Analysis X1.7 Abercrombie & Fitch Polo Ralph Lauren ($ Millions) 2009 % Change 2008 2009 % Change 2008Net Sales 2,928.6 -15.9% 3,484.1 4,795.5 -0.6% 4,823.7Licensing Revenue - - - 183.4 -6.0% 195.2NET REVENUE 2.92,928.6 BN -15.9% 3.5 BN 54,978.9 3,484.1 BN -0.8% 5 BN 5,018.9 CGS 1,045.0 9.4 % -9.4% 1,153.0 2,079.8 9.4 % -9.1% 2,288.2GROSS PROFIT 1.9 1,883.6 -20% 2.3 BN 2.9 BN 6.2 % 2.7 BN BN -19.2% 2,331.1 2,899.1 6.2% 2,730.7 Selling, General & Administrative Expense 1,761.5 -2.8% 1,812.9 2,000.0 7.2% 1,865.0 Advertising Expense 17.7 -38% -38.3% 28.7 157.0 -8.2% 171.0 Other Operating Income, Net -13.5 54.2% -8.8 - - - Amortization of intangible assets - - - 21.7 7.4% 20.2 Impairment of assets - - - 6.6 -88% -88.1% 55.4 Restructuring charges - - - 6.9 -70.8% 23.6OPERATING INCOME 117 M -76% 498498.3 706706.9 19 % 117.9 -76.3% M M 18.7% 595595.5 MInterest and other income, net 86% -1.6 86.0% -11.4 44% -12.4 -43.6% -22.0Foreign Currency Gains (losses) - - - 237% 2.2 -237.5% -1.6Interest Expense - - - 22.2 -16.5% 26.6Equity in income (loss) of equity-method investees - - - 5.6 12.0% 5.0INCOME BEFORE INCOME TAXES 120M -76% 510M 690M 17.3% 119.5 -76.6% 509.7 689.3 17% 587.5 587 M Provision for Income Taxes X40% 40.6 -79.9% 201.5 209.8 15.6% 181.5NET INCOME FROM CONTINUING OPERATIONS 78.953 -74.4% 308.2 0.0 - 0.0 79 MNET LOSS FROM DISCONTINUED OPERATIONS (Net of000 X2 taxes) -78.7 M -119.1% -78.699 -35.9 0.0 - 0.0NET INCOME 0.2M -99% 272M 479479.5 18.1% 0.254 -99.9% 272.3 M 18% 406 M 406.0
  • Comparative Income Statement Vertical Analysis Abercrombie & Fitch Polo Ralph Lauren$ Millions 2009 %V 2008 %V 2009 %V 2008 %VNet Sales 2,928.6 100.0% 3,484.1 100% 4,795.5 100.0% 4,823.7 100%Licensing Revenue - - - - 183.4 3.8% 195.2 4%NET REVENUE 3BN 2,928.6 100.0% 3.5BN 3,484.1 100% 5BN 4,978.9 103.8% 5BN 5,018.9 104% CGS 1,045.0 35.7% 1,153.0 33% 2,079.8 43.4% 2,288.2 47%GROSS PROFIT 64% 1,883.6 64.3% 2,331.1 67% 67% 60% 2,899.1 60.5% 2,730.7 57% 57% Selling, General & Administrative Expense 1,761.5 60.1% 1,812.9 52% 2,000.0 41.7% 1,865.0 39% Advertising Expense 17.7 0.6% 28.7 1% 157.0 3.3% 171.0 4% Other Operating Income, Net -13.5 0.5% -8.8 0% - - - Amortization of intangible assets - - - - 21.7 0.5% 20.2 0% Impairment of assets - - - - 6.6 0.1% 55.4 1% Restructuring charges - - - - 6.9 0.1% 23.6 0%OPERATING INCOME 117.9 4% 4.0% 498.3 14% 14% 706.9 15% 14.7% 595.5 12% 12%Interest and other income, net -1.6 -0.1% -11.4 0% -12.4 -0.3% -22.0 0%Foreign Currency Gains (losses) - - - - 2.2 0.0% -1.6 0%Interest Expense - - - - 22.2 0.5% 26.6 1%Equity in income (loss) of equity-method investees - - - - 5.6 0.1% 5.0 0%INCOME BEFORE INCOME TAXES 119.5 4.1% 4.1% 509.7 15% 15% 689.3 14.5% 14.4% 587.5 12% 12% Provision for Income Taxes 40.6 1.4% 201.5 6% 209.8 4.4% 181.5 4%NET INCOME FROM CONTINUING OPERATIONS 78.953 2.7% 308.2 9% 0.0 0.0% 0.0 0%NET LOSS FROM DISCONTINUED OPERATIONS (Net of taxes) -78.699 -2.7% -35.9 -1% 0.0 0.0% 0.0 0%NET INCOME 0.254 0.0% 272.3 8% 479.5 10% 10.0% 406.0 8% 0% 8% 8%
