fiancial analysis
Introduction
Burberry Group plc is a British luxury fashion companies which has involved in manufacturing clothing, fragrance, and fashion accessories. By the end of 2011, the Burberry Group Plc has a large amount of branded stores and franchises across the world. One of the most famous products of Burberry Group is iconic trench coat, which is firstly found by Thomas Burberry. In the 2002, the Burberry Plc was initial listed on the London Stock Exchange and is constituent of the FTSE 100 Index. According to Business Weekly, Burberry is the 98th most valuable brand across around the world.
Another famous luxury brand is American brand Guess, which mainly operate clothing while it also involved in other fashion accessories, such as watches, jewellery and perfumes. Today Guess has one of the most famous fashion brands which involved in nearly every fashion areas. Guess Inc has over 8,800 employees across the world and it has been estimated that Guess has achieved revenue $ 1.19 billion with net income $ 123.2 million in 2006.
This paper attempts to compare these two famous luxury brands by comparing their strategies and financial performance. At the beginning the different strategies of these two firms will be compared. And then, this paper would highlight financial performance of each company and the accounting quality will also be analysis for the highlighted financial information. After that, the ratio analysis would be carried out in accordance with the decomposition framework. This paper is end by the discussion of the conclusions that have been drawn, and this paper is going to identify the financial issues according to financial analysis results.
Strategic Review: Core competencies, context strategic and financial issues analysis.
Luxury Brands Industry Review
Recently, it is fair to say that once again luxury has performed extremely well in the situation that global economy is facing risk of long term recession. The majority of luxury brands (
Burberry Group plc is a British luxury fashion companies which has involved in manufacturing clothing, fragrance, and fashion accessories. By the end of 2011, the Burberry Group Plc has a large amount of branded stores and franchises across the world. One of the most famous products of Burberry Group is iconic trench coat, which is firstly found by Thomas Burberry. In the 2002, the Burberry Plc was initial listed on the London Stock Exchange and is constituent of the FTSE 100 Index. According to Business Weekly, Burberry is the 98th most valuable brand across around the world.
Another famous luxury brand is American brand Guess, which mainly operate clothing while it also involved in other fashion accessories, such as watches, jewellery and perfumes. Today Guess has one of the most famous fashion brands which involved in nearly every fashion areas. Guess Inc has over 8,800 employees across the world and it has been estimated that Guess has achieved revenue $ 1.19 billion with net income $ 123.2 million in 2006.
This paper attempts to compare these two famous luxury brands by comparing their strategies and financial performance. At the beginning the different strategies of these two firms will be compared. And then, this paper would highlight financial performance of each company and the accounting quality will also be analysis for the highlighted financial information. After that, the ratio analysis would be carried out in accordance with the decomposition framework. This paper is end by the discussion of the conclusions that have been drawn, and this paper is going to identify the financial issues according to financial analysis results.
Strategic Review: Core competencies, context strategic and financial issues analysis.
Luxury Brands Industry Review
Recently, it is fair to say that once again luxury has performed extremely well in the situation that global economy is facing risk of long term recession. The majority of luxury brands (