Running Head: Financial Statement Analysis
Instructor: Michelle Estevez
Florida National College
October 05, 2009.
One of the purposes of this project is to compare and contrast the differences and similarities of Liz Claiborne for the last two years based in their income statements, financial ratios, and balance sheet. The reader would find information about the company and industry profile; therefore, this outline will show graphics to help you understand the situation and condition of this company at the stock market level. This study is based with the latest information of the corporation for the years 2007 through 2009.
Company Profile Liz Claiborne
Liz Claiborne Inc designs and markets a global portfolio of retail-based premium brands including Juicy Couture, Kate Spade, Lucky Brand Jeans and Mexx. In 1976, a relatively unknown dress designer, her textile-veteran husband and two partners established, Liz Claiborne Inc., a design-driven company that would revolutionize the fashion industry – from how women dress for work, to where product is source, to how it is sold into and at department stores. The concept was simple: Provide the ensemble-driven sportswear that had been available for many years at designer level prices through the likes of Calvin Klein and Bill Blass, but make it affordable for the working woman. Up until this point, department stores were by a large classification-oriented where pants, skirts and shirts were in a different department. Additionally, department store buyers were classified and not equipped to buy merchandise from one brand across product lines. The principal strategy for the last years is to perform a review of our operations to assets options that best evolve our strategy on sustainable, go-forward basics, also to reorganize the operations and management structure to reflect a brand-centric approach. The designed was to optimize the operational coordination and resource allocation of our business across multiple functional areas including specialty retail, outlet, apparel and non-apparel, E-commerce and licensing. The Company now operates via three distinct segments; Domestic-Based Direct Brands segments, International-Based Direct Brands segment and Partnered Brands segment. The Executive Management top level: William L. Mc Combo – Chief Executive Officer, Andrew Warren – Executive Vice President and Chief Financial Officer, Dave McTague – Executive Vice President Partnered Brands. Industry Profile
Liz Claiborne Inc, is an Industry Apparel Manufacturer, includes about 5000 companies that have combine annual revenue of about $ 10 billion. Products, operations and technology combined with different skills and equipment needed to produce different types of clothes, helps manufactures who specialties are this type of business. The largest product segments are women’s and girl’s outwear manufacturing (7 percent), men’s and boy’s pant manufacturing(5 percent), women’s and girl’s top manufacturing (6 percent), women’s and girl’s dress manufacturing (3 percent). The operations of most apparel manufacturers are similar. Designs for a piece of clothing are converted into cloth patterns along with a plan for the sewing steps needed to produce the finished product. Cloth is cut in various sixes (typically six to eight sixes) in a cutting room (or cutting plant), and is then sewn (or made-up) into finished items by individual workers at sewing stations, in a series of assembly-line steps that may require special sewing equipment. Finished goods are pressed, inspected and packaged for delivery The large labor content of the finished product has encouraged manufactured using the lowest-color labor available. The U.S apparel manufacturing industry has shrunk in recent years, as clothing companies have either moved plants offshore or outsourced production to foreign manufacturers. Wages in many countries are much lower than U.S;...
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