Slide 1: First Quarter 2025 Business Update
FIRST QUARTER 2025 BUSINESS UPDATE APRIL 25, 2025
Slide 2: First Quarter 2025 Results (GAAP Basis)
FIRST QUARTER 2025 RESULTS GAAP BASIS $ in millions, except EPS First First Quarter Quarter 2025 % of Sales 2024 % of Sales Change Net sales $630 $661 (5%) Gross profit 291 46.2% 315 47.6% (8%) Royalty income, net 5 0.8% 5 0.8% 2% SG&A 270 42.9% 265 40.1% 2% Operating income 26 4.1% 55 8.3% (53%) In
Slide 3: Non-GAAP Adjustments
NON-GAAP ADJUSTMENTS • Adjustments to first quarter 2025 results are shown below • No adjustments to first quarter 2024 results $ in millions, except EPS First Quarter 2025 Operating % Net Pre-Tax Net Diluted Income Sales Income Income EPS As reported (GAAP) $26 4.1% $21 $16 $0.43 Leadership transit
Slide 4: We Achieved Our First Quarter Sales & Earnings Objectives
WE ACHIEVED OUR FIRST QUARTER SALES & EARNINGS OBJECTIVES $ in millions, except EPS Q1 Results Guidance1 Net sales $630 ✓ $615 - $625 U.S. Retail Down 4% ✓ Down MSD to HSD U.S. Wholesale Down 5% ✓ Down HSD International Down 5% ✓ Down MSD Operating income2 $35 ✓ $30 - $35 Operating margin2 5.6% ✓ 4.
Slide 5: First Quarter 2025 Results
FIRST QUARTER 2025 RESULTS $ in millions, except EPS Adjusted Operating Income1 Net Sales (Adjusted Operating Margin) Adjusted Diluted EPS1 (5%) (36%) (37%) vs. vs. vs. 2024 2024 2024 $661 $55 $1.04 $630 $35 $0.66 8.3% 5.6% of Net of Net Sales Sales 2024 2025 2024 2025 2024 2025 1 Non-GAAP measure;
Slide 6: Adjusted First Quarter 2025 Results
ADJUSTED FIRST QUARTER 2025 RESULTS 1 $ in millions, except EPS First First Quarter Quarter 2025 % of Sales 2024 % of Sales Change Net sales $630 $661 (5%) Gross profit 291 46.2% 315 47.6% (8%) Royalty income, net 5 0.8% 5 0.8% 2% SG&A 261 41.4% 265 40.1% (2%) Operating income 35 5.6% 55 8.3% (36%)
Slide 7: Business Segment Performance
BUSINESS SEGMENT PERFORMANCE 7
Slide 8: First Quarter 2025 Segment Results
FIRST QUARTER 2025 SEGMENT RESULTS $ in millions Net Sales Operating Income Operating Margin 2025 2024 Change 2025 2024 Change 2025 2024 U.S. Retail $294 $308 ($13) $2 $14 ($12) 0.8% 4.6% U.S. Wholesale 250 264 (14) 55 63 (8) 22.1% 24.0% International 85 90 (4) - 2 (2) (0.3%) 2.4% Total before 630 6
Slide 9: First Quarter 2025 Performance – U.S. Retail
FIRST QUARTER 2025 PERFORMANCE – U.S. RETAIL 2025 vs. 2024 • Net sales in-line with plan (-4% vs. LY); units +2% • Comparable sales -5% (better than forecast of decline MSD to HSD) Sales − Meaningful acceleration in March (~50% of Q1 sales) − Targeted pricing investment and promotional strategies dr
Slide 10: First Quarter Segment Performance
FIRST QUARTER SEGMENT PERFORMANCE 2025 vs. 2024 U.S. WHOLESALE INTERNATIONAL • Net sales: -5% (units -2%) • Net sales: -5% (units +5%) ― Sales planned down vs. LY, in part due ― Adverse FX translation ($6M) to timing of shipments ― Local currency growth in Canada & ― Stronger than planned demand for
Slide 11: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW $ in millions Balance Sheet (Q1 End) Cash Flow & Return of Capital (Q1) 2025 2024 2025 2024 Cash $321 $268 Operating cash flow ($49) ($26) Accounts receivable, net 204 224 Capital expenditures (10) (12) Inventory, net 474 473 Free cash flow2 ($59) ($38) Accounts payable 199
Slide 12: Our Global Sourcing Network
