MICHAEL NGUYEN
JENNIFER NGUYEN
TRANG VU
FRANCESCA’S
- Francesca’s operates a chain of
retail boutiques: Apparel,
jewelry, accessories, and gifts.
- Market Capital: 813 Million
- Target audience is female: 18 to
35.
- Founded in 1999 and
headquartered in Houston, TX.
- Inventory valuation method:
Average cost.
- Employee: 762
ZUMIEZ
- Zumiez, Inc. operates as a
multi-channel specialty
retailer of action sports
related apparel, footwear,
accessories, and hardgood.
- Market Capital: 894 Million
- Target audience is 12 to 24
- Founded in 1978 based in
Lynnwood, Washington
- Inventory valuation method:
Average cost.
- Employees: 1,700
AEROPOSTALE
- Areopostale operates as a mall-
based specialty retailer of casual
apparel and accessories.
- Market Capital: 687 Million
- Their target audience is 14 to 17
age group.
- Founded in 1987 and headquarters
in New York, New York.
- Inventory valuation method:
Average cost.
- Employees: 4,205
Sales and Store count
Sales per sq.foot
Store Count
700
1200
600
1000
500
800
2009
600
2010
400
2009
2010
300
2011
2011
400
200
200
100
0
0
Zumiez
Aeropostale
Francesca's
Zumiez
2009
377
2010
400
2011
444
Aeropostale
952
1012
Francesca's
147
207
Zumiez
Aeropostale
Francesca's
2009
2010
2011
Zumiez
367
396
411
1057
Aeropostale
624
626
561
283
Francesca's
429
508
554
COMMON SIZE- INCOME STATEMENT
ZUMIEZ
AEROPOSTALE
Net sales
2009 2010 2011 2009
100% 100% 100% 100%
Cost of goods sold
67%
65%
64%
62.01% 63.08% 74.03%
47%
48%
48%
Gross profit
33%
35%
36%
37.99% 36.92% 25.97%
53%
52%
52%
Selling, general and
administrative expenses
Operating profit
30%
27%
25%
20.83% 20.80% 21.13%
31%
30%
31%
3%
8%
11%
17.16% 16.11% 4.85%
1%
2%
Interest expense
2010
100%
2011
100%
FRANCESCAS
2009 2010 2011
100% 100% 100%
0.005% 0.02%
22%
21%
18%
Earnings before income taxes
3%
8%
11%
17.17% 16.11% 4.83%
13%
12%
11%
Net income
2%
5%
7%
10.29% 9.64%
-65% 12%
11%
2.97%
COMMON SIZE- BALANCE SHEET
ZUMIEZ
AEROPOSTALE
FRANCESCAS
ASSETS
2009
2010
2011
2009
2010
2011
2009
2010
2011
Cash and cash equivalents
0.60%
3.80%
4.10%
43.79%
34.34%
30.43%
44.11%
21.17%
19.42%
Receivables
2.20%
2.00%
1.70%
1.60%
6.86%
2.98%
Inventories
19.60%
18.70%
18.00%
16.78%
20.25%
22.24%
20.44%
20.23%
20.31%
Total current assets
66.70%
66.60%
70.00%
66.90%
60.73%
60.09%
71.49%
53.65%
49.84%
Goodwill and intangibles
5.10%
4.40%
3.60%
Total assets
100%
100%
100%
100%
100%
100%
100%
100%
100%
Accounts payable
6.50%
5.40%
6.00%
11.47%
13.32%
14.07%
8.65%
10.40%
11.93%
Total current liabilities
15.30%
15.10%
15.30%
30.52%
27.95%
26.28%
19.28%
31.28%
25.61%
Total long-term liabilities
10.70%
9.80%
9.50%
14.64%
16.10%
18.03%
0.00%
148.63% 30.42%
Total liabilities
26.00%
24.80%
24.80%
45.16%
44.05%
44.31%
26.39%
193.82% 76.63%
Total shareholders’ equity
74.00%
75.20%
75.20%
54.84%
55.95%
55.69%
73.61%
-93.82%
23.37%
Total liabilities and
shareholders’ equity
100%
100%
100%
100%
100%
100%
100%
100%
100%
LIABILITIES
LIQUIDITY
CURRENT
QUICK
5
3.5
4.5
3
4
2.5
3.5
3
2.5
2
2009
2
2009
2010
1.5
2010
2011
1.5
1
2011
1
0.5
0.5
0
0
ZUMIEZ
AEROPOSTALE
FRANCESCAS
Zumiez has the most ability to make change
because they have so much cash on hand
ZUMIEZ
AEROPOSTALE
FRANCESCAS
PROFITBILITY
RETURN ON ASSET
GROSS PROFIT MARGIN
40%
40%
30%
2009
20%
10%
AEROPOSTALE
2009
2010
20%
2011
10%
0%
ZUMIEZ
30%
2010
2011
0%
FRANCESCAS
ZUMIEZ
NET INCOME
AEROPOSTALE
FRANCESCAS
RETURN ON EQUITY
20%
150%
0%
Zumiez
-20%
Aeropostale
Francesca's
2009
2010
-40%
100%
2009
50%
2010
2011
2011
-60%
0%
-80%
-50%
ZUMIEZ
AEROPOSTALE
FRANCESCAS
LEVERAGE
DEBT RATIO
2.5
2
1.5
2009
1
2010
0.5
2011
0
ZUMIEZ
AEROPOSTALE
FRANCESCAS
DEBT EQUITY
4
3
2
2009
1
2010
0
-1
ZUMIEZ
AEROPOSTALE
FRANCESCAS
2011
-2
-3
TIME INTEREST
3500
3000
2500
2000
2009
1500
2010
1000
2011
500
0
ZUMIEZ
AEROPOSTALE
FRANCESCAS
INVESTOR ANALYSIS
EARNINGS PER SHARE
3
2.5
2
1.5
1
0.5
0
-0.5
-1
-1.5
-2
-2.5
CASH FLOW RATIOS
3.00
2.50
2009
2010
ZUMIEZ
AEROPOSTALE
FRANCESCAS
2011
2.00
2009
1.50
2010
2011
1.00
0.50
0.00
ZUMIEZ
P/E
AEROPOSTALE
FRANCESCAS
Stock Chart from 2011- current
Fran
Zumz
Aro