The industry-low, industry-average, and industry-high branded operating benchmarks on page 7 of each issue of the Footwear Industry Report

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a.are worth careful scrutiny by the managers of all companies because when a company's distribution and warehouse costs, costs of branded pairs sold, marketing expenses, and/or operating profits for one or more of the regional benchmarks are deemed out-of-line, managers need to initiate corrective actions in the next decision round.

b.are only of value to the managers of companies having EPS, ROE and stock prices that are below Investor Expectations in the prior year

c.are of little value to company managers in making decisions to improve company performance in the upcoming decision round, although they may have interest to managers who are curious about last year's results

d.are of little value to the managers of companies whose cost benchmarks and operating profit benchmarks are below the industry average

e.have great value only to the managers of companies whose operating profits per branded pair sold are negative in one or more geographic regions

Decisions / Reports Menu Branded Operating Benchmarks raye JU (DUINS FullR ANGIUS) Page 4 (Industry Overview) Page 5 (Financial Statistics) Industry 70 Company Page 6 (Production Benchmarks] North America Low Average High Page 7 (Operating Benchmarks) Distribution and Warehouse Costs ($ per pair available for sale) 5.06 8.97 13.31 11.12 Page 8 (Celebrities, Price Trends) Cost of Branded Pairs Sold (production. freight, x-rate cost adjustment) 23.63 28.34 33.90 26.70 COMPETITIVE INTELLIGENCE Internet Segment - Marketing Expenses (s per pair solid 13.00 25,16 43.11 13.00 Comparative Competitive Efforts Operating Profit ($ per pair sold) 11.13 19.61 30.14 30.14 Regional Average Competitive Effort Operating Profit Margin 11.4% 22.4% 35.3% 35.3% Time Series Competitive Efforts Wholesale Segment -Marketing Expenses ($ por pair solid) 2.30 11.75 22.90 11.50 (for any company) Operating Profit (s per pair sold) 6.61 9.70 18.65 7.24 PERFORMANCE HIGHLIGHTS Operating Profit Margin 10.3% 17.2% 27.4% 13,9% Year-Over-Year Highlights Europe-Africa Industry 70 Company COMPANY OPERATING REPORTS Low Average High Facilities & Equipment Distribution and Warehouse Costs ($ per pair available for sale) 3.68 9.13 14.74 3.68 Production & Workforce Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment) 23.15 29.02 40.30 24.21 Internet Segment - Marketing Expenses ($ per pair sold) 14.68 27.80 39.94 14.68 Operating Profit (s per pair sold) 1.11 13.94 26.14 26.14 Operating Profit Margin 1.3% 15.9% 32.3% 32.3% Wholesale Segment - Marketing Expenses (S per pair sold) 7.09 13.44 20.52 12.43 Operating Profit (s per pair solid) 1.63 5.03 9.63 5.00 Operating Profit Margin 3.5% 9.3% 16.9% 10.3% Asia-Pacific Industry 70 Company Low Average High Distribution and Warehouse Costs ($ per pair available for sale) 4.77 6.02 8.70 5.09 Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment) 18.42 24.40 41.76 20.89 Internet Segment - Marketing Expenses (s per pair solid) 14.33 25.26 35.10 14.33 Operating Profit ($ per pair sold) -0.94 19.27 33.82 29.30 Operating Profit Margin -1 0% 23 1% 40.4% 36.5%