Saks Fifth Avenue vs. Neiman Marcus - A Detailed Company Analysis Using Balance Sheets and Income Statements

I am writing to analyse the companys current balance yellow journalism and income statement. Particularly, I will critique on the companys results, compare it to preceding(a) years, compare it to competitors, and make recommendations on how to improve its financial position.

Neiman Marcus section stores offer luxurious and steep-quality mens and womens apparel and accessories. The Neiman Marcus Group operates 35 stores in nearly 20 states. The 2004 net income was an impressive $204 gazillion and revenue was $3.5 billion. More importantly, their gross profit was $1.2 billion. Their net income is or so 5.8% (compared to total revenue) and 1.7% (compared to their gross profit). This may seem little, besides when a company revenues such a large amount, a humbled percentage net income is a very large amount, as exemplified. Comparing it with their largest competition - Off Fifth Saks Avenue (Saks) - Neiman Marcus earns 5 times their competitions income. The profit figure is very adequate.

Neiman Marcus income statement shows their fiscal period ends in July. The total revenue was $3.5 billion but their cost of revenue was $2.3 billion. This is 66% of their revenue. This is significantly high, but again, to plus revenue comes with depreciates. After calculations, the total expenses were approximately $1 billion. On the given income statement (attached) they show mostly taxation and raise expenses.



These expenses cannot be commented on because they are standard, as directed by the government. However, we are given the selling general and administrative expense, which was $875 million. These are associated with payrolls and running the company. These expenses are 71.5% of the companys gross profit. These expenses are high and should be lowered; but in comparison to their competition, it is 10% lower.

There is always room for improvement and by lowering expenses, peerless can increase net...

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