  • One-Day Comparative Income Statement Abercrombie & Fitch Polo Ralph Lauren($ Millions) 2009 % Sales 2009 % SalesNet Sales 8.14 100.0% 13.32 100.0%Licensing Revenue - - 0.51 3.8% 8.14 100.0% 13.83 103.8% =NET REVENUE CGS 2.90 35.7% 5.78 43.4%GROSS PROFIT 5.23 64.3% 64% 8.05 60.5% 60% Selling, General & Administrative Expense 4.94 60.8% 5.99 45.0% Advertising Expense 0.05 0.6% 0.44 3.3% Other Operating Income, Net -0.04 -0.5% - - Amortization of intangible assets - - 0.06 0.5%X3 Impairment of assets - - 0.02 0.1% Restructuring charges - - 0.02 0.1%OPERATING INCOME 0.33 4% 4.0% 1.96 15% 14.7%Interest and other income, net 0.00 -0.1% -0.03 -0.3%Foreign Currency Gains (losses) - - 0.01 0.0%Interest Expense - - 0.06 0.5% X3.5Equity in income (loss) of equity-method investees - - 0.02 0.1%INCOME BEFORE INCOME TAXES 0.33 4.1% 4.1% 1.91 14.5% 14.4% Provision for Income Taxes 0.11 1.4% 0.58 4.4%NET INCOME FROM CONTINUING OPERATIONS 0.22 2.7% 0.00 0.0%NET LOSS FROM DISCONTINUED OPERATIONS (Net of taxes) -0.22 -2.7% 0.00 0.0%NET INCOME 0.00 0% 0.0% 1.33 10% 10.0%
  • Balance Sheet: Assets Abercrombie & Fitch Polo Ralph Lauren($ Millions) January 30, January 31, April 3, March 28, %H % H2 % V %H % H2 % V 2010 2009 2010 2009 ASSETSCURRENT ASSETS:Cash and Equivalents $ 680.1 24% 24% $ 522.1 18% 30% 30% $ 563.1 12% 11% 17% $ 481.2 11% 17%Short-term Investments 32.4 1% - - - 584.1 584.1 13% 338.7 8% 72% 72% Cash & Equivalents: Cash & Equivalents:-20%Receivables, net of allowances 90.9 3% -Bigger Cash53.1 2% 71% Position 71% 381.9 8% 474.9 11% -20% ST Investments: -Net Increase yoyInventories 310.6 11%Comfort Investors-17%  372.4 13% 504.0 11% 525.1 12% -4% A/R: A/R:of Cash to invest 1% -LotDeferred Tax Assets 44.6 2% -98.5% North43.4 2% 3% Inventories: America 103.0 2% 101.8 2% Muni. Bonds (Tax free) -Increased Cash CollectionOther Current Assets 77.3 -Econ. Situation 3% -5% 3% 80.9 139.7 3% 135.0 3% 3% -Lowered Prices In June -Lower WholesalesTOTAL CURRENT ASSETS 1,235.8 44% 1,072.0 38% 15% 2,275.8 49% 2,056.7 47% 11% -Ruehl LossProperty And Equipment, Net 1,244.0 44% 49% -11% 1,398.7 49% -11% 697.2 15% 651.6 15% 7%Non-current Investments 141.8 5% 229.1 8% -38% 75.5 2% 154% 29.7 1% 154%Deferred Tax Assets - P&E: 0% - 0% 0% 101.9 2% 102.8 2% -1% -Ruehl Stores Closure 0% NC Investments:Goodwill - 0% - NC Investments: 0% 986.6 21% 22% 966.4 22% 2% -Depreciation-More cash -Lot of Cash to invest Intangible assets, net - 0% - 0% 0% 363.2 8% Goodwill: 348.9 8% 4% -Investors Confidence Muni. Bonds (Tax free)Other Assets 200.2 7% 148.4 5% 35% 148.7 3% 200.4 5% -26% -Continuous AcquisitionsTOTAL ASSETS $ 2,821.9 100% $ 2,848.2 100% -1% $ 4,648.9 100% $ 4,356.5 100% 7%  Growth
  • Balance Sheet: Liabilities Abercrombie & Fitch Polo Ralph Lauren($ Millions) January 30, 2010 % H January 31, 2009 % H2 % V April 3, 2010 % H March 28, 2009 % H2 % VLIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIES:Account Payable $ 150.1 5% $ 149.8 5% 0% $ 149.8 3% $ 165.9 4% -10%Accrued Expenses 246.3 9% 241.2 8% 2% 559.7 12% 472.3 11% 19%Deferred Lease Credits 43.6 2% 42.4 1% 3% 0.0 A/P: 0% 0.0 0% -Income Tax Payable 9.4 0% -43% 16.5 1% -43% 37.8 Special Inventory Mgmt 1% 35.9 1% 5%TOTAL CURRENT LIABILITIES 449.4 16% 449.8 16% 0% 747.3 16% 674.1 15% 11% Working Cap. = Income Tax Payable: Working Cap. = Working Cap. = Working Cap. =LONG-TERM LIABILITIES: $786.5 Very Low Income $622.2 $1,528.5 $1,382.6Deferred Income Tax 47.1 2% 34.1 1% 38% 38% 126.0 3% 154.8 4% -19%Deferred Lease Credits 212.1 8% 212.0 7% 0% 0.0 0% 0.0 0% -Long-Term Debt 71.2 Deferred 3% Income4% -29% 100.0 Tax: -29% 282.1 Deferred 6% Income Tax: 406.4 9% -31% +26.4% +10.6%Other non-current Liabilities 214.2 Payable Later 206.7 7% 8% 4% 376.9 Payable later 8% 386.1 9% -2% LT Debt:TOTAL LONG-TERM LIABILITIES $ 544.6 19% $ 552.8 19% -1% $ 785.0 17% -EUR Debt (€90.8M -17% $ 947.3 22%SHAREHOLDERS EQUITY:Additional paid-in-capital $ 339.5 12% $ 328.5 12% 3% Add. Paid In Capital: : 2009)12% repurchased, July Treasury Stocks 25% $ 1,243.8 