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FINANCIAL STATEMENT ANALYSIS
DSW SHOES INC. & PAYLESS SHOESOURCE
BY: EULALIA RAMIREZ
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TABLE OF CONTENTS
SECTION PAGE
Executive Summary………………………………………………………. ……… 3
Firm Background and Competitive Environment………………………. 4
Significant Risks…………………………………………………………………… 5
Financial Statements…………………………………………………………….. 6
Profitability………………………………………………………………………….. 19
Liquidity……………………………………………………………………………… 22
Asset Management……………………………………………………………… 26
References…………………………………………………………………………. 28
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I. EXECUTIVE SUMMARY
The shoe retail business is a competitive field. According to the Annual Retail
Trade Survey conducted by the Bureau of Census, shoe retail trade registered sales of
21,627 billion in 2003 in the United States from about 28,457 shoe stores across the
country.
The shoe retail industry is segmented across the product lines of children’s
shoes, men’s shoes, women’s shoes and athletic shoes. Both the men and women s
market segments are growing. Price-wise, however, men’s shoes are more expensive
than women s shoes. On the other hand, the demand for shoes is driven by price,
demographics, income, weather, fashion trends, target markets, and economic factors.
Competition in the industry is strong. There are a number of established players
in the shoe industry with established market positions, brands and reputations. A mall
often houses several shoe stores, mostly the major players. Major players in this
industry have numerous retail outlets throughout the US, while smaller players are
generally independently owned and operated in one or two locations. Competition also
comes from department store with well-appointed shoe departments. The Inte ...