1. Eternal Comfort
Board of Directors Meeting
MANAGEMENT TEAM
MICHAEL CAMILLERI PRESIDENT. PRIVATE LABEL & NORTH AMERICA
HANNAH DAVIS V.P. FINANCE & LATIN AMERICA
ANDREA PAREDES V.P. MARKETING & ASIA PACIFIC
LAURA MACRI V.P. PRODUCTION & EUROPE AFRICA

2. Agenda
 President
 Global Market Overview
 Marketing
 Finance
 Production
 Private Label
 Situation Analysis
 SWOT
 Y17-19 Plan / Objectives
 Strategy
 Action & Decisions
 North America
 Europe Africa
 Asia Pacific
 Latin America
 Situation Analysis
 SWOT
 Y17-19 Plan / Objectives
 Decisions & Actions
 Summary

3. President
MICHAEL CAMILLERI

4. Global Market Overview
 Industry #27
 Competitive market
 6 Total companies
Company A B C D E F
Price $49
$58.50-
$60
$53-$55 $50-$60 $58 $55-$59
S/Q 4 8 7 5-6 8 6-7

5. Situation Summary
$ Millions Y14 Y15 Y16
Y16
Projections
Y16 B/(W)
PY16
% Y16 I.A.
Y16 B/(W)
I.A.
%
Revenue $ $395,657 $354,403 $451,868 $506,846 $(54,978) -10.8% $423,247 $28,621 6.8%
Market
Share %
18.7& 14.6 17.8 19.1 -1.3 -6.9% 16.7 (17) -98.9%
Operating
Profit $
$54,766 $63,278 $76,044 $98,571 $(22,527) -22.9% $66,423 9,621 14,5%
Operating
Profit %
13.8% 17.9% 16.8% 19.4% (0.03) -13.4% 15.7% 0 7%
Earning Per
Share $
$3.58 $4.34 $5.26 $7 $(2) -23.5% $3.77 1 39.5%
Return on
Equity %
15.1% 15.7% 16.2% 20% (0.04) -19% 9.8% 0 65.3%
Stock Price
$
$47.25 $54.99 $68.42 n/a $68.42 n/a $53.30 15 28.4%
Credit
Rating
A+ A A- A+ n/a n/a B n/a n/a

6. SWOT
Strengths Weaknesses
• High quality at an affordable price
• High image rating
• Strong cooperate social
responsibilities
• Meets or exceeds investor
expectation
• Credit rating on a decline
• Maximized capacity
Opportunities Threats
• Growth
• Market share
• Take the high end shoe market
• Large amount of competition
• Similar company's
• Anyone can under cut us

8. Y17-Y19 Plan/Objectives
$ Millions Y16 PY17 PY19
Revenue $ $451,868 $560,378 $770,120
Market Share % 17.8% 25.8% 27.2%
Operating Profit $ $76,044 $105,682 $165,495
Operating Profit % 16.8% 25.8% 24.6%
Earning Per Shares
$
$5.26 $7.17 $11.78
Return on Equity % 16.2% 18.5% 19%
Stock Price $ $68.42 $83.54 $92.30
Credit Rating A- A+ A+

9. Strategy
Maintain our high star for a reasonable price strategy
Take advantage of mimicking companies
Sell large amounts of shoes across all regions
Increase revenue yearly to keep up with plan

10. Action & Decisions
 Implement our plan for the upcoming year 17 plan
 Look over decision to ensure we are maximizing out profit for that year
with our capacity
 Eliminate other competition in our competing market