OUR GLOBAL SOURCING NETWORK 2024 China <4% Top 4 Markets Rest of Finished World • Vietnam Goods 25% Sourcing Mix • Cambodia by Country Top 4 75% • Bangladesh • India • Well-diversified sourcing model; strong relationships with highly capable vendors • Principal sourcing office located in Hong Kong H
Slide 13: Tariff Rate Increases and Potential Actions to Mitigate
TARIFF RATE INCREASES AND POTENTIAL ACTIONS TO MITIGATE 2025 Estimated Annual Effective Tariff Rates1 Country of Pre 4/2/25 Potential Origin Significant Vietnam 15% 44% Incremental Tariffs Cambodia 13% 44% Proposed Bangladesh 13% 35% India 10% 25% China 30% 125% • Evaluating pricing • Actioning: ― C
Slide 14: Thank You
THANK YOU 14
Slide 15: Supplemental Information
SUPPLEMENTAL INFORMATION 15
Slide 16: Reconciliation of Reported to Adjusted Earnings
RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS $ in millions, except EPS Income % of Operating % of Tax Net Diluted First Quarter of Fiscal 2025 SG&A net sales Income net sales Provision Income EPS As reported (GAAP) $270.3 42.9% $26.1 4.1% $5.8 $15.5 $0.43 Leadership transition costs (b) (6.1) 6.1
Slide 17: Reconciliation of Total Segment Operating Income to Consolidated Operating Income
RECONCILIATION OF TOTAL SEGMENT OPERATING INCOME TO CONSOLIDATED OPERATING INCOME $ in millions Fiscal Quarter Ended March 29, 2025 March 30, 2024 % of % of net sales net sales Total segment operating income (a) $57.4 9.1% $79.8 12.1% Unallocated corporate expenses (b) (22.0) (24.8) Subtotal $35.4 5
Slide 18: Reconciliation of Net Income to Adjusted EBITDA
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA $ in millions Four Fiscal Fiscal Quarter Ended Quarters Ended March 29, 2025 March 30, 2024 March 29, 2025 Net income $15.5 $38.0 $163.0 Interest expense 7.8 7.9 31.2 Interest income (3.1) (3.1) (11.1) Tax expense 5.8 11.9 39.2 Depreciation and amortiz
Slide 19: First Quarter Reconciliation of Adjusted Net Income Allocable to Common Shareholders
FIRST QUARTER RECONCILIATION OF ADJUSTED NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS Fiscal Quarter Ended Weighted-average number of common and common equivalent shares outstanding: March 29, 2025 March 30, 2024 Basic number of common shares outstanding 35,312,090 35,860,740 Dilutive effect of equit
Slide 20: Net Sales Constant Currency Reconciliation
NET SALES CONSTANT CURRENCY RECONCILIATION $ in millions Fiscal Quarter Ended Impact of Constant- Constant- Reported Net Foreign Currency Net Reported Net Reported Currency Sales Currency Sales Sales Net Sales Net Sales % March 29, 2025 Translation March 29, 2025 March 30, 2024 % Change Change Conso
Slide 21: Store Count Reconciliation
STORE COUNT RECONCILIATION U.S Canada Mexico Total Store count at March 30, 2024 789 186 52 1,027 Openings 34 8 12 54 Closings (19) (3) (2) (24) Store count at December 28, 2024 804 191 62 1,057 Openings 5 - 3 8 Closings (7) - (1) (8) Store count at March 29, 2025 802 191 64 1,057 21
Slide 22: Forward Looking Statements
FORWARD LOOKING STATEMENTS Statements in this presentation that are not historical fact and use predictive words such as “estimates”, “outlook”, “guidance”, “expect”, “believe”, “intend”, “designed”, “target”, “plans”, “may”, “will”, “are confident” and similar words are forward-looking statements (