1. Family-Adult Clothing Formats
La Jolla, $80
AE lightweight fleece, $29.50
Family-Adult Clothing Formats
Nordstrom, Hollister and American Eagle Outfitters

2. NORDSTROM, INC. FY 2010 FY 2009 $ 000,000s Net sales 9,310 8,258
FY 2010
FY 2009
$ 000,000s
Net sales
9,310
8,258
Nordstrom full-line
6,995
6,360
Nordstrom Rack & other
1,720
1,440
Direct
705
563
Gross profit
3,413
36.7%
2,930
35.5%
Net Income (after tax)
613
6.6%
441
5.3%
GMROI
3.49
349%
3.26
326%
Inventory turnover
6.04
5.93
Total assets
7,462
6,579
Asset turnover
1.25
1.26
Return on assets
8.2%
6.7%
Leverage
3.69
4.19
Return on net worth
30.3%
28.1%

3. FY 2010
FY 2009
FY 2008
$ 000s
Net sales
12,345,678
11,335,577
10,203,040
Cost of goods sold1
9,012,345
7,890,123
7,071,727
Gross margin
0.0%
3,445,454
30.4%
3,131,313
30.7%
General selling & admin.
2,345,678
1,918,171
1,718,191
E.B.I.T.
1,527,283
1,413,122
Interest expenses
321,098
282,930
242,526
Taxes, misc.
234,567
171,819
151,617
Net Income (after tax)
1,072,534
9.5%
1,018,979
10.0%
Inventory
2,021,222
GMROI 0%
1.70
170%
1.63
163%
Inventory turnover
3.90
3.69
Total assets
8,901,234
7,879,808
6,665,646
Asset turnover
1.44
1.53
Return on assets
13.6%
15.3%
Accounts payable
789,012
678,901
567,890
Days payable 32 31 29
Total liabilities
4,567,890
3,839,404
3,435,363
Leverage
1.95
2.06
Owners' equity, net worth
4,333,344
4,040,404
3,230,283
Return on net worth
26.5%
31.5%

4. NORDSTROM, INC. FY 2010 FY 2009 Nordstrom full-line 115 112
FY 2010
FY 2009
Nordstrom full-line
115
112
Sales per store ($000s)
$60,826
$56,786
Nordstrom Rack & other 89 72
$19,326
$20,000
Square feet of retail area
23,838,000
22,773,000
Sales per square foot
$390.55
$362.62
Gross margin per sq foot
$143.17
$128.66
Inventory per square foot
$40.98
$39.43
Employees
52,000
48,000
Sales per employee
$179,038
$172,042

5. ABERCROMBIE & FITCH CO. 2008 2007 $ 000s Net sales 3,540,276 3,749,847
Gross margin
2,361,692
66.7%
2,511,367
67.0%
Net Income (after tax)
272,255
7.7%
476,057
12.7%
GMROI
6.34
634%
7.54
754%
Inventory turnover
3.16
3.72
Asset turnover
1.24
1.46
Return on assets
9.6%
18.5%
Return on net worth
14.8%
29.4%

6. American Eagle Outfitters, Inc.
2008
2007
$ 000s
Net sales
2,988,866
3,055,419
Gross profit
1,174,101
39.3%
1,423,138
46.6%
Operating Income
302,140
598,755
Net Income (after tax)
179,061
6.0%
400,019
13.1%
GMROI
3.98
398%
4.97
497%
Inventory turnover
6.15
5.70
Asset turnover
1.52
1.64
Return on assets
9.1%
21.4%
Leverage
1.39
Return on net worth
12.7%
29.8%

7. Nordstrom Rack 2010 2009 Sales per store $19,326,000 $20,000,00
Women’s apparel, 34%
Women’s/Rack
$6,184,000
$6,800,000
Women’s apparel
34%  
Shoes
23%  
Men’s apparel
15%  
Women’s accessories
12%  
Cosmetics
10%  
Children’s apparel
3%  
Other
  Total
100%  

8. ABERCROMBIE & FITCH CO. 2008 2007 Number of stores 1,125 1,035
Sales per store
3,147
3,623
Square feet of retail area
8,022,000
7,337,000
Sales per square foot
$441.32
$511.09
Gross margin per sq foot
$294.40
$342.29
Inventory per square foot
$46.43
$45.41
Number of associates
96,200
94,600
Sales per associate
36,801
39,639
Net retail sales per average store (thousands) $
3,018
3,470
Abercrombie & Fitch
3,878
4,073
abercrombie
1,823
2,230
Hollister
2,962
3,550
RUEHL
2,039
2,602

9. American Eagle Outfitters, Inc.
2008
2007
Number of stores
1,098
987
Sales per store
2,722
3,096
Square feet of retail area
6,328,167
5,709,932
Sales per square foot
$472.31
$535.11
Gross margin per sq foot
$185.54
$249.24
Inventory per square foot
$46.61
$50.17
Number of associates
37,500
38,700
Sales per associate
79,703
78,951