11. Marketing
ANDREA PAREDES

12. Situation Analysis
$ Millions Y14 Y15 Y16 Y16 Projections
Y16 B/(W)
PY16
% Y16 I.A.
Y16 B/(W)
I.A.
%
Marketing Expenses
Internet
Advertising $ 5,001 $ 6,047 $ 6,884 $ 8,268 $ (1,384) -16.7% $ 5,317 $ 1,567 29.5%
Web Site
Maintenance
$ 4,260 $ 4,260 $ 4,260 $ 4,260 $ (8,520) -200.0% $ 4,256 $ 4 0.1%
Celebrity
Endorsements
$ 1,312 $ 282 $ 3,814 $ 4,598 $ (784) -17.1% $ 1,040 $ 2,774 266.8%
Total Internet
Marketing
Expenses
$ 10,573 $ 10,589 $ 14,958 $ 17,126 $ (2,168) -12.7% $ 10,613 $ 4,345 40.9%
% of Internet
Revenues
18.6% 20.8% 20.1% 17.1% 3.0% 17.7% 22.1% -2.0% -9.0%
Wholesale
Advertising $ 29,499 $ 37,953 $ 41,116 $ 39,732 $ 1,384 3.5% $ 41,193 $ (77) -0.2%
Rebate
Redemption
$ 6,117 $ 4,075 $ 6,746 $ 7,369 $ (623) -8.5% $ 5,315 $ 1,431 26.9%
Retailer Support $ 7,488 $ 8,930 $ 14,647 $ 14,647 $ - 0.0% $ 20,087 $ (5,440) -27.1%
On time delivery $ 9,980 $ 6,223 $ 9,308 $ 10,060 $ (752) -7.5% $ 14,730 $ (5,422) -36.8%
Celebrity Endorse $ 7,744 $ 1,774 $ 22,896 $ 22,112 $ 784 3.5% $ 8,065 $ 14,831 183.9%
Total Wholesale
Marketing
Expenses
$ 60,828 $ 58,955 $ 94,713 $ 93,920 $ 793 0.8% $ 89,389 $ 5,324 6.0%
% of Wholesale
Revenues
106.8% 116.1% 127.2% 93.6% 33.6% 36.0% 27.5% 99.7% 361.9%
Total Marketing
Expenses
$ 71,401 $ 69,544 $ 109,671 $ 111,046 $ (1,375) -1.2% $ 100,002 $ 9,669 9.7%
% of Total
Revenue
18.0% 19.6% 24.3% 27.6% -3.3% -12.0% 23.6% 0.6% 2.7%

13. SWOT
Strengths Weaknesses
 Consistent high image rating
 In year 16 – exceptionally strong celebrity
appeal; well above industry average
 Days of inventory low; turnover rate high
 Operating profit was consistently above
industry average
 On-time delivery was good (2 weeks)
 Outbid in year 15 for celebrities; were
unable to compete effectively in the four
regions
 Private label sales in year 16; did not have
enough capacity
 Low rebate redemptions in year 15
Opportunities Threats
 Build a new plant
 Purchase more capacity
 Regain private label sales
 Competition
 Being outbid for future celebrity
endorsements
 Companies copying our strategy
 Higher days of inventory

14. Y17-Y19 Plan/Objectives
$ Millions Y16 PY17 PY19
Net Revenue
Internet $ 74,448 $ 90,072 $ 138,751
Wholesale $ 373,604 $ 375,956 $ 514,498
Private Label $ 3,816 $ 94,350 $ 116,871
Total Net Revenue $ 451,868 $ 560,846 $ 770,120
Market Share
Internet 22.8% 23.9% 26.5%
Wholesale 17.6% 17.5% 19.0%
Private Label 1.8% 36% 40.0%
Total Share 14.1% 25.8% 27.2%
Shoe Production
Cost of Branded Pairs
Sold/Pair
$ 29.23 $ 28.22 $ 27.75

15. Strategy
Produce shoes in Asia Pacific and ship to Europe Africa
Produce shoes in North America and ship to Latin America
Increase private label sales
Acquire more celebrity endorsements

16. Decisions/Actions
 Implement our plan for the upcoming year 17 plan
 Produce shoes for a medium to low price for consumers, at a marginal cost
 Decrease inventory days
 Shock the market by tapping into the private-label market effectively and
become private-label market share leaders

17. Finance
HANNAH DAVIS

18. Situation Analysis
$ Millions Y14 Y15 Y16 PY16
Y16 B/(W)
PY16
% Y16 I.A.
Y16 B/(W)
I.A.
%
INCOME STATEMENT
Revenue $395,657 $354,403 $451,868 $506,846 $(54,978) -10.8% $423,247 $28,621 6.8%
COGS $234,413 $189,801 $227,378 $253,927 $(26,549) -10.5% $220,124 $7,254 3.3%
Operating Profit
%
13.8% 17.9% 16.8% 19.4% -2.6% -13.4% 15.7% 1.1% 7.0%
EPS $ $3.58 $4.34 $5.26 $7.00 $(1.74) -24.9% $3.77 $1.49 39.6%
BALANCE SHEET
ROE % 15.1% 15.7% 16.2% 20.0% $(0) -19.0% 9.8% 6.4% 65.3%
Stock Price $47.25 $54.99 $68.42 $83 $(14) -17.1% $53.30 $15.12 28.4%
Total Assets $305,886 $344,250 $439,030 $419,881 $19,149 4.6% $410,859 $28,171 6.9%
Total Liabilities $60,241 $56,796 $100,954 $66,193 $34,761 52.5% $102,243 $(1,289) -1.3%
CREDIT RATING METRICS
Credit Rating A+ A A- A+ n/a n/a B n/a n/a
Interest
Coverage
9.83 21.72 25.65 33.24 (7.59) -22.8% 26.92 (1.27) -4.7%
Debt to Assets
Ratio
0.11 0.10 0.18 0.10 0.08 80.0% 0.23 (0.05) -21.7%

