preview

Financial Statement Analysis: Dsw Shoes & Payless Shoes

Better Essays

Page 1 of 28
FINANCIAL STATEMENT ANALYSIS
DSW SHOES INC. & PAYLESS SHOESOURCE
BY: EULALIA RAMIREZ
Page 2 of 28
TABLE OF CONTENTS
SECTION PAGE
Executive Summary………………………………………………………. ……… 3
Firm Background and Competitive Environment………………………. 4
Significant Risks…………………………………………………………………… 5
Financial Statements…………………………………………………………….. 6
Profitability………………………………………………………………………….. 19
Liquidity……………………………………………………………………………… 22
Asset Management……………………………………………………………… 26
References…………………………………………………………………………. 28
Page 3 of 28
I. EXECUTIVE SUMMARY
The shoe retail business is a competitive field. According to the Annual Retail
Trade Survey conducted by the Bureau of Census, shoe retail trade registered sales of
21,627 billion in 2003 in the …show more content…

SIGNIFICANT RISKS
The Footwear Retail Industry faces a variety of competitive challenges from other domestic and international footwear retailers, including a number of competitors that have substantially great financial and marketing resources.
Over the last few fiscal years, the Specialty Retail Industry has been boosted by a healthy economy, good employment numbers, and low interest rates that have made money and debt “cheap” and saving less attractive.
However, more recently, interest rates have risen, the housing market has cooled significantly, and gas prices have at times reached over $3.00 a gallon. Nevertheless, despite these factors, the industry continues to solid revenues at a slow but constant rate. Among the many significant risks currently in the market, we might find pricing of merchandise, product availability based on consumer demands, marketing support, shopping environment, assortment of merchandise, customer service, etc,.
Looking ahead, however, I believe a continued housing market contraction, maintained or higher interest rates, or a slowing economy could eventually lead to a more challenging business environment.
Page 6 of 28
IV. FINANCIAL STATEMENTS
The information listed in this section is the financial statements of DSW Shoes
Inc. and Payless Shoesource fiscal year ended January 2,007, January 2,006 and
January 2,005.
Excluding the common-sized statements, the financial statements information presented in this report are stated as filed in

Get Access