Interco Summary of the Case Even before we go into the specifics of the case‚ we can point out a few important pieces of information from the case: 1) Interco management and Wall Street analysts believed that the apparel group’s performance would continue to weaken Interco’s overall operations and cause the equity markets to undervalue its common stock. Case Page 4. 2) To deter any unwanted third- party acquisition‚ the board voted on July 11‚ 1988‚ to amend Interco’s shareholder rights plan‚ making
Premium Stock Stock market
HBS Case Study : Interco 9-291-033 • Started out as shoe company – been around a long time • Business has spread to other consumer products / services through acquisitions • Fairly conservative financially‚ debt level is relatively low • Interco has moved away from apparel and general retail (went from 59% to 40% of total sales) • Placed more emphasis on the footwear division. (acquired Converse in 1986)• • Placed much more emphasis on the furniture division (sales rose from 20-33% of Interco’s
Premium Stock market Stock
Interco Case Study Interco’s Business Interco was comprised of four major divisions: Apparel‚ General Retail‚ Footwear‚ and Furniture and Home Furnishings. Each operating division had multiple independent companies that designed‚ manufactured‚ and distributed their products. The apparel group included eleven different companies whose products included private-label sportswear‚ casual apparel‚ and a number of other apparel items. The general retail operation had 201 locations in fifteen states.
Premium Stock Stock market
Interco case Introduction Interco is retail a company with essentially four major operating divisions: Apparel Manufacturing‚ General Retail Merchandising‚ Footwear Manufacturing and Retailing. The business climate in 1988 was questioned; cheap imports hurting the profitability of the Apparel group in the US‚ due to less consumer spending the retail group had to deal with decreasing profits. However‚ the furniture and home furnishing group experienced positive circumstances in demographic developments
Premium Corporate finance Free cash flow Discounted cash flow
Interco Case Study Interco’s financial performance was moderately successful for the 1988 fiscal year. Interco’s current ratio (3.6 to 1) and debt-to-capitalization rate (19.3%) indicate that the company is financially flexible. Furthermore‚ both overall sales and net income increased from the previous year (1987) due largely to the strong performance of Interco’s furniture and footwear divisions. Sales in 1988 increased by 14.7% in the furniture division and 34.2% in the footwear division.
Premium Cash flow Stock market Stock
1988‚ which would signal that its turnover was slower in 1987 and faster in 1988. The accounts payable days increased in 1987 while slightly decreasing in 1988. This is a healthy trend as Interco was able to take longer to pay off its current expenses than the past. When looking at the company collectively‚ Interco also looks healthy‚ with sales increasing 4.04% in 1987 and 13.39% in 1988. Its earnings also increased 4.51% in 1987 and 13.97% in 1988. However‚ if closer examination is undertaken‚
Premium Cash flow Stock
Interco Case Analysis Group 6 2010-10-15 SAIF Interco Case Analysis 1) Company Background Interco was founded as International Shoe Company in 1911 as a footwear manufacturing company. By 1966‚ Interco was a major manufacturer and retailer of consumer products and services. Most of Interco’s growth during this period was through the acquisition of related businesses. In 1988 Interco was made up of 4 main business segments: * Apparel Manufacturing * General Retail Merchandising
Premium Stock Investment Finance
Interco | | | | | | | | Formerly a footwear manufacturing company‚ Interco developed into a diversified company that comprised subsidiary corporations in four major business areas: apparel manufacturing‚ general retail merchandising‚ footwear manufacturing and retailing‚ and furniture and home furnishings. Due to the fact that Interco ’s subsidiaries operated as autonomous units and lacked integration between its operating divisions‚ the company is particularly vulnerable
Premium Free cash flow Discounted cash flow Weighted average cost of capital
Case Interco Introduction Interco is a shoe company founded in 1911. Its business has spread to other product through acquisitions. Equity analysts saw Interco as a conservative company that was not highly leveraged leading to high financial flexibility. This allowed the firm to repurchase share and make acquisitions when the opportunities were there. Interco has four major divisions; Apparel Manufacturing‚ General Retail Merchandising‚ Footwear Manufacturing and Retailing and Furniture and Home
Premium Management Learning Investment
Introduction & Financial performance Interco originally began in 1911 as International Shoe Company and changed to Interco in 1966. It expanded into the consumer goods market mainly through acquisitions. In 1988 too‚ the company was a major manufacture of furniture‚ men’s footwear‚ and apparel‚ owning many American iconic brands such as Ethan Allen‚ London Fog‚ Converse and Florsheim. The firm’s financial goals included: 1. Improve long term sales and earnings growth 2. Improve return of shareholders’
Premium Stock market Capital Proposal