19. SWOT
Strengths Weaknesses
• Bank loans
• Credit ratings
• Default risk
• Debt to asset ratio/interest
coverage
• Ending cash
• Operating profit expenses
• Costs of pairs sold
Opportunities Threats
• Increasing ending cash available
• Reduce operating profit margin
• Reduce cost of pairs sold
• Competitors
• Co. Blue Label
• Co. Cartel Shoes

20. Y17-Y19 Plan/Objectives
$ Millions Y16 PY17 PY19
Revenue $ $451,868 $560,378 $770,120
COGS $253,927 $288,601 $399,095
Operating Profit $ $76,044 $105,682 $165,495
Operating Profit % 16.8% 25.8% 24.6%
Earning Per Shares
$
$5.26 $7.17 $11.78
Return on Equity % 16.2% 18.5% 19%
Stock Price $ $68.42 $83.54 $92.30
Credit Rating A- A+ A+

21. Strategy
Use a portion of excess cash to pay off outstanding loans
Maintain a credit rating of A or A+
Keep bank loans minimum to none
Increase profit margin by reducing operating costs

22. Decisions/Actions
 Shoes distributed to Latin America will be from North America plant
instead of Asia Pacific plant
 Increase corporate social responsibility financial efforts
 Avoid 1-Yr loans, use only 5-Yr/10-Yr options

23. Production
LAURA MACRI

24. Situation Summary
$ Millions Y14 Y15 Y16
Y16
Projections
Y16 B/(W)
PY16
% Y16 I.A.
Y16
B/(W) I.A.
%
Total
Capacity
6,000 6,000 6,900 6,000 6,000 6,900 7,250 (350) -4.8%
Net
Footwear
Production
Total
2,301 2,301 2,308 2,308 - - - - -
Days of
Inventory
18 54 58 - 58 - 121 (63) -52.1%
Capacity Utilization
N.A. 120% 120% 120% 120% 0%
0%
120% 0% 0%
A.P. 120% 112.4% 120% 120% 0% 0% 120% 0% 0%
Branded Production Cost Per Pair
N.A. $32.88 $30.81 $29.03 $29.17 $(0.14) -0.5% $28.11 $0.92 3.3%
A.P. $26.45 $25.88 $23.45 $23.83 $(0.38) -1.6% $21.57 $1.88 8.7%

25. SWOT
Strengths Weaknesses
• Branded production (AP)
• Branded labour cost
• Private label labour cost
• Plant capacity
• Branded production
Opportunities Threats
• Purchase more capacity
• Build another plant
• Reduce branded production rate
• Think about putting private label
in the other three regions
• Reduce days of inventory
• Not providing private label in EA,
LA, AP
• Not utilizing all of capacity
purchased

26. Y17-Y19 Plan/Objectives
$ Millions Y16 PY17 PY19
Capacity 6,900 8,700 8,900
Capacity Utilization 120% 120% 114%
Ending Inventory 1,155 465 424
Days Of Inventory 58 50 45
Branded Labour Cost $2.97 $3.43 $2.04
Cost Of Branded
Pairs Sold
$29.23 $28.22 $25.00

27. Strategy
Provide a high quality shoe for an affordable price
Keep production cost low but also offer detailed
training and incentives for all employees
Keep rejection rates at a minimum by purchasing
and using more capacity

28. Decisions/Actions
 Build more capacity that will allow for more production
 Reduce days of inventory by providing inventory clearance sales