27% $ 1,108.4Accumulated Other Comprehensive Loss, Share Price Growth Buyback  Stock price ↑ -9.0 0% -22.7 -1% -60% 154.0 3% 126.8 3% 21%IncomeRetained Earnings 2,183.7 77% Other Comp. Loss: 77% Acc. 2,244.9 79% -3% 2,915.3 Other Comp. Income: Acc. 63% 63% 2,465.5 57% 18% 57%Common Stocks 1.0 0% 1.0 0% 0% 1.2 0% 1.1 0% 9%Treasury Stocks RE: -Derivatives -706.2 -25% -3% -687.3 -24% -Forex :Hedges -966.7 -22% RE -1,197.7 -26% 24%TOTAL SHAREHOLDERS’ EQUITY -Forex -Conservative 1,827.9 65% Policy 1,845.6 65% -1% -A-f-Sale Invest. -Conservative Policy 14% 3,116.6 67% 2,735.1 63%TOTAL LIABILITIES AND SHAREHOLDERS’ -To buy treasury stocks $ 2,821.9 100% $ 2,848.2 100% -1% $ 4,648.9 100% $ 4,356.5 100% 7%EQUITY
  • Long-term Debt Improving($ Millions) Abercrombie & Fitch Polo Ralph Lauren 2009 2008 2007 2006 2005 2009 2008 2007 2006 2005Cash 522 649 530 462 50.68 820 626 564 286 344Equity 64.80 63.03 62.51 55.60 49.66 62.78 54.74 62.13 66.33 61.46Lt debt 3.5 0 0 0 0 9.33 10.83 10.61 0 10.67Beta 1.68 1.57LT Debt to Equity Ratio 5.4% 5.4% 0.0% 0.0% 0.0% 0.0% 14.9% 14.9% 19.8% 17.1% 0.0% 17.4%($ Millions) American Eagle Outfitters, Inc. (AEO). Gap 2009 2008 2007 2006 2005 2009 2008 2007 2006 2005Cash 484 620 827 752 131 1.715 1.901 2.6 2.987 2,035Equity 71.75 71.77 71.31 71.97 74.48 58.00 54.53 60.56 61.50 49.12Lt debt 0 0 0 0 0 0 0.64 2.20 5.82 18.77Beta 1.18 1.18LT Debt to Equity Ratio 0% 0.0% 0.0% 0.0% 0.0% 0.0% 0% 0.0% 1.2% 3.6% 9.5% 38.2%
  • 10-Year Revenue Abercrombie & Fitch Polo Ralph Lauren$500 $500$450 $450 +201% +714%$400 $400 -99.8%$350 $350$300 $300$250 $250$200 $200$150 $150$100 $100 $50 $50 $0 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
  • Comparative Cash Flow ANF 2009 RL 2009 ANF 2009 RL 2009Net Income 0.25 479.50 Investing ActivitiesOperating Activities: Short Term Investment -32.36 -245.40Depreciation Expense 238.75 181.20 Property and Equipment -84.12 -226.80A/R -37.76 93.00 Non-Current Investment 87.29 -45.80Inventories 61.78 21.10 Deferred Tax Asset 0.00 0.90Deferred Tax Assets -1.16 -1.20 Goodwill 0.00 -20.20Other Current Assets 89.6% 3.65 -4.70 Intangible Assets 0.00 -14.30A/P 0.38 -16.10 Other Assets -51.77 51.70Accrued Expense 5.06 87.40 Long-Term Debt -28.787 -124.3Deferred Lease Credit 1.31 0.00 Other non-current Liabilities 7.427 -9.2Income Tax Payable -7.10 1.90 Net Cash From Investing Activities -102.32 -633.40Deferred Income Taxes 13.1 -28.8Net Cash From Operating Financing ActivitiesActivities 278.2 813.30 Additional Paid-in Capital 278.22 813.3 10.97 135.40 Accumulated Other Compr. Gain 13.71 27.20 Common Stocks 0.00 0.10 Free Cash-Flow: Free Cash-Flow: Treasury Stocks 18.91 -231.00 -$100.8M $313.5M Dividends -61.50 -29.70 Net Cash From Financial Activities -17.92 -98.00 Cash Available After Net increase in Cash 157.99 81.90 Assets Maintenance Cash at Beginning 522.12 481.20 Cash at End 680.11 563.10
  • Comparative 10-Year Cash Flow $900 $818.0 $800 $700 $582.0 $600 $491.0 $500 $426.0 $454.0 $414.0 $400 Free Cash Flow USD $293.0 $282.0 $300 $233.0 $241.0 Operating cash flow $200.0 $183.0 $197.0 $179.0 $200 $151.0 $123.0 $107.0 $100 $0 -$100 -$2.0 2001 2003 2005 2007 2009 $900 $796.0 $774.0 $800 $695.0 $700 $612.0 $589.0 $600 $449.0 $478.0 $500 $382.0 Free Cash Flow USD $400 $294.0 $269.0 $291.0 $300 $206.0 $211.0$208.0 $170.0 Operating cash flow $200 $100.0 $88.0 $100 $0 -$100 -$5.0 2001 2003 2005 2007 2009
  • DOL / DFL / DTL4.67 -29.54 -0.59 6.091.31 0.02
