+ kelly bossolt martakovorotna sarah smith. + executive summary: industry overview company history...

+

Kelly BossoltMartaKovorotnaSarah Smith

+Executive Summary:

Industry Overview

Company History

Financial Analysis

Internal Analysis

External Analysis

Recommendations

Questions

+Industry Overview:

How big is the apparel retail industry?

2008: Grew 3% Valued at $1,025.9 Billion

2013 Said to increase by 15%

Consumers have power

Technology is crucial: Maintenance and Inventory

Outsource vs. In house

+Company History: Growth in the early years

Leslie Wexner: Founder

1963: $5,000=Birth of The Limited

Year One: Exceeded goal to gross $100,000 by

$62,000

1965: Corporate headquarters 100 employees

1968: Sales reach $1 million

+Company History: Growth in the early years

1969: IPO

1978: Purchased of Mast industries Gained access to 150 production facilities

1982: NYSE

1986: Sales reach $3 billion

1989: Forbes rates The Limited Brands Inc. 1st in growth and profitability

2003: FOURTUNE : “World’s most admired specialty retailer”

+Financial Analysis: Industry and Competitor

Comparison

Company: EBITDA 2011: Debt-to-Equity 2011: Price-to-Earnings 2011:

Ltd Inc. 1.72B 311.45 14.57

Abercrombie & Fitch 567.24M 3.66 16.11

Gap Inc. 2.52B 33.04 10.38

LVMH Moet Henessy, LV 5.11B 28.93 20.5

Industry 11.92B 31.13 28.78

Pros: Cons:

Strong P/E ratio Highly leveraged with $3.11 of debt to every dollar of equity. Industry average is $.31.

+Financial Analysis: 2010

90,000 associates 2,600 stores in the U.S. 5 brands Record Sales of $9.6 Billion

+Internal Analysis: The Brands

Inspire

Empower

Indulge

SexyBold

+Internal Analysis: Resources

Quality

Reputation

Market Position

Store Locations

Technology

MAST

+Internal Analysis: Capabilities

Brand Equity

Lean Inventory

Inventory Turnover

Premium Prices

International market

Sourcing & Logistics

+Internal Analysis: Competitive Advantage

Brand Name

Technology

Consumer Market (NOT market share)

+Internal Analysis: Sustaining Competitive Advantage

Easy Imitation Differentiation

Slow and Steady

360 Degree Brand Potential

+External Analysis: Customers

Target markets

Merchandise seasonal transition

New product lines Top fashion Higher prices Unique items

Seasonal Sale

Slower economy Frequent sales Higher markdowns

+External Analysis: Complements

Victoria’s Secret & Pink

La Senza Body and skin care products Fragrances Makeup

Bath & Body Works Gift wraps Accessories

Henry Bendel Home fragrances and candles Beauty and fragrance Gift wraps

+External Analysis: Suppliers and Partners

More than 1,000 suppliers around the world MAST

Supplier Diversity Program Accel, Inc.

Tara Abraham Millcraft Paper Company

World Financial Capital Bank

+External Analysis: Suppliers and Partners

Business Council for Global Development

Trade, Aid and Security Coalition

Pacific Links Foundation

American Association of Textile Chemists and Colorists

Consumer Specialty Association

National Candle Association

+External Analysis: Suppliers and Partners

US EPA Climate Leaders, WasteWise, SmartWay

Forest Ethics

Recognition 2005 EPA Gold

Achievement Award 2007 EPA Environmental

Excellence Award 2011 1st place Team in

Komen Race for Cure

+External Analysis: Substitutes and Competition

Gap Banana Republic, Old Navy,

Piperlime, Athleta

LVMH Moet Hennessy Louis Vuitton Dom Perignon, Fendy, Marc

Jacobs, DKNY

Hanesbrands Hanes, Champion, Playtex,

Bali, Just my Size, etc.

American Eagle’s Aerie

Abercrombies’ Gilly Hicks

+External Analysis: Substitutes and Competition

Sephora Christian Dior, Guerlain,

Givenchy, etc.

The Body Shop L’oreal

+Recommendations:

International Growth

Reduce the Debt-to-Equity ratio

Sell More, Offer Less

Relationship Building

+Questions???