Financial Analysis and Brand

Ann Taylor Case Study The issue facing Ann Taylor in 2014 was a fairly common one, particularly for brands that have been established for as long as this women's clothing store magnate has been. This chain of specialty stores was initially established in 1954. As such, it had witnessed myriad changes in styles and fickle customer tastes since the midway point of the 20th century.

The crux of the issue that Ann Taylor was experiencing was simple enough: it needed to change with the times without alienating its core customer base and style. Specifically, there was a conflict of sorts in the two directions that the store could have gone in at this point in time. One of these was typified by its LOFT stores, which traditionally sold casual clothes that were less expensive that typical Ann Taylor products.

The second direction was typified by the traditional Ann Taylor line, which was centered upon upscale, fashionable clothing for professional women. Therefore, the problem statement that Ann Taylor faced at this point in time when it was re-emerging from the greater financial downturn at the end of the previous decade was how to re-establish its brand as the premier women's clothing line while balancing these seemingly disparate directions in women's fashion.

LOFT Financial Analysis It is difficult to dispute the efficacy of the LOFT brand of Ann Taylor, which was initially designed to augment the more longstanding, upscale items for which this specialty clothing store was known. The concept behind LOFT was viable both from a fashion perspective and financial one. It would attend to the clothing and accessory needs of women looking for a more casual look.

It addressed this need in a salient manner since around the time it was introduced (at the end of the 20th century) there was a growing movement for a more casual dress code in the office place. The brand always appealed from an economic standpoint as well, as it offered clothing at approximately 30% less than conventional Ann Taylor store's did. Still, the popularity of LOFT and the style of clothing it represents for the contemporary zeitgeist in which casual clothing is becoming more ubiquitous is indisputable.

There is a bevy of financial data that attests to this reality. The LOFT stores have made steady gains in their fiscal year ending numbers ever since 2012, with the stores ending with $1,276.4 in February of 2015. These steady increases are also reflected in LOFT's outlet and brand earnings for the same time period, so that the total company earnings for 2015 are $2,533.5.

The amount of these earnings is a considerable part of the earnings for the Ann Taylor company as a whole, and readily demonstrates that current market trends are supporting a greater emphasis on LOFT, than the traditional Ann Taylor clothing. Ann Taylor Financial Analysis There are several facets of the financial analysis of Ann Taylor (as opposed to the company's business generated by LOFT), that reflects the fact that the clothing market has shifted towards less formal, and more casual, attire.

Prior to examining the financial data that verifies this assertion, it is important to establish the fact that the initial Ann Taylor brand is practically diametrically opposed to the clothing and accessories found in LOFT. Ann Taylor has historically built its reputation as offering upscale rainments for professional women. Business suits and classy, elegant (and costly) black dresses typified its look, style, and even clientele.

In fact, this reality partially led to the creation of the LOFT brand, and perhaps even contributed to its ascendancy over the conventional Ann Taylor brand and style. This claim is readily buttressed by even a cursory review of the financial data for Ann Taylor, particularly as it is compared to the same data for LOFT. Unlike the data for LOFT, the financial data for Ann Taylor does not reflect steady gains.

There were greater yields for Ann Taylor's stores and total brand at the end of the fiscal year in 2014 (668 and 959.8, respectively), than in 2015 (658.7 and 952.8, respectively). Still, the most notable analysis of this data is in comparing it to the respective metrics for LOFT. The total Ann Taylor brand for the end of.