29. Private Label
MICHAEL CAMILLERI

30. Situational Summary
$ Million Y14 Y15 Y16 PY16
Y16 B/(W)
PY16
% Y16 I.A.
Y16 B/(W)
I.A.
%
Revenue $35,222 $26,827 $3,816 $3,816 $ - 0.0% $35,452 $(31,636.17) -89.2%
Direct
Costs
$32,718 $20,541 $3,968 $3,928 $ (39) -1.0% $29,170 $(25,202.71) -86.4%
Direct
Margin $
$2,504 $6,286 $(152) $(112) $ 39 -34.9% $6,282 $(6,433.46) -102.4%
Direct
Margin %
7.11% 23.43% -3.97% -2.94% $ 0 -34.9% 17.7% -21.69% -122.4%
Private Label Cost/Pair
N.A. $29.11 $28.82 $36.24 $34.86 $1.38 3.96% $27.80 $8.44 30.4%
E.A. $33.11 $ - $ - $ - $0 0% $29.58 $(29.58) -100.0%
A.P. $0 $27.82 $ - $ - $0 0% $24.55 $(24.55) -100.0%
L.A. $35.11 $ - $ - $ - $0 0% $31.03 $(31.03) -100.0%

31. SWOT
Strengths Weaknesses
• High Shoe quality for a low price
• Always met projections for
coming year
• Little to no revenue
• High cost per pair
Opportunities Threats
• Drive the market unexpectedly
• Maximize sales at cheapest costs
• Drive competition out of the
market
• High competitive market
• Unstable demand growth

32. Y17-Y19 Plan/Objectives
$ Millions Y16 PY17 PY19
Revenue $ 3,816 $ 94,350 $ 116,871
Direct Costs $ 3,968 $ 20,165 $ 36,297
Direct Margin $ $ (152) $ 74,185 $ 80,574
Direct Margin % -3.97% 78.63% 68.94%
Private Label Cost/Pair:
NA $ 36.24 $ 24 $ 23
EA $ - $ - $ -
AP $ - $ 23 $ 22
LA $ - $ - $ -

33. Strategy
Catch competitors off guard with unexpected entry
of private label
Steal all possible demand with the amount of
capacity left over
Offer a high star at a extremely low cost
Under cut all company's so we make all possible
sales
Sell private label in all regions
Increasing capacity in both North America / Asia
Pacific

34. Decisions/Actions
 Implement strategy in year 17 and onward
 Wider range of available market to offer private label
 Keep our brand image as a company
 No one will expect our plan and will be unable to compete with our action

35. North America
MICHAEL CAMILLERI

36. Situation Analysis
$ Million Y14 Y15 Y16 PY16
Y16 B/(W)
PY16
% Y16 I.A.
Y16 B/(W)
I.A.
%
Revenue
Internet $ 17,490 $ 15,164 $ 21,024 $ 28,440 $ (7,416) -26.1% $ 13,145 $ 7,880 59.9%
Wholesale $ 90,248 $ 82,364 $ 102,469 $ 108,965 $ (6,496) -6.0% $ 91,096 $ 11,373 12.5%
Private Label $ 12,950 $ 8,853 $ 3,816 $ 3,816 $ - 0.0% $ 10,671 $ (6,855) -64.2%
Total $ 120,688 $ 106,381 $ 127,309 $ 141,221 $ (13,912) -9.9% $ 114,911 $ 12,398 10.8%
Operating Expenses
Cost of Pairs
Sold
$ 74,301 $ 59,188 $ 66,462 $ 73,198 $ (6,736) -9.2% $ 59,174 $ 7,288 12.3%
Warehouse
Expenses
$ 7,793 $ 6,540 $ 7,788 $ 9,030 $ (1,242) -13.8% $ 7,189 $ 599 8.3%
Marketing
Expenses
$ 23,989 $ 21,297 $ 32,095 $ 32,313 $ (218) -0.7% $ 27,831 $ 4,264 15.3%
Administrative
Expenses
$ 2,773 $ 2,718 $ 2,835 $ 2,802 $ 33 1.2% $ 2,861 $ (26) -0.9%
Operating
Profit $
$ 14,853 $ 17,686 $ 18,129 $ 23,878 $ (5,749) -24.1% $ 17,857 $ 272 1.5%
Production
Cost of
Branded Pair
Sold/Pair
$ 33.53 $ 31.90 $ 30.13 $ 31.10 $ (0.97) -3.1% $ 27.61 $ 2.52 9.1%
Cost of Private
Label Pair
Sold/Pair
$ 29.11 $ 28.82 $ 36.24 $ 36.24 $ - 0.0% $ 27.80 $ 8.44 30.4%
Celebrity
Appeal
165 70 310 n/a n/a n/a 141 169 119.9%

