MICHAEL NGUYENJENNIFER NGUYENTRANG VU

FRANCESCA’S- Francesca’s operates a chain of

retail boutiques: Apparel, jewelry, accessories, and gifts.

- Market Capital: 813 Million

- Target audience is female: 18 to 35.

- Founded in 1999 and headquartered in Houston, TX.

- Inventory valuation method: Average cost.

- Employee: 762

ZUMIEZ- Zumiez, Inc. operates as a multi-

channel specialty retailer of action sports related apparel, footwear, accessories, and hardgood.

- Market Capital: 894 Million

- Target audience is 12 to 24

- Founded in 1978 based in Lynnwood, Washington

- Inventory valuation method: Average cost.

- Employees: 1,700

AEROPOSTALE- Areopostale operates as a mall-based

specialty retailer of casual apparel and accessories.

- Market Capital: 687 Million

- Their target audience is 14 to 17 age group.

- Founded in 1987 and headquarters in New York, New York.

- Inventory valuation method: Average cost.

- Employees: 4,205

Sales and Store count

Zumiez Aeropostale Francesca's0

200

400

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Store Count

200920102011

2009 2010 2011Zumiez 377 400 444

Aeropostale 952 1012 1057

Francesca's 147 207 283

2009 2010 2011Zumiez 367 396 411

Aeropostale 624 626 561

Francesca's 429 508 554

Zumiez Aeropostale Francesca's0

100

200

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Sales per sq.foot

200920102011

COMMON SIZE- INCOME STATEMENT

ZUMIEZ AEROPOSTALE FRANCESCAS2009 2010 2011 2009 2010 2011 2009 2010 2011

Net sales 100% 100% 100% 100% 100% 100% 100% 100% 100%

Cost of goods sold 67% 65% 64% 62.01% 63.08% 74.03% 47% 48% 48%

Gross profit 33% 35% 36% 37.99% 36.92% 25.97% 53% 52% 52%

Selling, general and administrative expenses

30% 27% 25% 20.83% 20.80% 21.13% 31% 30% 31%

Operating profit 3% 8% 11% 17.16% 16.11% 4.85% 1% 2%

Interest expense 0.005% 0.02% 22% 21% 18%

Earnings before income taxes 3% 8% 11% 17.17% 16.11% 4.83% 13% 12% 11%

Net income 2% 5% 7% 10.29% 9.64% 2.97% -65% 12% 11%

COMMON SIZE- BALANCE SHEETZUMIEZ AEROPOSTALE FRANCESCAS

ASSETS 2009 2010 2011 2009 2010 2011 2009 2010 2011

Cash and cash equivalents 0.60% 3.80% 4.10% 43.79% 34.34% 30.43% 44.11% 21.17% 19.42%

Receivables 2.20% 2.00% 1.70% 1.60% 6.86% 2.98%

Inventories 19.60% 18.70% 18.00% 16.78% 20.25% 22.24% 20.44% 20.23% 20.31%

Total current assets 66.70% 66.60% 70.00% 66.90% 60.73% 60.09% 71.49% 53.65% 49.84%

Goodwill and intangibles 5.10% 4.40% 3.60%

Total assets 100% 100% 100% 100% 100% 100% 100% 100% 100%

LIABILITIES

Accounts payable 6.50% 5.40% 6.00% 11.47% 13.32% 14.07% 8.65% 10.40% 11.93%

Total current liabilities 15.30% 15.10% 15.30% 30.52% 27.95% 26.28% 19.28% 31.28% 25.61%

Total long-term liabilities 10.70% 9.80% 9.50% 14.64% 16.10% 18.03% 0.00% 148.63% 30.42%

Total liabilities 26.00% 24.80% 24.80% 45.16% 44.05% 44.31% 26.39% 193.82% 76.63%

Total shareholders’ equity 74.00% 75.20% 75.20% 54.84% 55.95% 55.69% 73.61% -93.82% 23.37%

Total liabilities and shareholders’ equity

100% 100% 100% 100% 100% 100% 100% 100% 100%

LIQUIDITY

ZUMIEZ AEROPOSTALE FRANCESCAS0

0.51

1.52

2.53

3.54

4.55

CURRENT

200920102011

ZUMIEZ AEROPOSTALE FRANCESCAS0

0.5

1

1.5

2

2.5

3

3.5

QUICK

200920102011

Zumiez has the most ability to make change because they have so much cash on hand

PROFITBILITY

ZUMIEZ AEROPOSTALE FRANCESCAS0%5%

10%15%20%25%30%35%40%

GROSS PROFIT MARGIN

200920102011

ZUMIEZ AEROPOSTALE FRANCESCAS0%5%

10%15%20%25%30%35%40%

RETURN ON ASSET

200920102011

ZUMIEZ AEROPOSTALE FRANCESCAS

-40%-20%

0%20%40%60%80%

100%120%140%160%

RETURN ON EQUITY

200920102011

Zumiez Aeropostale Francesca's

-70%-60%-50%-40%-30%-20%-10%

0%10%20%

NET INCOME

200920102011

LEVERAGE

ZUMIEZ AEROPOSTALE FRANCESCAS0

0.5

1

1.5

2

2.5

DEBT RATIO

200920102011

ZUMIEZ AEROPOSTALE FRANCESCAS

-3

-2

-1

0

1

2

3

4

DEBT EQUITY

200920102011

ZUMIEZ AEROPOSTALE FRANCESCAS0

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3500

TIME INTEREST

200920102011

INVESTOR ANALYSIS

ZUMIEZ AEROPOSTALE FRANCESCAS

-3

-2

-1

0

1

2

3

EARNINGS PER SHARE

200920102011

ZUMIEZ AEROPOSTALE FRANCESCAS0.00

0.50

1.00

1.50

2.00

2.50

3.00

CASH FLOW RATIOS

200920102011

P/E

Stock Chart from 2011- current

Fran

Zumz

Aro