  • Lease Financing1,200 900 8001,000 700 800 600 500 600 400 400 300 200 200 100 0 0 Operating Leases ($M) Operating Leases ($M) Capital Leases ($M)
  • Leasehold Improvements ($M) 1,143.72008 643.3 1,205.32009 700.0 0 200 400 600 800 1,000 1,200 1,400
  • Capital Financing with Lease as a Percentage of Total Assets12.0% 11.1% 10.1%10.0% 8.0% 6.3% 6.0% 5.6% 4.0% 2.0% 0.0% 2008 2009 2008 2009
  • Individual Ratios 2 Years – Abercrombie & Fitch 2009 2008 Better / Worse Liquidity Quick: Current 2.75 2.38 Better Inv. -17% Quick 2.06 1.56 Better Profitability Profitability: ROA 0.01% -51% 9.56% Worse ROE 0.01% 14.75% Worse NI ≈ 0 ROS 0.01% 7.81% Worse A/R Turnover: Turnover A/R +71% Receivables Turnover 32.23 65.60 +69% Worse 32.23 65.60 Asset Turnover 1.04 1.22 Worse Inventory Turnover 9.43 9.36 Better LeverageLeverage: TIE 0.00 +5.68 days 0.00 - D/A 35.22% 35.20% WorseTA/TL/TE Constant D/E 54.38% 54.32% Worse 6 Better DSO: Cash Management +2.49 days DSO 11.17 11.17 5.49 5.49 Worse A/R ↑ ICD 38.19 38.48 Better + 81% 13 Worse APD: APD 18.46 15.47 Worse CCC 30.90 30.90 28.50 28.50 Worse +2.99 days Market Cap.: Dividends Market Cap. $2.72 Billion 2.72Bn $1.50 Billion 1.50Bn Better Out. Shares ↑ EPS $3.05 $5.20 Worse Shares Price ↑ Payout Ratio 23% 23% 13% 13% Better Productivity Sales/Employee $36,608 $43,551 Worse Ni/Employee $3 $3,403 Worse
  • Individual Ratios 2 Years – Polo Ralph Lauren 2009 2008 Better / Worse Liquidity Quick: Current 3.05 +11% 3.05 No Change Inv. -4% Quick 2.37 +4% 2.27 Better Profitability: Profitability +19% NI +18% ROA 10.31% 9.32% Better ROE 15.39% +24% 14.84% Better -10.2% ROS 10.00% 8.42% Better Turnover +85% A/R Turn.: Receivables Turnover 12.56 12.56 +19% 10.16 10.16 Better Asset Turn.: A/R -20% Asset Turnover 2.11 2.11 2.35 2.35 Worse +11% CA↑  STID/A: Inventory 9.51 9.19 Better TIE: Leverage -17%More Debt FinancingTIE 31.84 31.84 26.82 26.82 Better EBIT ↑ 31.84 26.82 D/A 32.96% 37.22% Worse D/E 49.17 49.17% 59.28 59.28% Better 15 Better Cash Management DSO 28.67 35.44 Better ICD 37.84 39.19 Better +94% APD 11.25 12.38 Better 4 Worse CCC 55.26 62.25 Better Dividends Market Cap. 8.47Bn $8.47 Billion 4.36Bn $4.36 Billion Better EPS $4.01 $3.99 Better Payout Ratio 17% 18% Worse Productivity -0.6% Sales/Employee (M) $ 252,395 $ 253,879 Worse Ni/Employee (M) $ 25,237 +18% $ 21,368 Better
  • Comparative Ratios - 2009 ANF RLLiquidityCurrent 2.75 W 3.05 BQuick 2.06 W 2.37 BProfitabilityROA 0.01% W 10.31% BROE 0.01% W 15.39% BROS 0.01% W 10.00% BTurnoverReceivables Turnover 32.23 B 12.56 WAsset Turnover 1.04 W 2.11 BInventory Turnover 9.43 W 9.51 B 17 WorseLeverageTIE 0.00 B 31.84 WD/A 35.22% W 32.96% BD/E 54.38% W 49.17% BCash ManagementDSO 11.17 W 28.67 B 17 BetterICD 38.19 W 37.84 BAPD 18.46 W 11.25 BCCC 30.90 W 55.26 BMarket ValueMarket Cap. $5.17 Billion W $12.08 Billion BEPS 3.05 W 4.01 BPayout Ratio 23% B 17% WProductivitySales/Employee $ 154,138 W $ 252,395 BNi/Employee $ 13 W $ 25,237 B
  • Reuters Ratio Abercrombie Polo Ralph % Difference % Difference Sector % Difference & Fitch Lauren ANF/RLValuation RatiosP/E Ratio 44.60 560% 560% 7.97 261% 261% 20.81 214% 214%P/E High 35.40 83% 42.81 55% 23.66 150%P/E Low 5.17 50% 10.42 106% 11.05 47%Price to Sales 1.59 162% 0.98 226% 2.21 72%Price to Book 2.81 426% 0.66 547% 3.61 78%Price to TangibleBook 2.80 350% 350% 0.80 760% 760% 6.08 46% 217%Price to CashFlow 14.93 407% 3.67 420% 15.41 97%Price to Free CashFlow 52.14 420% 420% 12.41 255% 255% 31.62 165% 165%DividendsPayout Ratio 51.80 620% 620% 8.36 117% 86% 7.15 724% 724%Financial StrengthQuick Ratio 1.57 291% 291% 0.54 424% 424% 2.29 69% 146%Current Ratio 2.51 369% 0.68 466% 3.17 79%LT Debt to Equity 4.42 410% 24% 18.15 225% 44% 8.06 55% 182%Total Debt to 739% 405% 182%Equity 4.42 14% 32.68 25% 8.06 55%Interest Coverage N/A - 0.17 23 971% 23 971% 40.75 N/A
