Footwear Insight - Business Report Quarterly

Classics more scare in the marketplace. Has hired Tim Hamilton, former creative chief for e North Face and past Gap and Ralph Lauren executive, to lead its design team. Sales: +21% to $505.9 million for Q4 ended Dec. 30, +46.6% for FY to about $2.03 billion. Americas' revenues were 18.5% higher in Swiss francs in final period to the equivalent of $340.1 million and up 52% for FY to approximately $1.3 billion. Operating profit: +178% to the equivalent of $46.2 million in Q4; up 112% for FY to approximately $203.9 million. Gross margin: Increased 190 basis points in Q4 to 60.4%, +360 basis points for FY to 59.6%. Key developments: Look for On to accelerate its apparel business, grow its own global retail network and rely more heavily on its Direct-To- Consumer segment this year. Will enter tennis and training apparel segments. Sales: -4.0% on a currency-adjusted basis to the equivalent of $2.16 billion in Q4. Americas' sales fell by 6.4% in euros to about $921.0 million. In FY23, Americas' sales declined by 2.4% to $3.69 billion as total worldwide sales rose by 6.6% to $9.36 billion. Operating profit: +133.0% to the equivalent of $102.8 million in Q4; -3.0% in euros to approximately $676.7 million. Gross margin: Rose by 290 basis points to 47.0% in Q4; up 20 basis points to 46.3% for FY23. Key developments: Intends to work closely with retail partners in the U.S. on sell-throughs and "prudent sell ins" given H1 results are likely to be soer year-over-year. Will launch its biggest brand campaign ever and first in a decade in April. Forecasting mid-single-digit, currency- adjusted sales growth for FY with a corresponding operating profit range of $675-$762 million. Sales: -6% in Q3 to $1.49 billion for the three months ended Dec. 31. Footwear were sales slipped by 6.6% to $331.0 million and North American revenues were down by 11.8% to $915.4 million. Operating profit: Fell by 26.8% to $69.5 million from $94.7 million. Gross margin: Increased by 100 basis points to 45.2%. Key developments: In mid-March, in a surprise to some, company announced the Founder Kevin Plank would again become President and CEO on April 1, replacing Stephanie Linnartz, who joined the company from Marriott Intl. 13 months earlier. Has appointed Yassine Saidi as chief product officer. Is looking for a new head of footwear. Updating key running shoe models this spring/ summer with base, pro, and elite styles to meet its good, better, best segmentation strategy. UA Rewards loyalty program reached 3 million members last year in North America where Cara Trent is now heading up the region. Sales: -21% to $526.7 million for Q4 ended Dec. 30, -10% for FY to $2.24 billion. Saucony was down by 1.9% for FY to $495.8 million; Merrell sales declined by 11.6% to $675.8 million. Wolverine brand annual sales slipped by 18.7% to $201.2 million. Operating profit: Q4 loss was $186.9 million, an improvement from year ago's $454.7 million. Gross margin: Improved by 290 basis points in final period to 36.6%. Key developments: Under simplified structure, company turnaround will take more time to complete. Will re-invest $30 million in its brands this year. Recently shutdown 20 "gray market" customers and 400 accounts that don't align with its go- forward strategy. is FY, Merrell's annual sales are forecast to fall by double-digits but grow in H2; Saucony is forecast to have a 20 percent decline in year-over-year sales, but numbers will improve sequentially each quarter. n 12 Footwear Insight Business Report Quarterly ~ Q1 April 8 2024 footwearinsight.com BRAND & RETAIL SCORECARD QUARTER 1 ENDING 3/25/24

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