Slide 1: Fourth Quarter & Fiscal Year 2025 Business Update
FOURTH QUARTER & FISCAL YEAR 2025 BUSINESS UPDATE FEBRUARY 27, 2026
Slide 2: Fourth Quarter 2025 Results
FOURTH QUARTER 2025 RESULTS GAAP BASIS $ in millions, except EPS Q4 2025 % of Q4 2024 % of (14 weeks) Net Sales (13 weeks) Net Sales Change Net sales $925 $860 8% Gross profit 400 43.2% 411 47.8% (3%) Royalty income, net 4 0.4% 4 0.5% (5%) SG&A 320 34.5% 302 35.1% 6% Intangible asset impairment - 0.
Slide 3: Fiscal Year 2025 Results
FISCAL YEAR 2025 RESULTS GAAP BASIS $ in millions, except EPS FY 2025 % of FY 2024 % of (53 weeks) Net Sales (52 weeks) Net Sales Change Net sales $2,898 $2,844 2% Gross profit 1,315 45.4% 1,365 48.0% (4%) Royalty income, net 18 0.6% 19 0.7% (6%) SG&A 1,189 41.0% 1,100 38.7% 8% Intangible asset impa
Slide 4: Non-GAAP Adjustments
NON-GAAP ADJUSTMENTS1 $ in millions, except EPS Fourth Quarter 2025 (14 weeks) 2024 (13 weeks) Operating % Net Diluted Operating % Net Diluted Net Income Net Income Income Sales EPS Income Sales EPS As reported (GAAP) $84.7 9.2% $64.2 $1.76 $83.2 9.7% $61.5 $1.71 Organizational restructuring 3.7 2.8
Slide 5: Adjusted Fourth Quarter 2025 Results
ADJUSTED FOURTH QUARTER 2025 RESULTS 1 $ in millions, except EPS Q4 2025 % of Q4 2024 % of (14 weeks) Net Sales (13 weeks) Net Sales Change Net sales $925 $860 8% Gross profit 400 43.2% 411 47.8% (3%) Royalty income, net 4 0.4% 4 0.5% (5%) Adjusted SG&A 315 34.0% 300 34.9% 5% Adjusted operating inco
Slide 6: Fourth Quarter 2025 Segment Results
FOURTH QUARTER 2025 SEGMENT RESULTS $ in millions Net Sales Operating Income Operating Margin 2025 2024 2025 2024 2025 2024 (14 weeks) (13 weeks) $ Change (14 weeks) (13 weeks) $ Change (14 weeks) (13 weeks) U.S. Retail $510 $466 $44 $56 $73 ($17) 11.0% 15.7% U.S. Wholesale 274 265 9 34 54 (20) 12.4
Slide 7: Fourth Quarter 2025 Performance – U.S. Retail
FOURTH QUARTER 2025 PERFORMANCE – U.S. RETAIL 2025 (14 WEEKS) vs. 2024 (13 WEEKS) • Net sales +9% vs. LY − Continued favorable consumer acceptance of price increases − AUR +MSD, Units +MSD − Additional week contributed ~$20M to growth Sales • Comparable sales +5% − Third consecutive quarter of compa
Slide 8: Fourth Quarter Segment Performance
FOURTH QUARTER SEGMENT PERFORMANCE 2025 (14 WEEKS) vs. 2024 (13 WEEKS) U.S. WHOLESALE INTERNATIONAL • Net sales: +3% (units +MSD) • Net sales: +10% (units +LSD); +8% CC ― Exclusive Brands growth ― Strong growth in Mexico ― Skip Hop and Little Planet growth ― Total sales +29% ― Additional week contri
Slide 9: Balance Sheet & Cash Flow
BALANCE SHEET & CASH FLOW $ in millions Balance Sheet (Q4 End) Cash Flow (Fiscal Year) 2025 2024 2025 2024 (53 weeks) (52 weeks) Cash $487 $413 Operating cash flow $122 $299 Accounts receivable, net 179 195 Capital expenditures (54) (56) Inventory, net 545 502 Free cash flow2 $69 $243 Accounts payab
Slide 10: Adjusted Fiscal Year 2025 Results
ADJUSTED FISCAL YEAR 2025 RESULTS 1 $ in millions, except EPS FY 2025 % of FY 2024 % of (53 weeks) Net Sales (52 weeks) Net Sales Change Net sales $2,898 $2,844 2% Gross profit 1,315 45.4% 1,365 48.0% (4%) Royalty income, net 18 0.6% 19 0.7% (6%) Adjusted SG&A 1,157 39.9% 1,098 38.6% 5% Adjusted ope
Slide 11: Fiscal Year 2025 Segment Results
FISCAL YEAR 2025 SEGMENT RESULTS $ in millions Net Sales Operating Income Operating Margin 2025 2024 2025 2024 2025 2024 (53 weeks) (52 weeks) $ Change (53 weeks) (52 weeks) $ Change (53 weeks) (52 weeks) U.S. Retail $1,466 $1,417 $49 $72 $133 ($61) 4.9% 9.4% U.S. Wholesale 1,001 1,021 (20) 160 217
Slide 12: 2026 Outlook
2026 OUTLOOK
Slide 13: Fiscal Year 2026 Outlook
FISCAL YEAR 2026 OUTLOOK 52 WEEKS vs. 53 WEEKS 2025; EX-RECENT GLOBAL TARIFF DEVELOPMENTS1 NET SALES • Net sales: low single-digit to mid-single-digit percentage growth (FY2025: $2.898 billion) U.S. Retail U.S. Wholesale International Low single-digit growth Mid-single-digit growth Mid-single-digit
Slide 14: First Quarter 2026 Outlook
