Mercury Athletic

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Mercury Athletic Footwear Valuing the Opportunity [Author] CASE ANALYSIS Mercury Athletic Footwear Table of Contents 1. Is Mercury an appropriate target for AGI? Why or why not? ............................ 3 2. Review the projections by Liedtke. Are they appropriate? How would you recommend modifying them? ................................................................................ 3 Men’s Athletic ........................................................................................................................... 3 Men’s Casual…show more content…
Many of the stores that on 2006 cancelled existing orders, could need some time to gain trust on Mercury. Moreover additional investment on brand image could be needed to gain credibility, which would punctually reduce de 16% operating profit to a 10-­‐12% figure. The following table summaries Liedke Men’s Casual forecast and Joaquin’s recommended modifications: 4 Mercury Athletic Footwear Liedke&Men's&Casual&forecast: Revenue Less://Operating/Expenses* Operating5Income 2005 !6% !7% !1% 2006 !7% !6% !9% 2007 1% 1% 1% 2008 2% 2% 2% 2009 2% 2% 2% Joaquin&Men's&Casual&forecast: Revenue Less://Operating/Expenses* Operating5Income !6% !7% !1% !7% !6% !9% !2% 2% !2% 1% 1% 1% 2% 2% 2% 2010 2011 3% 3% 3% 3% 3% 3% 3% 3% 3% CAGR5 04>11 !6,3% !6,4% !5,3% CAGR5 04>11 !0,3% !0,4% 0,0% CAGR5 07>11 2,5% 2,5% 2,5% 3% 3% 3% Women’s Athletic Sales of women’s athletic had grown on an average of 13.5% per year. One of the important factors was the increased participation of women on extreme sports that was growing the overall

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