  • Reuters Ratio (Cont’d) % Abercrombie & % % Sector Polo Ralph Lauren Difference Fitch Difference Difference ANF/RLProfitability RatiosGross Margin 63.76 797% 797% 8.00 740% 740% 59.19 108% 108%Gross Margin (5 Yr. Avg) 66.46 277% 277% 23.99 230% 230% 55.09 121% 121%EBITD Margin 12.61 - - - 19.57 64% 155%EBITD Margin (5 Yr. Avg) 21.14 207% 207% 10.22 169% 169% 17.29 122% 122%Operating Margin 5.61 -357% -357% -1.57 -1029% -1029% 16.15 35% 288%Operating Margin (5 Yr. Avg) 16.24 309% 309% 5.26 259% 259% 13.63 119% 119%Pre-Tax Margin 5.51 -353% -353% -1.56 -1014% -1014% 15.82 35%Pre-Tax Margin (5 Yr. Avg) 16.57 326% 5.08 263% 13.38 124%Net Profit Margin 3.65 -169% -169% -2.16 -506% -506% 10.92 33% 302%Net Profit Margin (5 Yr. Avg) 10.27 302% 302% 3.40 259% 259% 8.80 117% 117%Effective Tax Rate 33.78 295% 11.44 271% 30.95 109%Effective Tax Rate (5 Yr. Avg) 38.00 117% 32.59 105% 34.26 111%EfficiencyRevenue/Employee $ 361,708 3% $11,580,092 3% $ 293,184 123%Net Income/Employee $ 13,191 3% $404,449 8% $ 32,026 41%Receivable Turnover 41.67 513% 513% 8.13 228% 228% 18.54 225% 225%Inventory Turnover 2.75 102% 102% 2.69 136% 136% 3.66 75% 133%Asset Turnover 1.14 633% 633% 0.18 639% 639% 1.15 99% SAMEManagement EffectivenessReturn on Assets 4.17 673% 673% 0.62 2032% 2032% 12.60 33% 302%Return on Assets (5 Yr. Avg) 14.40 429% 429% 3.36 312% 312% 10.47 138% 138%Return on Investment 5.08 564% 564% 0.90 1667% 1667% 15.00 34% 296%Return on Investment (5 Yr. Avg) 18.24 308% 308% 5.92 220% 220% 13.02 140% 140%Return on Equity 6.55 372% 372% 1.76 1065% 1065% 18.75 35% 286%Return on Equity (5 Yr. Avg) 23.39 254% 254% 9.20 184% 184% 16.92 138% 138%
  • 10-Year Profitability Abercrombie & Fitch: Gross Margin Polo Ralph Lauren: Gross Margin70% 70%60% 60%50% 50%40% 40%30% 30%20% 20%10% 10%0% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 201050% 25%45%40% 20%35%30% 15% ROA (%) ROA (%)25% ROE (%) ROE (%)20% 10% ROS (%) ROS (%)15%10% 5%5%0% 0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
  • 10-Year Financial Health2.5 2.5 -24% +21% -36% -23% 2 2 Financial1.5 Financial 1.5 Leverage Leverage Debt/Equity Debt/Equity 1 10.5 0.5 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 3 3.5 +45% -44% +74% -21%2.5 3 +96% -53% +97% +87% 2 2.5 -36% Current 2 Current Ratio1.5 Ratio 1.5 Quick 1 Quick -22% Ratio Ratio 1 -42%0.5 0.5 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
  • 10-Year Efficiency Days Inventory DSO Payable Period CCC140120100 80 Post-crisis 60 40 Pre-crisis 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Days Inventory DSO Payable Period CCC160140120100 80 60 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
  • 10-Year Efficiency (Cont’d)8 2007 180 1606 1405 Inventory Turnover 1204 100 Asset Turnover3 80 Receivables 602 Turnover 401 200 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 14 12 10 8 Receivables Turnover 6 Inventory Turnover Asset Turnover 4 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
  • Dupont Equation Abercrombie & Fitch Polo Ralph Lauren($ Millions) ($ Millions) 2009 2008 2009 2008Net Income 0.25 272.26 Net Income 479.50 406.00Sales 2,928.63 3,484.06 Sales 4,978.90 5,018.90Total Assets 2,821.87 2,848.18 Total Assets 4,648.90 4,356.50Owners Equity 1,827.92 1,845.58 Owners Equity 3,116.60 2,735.10 ROS x TAT x EM = ROE NI/SALES SALES/TA TA/Stockholders Equity NI/Stockholders Equity 2008 7,81 1,22 1,54 14,8 ANF 2009 0 1,04 1,54 0,0 Change -100% -15% 0% -100% 2008 8,09 1,15 1,59 14,8 RL 2009 9,63 1,07 1,49 15,4 Change 19% -7% -6% 4%