37. SWOT
Strengths Weaknesses
• Internet
• Shoe quality
• Celebrity appeal
• Advertisement
• Wholesale
• Shoe quality
• Celebrity appeal
• Advertisement
• Rebate offer
• Internet
• Free shipping
• Wholesale
• Retail outlets
Opportunities Threats
• Internet
• Offer free shipping
• Wholesale
• Utilize more retail
outlets
• Wholesale
• Co. B & C close to
similar in shoe offering

38. Y17-19 Plan/Objectives
$ Million Y16 PY17 PY19
Revenue
Internet $ 21,024 $ 24,408 $ 40,548
Wholesale $ 102,469 $ 105,166 $ 156,020
Private Label $ 3,816 $ 45,000 $ 39,871
Operating Expenses
Cost of Pairs Sold $ 66,462 $ 93,453 $ 127,710
Warehouse Expenses $ 7,788 $ 9,948 $ 12,547
Marketing Expenses $ 32,095 $ 34,103 $ 39,571
Administrative Expenses $ 2,835 $ 3,197 $ 3,375
Operating Profit $ $ 18,129 $ 28,873 $ 45,215
Production
Cost of Branded Pair
Sold/Pair
$ 30.13 $ 28.60 $ 30.00
Cost of Private Label Pair
Sold/Pair
$ 36.24 $ 24.11 $ 22.50
Image Rating
Celebrity Appeal 310 495 495

39. Decisions & Actions
 Slightly lower wholesale price
 Increase models availability
 Increase retailer support
 Reduce deliver time
 Offer free shipping in internet segment

40. Europe Africa
LAURA MACRI

41. Situation Analysis
$ Million Y14 Y15 Y16 PY16
Y16 B/(W)
PY16
% Y16 I.A.
Y16 B/(W)
I.A.
%
Revenue
Internet $ 15,048 $ 13,668 $ 21,168 $ 27,360 $ (6,192) -22.6% $ 13,208 $ 7,960 60.3%
Wholesale $ 81,100 $ 75,503 $ 99,921 $ 113,261 $ (13,340) -11.8% $ 90,865 $ 9,056 10.0%
Private Label $ 11,772 $ - $ - $ - $ - $ 6,072 $ (6,072) -100.0%
Total $ 107,920 $ 89,171 $ 121,089 $ 140,621 $ (19,532) -13.9% $ 110,145 $ 10,944 9.9%
Operating Expenses
Cost of Pairs
Sold
$ 67,065 $ 47,052 $ 60,573 $ 70,743 $ (10,170) -14.4% $ 57,900 $ 2,673 4.6%
Warehouse
Expenses
$ 7,119 $ 5,661 $ 7,687 $ 8,995 $ (1,308) -14.5% $ 7,084 $ 603 8.5%
Marketing
Expenses
$ 18,674 $ 19,598 $ 30,800 $ 31,637 $ (837) -2.6% $ 27,967 $ 2,833 10.1%
Administrative
Expenses
$ 2,339 $ 2,389 $ 2,765 $ 2,865 $ (100) -3.5% $ 2,875 $ (110) -3.8%
Operating
Profit $
$ 12,557 $ 14,133 $ 19,213 $ 26,370 $ (7,157) -27.1% $ 14,319 $ 4,894 34.2%
Production
Cost of
Branded Pair
Sold/Pair
$ 32.38 $ 31.90 $ 29.63 $ 29.98 $ (0.35) -1.2% $ 28.51 $ 1.12 3.9%
Cost of Private
Label Pair
Sold/Pair
$ - $ - $ - $ - $ 29.58 $ (29.58) -100.0%
Celebrity
Appeal
145 65 335 141 194 137.6%

42. SWOT
Strengths Weaknesses
• Internet
• S/Q Rating
• Celebrity Appeal
• Dominate Market Share
• Wholesale
• S/Q Rating
• Rebate Offer
• Celebrity Appeal
• Internet
• Free Shipping
• Wholesale
• Retail Outlets
Opportunities Threats
• Internet
• Provide Free Shipping
• Wholesale
• Open more Retail Outlets
• Internet
• Offer Free Shipping
• Wholesale
• Co. B & C having similar S/Q
Rating

