A Evaluation of Two Apparel Suppliers: The DuPont Framework and Returning on Equity

The following paper will do a comparison of the five-year functionality of two apparel manufacturers using the DuPont Framework and Go back on Equity. A three- year research of common-size cash flow statements will be undertaken to make clear changes in profit and expenses within each company. Jones Clothes Group (JNY) and Liz Claiborne (LIZ) will be the sector leaders in the developing of better garments, footwear, fragrances, and costume jewelry, and the main topic of this analysis.

Jones Apparel Group’s recognized makes include: Jones NY, Polo Jeans Firm, Nine West, Napier, and costume charms certified under the Tommy Hilfiger company. Jones aims to get stability in the apparel industry and also retail markets through construction “complete lifestyle brands serving a broad breadth of buyers in a variety of income amounts and shopping destination tastes.” (PR Newswire, 2/7/01).

Liz Claiborne’s brands consist of: Claiborne, Curve, Lucky Brand, Monet, and licenses to create DKNY Jeans and DKNY Dynamic. The company’s success could be related to its “multi-brand, multi-channel approach” of diversification in the apparel marketplace. (PR Newswire, 2/23/01).

The apparel industry is just about the volatile sectors on the market today. At the mercy of overnight changes in tendencies and fashion, the industry leaders should be exact with their predictions and swift to accommodate changes. Due to these fluctuations, it is extremely hard to assign