  • DuPont Equation Analysis Abercrombie & Fitch Polo Ralph LaurenNI : -100% NI : +19% Sales : -0.7% Ratios VariationsSales : -15.9% Status Ratios Variations Status ROS Worse TAT :ROS -7% Better TA : +7%TAT : -15% TA : -1% TAT Worse EM :TAT -6% Worse OE : +13.95% EM : 1.54 => 0% EM ROE : - 100% Worse EM ROE : +4% Better ROE Worse ROE Better
  • Capital Expenditures $M (except %) Long-Lived Assets Sales Sales % to Long-Lived Assets Change in Sales % Assets Segments 2009 2008 2009 2008 2009 2008 % Millions of $ United States 1,138 1,372 2,566 3,220 225.5% 234.7% -3.9% -44.7 International 194 194 8080 363 264 363 264 187.1% 187.1% 330.0% 330.0% -43.3% -43.3% -84.0 Total 1,332 1,452 2,929 3,484 219.9% 239.9% -8.4% -111.3 +142.5% +37.5% -1429 bps$M (except %) Long-Lived Assets Sales Sales % to Long-Lives Assets Change in Sales % Assets Segments +25.4% 2009 2008 2009 2008 2009 2008 % Millions of $United States & 441.6 452.8 3,462.3 3,589.3 784.0% 792.7% -1.1% -4.8 Canada Europe 166.4 132.7 166.4 132.7 1,052.6 1,028.4 632.6% 775.0% -18.4% -30.6 +29.4% Asia 84.1 60.9 84.1 60.9 459.7 392.6 546.6% 644.7% -15.2% -12.8Other regions 5.1 5.2 4.3 8.6 84.3% 165.4% -49.0% -2.5 Total 697.2 651.6 4,978.9 5,018.9 714.1% 770.2% -7.3% -50.8 +38.0%
  • ONCE UPON A TIME ON THE STOCKMARKET…
  • Comparative Stock Prices Over 1 Year S&P500 Driven RL: $250M Buyback
  • Correlation Coefficients Over 2 Years S&P500 ANF RL AEO GapS&P 500 100% ANF 75.58% 100% RL 68.82% 56.85% 100% AEO 54.51% 39.85% 59.79% 100% Gap 59.46% 71.83% 62.02% 47.69% 100%
  • ERR / RRRRequired Rate of Return (%) The Security Market Line (SML)45.0% ERR1 Growth 42% to 36% ERR340.0% P0= $ 57 ERR235.0% BUY Div. $0.70 ERR430.0%25.0% ERR1 SML ERR3 ANF20.0% Growth 22% to 13% RL P0= $ 12415.0% Div.: $0.125 ERR2 ERR410.0% 5.0% SELL 0.0% 0 0.5 1 1.5 2 2.5 Risk, β
  • Analyst Estimates (Yahoo) 35analysts Current Last Two Months Three Months Month Month Ago Ago Strong Buy 11 11 11 11 9 Buy 9 9 8 7 8 Hold 14 14 15 15 14 Underperform 0 0 0 0 Sell 0 0 0 1 15analysts Current Last Two Months Three Months Month Month Ago Ago Strong Buy 1 1 0 1 Buy 6 6 6 6 6 Hold 7 7 7 8 8 Underperform 1 2 2 2 Sell 0 0 0 0
  • Analyst Estimates (Cont’d) (Morningstar) ANF Industry RL 5 Y Growth 20.3% 20.3% 15.4 9% 9% Forward P/E 14.3 14.3 - 19 19.0 Earning Yield 2.3% 2.3 Dividend Yield 1.2 Cash Return 3.5S&P500 Earning Yield 6.2S&P500 Dividen Yield 2.130-Year T-Bond Yield 4.6 0 2 4 6 8 Earning Yield 4.9% 4.9 Dividend Yield 0.3 Cash Return 3.9 S&P500 Earning Yield 6.2 S&P500 Dividen Yield 2.1 30-Year T-Bond Yield 4.6 0 2 4 6 8
  • Dividend History “Since 2003, the Company has maintained a regular quarterly cash“A quarterly dividend of $0.175 per dividend program on its common stock.share, was paid inMarch, June, September and On November 4, 2009,December of Fiscal 2007, Fiscal the Company’s Board of Directors approved an increase to the Company’s2008 and Fiscal 2009. A&F expects quarterly cash dividend on its commonto continue to pay a stock from $0.05 perdividend, subject to the Board ofDirectors’ review of the Company’s share to $0.10 per share.cash position and results of Approximately $30 million was recorded as a reduction to retainedoperations.” earnings during Fiscal 2010 in connection with the Company’s dividends.”