43. Y17-19 Plan/Objectives
$ Million Y16 PY17 PY19
Revenue
Internet $ 21,168 $ 24,984 $ 30,348
Wholesale $ 99,921 $ 102,718 $ 116,548
Private Label $ - $ - $ 20,000
Operating Expenses
Cost of Pairs Sold $ 60,573 $ 62,115 $ 87,801
Warehouse Expenses $ 7,687 $ 10,262 $ 13,476
Marketing Expenses $ 30,800 $ 39,856 $ 46,899
Administrative Expenses $ 2,765 $ 3,988 $ 4,185
Operating Profit $ $ 19,213 $ 20,043 $ 31,387
Production
Cost of Branded Pair
Sold/Pair
$ 29.63 $ 29.33 $ 25.55
Cost of Private Label Pair
Sold/Pair
$ - $ - $ -
Image Rating
Celebrity Appeal 335 335 400

44. Decisions & Actions
 Increase market share
 Increase incentives

45. Asia Pacific
ANDREA PAREDES

46. Situation Analysis
$ Million Y14 Y15 Y16 PY16
Y16 B/(W)
PY16
% Y16 I.A.
Y16 B/(W)
I.A.
%
Revenue
Internet $ 11,880 $ 11,220 $ 13,392 $ 21,960 $ (8,568) -39.0% $ 10,859 $ 2,534 23.3%
Wholesale $ 62,384 $ 61,868 $ 70,760 $ 85,041 $ (14,281) -16.8% $ 71,836 $ (1,076) -1.5%
Private Label $ - $ 17,974 $ - $ - $ - 0.0% $ 10,428 $ (10,428) -100.0%
Total $ 74,264 $ 91,062 $ 84,152 $ 107,001 $ (22,849) -21.4% $ 93,123 $ (8,971) -9.6%
Operating Expenses
Cost of Pairs
Sold
$ 36,837 $ 47,052 $ 36,956 $ 44,828 $ (7,872) -17.6% $ 41,330 $ (4,374) -10.6%
Warehouse
Expenses
$ 5,358 $ 5,641 $ 6,015 $ 7,273 $ (1,258) -17.3% $ 5,885 $ 130 2.2%
Marketing
Expenses
$ 14,482 $ 14,501 $ 23,030 $ 24,037 $ (1,007) -4.2% $ 22,392 $ 638 2.9%
Administrative
Expenses
$ 1,971 $ 2,115 $ 2,003 $ 2,158 $ (155) -7.2% $ 2,302 $ (299) -13.0%
Operating
Profit $
$ 17,054 $ 21,753 $ 20,641 $ 28,705 $ (8,064) -28.1% $ 21,215 $ (574) -2.7%
Production
Cost of
Branded Pair
Sold/Pair
$ 27.46 $ 26.90 $ 24.54 $ 29.40 $ (4.86) -16.5% $ 22.93 $ 1.61 7.0%
Cost of Private
Label Pair
Sold/Pair
$ - $ 27.82 $ - $ - $ 24.55 $ (24.55) -100.0%
Celebrity
Appeal
140 55 260 141 68 48.2%

47. SWOT
Strengths Weaknesses
 We decreased the cost of
production between years 14 and
16 to meet and surpass the industry
average performance level
 Celebrity appeal increase between
years 15 and 16
 Increased wholesale revenue by
$10,000 million
 We did not build enough capacity
in year 15
 We couldn’t afford to sell any
private label shoes in year 14 or 16
because it was not feasible
 Total market share in Asia Pacific is
low
Opportunities Threats
 Private label segment in Asia Pacific
 Producing more shoes in Asia
Pacific at a lower cost
 More celebrity appeal
 Competition
 Reaching capacity in Asia Pacific
 More competitors manufacturing in
Asia Pacific

48. Y17-19 Plan/Objectives
$ Million Y16 PY17 PY19
Revenue
Internet $ 13,392 $ 19,296 $ 32,355
Wholesale $ 70,760 $ 78,126 $ 125,560
Private Label $ - $ 49,350 $ 20,000
Operating Expenses
Cost of Pairs Sold $ 36,956 $ 75,322 $ 103,765
Warehouse Expenses $ 6,015 $ 8,826 $ 11,153
Marketing Expenses $ 23,030 $ 24,999 $ 29,312
Administrative Expenses $ 2,003 $ 2,498 $ 2,700
Operating Profit $ $ 20,641 $ 35,127 $ 55,008
Production
Cost of Branded Pair
Sold/Pair
$ 24.54 $ 24.32 $ 24.00
Cost of Private Label Pair
Sold/Pair
$ - $ 20.91 $ 21.50
Image Rating
Celebrity Appeal 260 440 500

