Apparel Company Investment Research for

Flint River Holdings

Prepared for
Mr. Jacob Blumner
Founder
Flint River Holdings

Prepared by

Anthony Barbat
Ray Rolfe
DeWayne Haneline III

December 8, 2022
December 8, 2022

Mr. Blumner
Founder
Flint River Holdings

Dear Mr. Blumner

Here presented to you is information regarding three companies primarily

engaged in the sale of apparel; Adidas, Burberry, and Fast Retailing. The data we
collected is information about their background, website, financial information, as well
as their working conditions. With the data we collected while conducting this research,
we determined that Flint River Holdings should invest in the company Fast Retailing.

Anthony conducted research regarding Adidas, Ray researched the company

Burberry, and DeWayne researched Fast Retailing. Each individual researched the
company’s background, website, financial information, and working conditions for this
report.

There were no complications with working together and each individual

completed their research on time.

Thank you for giving us this opportunity to conduct this research and present this
report to you.

Sincerely,
Anthony Barbat
Ray Rolfe
DeWayne Haneline III

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 Table of Contents

Letter of Transmittal…………………………………………………………..………………….i

Executive Summary……………………………………………………………….……...……iii

Introduction………………………………………………………………………………………1

Adidas
Adidas Background……………………………………………………………………..1
Adidas Website………………………………………………………………………….1
Adidas Stock and Financial Information………………………………………………2
Adidas Working Conditions…………………………………………………………….4
Burberry
Burberry Background………………………………………………………………...…4
Burberry Website………………………………………………………………….…….5
Burberry Stock and Financial Information…………………………………………….6
Burberry Working Conditions……………………………………………………….….7
Fast Retailing
Fast Retailing Background……………………………………………………..………8
Fast Retailing Website…………………………………………………………….……9
Fast Retailing and Financial Information……………………………………...…….10
Fast Retailing Working Conditions…………………………………………………...11

Conclusion………………………………………………………………………………...……12

Recommendation………………………………………………………………………………13

Bibliography…………………………………………………………………………………….14

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 Why Fast Retailing Should be Invested In

Executive Summary

Throughout our research, we considered the backgrounds, websites, financial

information, and working conditions of Adidas, Burberry, and Fast retailing. After
carefully considering the information we acquired about each company in each of these
categories, we concluded that Fast Retailing is the best investment for multiple reasons.

Adidas and Burberry have similar websites where you can find what kind of
apparel you are searching for such as men, women, and also kids. However, Fast
Retailing’s website was the superior of the three companies due to being robust in
information about the categories being researched. One example of this is that Fast
Retailing’s website was the easiest to find financial information on while with Adidas and
Burberry, one had to go through multiple barriers to retrieve that information.

Although Adidas and Burberry also have expanded their businesses

internationally like Fast Retailing, Fast Retailing has maintained the most stable stock
price even throughout the COVID-19 pandemic out of the three companies. Burberry’s
stock has dramatically gone up and down throughout the last four years and Adidas’
has recently declined dramatically. These factors combined makes Fast Retailing the
safest choice for Flint River Holdings to invest in out of the three companies.

In regards to working conditions, Adidas did score the highest on the website
glassdoor but, the lack of information regarding the working conditions inside their
factories on their website leads us to be skeptical of this rating. Fast Retailing however
provided the most transparent information on both their working conditions as well as
the benefits they offer their employees on their website.

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Introduction

The purpose of this research is to present Flint River Holdings with the best
apparel company to invest in out of the companies Adidas, Burberry, and Fast Retailing.
This will be done by reporting on the status of their stocks over the last four years, their
annual revenue over the last four years, and other information such as their website and
working conditions.

Adidas

Background

Some history of Adidas is that it was founded in 1924 in Germany. According to

Adidas’ website, this is where Adi Dassler started the company in his mother’s
washroom. Unfortunately, when he registered his company the first time it failed so he
tried again in 1949. This time, he had set for around forty-seven employees to work for
him and the brand continued to grow from that point forward. In 1954 when Germany
had won the World Cup, the team was wearing the Adidas shoe. This jump-started the
success of Adidas and made them bigger in the eye of the mainstream. The first piece
of apparel Adidas released was their now infamous tracksuit which was created in 1967
and is still popular today.

