Task:
Intro to Financial Accounting
Abercrombie and Fitch versus Hennes &Mauritz
ABERCROMBIE AND FITCH:
Abercrombie & Fitch Co. (A&F) was incorporated in 1996. The company is a specialty retailer that operates stores selling casual sportswear apparel, personal care products, and accessories for men, women, and children.
As of January 29, 2011, A&F operated 1,069 stores in North America, Europe and Japan. Its brands include Abercrombie & Fitch, Abercrombie kids, Hollister and Gilly Hicks (Reuters).
Below are some links for additional information.
https://www.reuters.com/finance/stocks/companyProfile?symbol=ANF.N
https://www.abercrombie.com/anf/investors/investorrelations.html
HENNES & MAURITZ (H&M) AB
H&M Hennes & Mauritz designs cheap yet chic clothing, mainly for men and women ages 18 to 45, children's apparel, and its own brands of cosmetics. Fast-growing H&M operates about 2,000 stores in some 35 countries and has direct sales operations in selected areas (Hoovers).
Required:
Go to each company's website and review the most recent financial statements for each company and answer the following questions.
What accounting standards are used?
What auditing standards are used?
Analyze and comment on the differences in the annual statements found on the companies' websites. Provide a few specific differences.
How comparable are these financial statements?
Prepare a table for a period of three years showing some key financial information for the two companies. Include at least four items from the balance sheet, four items from the income statement, and four items from the statement of cash flow. Having reviewed and analyzed the financial information, please elaborate on the following three questions.
Which one of the two companies is the most profitable?
Do also compare growth of revenues versus income over time and between the two companies
How can you explain the difference in profitability between the two companies?
Indicate in detail the information you used to answer the above questions.