Footwear Insight - Business Report Quarterly

Retail: Quarterly Change D espite having more decliners (8) than gainers (7), the Retail Index was able to improve on its flat Q1 performance. e low-water mark for the sector came on April 15 when its aggregate Index score fell to 97. Conversely, the high-water mark came seven weeks later when the aggregate Index score hit 112. Of the eight entrants who experienced a stock price decline over the 13 weeks ended June 24, five fell by a double-digit percentage. Designer Brands (-31.5%), which suffered a 92% drop in Q1 net income largely due to much higher interest expense, did generate a 15% comp increase in athletic sales and 12% improvement in its Brand portfolio business that was bolstered by 26% DTC comp gain from Topo. e DSW operator is putting a marketing push behind its Topo and Keds brands this year and sees Topo and Hush Puppies driving its wholesale business. e other largest decliner on a percentage basis, Sportsman's Warehouse (-22.0%), realized an 11% comp decline in its footwear business last FY. e largely outdoor- focused retailer is resetting its product assortment and intends to open no additional stores this fiscal year. On the upside, the seven stock-price gainers were led on a percentage basis by Zumiez (+30.6%), Boot Barn (+29.9%), and Hibbett Sports (+16.6%). Entrant JD Group, which already owns the DTLR, Shoe Palace, and Finish Line banners, is projected to close on its $1.1 billion acquisition of Hibbett in Q3. Besides expanding its portfolio of doors throughout the U.S., the deal should give the U.K.-based parent still stronger buying power with its vendor partners. Meanwhile, Boot Barn, aiming for a 12-14% operating margin in FY25, is eying a 15% margin over the next five years and says it's realizing a 60% return on invested capital from new stores that are averaging $3 million in year one sales. n RETAIL INDEX: PUSHING AHEAD IN Q2 h109% Retailers % Change per Quarter 04/01/24 • 06/024/24 Academy (ASO) i -20% $66.77 • $53.51 Big 5 SG (BGFV) i -12% $3.59 • $3.15 Boot Barn (BOOT) h 30% $99.64 • $129.43 Caleres (CAL) i -14% $40.14 • $34.60 Designer Brands (DBI) i -32% $10.83 • $.7.42 Dick's SG (DKS) h 4% $221.85 • $229.78 Foot Locker (FL) i -3% $27.52• $26.65 Genesco (GCO) i -9% $27.79 • $25.21 Hibbett (HIBB) h 17% $74.68• $87.06 JD Group* (JD.L) i -9% $168.22 • $153.06 Nordstrom (JWN) h 7% $20.16 • $21.15 Shoe Carnival (SCVL) h 3% $36.86 • $38.12 Sportsman's Warehouse (SPWH) i -22% 3.09 • $2.41 Zumiez (ZUMZ) h 31% $14.80 • $19.33 TOTAL (equal to '100' on INDEX) h 109% $815.94 • $831.24 QUARTER 2 ENDING 6/24/24 8 Footwear Insight Business Report Quarterly ~ Q2 July 8 2024 footwearinsight.com 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.

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