Footwear Insight - Business Report Quarterly

Brands: Quarterly Change W ith major players VF Corp., Wolverine Worldwide, and Nike at different points in their respective turnaround strategies, the Brand Index aggregately struggled to find its footing in Q3. Eight brands ended the period with a lower stock price versus five in Q2 and 10 in Q1. Birkenstock (-11.2%), Dr. Martens (-34.3%), Lululemon (-14.1%), Puma (-15.0%) and Rocky Brands (-13.0%) saw their respective stock prices tumble by double-digits. Birkenstock achieved record revenues for the FY ended June 30 at the equivalent of $630.5 million due to new production capacity and category expansion. But the brand's gross margin fell 220 basis points to 59.5% and the company failed to raise its guidance for the current fiscal year. Dr. Martens, meanwhile, continues to work on strategies to reverse its flagging business in the Americas. VF Corp. (+42.9%) was among the 11 Brands that posted a stock price increase in Q3. e company, which shed its Supreme business for $1.5 billion, continues to work on a transformation under CEO Bracken Darrell. VF's Americas' sales declined by 11.7% in the period ended June 30. And all major brand reported lower revenues, led by a -21% drop at Vans. Nike, whose stock was able to rebound into positive territory by Q3 end, got a li when the company announced that Elliott Hill would return to the company out of retirement on Oct. 14 to serve as President and CEO. Meanwhile, both Japanese brands, Asics (+25.8%) and Mizuno (+28.2%) enjoyed double-digit stock price gains in Q3, with some of the increase related to currency. Asics will hit its FY26 financial targets early aer reporting operating profit growth of 76% in H1 to the equivalent of $174.3 million. e brand's performance running sales increased by 4.7% globally over the six months to $1.2 billion. n BRAND INDEX: TAKES A HIT i76% Brands % Change per Quarter 07/01/24 • 09/23/24 Adidas* (ADDYY) h 3% $118.16 • $121.73 Allbirds (BIRD) h 17% $9.96 • $11.61 Asics Corp. (ASCCF)** h 26% $14.71 • $18.50 Birkenstock (BIRK) i -11% $55.37 • $49.17 Crocs (CROX) i -3% $147.75 • $143.75 Deckers (DECK) i -2% $157.22 • $154.21 Dr. Martens (DOCMF) i -34% $1.05 • $0.69 Lululemon (LULU) i -14% $302.36 • $259.80 Mizuno* (8022.T) h 28% $48.65 • $62.38 Puma (PMMAF)** i -15% $45.39 • $38.60 Nike (NKE) h 12% $76.83 • $86.20 On (ONON) h 50% $38.03 • $50.51 Rocky Brands (RCKY) i -13% $34.85 • $30.32 Skechers (SKX) i -7% $67.53 • $63.10 Under Armour (UAA) h 19% $6.51 • $7.76 VF Corp. (VFC) h 43% $12.84 • $18.35 Weyco Group, Inc. h 14% $29.09 • $33.18 Wolverine (WWW) h 17% $13.17 • $15.38 TOTAL (equal to '100' on INDEX) i -2% $981.27 • $964.23 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 3 ENDING 9/23/24 footwearinsight.com Q3 October 7 2024 ~ Footwear Insight Business Report Quarterly 9

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