Website

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 The theme of Adidas’ website is black and white matching its logo. After
launching the Adidas website, you are immediately greeted by a screen that shows the
current deals. Right above that, you can click on multiple icons stating “Shop Men”,
“Shop Women”, “Shop Kids'' and other sections. When you click on one of them, you
are directed to the section of the website where it shows the apparel for each section.
Also, if you navigate to the top of the page it shows the other sections to quickly
navigate to another one. The target audience for this is teens to young adults.

Stock and Financial Information

Adidas is a publicly owned company, and its stock price as of 11/30/22 is €122.26
which is $127.55. Adidas had started at about €187.80 ($195.92). Adidas was having
some trouble during the COVID-19 pandemic but then started to recover very well, but
in June 2021 the stock price started to decrease tremendously. According to Yahoo
Finance, some reason for the stock price going down is that Adidas has cut ties with the
famous celebrity Kanye West and his abusive behavior. The fall in stock was also
caused by the company leaving Russia according to Yahoo Finance.

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 One significant decrease is the net income. From 2018 to 2019 net
income is starting to decrease slowly. There was a decrease of $269,464 dollars from
the years 2018 to 2019, but from the years 2019 to 2020, there was a drastic decrease
of $1,626,958 in net income. With the decrease in net income, there is a steady stream
of Sales Revenue.

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Working Conditions

The working conditions for Adidas are rated 3.9 out of 5 on Glassdoor.com
starting with some reviews saying that Adidas would be recommended to a friend.
Some of the benefits of Adidas are that they have tuition reimbursements for people
who are currently enrolled in school. They also have health insurance and vision
insurance. On the website Indeed, Adidas has been rated four out of five stars. Some
reviews state that it's a fun place to work and it's overall a great company. Reviews also
state that Adidas has a very positive atmosphere where the employees feel motivated to
do their work. This is positive because it encourages employees to do their best and
soon moves up in employment. Some other reviews however state that there are very
few hours given to the employees and that the employees can't trust their colleagues.

Burberry

Background

Burberry was established in 1856, by a 21-year-old named Thomas Burberry. He

founded the company on the principle that clothing should be designed to protect
people from the harsh British weather. The company has been a staple in the apparel
industry since then, going on to patent things such as Gabardine and the trademarked
Burberry check. The company currently operates 2,018 stores worldwide, with its
headquarters located in London. Burberry has been a publicly quoted company since
2002.
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Website

The Burberry website is visually appealing and interesting. It opens by showing

Burberry's latest collaboration, very distinctly throughout the home page. Like most
apparel websites, there is a bar at the top of the page allowing for easier navigation
throughout the website. Each drop down menu leads to various other subcategories that
consumers can click through. The visual content on the Burberry landing page can
change depending on the season, their current collaborations, or their current fashion
line. At the moment their main page is highly targeted toward a young adult/teenage
audience. However, the navigation remains easy and consistent throughout.

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Stock and Financial Information

As of 11/30/2022, €2177.00 is the current price of Burberry stock, which

translates to $2090.27. Since January 2019, Burberry stocks have both risen and fallen
at a very neutral pace. There’s a dramatic dip in the graph following February 2020, but
this can be attributed to the beginning of the COVID-19 pandemic. Burberry dropped to
its lowest point, of €1252.50 ($1326.26), during the height of the pandemic. The
company has slowly picked itself up and Burberry stock is currently the highest it has
been all year but this is subject to change.

Burberry’s total revenue has remained relatively constant. The company's worst
year since 2019 was 2020 with total revenue of $3,216,578, a $346,25 decrease from
the previous year, likely due to COVID-19 . However, they seem to have recovered with
a $482,668 increase in 2022 at $3,711,212 in total revenue. In 2020 Burberry’s net
income dropped to $148,668 a $295,546 drop from the previous year, but they have
also shown recovery in this area as their net income rose to $520,042, higher than
before the pandemic.