  • DPS vs. Competitors 2009 0.7 0.2 0.2 0.45 0.15 0.4 0.230 0.2 0.4 0.6 0.8 0 0.2 0.4 0.6 0.8
  • 6-year DPS Evolution Abercrombie & Fitch Polo Ralph Lauren 5-year Polo Ralph Lauren0.8 Annual Growth Rates0.7 0.7 0.7 0.7 0.7 0.70.6 0.6 Dividend 8.45% 8,45%0.50.4 Correlation Coefficient ≈ 10.3 0.3 0,30.2 0.2 0.2 0.2 0.2 0.2 8.54% Revenue 8,54%0.1 0 2005 2006 2007 2008 2009 2010 0% 2% 4% 6% 8% 10%
  • Treasury Stocks (2 Years Comparison) 2009 2008 (Millions) # Shares # Shares $ % $ (Millions) % (Thousands) Outstanding 87.99 90.5 85.2% 87.64 89.0 84.8% SharesTreasury Stocks 15 687 14.8% 16 706 15.2% Total 103 100.0% 103 100.0% 14.8% 15.2% Outstanding Shares Treasury Stocks 84.8% 85.2% 2008 2009
  • Treasury Stocks (2 Years Comparison) (Cont’d) 2009 2008 (Millions) # Shares # Shares $ % $ (Millions) % (Thousands) Outstanding 98.2 1 83.4% 99.2 1 85.8% SharesTreasury Stocks 19.6 1.2 16.6% 16.4 1 14.2% Total 118 100.0% 116 100.0% 16.6% 14.2% Outstanding Shares Treasury Stocks 85.8% 2008 83.4% 2009
  • FURTHER INVESTIGATIONS
  • Abercrombie & Fitch’s Employee Savings PlanCode Section 401(k) feature retirement savings planAll US associates eligible (low participation rate) ‘’ The Company offers a life insurance benefit for all full-time employees equal to 2-timesbase salary. For Vice Presidents and above, the death benefit is set at four-times base salary. ‘’The Company’s contributions are based on a percentage of associates’ eligible annualcompensation.‘’ Allows executive officers to defer a portion of their compensation over-and-above theInternal Revenue Service ‘’ ‘’ For Vice Presidents and above, the Company offers a life insurance benefit set at 4-timesbase salary. ‘’Matching and Retirement ContributionsAllows participants the opportunity to save and invest their own money as apercentage of their pay
  • Abercrombie & FitchChief Executive Officer Supplemental Executive Retirement Plan (SERP)
  • Polo Ralph Lauren Employee Benefit Plans Profit Sharing Retirement Savings Plans (Non-Qualified) Supplemental Retirement Planamended for Fiscal 2009  $18M to affected participants during 1st Q. 2010
  • Polo Ralph Lauren Employee Benefit Plans (cont’d) Deferred Compensation Plans $3M Fiscal 2009 + Fiscal 2010 Union Pension Plan
  • RisksAbercrombie & Fitch
  • Risks Polo Ralph LaurenThe loss of the servicesFinancial instabilityEconomic crisis’ effects exclusive relationship with certain customers
  • Insider/Institutional Trading Percentage and Names Abercrombie & Fitch Polo Ralph LaurenBreakdown Breakdown% of Shares Held by All Insider and 5% % of Shares Held by All Insider and 5%Owners: 5% Owners: 0%% of Shares Held by Institutional & Mutual % of Shares Held by Institutional & MutualFund Owners: 100% Fund Owners: 104%% of Float Held by Institutional & Mutual Fund % of Float Held by Institutional & MutualOwners: 106% Fund Owners: 104%Number of Institutions Holding Shares: 309 Number of Institutions Holding Shares: 304Top Institutional Holders % Out Top Institutional Holders % OutFMR LLC 11.05 FMR LLC 10.99Columbia Wanger Asset Management, L.P. 6.49 Jennison Associates LLC 9.19Vanguard Group, Inc. (The) 4.99 Lone Pine Capital, LLC 5.31Bank of New York Mellon Corporation 4.13 Vanguard Group, Inc. (The) 4.98Pennant Capital Management, LLC 3.83 Wells Fargo & Company 4.76State Street Corporation 3.83 State Street Corporation 3.51Massachusetts Financial Services Co - Other 3.82 Artisan Partners Limited Partnership 3.3Orbis Holdings Ltd 3.33 Goldman Sachs Group Inc 3.02Maverick Capital Ltd. 2.54 Franklin Resources, Inc 2.56BlackRock Institutional Trust Company, N.A. 2.46 BlackRock Institutional Trust Company, N.A. 2.41
  • Zones of Discrimination: Z > 2.6 -“Safe” Zone Altman Z Score 1.1 < Z < 2.6 -“Grey” Zone Z < 1.1 -“Distress” Zone +64,74% +477% -76,55% +17.33% ANF RLIn Millions ($), except Share Prices 2009 2008 2009 2008EBIT 119.5 119.5 509.6 +212% 509.6 689.3 689.30 587.5 587.50Total Assets 2,821.9 2,821.9 2,848.2 4,648.9 4,648.90 4,356.50Net Sales 2,928.6 3,484.1 4,795.50 4,823.70Weighted Shares Outstanding 88.0 87.6 98.20 99.20Share Price $ 30.9 $ 17.1 $ 86.24 $ 43.95Market Capitalization 2,715.2 2,715.2 1,495.1 8,468.77 8,468.77 4,359.84Current Assets 1,235.8 1,072.0 2,275.80 2,056.70Current Liabilities 449.4 +1.88449.8 747.30 674.10Long-Term Liabilities 544.6 552.8 +0.27 785.00 947.30Total Liabilities 993.9 1,002.6 1,532.30 1,621.40Retained Earnings 2,183.7 2,244.9 2,915.30 2,465.50Working Capital 786.5 622.2 1,528.50 1,382.60 Z Score 4.23 4.23 4.07 4.07 6.11 6.11 4.34 4.34
