Footwear Insight - Business Report Quarterly

Brands: Quarterly Change S even brands, led by Crocs, Mizuno, and Deckers on a percentage basis, fueled more than 10 percent growth for the Brand Index in Q1. e sector Index dipped below the '100' mark in the second week of the period then rose for eight weeks to above '112' before dipping slightly at quarter end. Key players in Nike (-14%), VF Corp. (-23%), and Under Armour (-19%) all experienced double-digit stock price drops in Q1 as they each initiated plans to revitalize their respective businesses. In total, 11 entrants suffered declining stock prices over the 13 weeks, led by a 48.0 percent drop at Allbirds. Growing pains at the nearly decade-old, San Francisco company led to the departure of Co-founder and CEO Joe Zwillinger as it reported an operating loss of $153 million for FY23. Allbirds intends to close 10-15 underperforming U.S. stores next year as it moves forward with a strategy to make its international business a distributor model. At Wolverine Worldwide, CEO Chris Hufnagel continues to lead a turnaround at the Merrell and Saucony parent that includes a simplified business structure, healthier inventory levels to start 2024 and the termination of 400 gray market accounts. Wolverine is forecasting $140 million in incremental profit growth this year as it re- invests approximately $30 million in its brands. Meanwhile, at Adidas, the German company is said to be "going in the right direction" again under CEO Bjorn Gulden, formerly with Puma. e group is forecasting an annual operating profit of approximately $542 million in 2024 aer reporting its first operating loss in more than three decades in FY23. e categories of soccer, outdoor, and golf are said to be on the rise while the brand's running business is portrayed as stable. If both Nike and Adidas can spark new global interest in their brands and products this summer before and during the Paris Olympics, one result will be a growing Brand Index in coming quarters. n BRAND INDEX: GROWTH MIRRORS S&P h10% Brands % Change per Quarter 01/01/24 03/25/24 Adidas* (ADDYY) h 9% $101.65-$110.29 Allbirds (BIRD) i -48% $1.23 $0.64 Asics Corp. (ASCCF)** h 25% $32.50 $40.62 Birkenstock (BIRK) i -6% $48.73 $45.67 Crocs (CROX) h 51% $93.41 $141.25 Deckers (DECK) h 40% $668.43 $932.59 Dr. Martens (DOCMF) i -2% $1.15 $1.13 Geox* (GEO.MI) i -11% $0.81 $0.72 Lululemon (LULU) h -24% $511.29 $388.90 Mizuno* (8022.T) h 51% $27.78 $41.87 Puma (PMMAF)** i -22% $55.95 $43.41 Nike (NKE) i -14% $108.57 $93.75 On (ONON) h 28% $26.97 $34.59 Rocky Brands (RCKY) i -14% $30.18 $26.04 Skechers (SKX) i -4% $62.34 $59.99 Under Armour (UAA) i -19% $8.79 $7.12 VF Corp. (VFC) i -23% $18.80 $14.47 Wolverine (WWW) h 22% $8.89 $10.82 TOTAL (equal to '100' on INDEX) h 10% $1,807.47 $1,993.87 The Footwear Insight Index tracks 32 of the most important publicly traded companies that have a substantial footwear business (14 retailers, 18 brands). Index base of 100 is key to the closing prices of 1/02/24. QUARTER 1 ENDING 3/25/24 footwearinsight.com Q1 April 8 2024 ~Footwear Insight Business Report Quarterly 9

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