Padini's Financial Ratio

6487 Words Jun 21st, 2011 26 Pages
Question (a)
Company’s Background

History Padini Holdings Berhad began as a backend operation in Malaysia’s clothing and accessories industry. It has entered the new millennium as a major force in Malaysia’s multibillion textiles and garments industry. It is now a brand leader involved in the manufacturing, distribution and retail of its own fashion labels through 190 freestanding stores and in-house outlets. Besides operating in Malaysia, they have also carried the Made-in-Malaysia stamp abroad proudly. Its products were being exported to Singapore, Thailand, Brunei and West Asia now. The company is headquartered at Selangor Darul Ehsan, Mayalsia. Due to its vast amount of export in products, Padini is often mistaken as a
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One of them would be having frequent sales offers. Sales generate customers and it is the main attractive magnet to why consumers would enter a certain store or outlet. During sales, the group releases stockpiles of more affordable and yet good quality merchandise that is further discounted. This strategy will attract more customers into spending, but the difference would be spending with quality and affordability. Adding to that, the introduction of the Padini Concept store in 1997 has contributed to a significant boost to the group’s brand identity and the brand presence of its labels. The large 16 standalone multi-brand stores have paid off not only in reducing rental and operational costs, but they have become must-see destinations for shoppers. During the downturn, the group focused on its bargain-friendly Brands Outlet stores. Introduced in 2007, Brands Outlet features Padini designs, but with more affordable fabrics and lower-cost production resulting in rock-bottom prices. The Brands Outlet stores have been a growth driver for the Padini group, contributing around RM54.6 million in sales of the brand’s own products. Overall, the Brand Outlet stores contributed 10% of the group’s FY2010 total sales revenue.

Question (b) Ratio analysis is very important to analyze the success, failure, and progress of the business. Ratio Analysis enables the business manager to compare its performance with the previous performance and

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