Create a 6 page essay paper that discusses Finance accounting.In short, they let the customers do talk.The company is currently ranked as the largest global lifestyle brand offering company. It offers

Create a 6 page essay paper that discusses Finance accounting.

In short, they let the customers do talk.

The company is currently ranked as the largest global lifestyle brand offering company. It offers menswear, women swear, and other vital accessories over 100 retail stores in more than 30 countries. Today, Excellency clothing company fulfills its commitment to customers by providing commercial fashion and offering quality designs. The company has a vision of multi- channeling distribution and looking forward to the expansion of the brand in new and existing international markets.

Despite the fact that the company has a vision of expanding its market size to gain competitive advantage over other competitors, it has experienced a setback of decrease in the profitability in recent years mainly due to the stiff competition in the market and economic recession and financial crisis (Ketz et al., 2005). The company’s financial statement show road to economic depression is skyrocketing.

Based on the data from the income statement provided in the annual report, it is clearly seen that there is a decline in the company performance. At the beginning of 2014, the company reported revenue of £215,623,000, a drop of about (39440/255063)*100 = 15.46% from the year 2013. The decrease in the income was caused by unfavorable movements in the foreign currency rates in the respective countries (White et al., 2011). Another crucial factor was the stiff global competition that scaled up in the retail industry. The next item to be analyzed is the cost of sales that increased from (96800/255063)*100 = 37.95% in the year 2013 to (84500/215623) = 39.19%. The increase in the value f sales was due to the inventory damage which is inexcusable forcing the company to purchase more stocks, manufacture more wares and to cover additional costs that are associated with repackaging and finally storing replacement finished goods.

Other factors that led to an increase in the cost of sales were the warehouse