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Apparel & Footwear

March 4, 2004

CURRENT ENVIRONMENT..................................................................1

Marie Driscoll, CFA Apparel Analyst Yogeesh Wagle Footwear Analyst

A $500 million opportunity in women’s better apparel More changes to follow The end of quotas and tariffs Summary of overall environment Consumer confidence on the rise Apparel sales decline eases In search of style Footwear sales step down Industry outlook brightens

INDUSTRY PROFILE...............................................................................7
The industry that suits everyone Apparel Footwear

Contacts: Media John Piecuch 212.438.1102 john_piecuch@ standardandpoors.com Sales 800.221.5277 roger_walsh@ standardandpoors.com Inquiries & Client Support 800.523.4534 clientsupport@ standardandpoors.com Replacement copies 800.852.1641

INDUSTRY TRENDS .................................................................................8 Shorter cycles Technology changes the competitive landscape Price deflation Offshore sourcing Diversifying to survive Sales channels proliferate Following the demographics HOW THE INDUSTRY OPERATES ..............................................................16 Components of the industries Intense competition Manufacturing dynamics Vital role of technology Pivotal distribution channels Enhancing customer loyalty KEY INDUSTRY RATIOS AND STATISTICS ..................................................22 HOW TO ANALYZE AN APPAREL OR FOOTWEAR COMPANY ........................24 Qualitative factors Quantitative factors Earnings quality

GLOSSARY .............................................................................................30 INDUSTRY REFERENCES.....................................................................31 COMPARATIVE COMPANY ANALYSIS ..............................................34
THIS ISSUE REPLACES THE ONE DATED JULY 3, 2003. THE NEXT UPDATE OF THIS SURVEY IS SCHEDULED FOR SEPTEMBER


References: ....................................................................31 COMPARATIVE COMPANY ANALYSIS ..............................................34 THIS ISSUE REPLACES THE ONE DATED JULY 3, 2003 MARCH 4, 2004 / APPAREL & FOOTWEAR INDUSTRY SURVEY 1 2 MARCH 4, 2004 / APPAREL & FOOTWEAR INDUSTRY SURVEY MARCH 4, 2004 / APPAREL & FOOTWEAR INDUSTRY SURVEY 3
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