I.T and Hauhaus

Only available on StudyMode
  • Download(s) : 134
  • Published : May 17, 2013
Open Document
Text Preview
Financial
Analysis
Report

Bauhaus & I.T
(Financial year 2010/2011)

Content
1)Summary
2)Company background
3)Industry outlook
4)Ration analyses
5)Limitation on analyses of ratio
6)Forecast of the company’s future prospect
7)Conclusion

1)Summary
Bauhaus and I.T are the two fashion retail store company to be compared in this report. These two companies present the similarity on the brand image (unique multi-brand) and share the resembling target customer in the same region. They are target on fashion lovers who tend to be unique, stylish and trendy. As they are the competitor within the market, the retailing strategies to be used are similar. Therefore, it is easier to collect and compare the financial data and draw out the conclusion to see which company would be worthier to invest. The report covers the company and industry background, ratio analysis, future forecast of two companies’ performance.

2)Company Background
Bauhaus (0483, HK)
Bauhaus was found in 1991. It has been listed on HKEX stock market since 2005. There are more than 200 retails store and over corners and point of sales in Hong Kong, Macau ,mainland China and Taiwan,. Apart from selling different foreign brand, liked Cheap Monday, G-Star, EVISU etc, Bauhaus also building the local brand liked Salad, T Tough Jeansmith and 80/20. It is a leading retail store in selling casual wear, especially for jeans item. There are 234 Bauhaus shops in Asia. Using the wholesale strategy, Bauhaus can expand the business from Asia to Western country. In the future, it may diversify its product line like launch more foreign brand to increase its competiveness. I.T (0999, HK)

I.T was found in November of 1988. It has been listed on HKEX stock market since 2005. The Group has an extensive self managed retail network extending to nearly 450 stores across Greater China with staff around 4,800. The brands are well accepted in Thailand, Saudi Arabia, Australia, the Philippines and France. More stores will be opened in these places in the future. The feature of I.T retail store is group several brands in a sizable retail location. It owns a number of in-house brands liked 5CM, fingercroxx and X-large, as well as distributing European and Japanese designer’s brands such as French Connection and A Bathing Ape Comme des Garcons, D&G, etc. 3)Industry Outlook

Hong Kong is one of the fashion hubs in Asia. There are a wind variety of local and international fashion brand locate there flagship store in Hong Kong. The competitive is dynamic and incentive. Hong Kong consumers are willing to spend money on fashion and clothing. As the purchasing power of is high, so the demand of fashion product is huge. According to CIA THE WORLD FACTBOOK, this entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. From this result, Hong Kong is ranking to 37 after compared to 227 countries in the year of 2010. According to the information from Asia Case Research Centre (ACRC), it shows that retail is the 2nd largest sector in the service industry that accounted for 85.7% of Hong Kong's GDP. Also, The Census and Statistics Department (C&SD) indicate that the value of total retail sales in October 2011, provisionally estimated at $34.2 billion, increased by 23.1% over a year earlier. Analyzed by broad type of retail outlet and comparing October 2011 with October 2010, wearing apparel increase 14.6%; footwear, allied products and other clothing accessories increase 11.3%. This data proofs that the demand of fashion items is huge and purchasing power in this region is relatively high. Besides, tourists come to Hong Kong are increasing each year; they bring with high purchase power in fashion items, especially those Chinese tourists. According to the statistics released by the Immigration Department, about 800,000 to 900,000 Mainland visitors travel to Hong Kong...
tracking img