cASE 6 HOLLY FASHIONS RAT I O A N A LYSI S Billion-dollal a pparel c ompanies s uch a s C alvin K lein a nd L iz C laiborne a re unusual i n t he g arment i ndustry, w hich c onsists p rimarily o f m uch s malier apparel m akers. O ne s uch f irm i s H olly F ashions ( HF), l ocated i n C herry F lill, New J eriey. H F w as s tarted 1 4 y ears a go b y W illiam H amilton a nd J ohn W hite, who b etween t hem h ad o ver 2 5:yearso f e xperiencew ith a m ajor g arment m anufacturer. A nd t he p artnership i nitially b lended v ery w ell. H amilton, r eserved and i ntrospective, i s e xtremely c reative w ith a r eal f lair f or m erchandising a nd trend s potting. M ainly a s a r esult o f h is g enius, t he H F l abel i s s ynonymous with …show more content…
2. P art o f H amilton's e valuationw ill c onsisto f c omparingt he f irm's r atios t o . the industry numbers shown in Exhibit 3. (a) Discuss the limitations of such a comparative financial analysis. (b) In view of these limitations, why are such industry comparisons so frequentlym ade? 3, Hamilton thinks thai the profitability of the firm to the owners hasbeenhurt by White's reluctanceto use ftuch inteiest-bearing debt. Is this a reasonable position?E xplain. 4. The case mentions that {hite rarely takes trade discounts, which are typically 1 /10, n et 3 0.D oest his s eeml ike a w ise f inancialm ove?E xplain. 5. C alculatet he c ompany'sm arket-to-book dV/BV) r atio. ( Therea re 5 ,000 O shares f c ommons tock.) o 6. Hamilton's position is that White has not competently managed the firm. Defend this position using your previous an.swers nd other information in a the c ase. 38 PARTII FINANCIAL ANALYSIS 7. Vy'hite's position is that he has effectively managed the firm. Defend this position using your previous answers and other information in the case. 8. Play the role of an arbitratoi. Is it possible based on an examination of the firm's r atios a nd o ther i nformation i n t he c aset o a ssessW hite's m anagerial competmce? Defend your position. 9. ( a) A re t he r atios y ou c alcul:ited b ased o n m arket o r b ook v alues? E xplain. (b) W ould y ou p refer r atios b ased o n m arket c ir b ook v alues? E xplain. EXHIBIT 1
For the past hundred years the need for clothing increased since the number of people of keeps growing. As the years go on, producers must find new ways to produce more clothing to make more profit and keep up with demand. Before people would either have to ride all the way into town to have tailors make their clothes, or have someone at home make the clothing for them. But as the years progressed, methods have changed dramatically.
Identify the letter of the choice that best completes the statement or answers the question.
E 6. B 7. E 8. B 9. A 10.
B.“From a very early age, children are motivated to learn how to speak, because speech enables them to interact with other people and, ultimately, to get what they want.”
The company is the corporation’s question mark performer and has the potential of becoming a star performer given the limited competition in the market. The company has the advantage of the parent corporation’s 25-year-old positive reputation as a local family owned business known for the quality of their products.
Identify the letter of the choice that best completes the statement or answers the question.
80 billion clothing items are produced every year. About two million tons of clothes is thrown away every year. The clothes often cannot be resold due to lack of quality. Only about 10% of clothes are resold. ¾ of the clothing’s manifested from fast fashion labels will end up in a land fill after a year after it is put out for consumers to buy.
Once George’s results are scored, the next step improve his improve his overall weekly spelling average will be to create a spelling log. This spelling log will act as a communication link between George’s mom and his teacher.
An example of phonological awareness is a child being able to recognize that “sat” and “hat” rhyme. When a child is asked what rhymes with “sat” they should be able to produce a word such as “cat”.
Of the hundreds of named brand clothing that form part of the retail and fashion industry I chose to compare, for my analysis, Abercrombie & Fitch, Forever 21, American Eagle, and H&M. These stores are prominent, well-known for selling apparel, shoes, and accessories by the means of offering sales and promotions to their customers. This is a clever strategy for attracting customers, allowing them to believe that they bought goods at affordable, convenient prices – and not to mention the prestigious name prescribed to the clothing brands. Using keyhole.co as my main source, I obtained relevant and valuable information regarding the status of these brands. My intentions were to compare a period of 14 days, however, due to the limited access that I received from my free trial, the program only allowed me to see fewer of the dates than I anticipated. I want to take this opportunity and mention ahead of time that due to the various and distinctive products that are sold from these stores, when looking for the “spending capacity” I decided to focus on shirts/ jeans for men and women and compare the prices among them since each of these retailers carry those items and as a way to make this report easier to contrast and comprehend. Also, when approaching the section of “setting”, I screen-shotted some of the images on Instagram and made them into a collage to separate the type of clothes and trends that each of these brands sell currently. In the following modules
It is important for stockholders to continuously re-evaluate their investments. Although some investors do this more frequently and thoroughly than others, the majority of shareholders do so at least once each year. Therefore, Torres’ desire to update her analysis in order to determine whether Costco was still operating efficiently makes perfect sense. After thorough examination, my analysis proves that Costco remains one of the industry’s leading competitors and there seems to be no reason for Torres to sell her shares as long as she wishes to retain holdings of a retail wholesale club in her portfolio.
2. Richard M. Johns (2006). The Apparel Industry. 2nd ed. UK, London: Blackwell Publishing Ltd.. 1-124.
Ability to regularly supply their product by manufacturing in 1971 to guarantee appropriate clothing in quantities needed and cut distribution