Executive Summary Faced with the adverse economic environment, the sports retail industry is fiercely competitive. All the companies involved take various measures to maintain competitive advantage and improve profitability. When it comes to whether a corporation is worth to invest, financial analysis is greatly needed, since it can provide sufficient information to investors from different viewpoints. After in-depth financial analysis of JD Sports Fashion (JD), one of the leading specialised sports retailers in UK, it can be concluded that JD is worthwhile for a pension fund to invest. Contents Introduction 3 Company Profile 3 PEST Analysis 5 SWOT …show more content…
Another sector rival, JJB, mainly focused on professional sportswear, experienced enormous losses due to squeezed customer spending and other multiple economic pressures (Davey, 2009). Unlike successive growth of net profits of its major competitors, in 2011 JJB tripled the losses of previous year. The declined sales during Christmas promotion periods account for lagging behind the sector rivals (Wilson, 2009). 3. PEST Analysis |Political |Economic | |JD Sports lost stocks worth almost 700,000 pounds in the riots |Continuous adverse economic environment, shrank consumptions expenditures | |happened in 2011 (Marian, 2011) |on non-essential items | | |Increased VAT rate posts more pressure to the retailer sector | | |Inflationary pressures | | |Increased youth unemployment rates |
The following financial report provides an analysis of the financial ratios of David Jones with its close competitor in the retail sector, Myer. The financial ratios analyzed include profitability ratios, leverage ratios, efficiency ratios and market ratios for the two companies. The analysis utilizes individual company time-series analysis as well as industry cross-sectional analysis with the aim of determining the competitiveness of David Jones relative to its close competitor Myer.
In the past, JCP had, on average, one price campaign every day. The stores were full of sale signs and retail rise was getting out of control. JCP partnered with numerous exclusive collaborations which was hoped to bring about an expansion for the firm. However, due to the economic slump, the oversaturation of the market, and an expected lack of quality in the goods from the consumer perspective, JCPenney’s success was degrading in contrast to its competitors. (Sloan, 2010).
The United Kingdom (UK) law for recruitment is a key area that makes it necessary for every organisation to follow it. It is important that every organisation, irrespective of which field it is in, follow the laws in order to make the right kind of recruitment process. Similarly, JD Sports needs to comply with the UK laws when recruiting an individual. To begin with, JD Sports should not discriminate between men and women. Under the Equality Act 2006, both the genders should be equal chance at opportunities, and this also includes the transgender people, as it will eliminate discrimination and harassment (Gatewood, Feild, & Barrick, 2010). The Race Relations Act 1976 states clearly that there should be no discrimination on the bases of colour, race, and nationality, ethnic or national origin. JD Sports must make certain that it is not creating any kind of discrimination in this aspect. Lastly, JD Sports have to take into consideration the Disability Discrimination Act (DDA) 1995 in order to make certain that they are giving fair chance of being employed to a disabled person, whether the individual
Operation Twist, a plan to buy long-term U.S. debt and sell short-term debt, which will result in a flattening of the yield curve and a drop in long-term debt yields, is a part of the expected future according to the Fed. This means that the historical lows in interest rates that we are seeing will continue in the short run. In the long run however, there looks to be a divergence from that short-run trend. Consumers and businesses in the long-run will get away from the de-leveraging process that we are seeing in the recent past and currently and begin to build up cash that will circulate more unreservedly. This will cause the Fed to set interest rates at higher levels in order to combat against the rise in inflation in the post-deleveraging period.
