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Kelly Bossolt
MartaKovorotna
Sarah Smith
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Executive Summary:
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Industry Overview
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Company History
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Financial Analysis
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Internal Analysis
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External Analysis
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Recommendations
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Questions
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Industry Overview:
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How big is the apparel retail industry?
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2008:
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Grew 3%
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Valued at $1,025.9 Billion
2013
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Said to increase by 15%
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Consumers have power
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Technology is crucial:
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Maintenance and Inventory
Outsource vs. In house
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Company History: Growth in the early years
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Leslie Wexner:
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1963:
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$5,000=Birth of The Limited
Year One:
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
Founder
Exceeded goal to gross $100,000 by
$62,000
1965:
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Corporate headquarters
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100 employees
1968:
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Sales reach $1 million
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Company History: Growth in the early years
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1969:
 IPO
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1978:
 Purchased of Mast industries
 Gained access to 150 production facilities
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1982:
 NYSE
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1986:
 Sales reach $3 billion
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1989:
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Forbes rates The Limited Brands Inc. 1st in growth and profitability
2003:
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FOURTUNE : “World’s most admired specialty retailer”
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Financial Analysis: Industry and Competitor
Comparison
Company:
EBITDA 2011:
Debt-to-Equity 2011:
Price-to-Earnings 2011:
Ltd Inc.
1.72B
311.45
14.57
Abercrombie & Fitch
567.24M
3.66
16.11
Gap Inc.
2.52B
33.04
10.38
LVMH Moet Henessy, LV 5.11B
28.93
20.5
Industry
31.13
28.78
11.92B
Pros:
Cons:
Strong P/E ratio
Highly leveraged with $3.11 of debt to every
dollar of equity. Industry average is $.31.
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Financial Analysis: 2010
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90,000 associates
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2,600 stores in the U.S.
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5 brands
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Record Sales of $9.6 Billion
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Internal Analysis: The Brands
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Internal Analysis: Resources
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Quality
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Reputation
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Market Position
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Store Locations
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Technology
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MAST
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Internal Analysis: Capabilities
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Brand Equity
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Lean Inventory
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Inventory Turnover
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Premium Prices
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International market
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Sourcing & Logistics
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Internal Analysis: Competitive Advantage
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Brand Name
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Technology
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Consumer Market (NOT market share)
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Internal Analysis: Sustaining Competitive Advantage
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Easy Imitation
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Differentiation
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Slow and Steady
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360 Degree Brand Potential
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External Analysis: Customers
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Target markets
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Merchandise seasonal transition
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New product lines
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Top fashion
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Higher prices
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Unique items
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Seasonal Sale
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Slower economy
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Frequent sales
Higher markdowns
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External Analysis: Complements
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Victoria’s Secret & Pink
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La Senza
 Body and skin care products
 Fragrances
 Makeup
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Bath & Body Works
 Gift wraps
 Accessories
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Henry Bendel
 Home fragrances and candles
 Beauty and fragrance
 Gift wraps
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External Analysis: Suppliers and Partners
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More than 1,000 suppliers
around the world
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MAST
Supplier Diversity Program
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Accel, Inc.
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Tara Abraham
Millcraft Paper Company
World Financial Capital Bank
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External Analysis: Suppliers and Partners
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Business Council for Global
Development
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Trade, Aid and Security
Coalition
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Pacific Links Foundation
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American Association of
Textile Chemists and Colorists
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Consumer Specialty
Association
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National Candle Association
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External Analysis: Suppliers and Partners
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US EPA Climate Leaders,
WasteWise, SmartWay
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Forest Ethics
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Recognition
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2005 EPA Gold Achievement
Award
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2007 EPA Environmental
Excellence Award
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2011 1st place Team in
Komen Race for Cure
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External Analysis: Substitutes and Competition
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Gap
 Banana Republic, Old Navy,
Piperlime, Athleta
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LVMH Moet Hennessy Louis
Vuitton
 Dom Perignon, Fendy, Marc
Jacobs, DKNY
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Hanesbrands
 Hanes, Champion, Playtex,
Bali, Just my Size, etc.
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American Eagle’s Aerie
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Abercrombies’ Gilly Hicks
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External Analysis: Substitutes and Competition
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Sephora
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Christian Dior, Guerlain,
Givenchy, etc.
The Body Shop
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L’oreal
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Recommendations:
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International Growth
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Reduce the Debt-to-Equity ratio
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Sell More, Offer Less
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Relationship Building
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Questions???