Free The Industry Essay Sample

Description of Company

The company ventures in the sale of a variety of merchandise that includes clothing and accessories for men, women and children. Additionally, it is has ventured in the sale of cosmetics, consumer goods, and home furnishings. The company has departmental stores all over the United States that have been operational since the 1830s and has managed to go global with stores located in Colombia, Puerto Rico, Guam, and Dubai.

The company is mainly in the retail industry that experiences seasonality with majority of income being generated the last two months of the year. Consequently, it being a retail industry the number of employees increases during these two months and may be reduced in other subsequent months. Supplies to the business are normally obtained from a variety of suppliers.
It being a retailing company, competition is very steep from other retailing companies, which engage in similar merchandise as them. Competitors include Target, Amazon, Wal-mart, Sears, Nordstrom, Belk, Lord and Taylor, J.C. Penney, Neiman Marcus. The company uses a number of strategies to increase its competitive advantage in the industry. For instance, the company offers a variety of superior selections, a noticeable value and distinctive marketing in stores located in premier locations to attract customers. Additionally, the company offers an exciting shopping experience for the customer and excellent service by using an omnichannel experience. Consequently, by proving access to particular preferences they can retain customers.

Priorities and Strategies

Brief summary of the results of operations and financial condition
A number of factors affect most of the company’s operations. For instance, consumer spending levels, disposable incomes of the consumers and the general economic conditions. However, the financial performance has been good despite these challenges. Sales for 2013 have increased by 1.9%, which has been a recent upward trend for the last four years. Operating income has seen an increase of 3.8% compared to the previous year (2012). The diluted earnings per share increased by 15.6%. The adjusted EBITDA (earnings before taxes, interest, depreciation and amortization plus other costs) reached 13.6%, which was drawing nearer to the company’s target of 14%. The return on invested capital has shown a growing trend and has reached 21.5%. The company bought back its 31.6 million shares and increased its annual dividend rate to $1 per share. Based on its operating activities, the company has been able to increase its net cash from $2,179 million in 2012 to $2549 million in 2013. Net cash used for investments increased slightly from $781million to $788 million. The company ventured in opening three new stores in 2013. The net cash used for financing activities reduced from $2389 million in 2012 to $1324 million in 2013.