10. Finalist Markets, No Nordstrom’s
Geographic Area Name
N452111
S452111
Sales per store
Nordstrom
N44814
S44814
McAllen-Edinburg-Mission, TX MSA 5
235,030
47,006 77
335,221
4,354
Springfield, MO MSA 4
137,750
34,438 26
67,334
2,590
Atlantic City, NJ MSA
168,740
33,748 52
121,879
2,344
Corpus Christi, TX MSA
124,728
31,182 32
88,937
2,779
New Orleans-Metairie-Kenner, LA MSA 12
355,452
29,621
118
317,852
2,694
Baton Rouge, LA MSA 8
218,373
27,297 84
177,071
2,108
Lancaster, PA MSA
107,891
26,973 45
111,270
2,473
Milwaukee-Waukesha-West Allis, WI MSA 13
347,172
26,706 85
234,533
2,759
Wichita, KS MSA 6
155,573
25,929 49
129,298
2,639
Lubbock, TX MSA
101,683
25,421 33
83,100
2,518
Mobile, AL MSA
123,700
24,740 34
74,604
2,194
Winston-Salem, NC MSA
121,349
24,270 41
100,193
2,444
Louisville-Jefferson County, KY-IN MSA
289,782
24,149 74
184,607
2,495
New Haven-Milford, CT MSA 10
236,799
23,680
259,519
3,370
Tulsa, OK MSA 9
212,431
23,603 71
192,121
2,706
El Paso, TX MSA
272,702
22,725 93
230,302
2,476

11. Spectra Results: Nordstrom Adults in Households
Minimum
Mean
Maximum
2 mile radius
12,830
42,392
77,612
4 mile radius
66,820
154, 071
229,215
6 mile radius
102,890
306, 009
480,841

12. Bergen--Passaic, NJ PMSA; 35,722 494,808 126 503,737 3,998
Hollister Markets Examined
Current stores
Households: Householder 35 to 54 years; $75,000+/store
Households: Total
Family clothing stores
Family clothing stores sales
Sales per store
San Francisco, CA PMSA; 4
37,152
684,805
208
938,063
4,510
San Jose, CA PMSA; 3
52,864
566,485
151
627,775
4,157
Bergen--Passaic, NJ PMSA;
35,722
494,808
126
503,737
3,998
Sacramento, CA PMSA; -
606,364
155
585,711
3,779
Hartford, CT MSA 2
42,705
457,421
116
429,408
3,702
Middlesex--Somerset--Hunterdon, NJ PMSA;
54,341
418,698 76
275,387
3,624
Newark, NJ PMSA;
77,904
729,043
164
543,230
3,312
Monmouth--Ocean, NJ PMSA;
43,963
425,000
121
350,380
2,896
Providence--Fall River--Warwick, RI--MA MSA 1
60,822
462,080
154
442,334
2,872

13. Potential AE MSAs Pine Bluff, AR MSA 12,298 2,232 23 26,421 1,149 45
STORES IN CHAIN
Households: Householder 35 to 54 years
Households: Householder 35 to 54 years; $75,000+
Clothing stores 4481
Sales
Sales per store
Clothing & clothing accesorites stores 448
Pine Bluff, AR MSA
12,298
2,232 23
26,421
1,149 45
48,136
1,070
Kankakee, IL PMSA;
15,828
4,271 25
35,512
1,420 42
44,514
1,060
Elmira, NY MSA
14,987
2,930 34
39,517
1,162 59
56,667
960
Lewiston--Auburn, ME MSA
15,529
2,916 32
25,001
781
Sumter, SC MSA
16,145
2,584
21,642
637 57
40,634
713
Corvallis, OR MSA
12,239
4,414 27
17,623
653
Enid, OK MSA
9,208
1,479 33
21,013
Great Falls, MT MSA
13,360
2,110 20
16,106
805
26,569
633
Sheboygan, WI MSA
18,951
5,370 38
21,664
570

14. California Location Requirements: Hollister
Criteria
Findings
Typical leased site
Minimum household count
Highest Demographic indices
Household income level
Age
Children
Education attainment
Enclosed shopping mall (Google Earth)
5 mile radius: 140,000
Higher income, maturing families
$100,000+
35-44
<6 & 6-17
College graduate

15. American Eagle’s Smallest MSAs
Geography AE
Households: Householder 35 to 54 years
Households: Householder 35 to 54 years; $75,000+
Bangor, ME MSA 1
15,952
3,930
Owensboro, KY MSA
15,037
3,289
Pittsfield, MA MSA
14,656
3,667
Rapid City, SD MSA
15,129
3,168
Dubuque, IA MSA
14,085
3,164
Jonesboro, AR MSA
12,480
2,467
Cheyenne, WY MSA
13,651
3,179
Victoria, TX MSA
13,067
3,434
Pocatello, ID MSA
11,002
2,687
Casper, WY MSA
11,945
2,584