MBA 630 Financial Analysis

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MBA 630 Financial Analysis Rebecca
Pearson Jessica Echeverria Erika Stevens
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Who is True Religion? Rebecca . . .
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Competitors insert logos Competitors of True
Religion include designer jean companies such
as Seven, Guess, Rock and Republic and Lucky.
Other retail competitors include Ralph Lauren,
Bebe, Guess, Armani, and other wholesale
distributers
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Industry Analysis The Textiles, Apparel and
Luxury industry is highly diversified including
manufacturers and retailers of linens, fabrics,
clothing, shoes and accessories. Over 90 billion
in department store revenue True Religion
Apparel, Inc. engages in the design, development,
manufacture, marketing, distribution, and sale of
apparel in North and South America, Asia, Africa,
Europe, and Australia As of December 2008, the
company operated 42 branded retail stores.
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• BUY, SELL OR HOLD
• Overall valuation of TRLG leads us to recommend
  a HOLD TO BUY
• Little variation in expected earnings, but many
  performance opportunities
• Solid financials
• No Debt to Speak of
• Expanding profit margins
• Good cash flows for operations
• Quick Ratio at 6.03 that shows the ability to
  cover any short-term cash needed

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DuPont Analysis
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Stock Evaluation Stock Price as of ? at 430
Eastern Standard Time is ? (small explanation)
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• Valuation
• (maybe something along these lines with accurate
  numbers)
• 9.5 decrease in sales from 2007 to 2008 is not a
  concern from our point of view
• Projected sale growth
• 2009 9
• 2010 13
• 2011 22
• 2012 22

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Ratios
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