Financial Statement Analysis Group Project

Financial Statement Analysis Group Project
Team Eagle
The Retail Clothing Industry
Memo
Competitive pressures
Despite the three firms having extensive web platforms, there have been weaknesses because of dependency on third party manufacturers, increased liabilities and competition. Weak financial performance in the retail sector in the US has increasingly relied on vendors from outside the country, which may result in fluctuations in the supply of clothes to the store it is more of a challenge to neared manufacturing capacity in the short-term when various vendors supply to the stores. Nordstrom has experienced increased liabilities trying to say competitive at a time, when online sales are growing for even smaller vendors, which sell cheaper clothes. Liabilities pose an operational risk and the companies attract fewer investments.
There are opportunities expanding retail market in the US, international expansion and the web based store concept is also increasingly popular. Clothes retailers like Nordstrom are opening new stores to expand the retail network in areas with high growth potential in the US and Canada may increase the visibility of the company that may encourage. As the retail clothing expands in the US there will be greater need for research to increase visibility, which will attract more customers to visit its store. Growth in the international markets is promising and the companies have invested in opening new stores in the international segment. If there will be a slowdown in the brick and mortar stores growing e-commerce sales in the US will help close the gap, and there is now higher consumer spending. Besides the high spending consumer...