Roxy Company: Economical Comparison
Roxy
Roxy, which has 33% of the revenue, is a brand that is composed of a wide range of products for women among them including sportswear, swim wear, footwear, backpacks and snow boards among others. Its sales are $ 1,953.06 M representing an annual sales growth of 6.28%. In 2009 there was a drop in sales due to limited buying by customers. The revenue declined by 12%. Though with the decline, the following noted some improvements in sourcing and limited discounting which led to high profits (Quicksilver Inc.). After going through a financial recession and putting in place better practices, the company sort to transform its short-term debt to long term so as to make it more liquid and to advance in expansion.
Billabong International Limited
Billabong International Limited has an annual sale of $ 1,898.39 M slightly smaller than Roxy. in 2011 Billabong has experienced a drop in its market share from A$9 considering that its markets have struggled with weak economies. Its shares have declined by a massive 44% in contrast to Roxy’s 12%. The decline in client spending has been quite helpful to the company in debt. The company is being offered a takeover price at A$765 million. And another deal is in the offing with Trilantic Capital Partners is set to acquire 48.5% with an equal share to Billabong and the rest to Nixon. With a desire to acquire $ 285 million it is set to use the money to pay off debts in 3 months.
The company has put in place varied practices to resolve the decline. Just like Roxy Company, its operations are undertaken through acquisitions of big named companies. It upholds them and controls their strength. It is through acquisition that the company has been able to experience growth by extending in to the markets for instance Kustom surf-shoe maker and Von Zipper.
Oakley
Oakley Company has sales of $985.16 M with a net income of $ 71. After being acquired by Luxottica in 2007 its sales have grown each year leading it to hit $ 1.1 billion in sales. Its market share showed a rise by 7% in December 2012. Currently the trade reads 17% discount to the net asset value. This is however set to be higher as the firm is under charging its asset. A high charge in the vehicle discount makes it hard to increase its capital considering that the investors are not willing to offer shares at a discount to market price.
Roxy decided to grow its business through expansion and opening new stores in comparison, the company being an innovator in optics, it decided to broaden its reach to new markets, though contrastingly, by partnering with other companies like Motorolaentered which aimed at creating Bluetooth hands-free appliances.
PacSun
In the January 2011 the company was able to record an annual sales growth of $ 833.75 M which was 10.30% with a total asset estimated at $ 355.13 M and a market value of $ 126.04 M. By experiencing a dismal performance in sales the company decided to close its stores which were not offering any revenue. As experienced by Roxy Company, its net sales dropped to $ 930 million from over $ 1 billion the prior year, an estimate of over 9%. While still considering that the small stores played a bigger role in the drop, the sales decline by 8%. Efforts are however in place to acquire back apparel sales lost to other more competitive companies like Zumiez. So as to experience an increase in the revenue, Pac Sun is extending most of it stores which amount to 13% of the whole sales, which initially was at a high of 33% in 2006. Its image has similarly been elevated to experience high sales. The company made a different turn from the fall with acquisition of a $160 million deal, acquisition of a $100 million credit and $ 60 million loan which concurred with Roxy to drive it out of the fall and experience a growth in the market.
Works Cited
Quicksilver Inc. “Roxy Company.” Hoovers.com (2011).