  • Comparative Bankruptcy Balance Sheet Abercrombie & Fitch B/S Value B/S Value Bankruptcy Bankruptcy$Millions, except for Share data Coefficient 2009 2008 2009 2008Current AssetsCash and Equivalents 1 680.1 522.1 680.1 522.1Receivables 0.8 0.8 90.9 53.1 72.7 42.5Marketable Securities 0.8 0.8 32.4 0.0 Share 25.9 0.0Inventories 0.3 0.3 310.6 372.4 Price: 93.2 111.7Other Current Assets 0.8 0.8 77.3 80.9 61.8 17.1 $ 64.8Total Current Assets 1,235.8 1,028.6 933.7 741.1Property and Equipment 0.5 0.5 1,244.0 1,398.7 622.0 699.3Non-Current Marketable Securities 0.5 0.5 141.8 229.1 70.9 114.5Other Assets 0.5 0.5 200.2 148.4 100.1 74.2 ShareTotal Fire Sale Assets 2,821.9 2,821.9 2,804.8 2,804.8 1,726.7 1,726.7 41.82% 1,629.2 1,629.2 Price:Total Current Liabilities 1 1 449.4 %449.8Net Cash $ 30.9 1,277.4 1,179.4Total Long-Term Liabilities 1 1 544.6 552.8Sub Total 732.8 732.8 626.6 626.6Preferred Stock 0.0 0.0Liquidation Value 732.8 732.8 626.6 552.8Common Share Outstanding 26.96% 88.0 87.6Net Liquidation Share $8.33 $8.33 $7.15 $7.15
  • Comparative Bankruptcy Balance Sheet Polo Ralph Lauren$Millions, except for Share data Coefficient B/S Value 2009 B/S Value 2008 Bankruptcy 2009 Bankruptcy 2008Current AssetsCash and Equivalents 1 1 563.1 481.2 563.1 481.2Receivables 0.8 0.8 381.9 474.9 305.5 379.9Marketable Securities 0.8 0.8 0.0 0.0 0.0 0.0Short-Term Investments 0.8 584.1 338.7 Share 467.3 271.0 0.8 Price:Inventories 0.3 0.3 504.0 525.1 151.2 157.5Deferred Tax Assets 0 0 103.0 101.8 $ 43.95 0.0 0.0Other Current Assets 0.8 0.8 139.7 135.0 111.8 108.0Total Current Assets 2,275.8 2,056.7 1,598.9 1,397.6Property and Equipment 0.5 0.5 697.2 651.6 348.6 325.8Non-Current Investments 0.5 0.5 75.5 Share 29.7 37.8 14.9Deferred Tax Assets 0 0 101.9 102.8 0.0 0.0Goodwill Price: 11 986.6 966.4 493.3 483.2Intangible Assets 1 $ 86.24 363.2 348.9 109.0 104.7 35.15%Other Assets 0.5 0.5 148.7 200.4 74.4 100.2Total Fire Sale Assets 4,648.9 4,648.9 4,356.5 4,356.5 3,409.4 3,409.4 3,153.8 3,153.8Total Current Liabilities 1 1 747.3 674.1Net Cash 2,662.1 2,479.7Total Long-Term Liabilities 1 1 785.0 947.3Sub Total 1,877.1 1,877.1 1532.4 1,532.4Preferred Stock 0.0 0.0Liquidation Value 1,877.1 1,877.1 1532.4 1,532.4Common Share Outstanding 22.16% 98.2 $19.11 99.2 $15.45Net Liquidation Share $19.11 $15.45
  • Legal• Both of our companies Breach of are involved in legal contract proceeding and are Employment subject to claims like: issues• Those trials could have a negative impact on the Company’s reputation or relations with its employees, customers, licensees or other third parties
  • ANF AND RL IN THE NEWS
  • Hot News• Cotton soaring to all-time highs (tight market fear)• U.S. apparel retailers to take advantage of eco. recovery  boost prices (1st time in 10 to 15years) but will cause slowing inconsumer spending A&F to close one Distribution Center (DC) to trim expenditures  “hold down costs and raises some prices” (CEO M. Jeffries)
  • Cotton Futures Prices (Daily) +400% +90%
  • Hot News: Jeffries’ Whims “The chief executive of Abercrombie & Fitch is being paid $4m (£2.6m) to curb his personal use of the company plane.” BBC.com HERE I AM!“Mr Jeffries personal use of the planeaveraged about $850,000 a year between2006 and 2008.” BBC.com
  • Hot news• The long-awaited first Abercrombie & Fitch store has now opened in London• Youll find store models instead of shop assistants selling preppy all-American college clothes!!!!• A storm of publicity was generated by their half- naked models and sexed-up Bruce Weber ad campaigns
  • Hot News• New RL Gang • alligator Ricky 33 bag• 10th Anniversary of the • alligator Cooper Check Pink Pony collection Book Wallet• In support of the 10th • alligator cuff with anniversary, four pink Cooper Lock limited edition items • Stirrup timepiece in were created to help rose gold mark this momentous occasion
  • Thank you for your attention