Lands" End Inc. is a mail-order and Internet-based direct merchant of traditionally styled casual clothing accessories, domestics, shoes, and soft luggage. Presented here are selected income statement and balance sheet amounts (in thousands).

Required: 1. Compute ROE for the current and prior years and explain the meaning of the change. 2. Explain the major cause(s) of the decline in Lands' End's ROE using ROE profit driver analysis.

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Net sales Net income Average shareholders' equity Average total assets Current Year Prior Year $1,371,375 $1,263,629 31.185 64,150 349,211 338,092 913.647 848.551