Footwear Insight - Business Report Quarterly

Sep. 30 to approximately $1.92-$1.93 billion with an adjusted Ebitda range of €535-€545 million ($581.0-$591.9 million). Has 57 own retail stores with plans to open approximately six more by Sep. 30, including in Paris and Shanghai, China. Sales: +6% to a quarterly record $939 million with 14.6% growth for the Crocs' brand to $744 million and a 17% decline at Heydude to $195 million. North American sales expanded by 9% to $383 million. Operating profit: -3.6% to $226 million. Gross margin: Rose by 170 basis points to 55.6% from 53.9%, helped by lower inbound freight costs, favorable product increases, select price increases internationally, and less discounting. Key developments: Sees 3 to 5% year- over-year sales growth with Crocs up 7% to 9% and Heydude down by 8% to 10%. Will open 30 Heydude outlets this year. Increasing its commitment to circularity by re-purposing materials from well-loved Crocs in the form of a new limited-edition Classic Clog. Sales: +21% to $959.8 million in Q4 ended March 31. U.S. sales +19% to $647.7 million with Hoka up 34% to $533.0 million as UGG gained 15% to $361.3 million. For the full year, total revenues grew by 18% to $4.29 billion as U.S. sales rose 17% to $2.86 billion. Annual Hoka sales +28% to $1.81 billion; UGG increased 16% to $2.24 billion. Operating profit: +36% in Q4 to $144.3 million; +47% for year to $975.9 million. Gross margin: +620 basis points to 56.2% in Q4; +530 basis points for FY at 55.7%. Key developments: Forecasting 20% sales growth for Hoka in current FY through strategic expansion with key wholesale partners and consumer acquisition and retention gains in DTC. UGG annual sales are predicted to increase by mid- single digits on international expansion and prioritization of DTC channel in U.S. Sales: +0.6% to $746.6 million but comparable sales dipped by 2.5%. U.S. retail sales increased by 1.4% to $621.4 million. Brand portfolio revenues rose by 12.0% to $104.1 million. Operating profit: Fell by 52% to $9.38 million from $19.6 million. Gross margin: Rose by 80 basis points to 32.8% on strong inventory management, fewer closeouts and growth in Direct-To- Consumer sales. Key developments: Athletic and casual outperformed all other categories in Q1. Athletic penetration expanded by 460 basis points year-over-year at DSW to 30%. Recent cost-reduction plan, which included a headcount reduction, is forecast to drive financial and operational efficiencies going forward. Has re- affirmed FY24 outlook that calls for low-single digit sales growth. Sales: North American comparable sales declined by 2.5% to $1,369 million as overall, constant-currency revenues slipped by 2.4% to $1,874 million. A 1.8% drop in comparable sales was negatively impacted by the ongoing repositioning of Champs Sports. Operating profit: -71% to $18 million. Gross margin: -120 basis points to 29.1% as moderating markdowns from Q4 were partially offset by occupancy leverage. Key developments: As it celebrates its 50th anniversary this year, the retailer has introduced a "re-invented" retail concept in Wayne, NY. e 12,000-sq.-. format will also open in New York City, Paris, Melbourne, and Delhi this year…Expects composition, productivity, and flow from its assortments to continue improving in H2. Launching a new app later this year. Eyeing 25% e-commerce penetration by 2026. Will end the fiscal year with 4% fewer locations but only 1% less square footage. Sales: +10.4% to $2.21 billion. Americas' revenues, hurt by issues in women's and bags, rose by 4%. Men's sales were up 15%; women's +10%. Operating profit: +7.8% to $432.6 million. Gross margin: +20 basis points to 57.8% despite a 50-b.p. increase in markdowns that will likely be repeated in Q2. Key developments: Will test another advertising campaign aimed at the men's market in Q3 and open 5 to 10 additional stores in the U.S. this year. Blamed its Q1 shortfall on not having certain smaller sizes for U.S. women and too narrow of a color range in its legging business. On the footwear side, in Q1, Lululemon launched its new Cityverse shoe ($138 retail) where demand for the men's version exceeded expectations and also launched the latest iteration of its Beyondfeel styles for running ($158) and trail running ($168). footwearinsight.com Q2 July 8 2024 ~Footwear Insight Business Report Quarterly 13

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