StORES Magazine - August 2007 - (Page S8)

HOT1OO Bon-Ton’s rise to the top of the Hot 100 results from Average YOY the purchase of a group of department stores that revenue growth more than doubled the company’s size and sales. It of the Hot 100 Retailers also has been able to operate in the black, even as it digested the acSIZZLING SEGMENT quisition, and continues to do so. Tweens & Teens 18.30% Bon-Ton’s most notable move was to close Zumiez 45.0% the historic Carson Pirie Scott flagship in American Eagle Outfitters 20.3% downtown Chicago, a major portion of Abercrombie & Fitch 19.2% which was designed by Frank Lloyd Aeropostale 17.3% Wright’s mentor Louis Sullivan. The closing Tween Brands 16.6% last February came just months after FederDelia’s 13.6% ated Department Stores removed the even Wet Seal 12.7% Urban Outfitters 12.1% older Marshall Fields name from the Loop’s HOTTEST OF THE HOT PROFIT RATIO COMPANY REVENUE INCOME 2006 RATIO 2006 14.2% 45 Achieving a double-digit earnings-to-sales ratio requires deft salesmanship and a touch of serendipity. A dash of tax benefits or positive accounting maneuvers doesn’t hurt, either. Whatever it takes, this year’s hottest profit ratio contingent sure has it right, since nine of the 10 were also on last year’s list. Bed Bath & Beyond dropped off and newly-eligible McDonald’s shot to the top of the chart in this year’s edition. McDonald’s bebe Stores Claire’s Stores Abercrombie & Fitch The Buckle Chico’s FAS Tiffany AutoZone Urban Outfitters $21,586,400 579,073 1,480,987 3,318,158 530,074 1,646,482 2,648,321 5,948,355 1,224,717 $3,544,200 387,359 73,962 188,762 422,156 55,726 166,636 253,927 569,275 116,206 16.4% 13.9 12.8 12.7 12.7 10.5 10.1 9.6 9.6 9.5 American Eagle Outfitters 2,794,409 43 All dollar figures in thousands McDonald’s has catapulted itself out of the doldrums with a vengeance, emerging victorious in the burger wars with Wendy’s and Burger King, at least for the time being. Much of the credit has been given to CEO Jim Skinner, who started with the company as a youngster in Davenport, Iowa. The epiphany came when he realized that getting bigger was not necessarily getting better. “We had contributed $4 billion or $5 billion to capital expenditures and building new stores over four years and yet we didn’t have any corresponding incremental operating income growth,” he says. “So we decided to focus on our existing restaurants.” Since then, McDonald’s comp-sales have consistently outperformed those of its rivals, and its operating margins have increased dramatically. Under Skinner’s aegis, the company has made major moves toward providing a menu with healthy eating choices and launched a store renovation campaign. He has also overseen expansion into China and the sale of 1,600 company-owned units in Latin America. WWW.STORES.ORG Good fortune is readily apparent, as clothing sales remained strong and seven apparel chains ranked among the top 10 both years. Last year’s leader, Chico’s FAS, dropped several notches after a decade of spectacular growth in which it generated double-digit same-store sales gains for nine straight years and posted operating margins among the highest in the retail industry. Last year was still a good year for Chico’s, but it just wasn’t a typical Chico’s year, even though its White House/Black Market and Soma chains picked up steam. S8 STORES / AUGUST 2007 http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of StORES Magazine - August 2007

Contents Executive Editor's Page President's Page Upfront NRF News Retail People Concept2Watch Supermarkets Cover Story Online Marketing In-Store Marketing RFID Data Management Payment Systems Software Loss Prevention E-Commerce Risk Management Communications Loyalty Marketing Human Resources Mobile Commerce Loeb Retail Letter Arts Update Point of View Advertising Index Retail Industry Calendar

StORES Magazine - August 2007

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