Family-Adult Clothing Formats

Nordstrom, Hollister and American Eagle Outfitters

La Jolla, $80

AE lightweight fleece, $29.50

NORDSTROM, INC. FY 2010 FY 2009

$ 000,000s $ 000,000sNet sales 9,310 8,258 Nordstrom full-line 6,995 6,360 Nordstrom Rack & other 1,720 1,440 Direct 705 563Gross profit 3,413 36.7% 2,930 35.5%Net Income (after tax) 613 6.6% 441 5.3%GMROI 3.49 349% 3.26 326%Inventory turnover 6.04 5.93Total assets 7,462 6,579Asset turnover 1.25 1.26Return on assets 8.2% 6.7%Leverage 3.69 4.19Return on net worth 30.3% 28.1%

FY 2010 FY 2009 FY 2008$ 000s $ 000s $ 000s

Net sales 12,345,678 11,335,577 10,203,040

Cost of goods sold1 9,012,345 7,890,123 7,071,727

Gross margin 0.0% 3,445,454 30.4% 3,131,313 30.7%

General selling & admin. 2,345,678 1,918,171 1,718,191

E.B.I.T. 1,527,283 1,413,122

Interest expenses 321,098 282,930 242,526Taxes, misc. 234,567 171,819 151,617Net Income (after tax) 0.0% 1,072,534 9.5% 1,018,979 10.0%

Inventory 2,345,678 2,021,222 1,918,171

GMROI 0% 1.70 170% 1.63 163%

Inventory turnover 3.90 3.69

Total assets 8,901,234 7,879,808 6,665,646

Asset turnover 1.44 1.53Return on assets 0.0% 13.6% 15.3%

Accounts payable 789,012 678,901 567,890Days payable 32 31 29

Total liabilities 4,567,890 3,839,404 3,435,363Leverage 1.95 2.06

Owners' equity, net worth 4,333,344 4,040,404 3,230,283Return on net worth 0.0% 26.5% 31.5%

NORDSTROM, INC.

FY 2010 FY 2009 Nordstrom full-line 115 112

Sales per store ($000s) $60,826 $56,786

Nordstrom Rack & other 89 72

Sales per store ($000s) $19,326 $20,000

Square feet of retail area 23,838,000 22,773,000

Sales per square foot $390.55 $362.62

Gross margin per sq foot $143.17 $128.66

Inventory per square foot $40.98 $39.43

Employees 52,000 48,000

Sales per employee $179,038 $172,042

2008 2007

$ 000s $ 000s

Net sales 3,540,276 3,749,847

Gross margin 2,361,692 66.7% 2,511,367 67.0%

Net Income (after tax) 272,255 7.7% 476,057 12.7%

GMROI 6.34 634% 7.54 754%

Inventory turnover 3.16 3.72

Asset turnover 1.24 1.46

Return on assets 9.6% 18.5%

Return on net worth 14.8% 29.4%

ABERCROMBIE & FITCH CO.

American Eagle Outfitters, Inc.

2008 2007$ 000s $ 000s

Net sales 2,988,866 3,055,419

Gross profit 1,174,101 39.3% 1,423,138 46.6%Operating Income 302,140 598,755Net Income (after tax) 179,061 6.0% 400,019 13.1%

GMROI 3.98 398% 4.97 497%Inventory turnover 6.15 5.70Asset turnover 1.52 1.64Return on assets 9.1% 21.4%Leverage 1.39 1.39Return on net worth 12.7% 29.8%

Nordstrom Rack2010 2009

Sales per store $19,326,000 $20,000,00

Women’s apparel, 34%

Women’s/Rack $6,184,000 $6,800,000

Women’s apparel 34% Shoes 23% Men’s apparel 15%

Women’s accessories 12% Cosmetics 10% Children’s apparel 3% Other 3% Total 100%

ABERCROMBIE & FITCH CO.

2008 2007

Number of stores 1,125 1,035

Sales per store 3,147 3,623

Square feet of retail area 8,022,000 7,337,000

Sales per square foot $441.32 $511.09

Gross margin per sq foot $294.40 $342.29

Inventory per square foot $46.43 $45.41

Number of associates 96,200 94,600

Sales per associate 36,801 39,639

Net retail sales per average store (thousands) $ 3,018 $ 3,470

Abercrombie & Fitch $ 3,878 $ 4,073

abercrombie $ 1,823 $ 2,230

Hollister $ 2,962 $ 3,550

RUEHL $ 2,039 $ 2,602

American Eagle Outfitters, Inc.