49. Decisions & Actions
 Build more capacity within Asia-Pacific region
 Continue with low pricing strategy to consumers
 Continue to produce high quality shoes within Asia-Pacific region

50. Latin America
HANNAH DAVIS

51. Situation Analysis
$ Million Y14 Y15 Y16 PY16
Y16 B/(W)
PY16
% Y16 I.A.
Y16 B/(W)
I.A.
%
Revenue
Internet $ 12,540 $ 10,744 $ 16,704 $ 22,608 $ (5,904) -26.1% $ 10,859 $ 5,846 53.8%
Wholesale $ 65,286 $ 57,997 $ 98,121 $ 95,395 $ 2,726 2.9% $ 70,757 $ 27,364 38.7%
Private Label $ 10,500 $ - $ - $ - $ - 0.0% $ 8,281 $ (8,281) -100.0%
Total $ 88,326 $ 68,741 $ 114,825 $ 118,003 $ (3,178) -2.7% $ 89,896 $ 24,929 27.7%
Operating Expenses
Cost of Pairs
Sold
$ 56,210 $ 38,171 $ 63,387 $ 65,158 $ (1,771) -2.7% $ 51,342 $ 12,045 23.5%
Warehouse
Expenses
$ 5,731 $ 4,801 $ 7,187 $ 7,945 $ (758) -9.5% $ 5,695 $ 1,492 26.2%
Marketing
Expenses
$ 14,256 $ 14,148 $ 23,746 $ 23,059 $ 687 3.0% $ 21,747 $ 1,999 9.2%
Administrative
Expenses
$ 1,993 $ 1,915 $ 2,495 $ 2,274 $ 221 9.7% $ 2,235 $ 260 11.6%
Operating
Profit $
$ 10,136 $ 9,706 $ 18,010 $ 19,567 $ (1,557) -8.0% $ 8,877 $ 9,133 102.9%
Production
Cost of
Branded Pair
Sold/Pair
$ 34.65 $ 33.45 $ 31.52 $ 31.89 $ (0.37) -1.2% $ 30.58 $ 0.94 3.1%
Cost of Private
Label Pair
Sold/Pair
$ 35.11 $ - $ - $ - $ - 0.0% $ 31.03 $ (31.03) -100.0%
Celebrity
Appeal
135 60 380 141 239 169.5%

52. SWOT
Strengths Weaknesses
• Internet
• S/Q Rating
• Celebrity Appeal
• Wholesale
• S/Q Rating
• Celebrity Appeal
• Delivery Time
• Internet
• Free Shipping
• Wholesale
• Retail Outlets
• No Private-Label
Opportunities Threats
• Internet
• Provide Free Shipping
• Wholesale
• Gain more Retail Outlets
• Private-Label
• Create Strategy
• Internet
• Provide Free Shipping
• Wholesale
• Main competitors Co.B & C

53. Y17-19 Plan/Objectives
$ Million Y16 PY17 PY19
Revenue
Internet $ 16,704 $ 21,384 $ 35,500
Wholesale $ 98,121 $ 94,946 $ 105,390
Private Label $ - $ - $ 48,000
Operating Expenses
Cost of Pairs Sold $ 63,387 $ 57,710 $ 79,819
Warehouse Expenses $ 7,187 $ 7,381 $ 9,294
Marketing Expenses $ 23,746 $ 26,608 $ 30,778
Administrative Expenses $ 2,495 $ 2,992 $ 3,240
Operating Profit $ $ 18,010 $ 21,638 $ 33,885
Production
Cost of Branded Pair
Sold/Pair
$ 31.52 $ 29.84 $ 30.00
Cost of Private Label Pair
Sold/Pair
$ - $ - $ 30.00
Image Rating
Celebrity Appeal 380 515 550

54. Decisions & Actions
 Put in private-label bid
 Add free shipping to internet segment
 Lower prices, offer more models, increase rebate offer & retailer support

55. Summary

56. Thank You

57. Questions