An Analysis and Comparison Between Talbots Inc. and Chico's Fas, Inc. Essay Example
A Brief Summary of the Businesses
The purpose of this term paper is to discuss the similarities and differences between Talbots Inc. ("Talbots") and Chico's FAS Inc. ("Chico's"). This paper will detail the nature of each company's respective business, past financial performance, and expected future outlook. The paper is divided into two sections. The first section will discuss each company's history, business structure, and future plans independently from each other. The second section will discuss several important financial ratios and provide a detailed analysis comparing the two companies. By the end of this analysis, the reader will have a better understanding of these two retailers and the industry in which they operate. Chico's is a specialty retailer of private label women's merchandise, with fashion looks ranging from casual to dressy. The company also sells intimates, accessories and other non-clothing items. Chico's began its operations in 1983 with its target market being women over 35 years old and of moderate to high level income households. The company designs the vast majority of its products in-house or through its independent vendors. Chico's has made small acquisitions of product lines and/or companies, including the White House / Black Market ("WHBM") brand and Soma's, as well as acquiring most of the assets of Fitigues which operated 784 retail stores in 47 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. Over the past several years, Chico's has continued to open new stores. Chico's business strategy is focused on its private-label merchandise and the accessories it sells at a great, bargain value.
As of March 17, 2006, Chico's operated 31 Chico's brand outlet stores, eight WHBM brand outlet stores and one Fitigues brand outlet store. Currently, the distribution for all brands (except the Fitigues brand) is handled through Chico's distribution center in Winder, Georgia. As of January 28, 2006, Chico's had roughly
The purpose of this term paper is to discuss the similarities and differences between Talbots Inc. ("Talbots") and Chico's FAS Inc. ("Chico's"). This paper will detail the nature of each company's respective business, past financial performance, and expected future outlook. The paper is divided into two sections. The first section will discuss each company's history, business structure, and future plans independently from each other. The second section will discuss several important financial ratios and provide a detailed analysis comparing the two companies. By the end of this analysis, the reader will have a better understanding of these two retailers and the industry in which they operate. Chico's is a specialty retailer of private label women's merchandise, with fashion looks ranging from casual to dressy. The company also sells intimates, accessories and other non-clothing items. Chico's began its operations in 1983 with its target market being women over 35 years old and of moderate to high level income households. The company designs the vast majority of its products in-house or through its independent vendors. Chico's has made small acquisitions of product lines and/or companies, including the White House / Black Market ("WHBM") brand and Soma's, as well as acquiring most of the assets of Fitigues which operated 784 retail stores in 47 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. Over the past several years, Chico's has continued to open new stores. Chico's business strategy is focused on its private-label merchandise and the accessories it sells at a great, bargain value.
As of March 17, 2006, Chico's operated 31 Chico's brand outlet stores, eight WHBM brand outlet stores and one Fitigues brand outlet store. Currently, the distribution for all brands (except the Fitigues brand) is handled through Chico's distribution center in Winder, Georgia. As of January 28, 2006, Chico's had roughly