2008 2007

Number of stores 1,098 987

Sales per store 2,722 3,096

Square feet of retail area 6,328,167 5,709,932

Sales per square foot $472.31 $535.11

Gross margin per sq foot $185.54 $249.24

Inventory per square foot $46.61 $50.17

Number of associates 37,500 38,700

Sales per associate 79,703 78,951

Finalist Markets, No Nordstrom’s

Geographic Area Name N452111 S452111Sales per

store Nordstrom N44814 S44814Sales per

store

McAllen-Edinburg-Mission, TX MSA 5 235,030 47,006 0 77 335,221 4,354

Springfield, MO MSA 4 137,750 34,438 0 26 67,334 2,590

Atlantic City, NJ MSA 5 168,740 33,748 0 52 121,879 2,344

Corpus Christi, TX MSA 4 124,728 31,182 0 32 88,937 2,779

New Orleans-Metairie-Kenner, LA MSA 12 355,452 29,621 0 118 317,852 2,694

Baton Rouge, LA MSA 8 218,373 27,297 0 84 177,071 2,108

Lancaster, PA MSA 4 107,891 26,973 0 45 111,270 2,473

Milwaukee-Waukesha-West Allis, WI MSA 13 347,172 26,706 0 85 234,533 2,759

Wichita, KS MSA 6 155,573 25,929 0 49 129,298 2,639

Lubbock, TX MSA 4 101,683 25,421 0 33 83,100 2,518

Mobile, AL MSA 5 123,700 24,740 0 34 74,604 2,194

Winston-Salem, NC MSA 5 121,349 24,270 0 41 100,193 2,444

Louisville-Jefferson County, KY-IN MSA 12 289,782 24,149 0 74 184,607 2,495

New Haven-Milford, CT MSA 10 236,799 23,680 0 77 259,519 3,370

Tulsa, OK MSA 9 212,431 23,603 0 71 192,121 2,706

El Paso, TX MSA 12 272,702 22,725 0 93 230,302 2,476

Spectra Results: NordstromAdults in HouseholdsMinimum Mean Maximum

2 mile radius 12,830 42,392 77,612

4 mile radius 66,820 154, 071 229,215

6 mile radius 102,890 306, 009 480,841

Hollister Markets Examined Current stores

Households: Householder 35 to 54 years; $75,000+/store

Households: Total

Family clothing stores

Family clothing stores sales

Sales per store

San Francisco, CA PMSA; 4 37,152 684,805 208 938,063 4,510

San Jose, CA PMSA; 3 52,864 566,485 151 627,775 4,157

Bergen--Passaic, NJ PMSA; 3 35,722 494,808 126 503,737 3,998

Sacramento, CA PMSA; 0 - 606,364 155 585,711 3,779

Hartford, CT MSA 2 42,705 457,421 116 429,408 3,702

Middlesex--Somerset--Hunterdon, NJ PMSA; 2 54,341 418,698 76 275,387 3,624

Newark, NJ PMSA; 2 77,904 729,043 164 543,230 3,312

Monmouth--Ocean, NJ PMSA; 2 43,963 425,000 121 350,380 2,896

Providence--Fall River--Warwick, RI--MA MSA 1 60,822 462,080 154 442,334 2,872

Potential AE MSAs STORES IN CHAIN

Households: Householder 35 to

54 years

Households: Householder 35 to 54 years; $75,000+

Clothing stores 4481

SalesSales per

store

Clothing & clothing accesorites stores 448 Sales

Sales per store

Pine Bluff, AR MSA 0 12,298 2,232 23 26,421 1,149 45 48,136 1,070

Kankakee, IL PMSA; 0 15,828 4,271 25 35,512 1,420 42 44,514 1,060

Elmira, NY MSA 0 14,987 2,930 34 39,517 1,162 59 56,667 960

Lewiston--Auburn, ME MSA 0 15,529 2,916 32 25,001 781

Sumter, SC MSA 0 16,145 2,584 34 21,642 637 57 40,634 713

Corvallis, OR MSA 0 12,239 4,414 27 17,623 653

Enid, OK MSA 0 9,208 1,479 33 21,013 637

Great Falls, MT MSA 0 13,360 2,110 20 16,106 805 42 26,569 633

Sheboygan, WI MSA 0 18,951 5,370 38 21,664 570

California Location Requirements: Hollister

Criteria• Typical leased site

• Minimum household count• Highest Demographic

indices– Household income level – Age– Children– Education attainment

Findings• Enclosed shopping mall

(Google Earth)• 5 mile radius: 140,000• Higher income, maturing

families– $100,000+– 35-44– <6 & 6-17– College graduate

Geography AEHouseholds:

Householder 35 to 54 years

Households: Householder 35 to 54 years; $75,000+

Bangor, ME MSA 1 15,952 3,930

Owensboro, KY MSA 1 15,037 3,289

Pittsfield, MA MSA 1 14,656 3,667

Rapid City, SD MSA 1 15,129 3,168

Dubuque, IA MSA 1 14,085 3,164

Jonesboro, AR MSA 1 12,480 2,467

Cheyenne, WY MSA 1 13,651 3,179

Victoria, TX MSA 1 13,067 3,434

Pocatello, ID MSA 1 11,002 2,687

Casper, WY MSA 1 11,945 2,584

American Eagle’s Smallest MSAs