1.Abercrombie & Fitch Co.

(52 week fiscal year ended January 29, 2011; 52 week fiscal year ended

January 30, 2010)

"Abercrombie & Fitch Co.....is a specialty retailer that operates stores anddirect-to-consumer operations." 10-K

2.Limited Brands, Inc.

(52 week fiscal year ended January 29, 2011; 52 week fiscal year ended

January 30, 2010)

"We operate in the highly competitive specialty retail business." 10-K

3.GAP, Inc.

(52 week fiscal year ended January 29, 2011; 52 week fiscal year ended

January 30, 2010)

"We are a global specialty retailer offering apparel, accessories, and personal care products." 10-K

Date reviewedAbercrombie & FitchLimited BrandsGAP

201020092010200920102009

Net profit margin4.332.708.375.19 8.217.76

Return on assets5.212.7811.827.0716.0014.17

Return on total equity8.084.3043.9821.6326.8423.76

Required:

a.Comment on the net profit margin for these companies.Consider absolute amounts and trend.

b.Comment on the return on total equity for these companies.Consider absolute amounts and trend.

c. Comment on the relative probability of these companies.