Question

looks to the Tuture? 7. Look at Table 1 and note at least five key points to be learned from the data in that table. TABLE 1 Selected Abercrombie & Fitch Data by Division, Actual and Projected 2009 AN OVERVIEW OF STRATEGIC RETAIL MANAGEMENT PART 1 90 2014 2015 2016 2017 2013 2012 2011 2010 2008 2007 1.66 1.62 L9 1.56 1.5 144 1.38 1.41 487 Abercrombie & Fitch Stores Total Revenue (Bil. S) Revenue per Square Foot (S) 537 543 S48 527 116 516 139 1.51 506 451 9.34 9.39 371 943 9.25 9.29 440 476 9.2 9.16 9.11 324 325 8.89 885 325 882 317 321 Square Feet per Store (O00) Number of Stores 311 305 325 346 370 397 356 420 359 334 300 199 227 261 185 258 23.9 393 22.8 249 Cross Profits Mil S) 20.0 21.4 144 16.1 18.1 15.9 26.0 18.6 Gross Profits () Hollister Stores Total Revenue (Bil $) Revenue per Square Foot (S) Square Feet per Store (000) 2.09 1.68 1.80 1.91 2.02 455 2.15 1.15 1.35 368 1.54 1.38 1 46 473 483 421 437 490 404 326 520 425 7.02 7.05 7.09 6.98 7.12 6.95 6.91 6.88 6.75 6.67 6.72 606 607 595 613 584 619 561 Number of Stores 450 540 525 515 270 309 346 369 Gross Profits (Mil. $) 187 228 137 146 388 264 200 16.2 17.2 17.7 Gross Profits (%) 15.0 18.1 14.6 12.0 10.9 122 13.6 18.0 Gilly Hicks and abercrombie kids Stores Total Revenue (Bil. S) 479 450 374 389 418 470 534 588 636 703 675 Revenue per Square Foot (S) Square Feet per Store (000) 462 355 286 317 342 356 370 378 385 393 397 4.97 5.29 5.45 5.72 5.84 5.95 6.07 6.19 6.32 Number of Siores 6.44 6.57 226 254 225 204 214 229 Gross Profits (Mil. $) 245 257 265 267 270 101 70.2 52.6 49.3 59.3 74.8 Gross Profits (9) 93.3 110 123 134 140 21.1 15.6 14.0 12.7 14.2 15.9 17.5 18.7 19.5 Internet and Catalog Onders 19.8 200 Business Total Revenue (Bil. S) Grss Profits (Mil. S Gross Profits ( 298 315 250 352 458 549 126 632 129 727 100 814 871 932 146 180 206 42,3 232 41.2 40.4 261 Note Abercrombie & Fitch Co reports financial information for fiscal year ended January 31. This table calendarizes Abercrombie & 41.6 288 327 306 35.1 Fitch Co.s reported financiel data for the year ended December 31 and uses existing data and Trefis assumptions to project future 39.5 37.5 36.8 36.0 35. 35.5 perfornonce

Answer 1

Five key points to be learned from the data in the table 1 are:

1. Gross profits (as a percentage of sales) is the highest for the Internet and Catalog Orders business and lowest for the Hollister Stores segment. For 2017 the gross profit percentage of Internet and Catalog Orders business stood at around 35% while that of Hollister Stores stood at 18%.
2. On a per square foot basis Abercrombie and Fitch stores generated the highest revenue in 2017 at $548 per square foot. The revenue per square foot basis was the lowest for Gilly Hicks and Abercrombie kids store and for 2017 stood at $397 per square foot.
3. The top line and the bottom line is the highest for the Internet and Catalog Orders business and the company should focus on this segment going forward.
4. Abercrombie and Fitch stores require the highest square feet per store. For 2017 it was 9.43 (in 000s) square feet per store.
5. The Hollister stores had the highest number of absolute stores. In 2017 it stood at 619,000 stores. By increasing its revenue per square feet up to the levels of Abercrombie and Fitch stores the company can substantially increase its aggregate level of earnings.