SPECIALTY RETAILER–INVESTOR VIEW
1. Abercrombie & Fitch Co.
(January 31, 2009—52 week; February 2, 2008—52 week; February 3, 2007—53 week) ‘‘Abercrombie & Fitch Co. …is a specialty retailer that operates stores and websites selling casual sportswear apparel.’’ 10 K
2. Limited Brands, Inc.
(January 31, 2009—52 week; February 2, 2008—52 week; February 3, 2007—53 week) ‘‘We operate in the highly competitive specialty retail business.’’ 10 K
3. GAP, Inc.
(January 31, 2009—52 week; February 2, 2008—52 week; February 3, 2007—53 week) ‘‘We are a global specialty retailer offering clothing, accessories, and personal care products.’’ 10 K
|
Data reviewed |
Abercrombie & Fitch |
Limited Brands |
GAP |
|||
|
2009 |
2008 |
2009 |
2008 |
2009 |
2008 |
|
|
All inclusive degree of financial coverage |
* |
* |
1.4 |
1.13 |
1 |
1.02 |
|
Diluted earnings per share before |
3.05 |
5.2 |
0.65 |
1.89 |
1.34 |
1.09 |
|
Percentage of earnings retained |
77.68 |
87.11 |
8.64 |
68.38 |
74.87 |
70.93 |
|
Dividend yield |
3.92 |
0.85 |
7.58 |
3.1 |
3.01 |
1.65 |
|
Price/earnings ratio |
5.85 |
15.78 |
12.18 |
10.23 |
8.42 |
17.74 |
|
Market price per share |
17.85 |
82.06 |
7.92 |
19.33 |
11.28 |
19.34 |
Required
a. Comment on all data reviewed for each individual company.
b. Based on the above, which firm would you select?