Business Analysis: Ann Inc.

723 Words2 Pages

Ann Inc.
Strengths:
• Quality
Ann Inc. is known to have high quality clothing for women. This allows customers to continuously keep shopping there because they know the clothes are good quality.
• Brand name
Ann Inc. has used celebrities to get people’s attention. This is a great idea because a lot of people think that if famous people are wearing Ann Inc. clothing then they should too. This gives them a good brand image if their clothes are seen on magazine or billboards on celebrities. This idea will only pull in more customers and increase profit.
• Purpose
The main purpose of Ann Inc. is to make sure that women feel comfortable and strong in their clothes. This tells customer’s that they truly care about the customer’s and are trying …show more content…

relies on third-party manufacturers. If the manufacturer is unable to ship orders on time or meet the quality standards, it could cause delays and other negative things to occur. This poses a risk as fluctuations in the value of the U.S. dollar against foreign currencies (“Press Release, Third Quarter, Ann Inc.”).
• Cost of apparel
People that are going through financial troubles may avoid Ann Taylor and the LOFT because they are expensive stores. This will decrease both of their sales and profits. Since their products are closely related, they are not able to have a balance like companies with unrelated diversification may have during people’s financial troubles.
• Growth
Ann Inc. has been displaying weak financial growth. The company reported net sales in January 2015 (for the previous three months) of $647.4 million and in January 2016 reported net sales down by 2 percent from the previous year at $637.5 million. (Ascena Retail Group Inc. Report) The decrease in performance could have a negative impact on the growth of the company, and decrease investors’ confidence as well as customers.
Opportunities:
…show more content…

Ann Inc. and its brands compete with national and local department stores, other specialty stores, and internet businesses that offer similar merchandise. The company faces competitors ranging from small, growing companies to larger companies with greater financial and marketing resources.
• Third-party manufactures
Since Ann Inc. gets a lot of their product from other countries and has to import it into our country, things could go bad real quick if there were any changes in those countries. This means that if any of its third parties decide to not remain in business with Ann Inc., than the company would have limited ways of creating and distributing its merchandise.

Ann Inc.-Financial Analysis When looking at Ann Inc.’s income statement and balance sheet after the fiscal 2015, this company seems to be doing pretty well. For the most part, a lot of their numbers are increasing from the previous years and are heading in the right direction. After an acquisition by Ascena Retail Group, Inc. a couple years ago, Ann Inc. stock become a part of Ascena group stock (ASNA:US) at the beginning of last year. At the end of January 2015, the stock price for Ascena group was $11.56. At the end of January 2016, the stock price was worth $7.58 having plunged when the Ann Inc. stock was integrated into the Ascena group’s stock. (ASNA:

More about Business Analysis: Ann Inc.

Open Document