Comment on the net profit margin for these companies

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Reference no: EM132958562

CASE 1 SPECIALTY RETAILER 1. Abercrombie & Fitch Co.

(52 week fiscal year ended January 29, 2011; 52 week fiscal year ended January 30, 2010)

"Abercrombie & Fitch Co.....is a specialty retailer that operates stores and direct-to-consumer operations." 10-K

2. Limited Brands, Inc. (52 week fiscal year ended January 29, 2011; 52 week fiscal year ended January 30, 2010)

"We operate in the highly competitive specialty retail business." 10-K

3. GAP, Inc. (52 week fiscal year ended January 29, 2011; 52 week fiscal year ended January 30, 2010)

"We are a global specialty retailer offering apparel, accessories, and personal care products." 10-K

Date reviewed                Abercrombie & Fitch   Limited Brands      GAP

                                         2010          2009                 2010      2009       2010  2009

 

Net profit margin            4.33           2.70             8.37         5.19          8.21    7.76

Return on assets               5.21            2.78           11.82        7.07       16.00  14.17

Return on total equity     8.08           4.30            43.98       21.63     26.84   23.76

Required:

a. Comment on the net profit margin for these companies. Consider absolute amounts and trend.

b. Comment on the return on total equity or these companies. Consider absolute amounts and trend.

c. Comment on the relative probability of these companies.

Reference no: EM132958562

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