1. Internal Analysis Finances

2. Cost/ Expenses
$3.8 million for eco-friendly commitment in 2009
$100k annually on field testing
$350k to repair 12k garments/yr = $29 per garment
Less than 1% revenues on marketing
1% revenues on environmental causes
$200k in kind donations to eco-causes

3. Vast majority of revenues comes from 3 major product lines
Potential to rationalize products in order to enhance inventory management

4. direct sales have highest margins, but generate the highest % returns
Opportunity to improve direct sales channel or focus on retail

5. Patagonia has been performing extremely well compared to the industry
Focus on sustainability and wealthy customers has paid off

6. Patagonia has been performing extremely well compared to the industry
Patagonia was able to protect profits even during recessionary times

7. Maintaining growth and employee satisfaction comes at a cost
Patagonia has some of the lowest sales per employees in its industry

8. Patagonia maintains 4x below average D/e ratio
Increasing debt to average could yield 14M$ in capital to fuel growth

9. Introduction of recycling program did have a positive impact on sales
program enhancement has the potential to fuel top line growth

10. History showed that New initiative can hurt profitability
Need to focus on keeping costs under control