Financial Benchmarking of Key Departmental Stores in the U.S. Retail Industry November 2011
Disclaimer This document is the proprietary and exclusive property of Sutherland Global Services except as otherwise indicated. No part of this document, in whole or in part, may be reproduced, stored, transmitted, or used for design purposes without the prior written permission of Sutherland Global Services. The information contained in this document is subject to change without notice. The information in this document is for information purposes only. Sutherland Global Services® disclaims all warranties, express or limited, including, but not limited, to the implied warranties of merchantability and fitness for a particular purpose, except as provided for in a separate software license agreement. All confidential or proprietary information contained in Sutherland’s response shall at all times be and remain the sole and exclusive property of Sutherland Global Services, Inc.
©©2011 GlobalServices Services Inc., rights reserved. Privileged and confidential information of Sutherland Global 2010Sutherland Sutherland Global Inc., All All rights reserved. Privileged and confidential information of Sutherland Global Services Inc. Services Inc.
www.sutherlandglobal.com
CAGR and Y-o-Y Revenue growth
Y-o-Y Sales Growth (FY 2011 over 2010), % Dillard’s JC Penny 0.4% Bon 1.2% Sears -Ton Stage Stores (1.63%) 0.7% Minimum
2.7%3.9%
Saks
Macy’s
Kohl’s
5.9%
6.4%
7.1%
Nordstrom 12.44%
Average
Maximum
CAGR (FY 2009-11), % Stage Stores
Dillard’s
Saks
Sears
(5.34%)
(4.11%)
(3.75%)
Minimum
(1.50%) Bon JC Penny -Ton Macy’s
(2.42%) (1.99%)
0.22%
(0.7%) Average
Kohl’s
Nordstrom
5.93%
6.37% Maximum
Dillard’s and Sears seem to have had slower sales recovery vis-à-vis others post the recession of 2008
© 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
www.sutherlandglobal.com 5 June 2013
2
SG&A / Sales %
2009
SG & A / Sales (%)
Stage Stores
Sears
23.2%
23.6%
JC Penny
Saks
Kohl’s
Macy’s
Nordstrom
24.0%
27.5% 27.8%
Minimum
Dillard’s
The Bon-Ton Stores
29.2%
33.0%
28.8% 28.9%
Average
Maximum
2010
Kohl’s Stage Stores
Sears
Dillard’s
23.2%
24.1%
27.9%
2011
Minimum
28.3% 28.6%
Saks
JC Penny
BonTon
Macy’s
29.5%
30.7%
32.4%
34.3%
Average
Kohl’s
23.3%
24.3% 24.4%
Dillard’s beats average by a whisker only once
Maximum
Nordstrom
Sears
Stage Stores
Minimum
Nordstrom
JC Penny, Saks, Nordstrom, Macy’s and the Bon-Ton stores have been consistently above average
Dillard’s
27.4%
Macy’s
27.7% 28.4%
Saks
JC Penny
BonTon
29.2%
30.1%
31.6%
Average
© 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
Maximum
www.sutherlandglobal.com 5 June 2013
3
Inventory Turnover ratio
Inventory Turnover ratio, FY 2009, 10 and 11 (times)
5.5 3.6 3.6 3.5
Sears Holdings
3.1
3.1 2.7
Macy's
3.4 3.5 3.4
J. C. Penney
5.9 5.6
3.7 3.73.8
Kohl’s
3.1 3.1 3.1
Nordstrom 2009
2010
Dillard's
2.5 2.4 2.6
Saks
2.9
2.8
2.8
3.2
3.2 3.2
The Bon Ton Stage Stores Stores
2011
Inventory ratios for most companies irrespective of their size are comparable; Nordstrom seems to be managing its inventory significantly well than its peers
Š 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
www.sutherlandglobal.com 5 June 2013
4
Margin comparison (GP, EBIT and Net Income)
Margins comparison, 2011 (%) GP Margin
EBIT Margin
Net Income Margin
39.2% 36.1%
36.3%
35.8%
34.7%
34.0%
33.4% 28.0%
30.8% 25.4%
Profitability of Sears lags all other companies both at the operating profit and Net Income level. Other than Sears, Saks is also a laggard 10.5%
11.5%
7.3% 4.7% 6.1%
1.1% 0.3%
Sears
5.6%
3.4%
Macy’s
JC Penney
3.2%
6.3%
2.2%
2.9%
Kohl’s
Nordstrom
5.9%
4.4%
Dillard’s
1.7%
Saks
© 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
4.3% 0.7%
The Bon Ton Stores
2.6%
2.9%
Stage Stores
www.sutherlandglobal.com 5 June 2013
5
Bringing it all together: Revenue, Revenue growth and EBIT
Revenue (Mn USD), Revenue growth and EBIT (%)
13.00%
Nordstrom 9,700
Y-o-Y Revenue growth (FY 11 over 10)
11.00% 9.00% Saks 2,786
7.00%
Macy’s 25,003
Kohl’s 18,391
5.00% Stage Stores 1,471
3.00%
The Bon-Ton Stores 2,980
1.00%
Dillard’s 6,121
-1.00% -3.00% -5.00% -1.00%
J. C. Penney 17,759
Sears Holdings 43,326 1.00%
3.00%
5.00%
7.00%
9.00%
11.00%
13.00%
EBIT Margin, FY 2011, %
© 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
www.sutherlandglobal.com 5 June 2013
6
End of Presentation
Š 2011 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
www.sutherlandglobal.com 5 June 2013
7