SPECIALTY RETAILER -INVESTOR VIEW

1.Abercrombie & Fitch Co.

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

l year ended January 31, 2009)

"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

l year ended January 31, 2009)

"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

l year ended January 31, 2009)

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

Date reviewedAbercrombie & FitchLimited BrandsGAP

20102009 2010200920102009

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All-inclusive degree

Of financial leverage * * 1.171.36 * *

Dilutedearnings per

Share before non-

recurring items$1.67 $.89$2.42 $1.37 $1.88$1.58

Percentage of earnings

Retained 58.97%22.11% **56.92% 79.07%78.77%

Dividend yield 1.45% 2.22% 15.92%*** 3.15% 2.08%1.78%

Price/earnings ratio 28.96 35.44 11.95 13.88 10.2 12.08

Market price per

Share $48.36 $31.54 $28.92 $19.02 $19.20$19.08

*Disclosure not adequate to compute

** Dividends more than earnings

*** Special dividends of $4.00 per share are included

Required:

a.Comment on all data reviewed for each individual company.

b.Based on the above, which firm would you select?