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Working Conditions

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 Burberry has an overall rating of 3.6 out of 5 on glassdoor and a 3.7 on
Indeed.com. Burberry offers a variety of worker benefits including maternity and
paternity leave, health and wellness insurance, paid vacation/leave, sick days, and
financial and retirement options. Reviews talk highly of Burberry's brand reputation and
collaborative atmosphere. The employees feel connected to the company's values and
feel encouraged to grow with the company. However, Burberry scores lower in places
such as work/life balance and career opportunities. An average work day for an
employee at Burberry would consist of an 8-hour shift with a 1-hour lunch break.
Employees also claim that there are few opportunities to move up within the company
and the highly competitive atmosphere is demanding.

Fast Retailing

Background

Originally founded under the name Ogori Shoji Co., Ltd. in 1963, Fast Retailing is
responsible for operating many apparel chain stores with locations worldwide such as
PRINCESSE TAM.TAM, GU, and Theory. Named because of the company’s mission to
make retailing faster in Japan, Fast Retailing also oversees the manufacturing and sale
of clothing through its subsidiaries. However, they are primarily engaged in selling
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clothes through the brand named UNIQLO, which has over 2000 directly operated and
franchise stores worldwide.

Website

The layout of the Fast Retailing website features a consistent red and white color
scheme to match the company's logo. The website features a very comprehensive
amount of information such as the company’s background, the number of retail
locations each of their brands has, as well as a FAQ section. On the homepage, Fast
Retailing has its brand slogan “Changing clothes. Changing conventional wisdom.
Change the world.” as well as its updated stock quote information. The red navigation
bar at the top of the page is a very convenient way to access all of the different parts of
the website. The audience for the website appears to be any individual looking for
additional information on the company, and the website does a good job catering to that
audience effectively. The website also has a section relating to working conditions and
claims to offer a healthy and safe work environment for all of its employees, highlighting
things such as a fair salary structure and improving employee satisfaction.

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Stock and Financial Information

The current stock price of fast retailing is currently at ¥81,220.00 Japanese Yen
per share which is $586.40 USD. By taking a look at their stock price from 2019 through
2022, some highs, as well as some lows, can be observed. Although the stock price fell
dramatically in 2020 during the COVID-19 pandemic, Fast Retailing's stock price
recovered and rose dramatically in 2021. Throughout 2022 although the stock price has
dipped, it is on a steady rise once more.

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 The total revenue for Fast Retailing in 2019 in USD was $21,542,317 and has
been steadily declining since. In the current year 2022, the total revenue for Fast
Retailing sits at $16,582,696. Another category to highlight on this revenue report is
also Fast Retailing’s Net income which in 2022 is $1,969,748 and is the highest of the
three companies researched for this report. This year, Fast Retailing has also made the
most in foreign exchange gains in the last four years bringing in $823,859 in that
category.

Working conditions

On Glassdoor, Fast Retailing has an overall 3.5 review rating out of 179 total

reviews. Looking at the three most recent reviews of working at the company, two of the
three reviews rate Fast Retailing 3 out of five stars with the third review only giving Fast
Retailing one more star with a 4 out of 5 star overall review. The pros and cons given in
these reviews seem to be a bit of a mixed bag. One individual describes handling
several different tasks and projects as a pro, while another review says as a con that
working at the company is too hectic with tasks every single day.

On Indeed, Fast Retailing has a total of 3.9 overall review ratings out of a total of
99 reviews. These two indeed reviews seem to confirm some of the things said on
Glassdoor with the second review mentioning that working at Fast Retailing is a
fast-paced industry and that the workload is very challenging.
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 According to the Fast Retailing website, they have a variety of employee
benefits. Some of these benefits include employee discounts, unemployment, pensions,
and a 401 (k) plan as well. Fast retailing also mentions the importance of its
employees’ mental and physical health on its website and has established wellness
centers to aid in facilitating the optimal health for its employees.

