Question
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
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
____________________________________________________________________________________________
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?
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