Saks Fifth Avenue vs. Neiman Marcus - A Detailed Company Analysis Using Balance Sheets and Income Statements

Weaknesses - Although Nordstrom has substantial strength, the organization is not without weaknesses. First, although Nordstrom’s has a superior selection in comparison to the majority of other retail clothing companies, their quality also comes at a cost that many consumers are not willing to pay. In a period of economic instability and uncertainty, consumers are turning to online retailers such as Amazon in order to fulfill their clothing needs. Moreover, consumers are looking for more convenient ways of purchasing products and clothing is typically something where overnight shipping is acceptable versus an immediate need. Additionally, another weakness of Nordstrom is the geographic dispersion of their retail locations which are most commonly associated with shopping malls. Coincidentally, shopping malls are also struggling to compete with online retailers, thus Nordstrom experiences less opportunistic walk-in customers. On the same token, the opportunity costs for underserved

In 2005, Reitmans opened 57 new stores, remodeled 26 stores and closed 35 stores. Future plans include opening 42 new stores and remodeling 22 stores for 2006. Profitability has grown more than 100% over the last 3 years and the company will continue to seek out new business opportunities. Reitmans currently leases two retail locations which are owned by a related party and has investments in marketable securities, primarily high quality preferred shares and income trusts. Investment income for fiscal 2005 amounted to $9,639,000 (net capital gains of $3,651,000) compared to $9,584,000 (net capital gains of $2,605,000) last

The purpose of this term paper is to discuss the similarities and differences between Talbots Inc. ("Talbots") and Chico's FAS Inc. ("Chico's"). This paper will detail the nature of each company's respective business, past financial performance, and expected future outlook. The paper is divided into two sections. The first section will discuss each company's history, business structure, and future plans independently from each other. The second section will discuss several important financial ratios and provide a detailed analysis comparing the two companies. By the end of this analysis, the reader will have a better understanding of these two retailers and the industry in which they operate.

Macy's is one of the premier retailer franchises within the United States. To begin, Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isadora, 2011).Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. Macy's, with its ride array of assortments and products continues to grow as it attempts to capture market share from failing competitors. Macy's is also unique as it operates in a unique market

          According to Wiki Invest, in 2006, Foot Locker’s company-wide operating margin dropped; so the company decided to close numerous stores in order to improve profitability. The company developed a strategy to open new stores, relocate existing stores, and close down the weak stores. The strategy continued throughout 2007 and 2008. However, Foot Locker experienced another decrease in 2008, generating only $5.24 billion in total revenue, which was a 3.7% decrease from their 2007 sales. Struggles continued in 2009 as retail revenue dropped to $4.85 billion, however, its net income increased compared to the $-80 million the previous year. Finally, Foot Locker experienced a strong third quarter due to a combination of strong

Nordstrom’s was established in 1901 and was a retail store for shoes. Among the stores many goals was to offer a wide selection of merchandise with outstanding quality and service. It was twenty two years before they added a second store, and eventually became one of the largest shoe store chains in the United States. They began offering clothing and accessories for the entire family. Right now, they are one of the top luxury retailers with over 320 stores in 29 states in have expanded into Canada. I have chosen to explore the financial health of Nordstrom from 2013-2014 and also compare it to one of its top competitors; Macy’s. Its other competitors in the market are Dillards, and Neiman Marcus.

The most current financial report shows, payables of $7,237 (millions). The account payables added up to $6,651 (millions). The category makes up most of the payables. Next is the accrued expenses at $984 (millions). The last is current debt, this being the second largest payables account at $1,305 (millions).

Macy’s, Inc. is known as the one of the leading retail corporations worldwide. It offers its customers a wide range of products including clothing, footwear, jewelry, beauty products, and even home décor. Macy’s has opened more than 800 stores across the U.S. and reported fiscal year (FY) 2009 sales of $23.5 billion. Although Macy’s is a prominent retailer today, their success had to start somewhere. In this summary we will take a glance at Macy’s history as well as their prior and current financial information.

I have had a bad shopping experience at Neiman Marcus in Scottsdale, Arizona. I went specifically to Neiman Marcus to purchase a pair of earrings that are only sold in that store. The product was a high-end pair of earrings; the earrings are high end because they are made by an artist. The reason I wanted to purchase the earrings was because I had lost a pair that were made by that artist. I made the purchase in-store at Neiman Marcus because I wanted to see the earrings in person before buying a new pair. This was not an impulse purchase, I had been wanting to replace the lost pair of earrings for months before the purchase. The experience I had when purchasing these earrings was unsatisfying due to the salespeople in the store. The

As one of the major retailers in the United States, JCPenney has 1,104 department stores in 49 states and Puerto Rico as of February 2, 2013. The key success of its business is tremendously depending on the sales performance. However, the retail business is highly competitive, with low barriers to entry and low profit margin. Due to large sales plunge in 2012, the company is in financial trouble. The thorough analysis of JCPenney’s financial statements is vital to judge the future performance of its business.

1. Arredondo, Inc. has current assets of $2,170, net fixed assets of $9300, current liabilities

Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isidore, 2011).Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. This performance is primarily due to the core functions and operations of the business. Planning, organizing, leading, and controlling. Macy's excels at these forms of management, which has allowed the company to perform at a higher level relative to its peers in the industry.

Recommendation: Recognize the money when the sale happens, as of now, 30 million worth of equipment should be in the inventory. Even though 30 million inventory doesn’t look good in company’s interest, it will reduce the net income and will increase the current assets decreasing the Debt to Equity ratio.

Macy's is one of the premier retailer franchises within the United States. To begin, Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isadora, 2011).Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. Macy's, with its ride array of assortments and products continues to grow as it attempts to capture market share from failing competitors. Macy's is also unique as it operates in a unique market demographic. It is upscale, but not to the extent of Saks Fifth Avenue or a Nordstrom. It is also not as low scale as a JC Penny

(a) The Company has liquidity problem, whereby it is in a negative cash position, i.e. cash borrowings is higher than its own cash. At the end of Dec 2001, it is forecast to have a debt outstanding of INR3.5 million;