Ann Taylor Internal Analysis

In: Business and Management

Submitted By miguetech
Words 3263
Pages 14
Ann Taylor (based on an earlier version of the case)

1. Consider the performance of A nn Taylor. How well is the present strategy working?

Ann Taylor compared to the industry:
I n fiscal year 2005, Ann Taylor was number six in the Women’s Wear Daily’s top twenty of the publicly traded retailers specializing in women 's wear. ANN maintained this position from the previou s fiscal year 2004.

Ann Taylor compared to key rivals:

Several retailers that target the same or similar demographic of the 35-year old woman include Talbots, Chico's, and Coldwater Creek. Talbots maintained its number seven position with $1.81 billion in sales, and a seven percent increase in volume over the previou s year. Coldwater Creek also maintained its number 18 position with $780 million in sales and a staggering 32 percent increase in volume. Chico's moved up three positions from number nine to 12, also with a 32 percent increase in volume, and $1.4 billion in sales. ANN saw a 12 percent increase in volume over the previou s year and had sales of $2.07 billion. ANN is maintaining its position in the standings, but with a 32 percent growth rate, Chico's may be an even greater threat to ANN in the years to come.

Ann Taylor's past performance:

Ann Taylor has seen some up years and some down years, but overall seems to be growing each year. In fiscal year 2002, the company as a whole (Ann Taylor and LOFT) experienced a negative sales percentage of 3.9%, but in 2003, they achieved positive growth of 5.3%. This was the largest growth period for ANN between 2003 and 2007. Since then, they have maintained growth overall, but the divisions of AT and LOFT have each seen their own negative growth years as they struggled to find their brand identity and reestablish themselves in the market. Net sales in fiscal 2006 were $2.34 billion compared to $2.07 in 2005, and $1.85 in…...

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