The purpose of this paper is to advise analyze the financial statements of Dillard’s, Inc. in order to recommend whether or not my client should invest $1 million in the large retail company. I will compare the financial statements of Dillard’s, Inc. its competitor, Kohl’s Corporation. Investing in retail can be risky because a retail company’s performance is very heavily influenced by factors that have nothing to do with the actual company such as the overall performance of the economy or the weather during the holiday shopping season. There is, however, potential for profitability within the retail sector. Based on my analysis, I recommend that the client should not invest in Dillard’s, Inc. for the following reasons. First, Dillard’s has experience a decline in net income in the last three years. Second, liquidity ratios indicate that they could face possible liquidity constraints in the future. Third, long-term debt paying ability ratios indicate that the company could have trouble paying off the principal of its current debt obligations. Fourth, the profitability ratios are well below industry averages, suggesting that there are more profitable companies to invest in within the industry. And finally, Investor analysis ratios provide mixed opinion of the future performance of the company. I conclude that retail can be a profitable industry to invest in if an investor has the risk tolerance and risk capacity to withstand the uncertainty, but neither Dillard’s
Economic theory introduces us to four different types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. Professional sports teams operate in an environment that is different than the typical business structure. The goal of this paper is to look at this industry, in particular the NFL, in an economics context and gain an understanding of the market structure of this unique industry. To do this I will discuss a brief history of the National Football League in the U.S. and how this organization is structured. I will also discuss typical market structures and type of
Where Sportsbet currently lies in the online betting & wagering market in Australia, is at number 1. According to the Australian Government’s, ‘Re: Think, Tax Discussion Paper’, Sportsbet is currently Australia’s largest online bookmaker, with an excess of 1 Million Customers, and is well ahead of its competitors. It also has more than 600 employee’s listed across three states of Australia (Sportsbet Pty Ltd, 2015, p. 18).
JC Penney had to undergo and withstand several competitive issues to include changing of brand image, selling strategy and marketing strategy. JC Penney also had to account for Environmental Factors to include: a population that continued to age and also unemployment rates. JC Penney tried to influence customers by portraying an everlasting sale. No matter how hard JC Penney tried to market their products, if people didn’t
Founded by Henry Ford in 1903, the Ford company is the world’s fifth largest automaker in the world. Publicly traded and held on the New York Stock Exchange, Ford uses the symbol of “F” to identify itself. The purpose of this document is to investigate and determine if the Ford Motor Company is a good investment. I will further cover a financial analysis of Ford Motor Company, evaluate the businesses consolidated statements of income, balance sheet, statement of stockholders equity, and statement of cash flows, which this will confirm if my conclusion is correct.
They opened more stores in Europe and they gain better retail and logistic skills. Revenue was £147,62m higher than in 2010. (Sportsdirectplc, 2012)
Jordan Clark Organizational Strategy Mr. Lonnie Jackson 27 October 2014 Patagonia Case Study 1. Patagonia’s business model is not focused on making a profit. Instead, the company is focused on “doing things right” and while still making a profit so that they continue to have other companies respect. Overall Patagonia’s business model differs greatly than that of other outdoor clothing retailers. Patagonia’s target market are “core users” or people who lead the “dirtbag” lifestyle.
Arbitrage is rooted deeply in both economics and finance markets. It is the practice of leveraging on price differences existing in different markets to harness profit. Sports bettors rely on arbing to make a profit regardless of the outcome of anticipated events. No form of handicapping, all that is required is shopping and simple maths.
Sport Obermeyer is a high-end fashion skiwear design and merchandising company headquartered in Aspen, Colorado. Over the years, Sports Obermeyer has developed into a dominant competitor. Sports Obermeyer's estimated sales in 1992 were $32.8 million. The company holds 45% share of children's skiwear and 11% of adult Skiwear market. Sport Obermeyer produces merchandise ranging from: parkas, vests, ski suits, shells, ski pants, turtlenecks, and accessories. These products are sold throughout U.S. department stores in urban areas and ski shops. With increasing demands and rising competition, Sport Obermeyer needs to have an edge on the market. Starting in 1985 with a joint venture in Hong Kong
As a result of the economic recession, unemployment has been rising and consumers have less disposable income and thus spend less on luxury goods. This is a direct impact on Jessops----a £12 million loss was made in the 15 months by January 2011 following its rescue from collapse (Leicestershire, 2011).
On July 5, 2001, Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, pored over analysts' write-ups of Nike, Inc., the athletic-shoe manufacturer. Nike's share price had declined significantly from the beginning of the year. Ford was considering buying some shares for the fund she managed, the NorthPoint Large-Cap Fund, which invested mostly in Fortune 500 companies, with an emphasis on value investing. Its top holdings included ExxonMobil, General Motors, McDonald's, 3M, and other large-cap, generally old-economy stocks. While the stock market had declined over the last 18 months, the NorthPoint Large-Cap Fund had performed extremely well. In 2000, the fund