Footwear Insight - Business Report Quarterly

Sales: Currency-neutral sales rose 22% in Q4 to the equivalent of $508.8 million with double-digit growth in all global regions. Americas' revenues increased by 20% to about $251.6 million. For the FY, the brand generated 21% sales growth in euros to surpass the $2.0 billion mark ($2.01b) for the first time. Americas' annual sales jumped 19% in constant currency to the equivalent of $1.05 billion. Operating profit: Improved by 289% year-over-year to the equivalent of $109.9 million in Q4 and was up 62% for the FY at $470.0 million. Gross margin: Fell 330 basis points to 58.8% for the FY and was down 640 basis points in Q4 at 59.0% versus 65.4%, partly due to the financial impact of added production capacity and currency impact. Key developments: Realized 14% pair growth in FY24, fueled by added production capacity, and an 8% improvement in ASP (Average Selling Price) due to higher sales of closed- toe silhouettes, which now represent approximately one-third of overall revenues. Group is forecasting 15-17% constant currency sales growth in FY25 with the gross profit margin moving closer to a long-term target of 60%. Sales: Revenues increased 4.6% to $3.35 billion in Q3 ended Nov. 2 as comparable sales rose 4.0%. Shoe and men's apparel sales increased by mid to high single digits and were up sequentially from Q2. Operating profit: Fell by 19% to $83 million from $102 million. Ebit was down by 27% to $57 million and net income contracted by 31 percent to $46 million. Gross margin: Improved by 60 basis points to 35.6%, largely due to stronger regular price sales. Key developments: e luxury department store chain is going private in 2025 aer striking a buyout deal in December valued at $6.25 billion with El Puerto de Liverpool of Mexico. Once the acquisition is completed, the Nordstrom family will own a 50.1% stake, and El Puerto de Liverpool will retain the remaining 49.9%. Aer opening 23 Nordstrom Rack stores in 2024, there are plans to open 15 in 2025. Sales: Currency-neutral sales rose 10% (7% on a reported basis) to €6,438 million ($7.19b). Footwear sales stepped 14% higher, led by strong double-digit growth in Originals. North American revenues slipped by 7% to €1,362 million ($1.52b) but were up year-over-year when excluding impact from the Yeezy. Order book in U.S., once negative, is said to be building into 2025. Operating profit: Rose 46% year-over- year to €598 million ($668m) from €409 million with Yeezy contributing approximately €50 million of the total versus €150 million in the year-ago period. Gross margin: Increased by 200 basis I n each issue of Footwear Insight Business Report Quarterly, in addition to the Brand and Retail Indexes, we also take a deeper look at some of the companies on those two Indexes. In this issue, as we end Q4, our capsules look through a different lens for the performance of public footwear companies in Q3 and throughout 2024. We discovered that six out of 17 (Allbirds, Brazil's Grendene and Grupo SBF, Nike, Rocky Brands, and Wolverine Worldwide) had lower year-over-year sales. But the sector was still able to achieve flat year-over-year aggregate revenues of approximately $30.7 billion thanks to strong growth by the likes of Deckers Brands, On Holdings, and Skechers. On the profitability side, only Allbirds reported a net loss for the period. But six footwear firms (Fila, Grupo SBF, Nike, On, Puma, and Rocky Brands) had lower year-over-year profits. Nonetheless, the group reported an aggregate year-over-year profit gain of more than 3.6 percent in euros to approximately $2.72 billion. n 10 Footwear Insight Business Report Quarterly ~ Q4 January 6, 2025 footwearinsight.com BRAND & RETAIL SCORECARD BASED ON RESULTS REPORTED IN CALENDAR Q4

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