Conclusions

Adidas

Adidas has maintained a good reputation in the past, but currently there has
been controversy with the celebrity Kanye West. Adidas has cut ties with West and has
also pulled their stores from Russia, causing their stock to fall. There have been few
reviews about the work environment inside the warehouse, and no information about
working conditions on their website. Investing in Adidas’ stock is not recommended
because their stock has not recovered since COVID-19, and their falling out with Russia
and Kanye West. Although, their products are very good quality and are at a good price.

Burberry

Burberry has steadily built and maintained its brand reputation up until now. The
website supports this by accurately portraying the company through the brand-inspired
design and non-conflicting information such as: investor data, annual reports, debt
information, mission statement, strategies, and also projects. Burberry remains among
the top as a luxury brand, but this results in a lack of accessibility due to high prices.
The company has created a first-class brand, which results in a disconnect between the
company and the general public, despite celebrity ambassadors and trendy
collaborations. In addition, while seemingly neutral, Burberry stock seems to be
following a pattern and will likely be entering a down period soon as well.

Fast Retailing

Through the information found on Fast Retailing in the researched categories,

Fast Retailing has shown that they do indeed live up to its brand reputation. By having a
website that highlights the importance of the health of their employees, has information
regarding their working conditions, as well as transparent information on their revenue,
…………………………………………………12………………………………………………..
Fast Retailing has lived up to its reputation as being a transparent and good company to
work for. Buying stock in Fast Retailing is a very safe investment considering the price
of the stock is on the rise and its excellence in regards to the researched categories..

Recommendation

In conclusion, we have decided that the best investment for Flint River Holdings
is Fast Retailing. When taking their background, website, financial information, and their
working conditions into consideration, Fast Retailing rose above both Adidas and
Burberry. One of the main deciding factors was the stock price of Fast Retailing soaring
in 2021 after the COVID-19 pandemic in 2020 and the stock price seems to also be on
the rise again.

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 Works Cited

“1949-2003.” FAST RETAILING CO., LTD.,

www.fastretailing.com/eng/about/history/2003.html.

“Adidas Employee Reviews.” Indeed, www.indeed.com/cmp/Adidas/reviews

“Adidas® Official Website US: Sporting Goods.” Adidas United States,

https://www.adidas.com/us.

“Adidas Profit Tumbles from Russia and Yeezy Exit.” Yahoo! Finance, Yahoo!,

finance.yahoo.com/m/78801b62-7518-3be8-b6e6-10a3944f4bee/adidas-profit-tumbles-f

rom.html.

“A Positive Work Environment.” FAST RETAILING CO., LTD.,

www.fastretailing.com/eng/sustainability/employee/workplace.html.

“Burberry Group Plc (BRBY.L) Income Statement.” Yahoo! Finance, Yahoo!,

finance.yahoo.com/quote/BRBY.L/financials?p=BRBY.L.

“Burberry Group Plc (BRBY.L) Interactive Stock Chart.” Yahoo! Finance, Yahoo!,

finance.yahoo.com/quote/BRBY.L/chart.

“Burberry Salaries: How Much Does Burberry Pay? .” Indeed,

www.indeed.com/cmp/Burberry/salaries.

“Burberry Application, Jobs & Careers Online.” Job, 10 Feb. 2022,

www.job-applications.com/burberry-job-application/
“Fast Retailing Co., Ltd. (9983.t) Income Statement.” Yahoo! Finance, Yahoo!,

finance.yahoo.com/quote/9983.T/financials.

“FAST RETAILING Employee Reviews.” Indeed,

www.indeed.com/cmp/Fast-Retailing/reviews?fcountry=ALL.

“Fast Retailing Reviews .” Glassdoor,

www.glassdoor.com/Reviews/Fast-Retailing-Reviews-E12005.htm.

“Group Outlets.” FAST RETAILING CO., LTD.,

www.fastretailing.com/eng/group/shoplist/

“History.” Adidas, https://www.adidas-group.com/en/about/history/.

“IR FAQ.” FAST RETAILING CO., LTD., www.fastretailing.com/eng/ir/faq/.

“Our History.” Burberry, us.burberry.com/c/our-history/.