Below is the common-sized statement for the current calendar year fo Hugo Boss and Industry average, Industry Hugo Boss Average Sales 100% 100% Cost of Goods Sold 46.7% 45.2% Gross Profit 53.3% 54.8% Selling Expenses 12.9% 16.7% Administrative Expenses 13.1% 14.5% Total Operating Expenses 25.0% 31.2% Income from Operations 27.3% 23.6% Other Revenue 1.8% 1.2% 29.% 24.8% Other Expense(Interest) 1.0 0.9 Income Before Income Tax 28.1% 23.9% Income Tax Expense 9.8 8.4 Net Income 18.3% 15.5% Using the common-sized statement above, compare Hugo Boss with the industry average and identify strengths and weaknesses that Hugo Boss has to the industry. Does Hugo Boss need any course correction. What does it need?
- Below is the common-sized statement for the current calendar year fo Hugo Boss and Industry average,
Industry
Hugo Boss Average
Sales 100% 100%
Cost of Goods Sold 46.7% 45.2%
Gross Profit 53.3% 54.8%
Selling Expenses 12.9% 16.7%
Administrative Expenses 13.1% 14.5%
Total Operating Expenses 25.0% 31.2%
Income from Operations 27.3% 23.6%
Other Revenue 1.8% 1.2%
29.% 24.8%
Other Expense(Interest) 1.0 0.9
Income Before Income Tax 28.1% 23.9%
Income Tax Expense 9.8 8.4
Net Income 18.3% 15.5%
Using the common-sized statement above, compare Hugo Boss with the industry average and identify strengths and weaknesses that Hugo Boss has to the industry. Does Hugo Boss need any course correction. What does it need?
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