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Sat Joshi McIntire Investment Institute September 9, … A. Bank Clothiers Sat Joshi McIntire...
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Transcript of Sat Joshi McIntire Investment Institute September 9, … A. Bank Clothiers Sat Joshi McIntire...
Joseph A. Bank Clothiers
Sat JoshiMcIntire Investment InstituteMcIntire Investment Institute
September 9, 2003
Joseph A. Bank Clothiers
Company Overview
• Established in 1905
• Men’s tailored and casual clothing and accessories
Joseph A. Bank Clothiers
Company Overview• 174 Retail stores
Northeast, Midwest, South, Mid-AtlanticSouth, Mid-Atlantic
Joseph A. Bank Clothiers
Company Overview
• Multi-channel retailing• Stores, internet, catalog• Stores, internet, catalog• Synergy, brand recognition
Joseph A. Bank Clothiers
Thesis #1
• Superior Cost Structure• Superior Pricing• Superior Pricing
• High Quality Product
• Industrial Presence
Joseph A. Bank Clothiers
Thesis #1
• Superior Cost Structure• Design and purchasing• Design and purchasing• Merchandise and
planning staffs coordinated efforts
• Supplier and Manufacturing• Diversification
Joseph A. Bank Clothiers
Thesis #1
• High Quality Product• Customer satisfaction• Customer satisfaction• Common suppliers with
competitors
• Industrial Presence• Thriving in a harsh industry
Joseph A. Bank Clothiers
Thesis #2
• Absolute Focus on Customer
• First Mover: Technology
• Retail Channels
Joseph A. Bank Clothiers
Thesis #2
• Absolute Focus on Customer• Build and maintain client • Build and maintain client
relationships
• Emails; same store sales
• Dominate the customer budget
Joseph A. Bank Clothiers
Thesis #2
• First Mover: Technology
• Inventory, infrastructure
• Database, targeted marketing
Joseph A. Bank Clothiers
Thesis #2
• Retail Channels• Store, Web, Phone• Store, Web, Phone
• Location is everything!
• Coordination, Streamlined• Established customers• Customer returns
Joseph A. Bank Clothiers
Thesis #3
• Rapid Growth
• Growth Financing• Recursive Value
Enhancement
Joseph A. Bank Clothiers
Thesis #3
• Rapid Growth• April 2002: 137 Stores• April 2002: 137 Stores• April 2003: 174 Stores
• Increasing growth rate
• +75-100 per year here on out
Joseph A. Bank Clothiers
Thesis #3
• Growth Financing• Internally Financed• Internally Financed• Same-store sales
• Paying off debt• No additional bond/equity
offerings• The cycle drives itself
Joseph A. Bank Clothiers
Someone Say Competitors?
Lands’ End Men’s WarehouseDept. Stores Others
Joseph A. Bank Clothiers
Nordstrom
• Large Dept. Store• Department • Department
interdependence• Aggregate performance
• What happened to Britches?
Joseph A. Bank Clothiers
Brooks Brothers
• Serious decline in quality• Ownership, banktuptcy, and • Ownership, banktuptcy, and
more• Jaguar phenomenon?
Joseph A. Bank Clothiers
So Back to Competitors
• Cost structure• Pricing Points• Pricing Points• Excess Inventories
• Image is everything• Alienating your customers
Joseph A. Bank Clothiers
Risks
• Variety of External Factors• Volatile industry• Volatile industry
• Young Brand Identity• Other established players
• Expansion Strategy• Geographic segmentation
Joseph A. Bank Clothiers
Value Added Research
• Store Visits• Speak with employees• Speak with employees• Observe customers• Test out the service
• Talk to Everyone• Financial Insights• Professionals
• Analyze
Joseph A. Bank Clothiers
Key Figures
Share Price: 43.96
Shares Outstanding: 6.20 M
Market Cap: $272.30 M
LT Debt: $24.64 M
Joseph A. Bank Clothiers
Check itG
Joseph A. Bank Clothiers
THE END