FIRST QUARTER 2026 OUTLOOK EX-RECENT GLOBAL TARIFF DEVELOPMENTS1 NET SALES • Net sales: mid-single-digit percentage growth (Q1 2025: $630 million) U.S. Retail U.S. Wholesale International High single-digit growth Down low single-digits Double-digit growth Comp sales up mid-single-digits PROFITABILIT
Slide 15: Thank You
THANK YOU
Slide 16: Supplemental Information
SUPPLEMENTAL INFORMATION 16
Slide 17: Reconciliation of Reported to Adjusted Earnings
RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS $ in millions, except EPS % of Operating % of Income Net Diluted Fourth Quarter Fiscal 2025 (14 weeks) SG&A net sales Income net sales Tax Provision Income EPS As reported (GAAP) $319.6 34.5% $84.7 9.2% $11.7 $64.2 $1.76 Operating model improvement cos
Slide 18: Reconciliation of Reported to Adjusted Earnings
RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS $ in millions, except EPS Income % of Operating % of Tax Net Diluted Fourth Quarter Fiscal 2024 (13 weeks) SG&A net sales Income net sales Provision Income EPS As reported (GAAP) $302.1 35.1% $83.2 9.7% $14.3 $61.5 $1.71 Organizational restructuring (b
Slide 19: 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 (13 weeks) 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
Slide 20: Reconciliation of Total Segment Operating Income
RECONCILIATION OF TOTAL SEGMENT OPERATING INCOME TO CONSOLIDATED OPERATING INCOME $ in millions Fiscal Quarter Ended Fiscal Year Ended January 3, 2026 December 28, 2024 January 3, 2026 December 28, 2024 (14 weeks) (13 weeks) (53 weeks) (52 weeks) % of % of % of % of net sales net sales net sales net
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA $ in millions Fiscal Quarter Ended Fiscal Year Ended January 3, December 28, January 3, December 28, 2026 2024 2026 2024 (14 weeks) (13 weeks) (53 weeks) (52 weeks) Net income $64.2 $61.5 $91.8 $185.5 Interest expense 11.4 8.2 34.2 31.3 Interest income
Slide 22: Fourth Quarter Reconciliation of Adjusted Net Income
FOURTH QUARTER RECONCILIATION OF ADJUSTED NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS Fiscal Quarter Ended January 3, 2026 December 28, 2024 Weighted-average number of common and common equivalent shares outstanding: (14 weeks) (13 weeks) Basic number of common shares outstanding 35,448,826 35,246,8
Slide 23: Fiscal Year Reconciliation of Adjusted Net Income
FISCAL YEAR RECONCILIATION OF ADJUSTED NET INCOME ALLOCABLE TO COMMON SHAREHOLDERS Fiscal Year Ended January 3, 2026 December 28, 2024 Weighted-average number of common and common equivalent shares outstanding: (53 weeks) (52 weeks) Basic number of common shares outstanding 35,404,506 35,524,378 Dil
Slide 24: Net Sales Constant Currency Reconciliation
NET SALES CONSTANT CURRENCY RECONCILIATION $ in millions Fiscal Quarter Ended Impact of Constant- Reported Net Constant- Reported Net Foreign Currency Net Sales Reported Currency Sales Currency Sales December 28, Net Sales Net Sales % January 3, 2026 Translation January 3, 2026 2024 % Change Change
Slide 25: Reconciliation of U.S. GAAP and Non-GAAP Information
RECONCILIATION OF U.S. GAAP AND NON-GAAP INFORMATION The tables below reflect the calculation of net sales change on a comparable week basis for the fiscal quarter and fiscal year ended January 3, 2026: $ in millions Fiscal Quarter Ended Reported Net Reported Net Sales Pro Forma Net Sales December 2
Slide 26: 2025 Store Count Reconciliation
2025 STORE COUNT RECONCILIATION U.S. Canada Mexico Total Store count at December 28, 2024 804 191 63 1,058 Openings 28 5 12 45 Closings (28) (4) (3) (35) Store count at January 3, 2026 804 192 72 1,068 26
Slide 27: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION 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-
Slide 28: Forward Looking Statements & Other Information (Continued)
FORWARD LOOKING STATEMENTS & OTHER INFORMATION (CONTINUED) The Company’s outlooks (and related assumptions) for fiscal year 2026 and the first quarter fiscal 2026 do not reflect the potential impacts of the recent U.S. Supreme Court decision regarding tariffs imposed under the International Emergenc