Thesis-Governed Paper-Anntaylor Store Corporation

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AnnTaylor Stores Corporation Thesis-Governed Paper By: Eliza Arnold Thesis AnnTaylor Stores Corporation, a retailer of professional and classic apparel and accessory products for career-oriented women, has had a reasonably high level of success from 2005 to 2007 due to strong brand equity, high inventory turnover and successful new stores, and then was followed by a low level of success from 2008-2009 due to lack of product assortment and appeal for the target market, intense competition, reduced sales in the midst of the recessionary economy, as well as loss of management direction due to continual turnover of executives. Measures of Success The level of success AnnTaylor Stores Corporation has had over the last five years can be measured by financial measures, such as revenues, sales, operating profit, operating loss, and net profit. Also, the level of success will be measured by the number of jobs eliminated and added, employees fired and hired, and the number of store openings and closings. Evidence of Success AnnTaylor Stores Corporation recorded a strong operating performance during 2007. Its revenues grew by 13% in 2007, against an industry average of 11.8%, to $2,342.9 million. The firm’s revenues grew at a compound annual growth rate of 14.1% during 2003-2007 as against an industry average of 10.8%. The company’s operating profit increased considerably by 70.8% to $223.8 million in 2007. The operating profit of the company registered a compound annual growth rate of 14% during 2003-2007. The company‘s net profit also grew considerably by 74.6% to $143 million in fiscal 2007 from $81.9 million in fiscal 2006. Robust financial performance strengthened the financial position of the company and enabled it to expand. The reason for this success is due to the firm being able to produce strong brand equity, high inventory turnover and creating and

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