Financial Statement Analysis Essay Example | Topics and Well Written Essays - 2250 words

Financial Statement Analysis - Essay Example The apperal industry is a generated $276 billion in sales in the year 2005 (Plunkett Research). Competition in this industry is fierce and the production of low end products is being cannibilized by the Asian markets which includes India, The People’s Republic of China and Pakistan among other nations. In order to apperal companies to suceed in develop nation they must use a branding strategy to differentiate their products. The two apperal companies analyzed in this report are Wolverine World Wide Inc. and The Timberland Company. Wolverine World Wide Inc (WWW) is company with a rich history dating back to the year 1883 when it was founded by G.A Krause. The company is dedicated to producing and selling branded footwear, apperal and accessories products. Some of the licenced brands the company owns include Bates, Cat Footwear, Harley-Davidson Footwear, Hush Puppies, Merrell, Pantagonia Footwear, Sebago, and Wolverine; a portfolio of product which help generate 47 million pairs of shoe sales in 2006 (Annual Report: Wolverine 2006). The company is a global player with a physical precense in over 180 countries worldwide. The company’s target market is North America which represents the majority of the company sales (43%). Emerging markets such as Europe were growth drivers in 2006, the European region had a 10% sales growth during that fiscal year. The company has expanded its product offerign to move beyond being a shoe manufacturer. The firm offerrs many apperal and accessories products, a strategy that takes advantage of the branded image recognition of lines such as Sebago which are known for their quality, great designs and durability. In 2006 Wolverine generated $1141.9 in revenues. Appendix A shows the 2006 Income Statement of Wolverine. The year’s total sales was a significant improvement over the results of the last few years. The 2006 sales total represent an 8% sales