Year you have selected: 2014

Looking over the three BSG generated reports (a) Footwear Industry Report, (b) Competitive

Intelligence Report, and (c) Company Operating Report, what types of information can

be found in each of those three reports which could help identify the causes of that year's decline.

Year 14 - Help Print Industry 1 PERFORMANCE BENCHMARKS Year 14 (concluded) Branded Operating Benchmarks Industry 1 Company North America Low Average High F Distribution and Warehouse Costs ($ per pair available for sale) 5.01 6.37 9.38 5.16 Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment) 25.07 29.30 32.56 32.38 Internet Segment Marketing Expenses ($ per pair sold) 12.78 28.71 36.26 29.09 Operating Profit ($ per pair sold) 3.71 17.06 27.96 9.14 Operating Profit Margin 4.4% 18.6% 29.7% 10.6% Wholesale Segment Marketing Expenses ($ per pair sold) 6.51 11.49 14.57 10.50 Operating Profit ($ per pair sold) 1.14 8.85 19.05 3.38 Operating Profit Margin 2.3% 15.1% 28.6% 6.4% Industry 1 Company Europe-Africa Low Average High F Distribution and Warehouse Costs ($ per pair available for sale) 5.24 10.37 13.72 11.01 Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment) 26.65 31.55 38.54 34.77 Internet Segment Marketing Expenses ($ per pair sold) 15.07 28.07 35.34 29.72 Operating Profit ($ per pair sold) 5.54 17.13 34.81 8.95 Operating Profit Margin 6.7% 18.2% 33.5% 10.1% Wholesale Segment Marketing Expenses ($ per pair sold) 7.28 12.51 16.11 10.77 Operating Profit ($ per pair sold) -1.10 6.28 13.53 2.64 Operating Profit Margin -2.2% 10.9% 21.5% 4.8% Industry 1 Company Asia-Pacific Low Average High F Distribution and Warehouse Costs ($ per pair available for sale) 4.72 5.75 8.81 4.93 Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment) 20.73 25.86 31.93 28.95 Internet Segment Marketing Expenses ($ per pair sold) 17.23 31.23 42.81 33.83 Operating Profit ($ per pair sold) -6.00 14.20 34.97 7.17 Operating Profit Margin -7.2% 16.0% 36.1% 8.4% Wholesale Segment Marketing Expenses ($ per pair sold) 9.32 13.49 18.13 11.79 Operating Profit ($ per pair sold) -1.33 6.95 12.08 4.69 Operating Profit Margin -2.6% 13.0% 22.4% 9.0% Industry 1 Company Latin America Low Average High F Distribution and Warehouse Costs ($ per pair available for sale) 5.19 9.80 15.51 5.19 Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment) 22.44 29.89 40.99 25.15 Internet Segment Marketing Expenses ($ per pair sold) 5.45 22.78 37.00 26.30Internet Segment Marketing Expenses ($ per pair sold) 15.07 28.07 35.34 29.72 Operating Profit (S per pair sold) 5.54 17.13 34.81 8.95 Operating Profit Margin 6.7% 18.2% 33.5% 10.1% Wholesale Segment Marketing Expenses ($ per pair sold) 7.28 12.51 16.11 10.77 Operating Profit ($ per pair sold) -1.10 6.28 13.53 2.64 Operating Profit Margin -2.2% 10.9% 21.5% 4.8% Industry 1 Company Asia-Pacific Low Average High F Distribution and Warehouse Costs ($ per pair available for sale) 4.72 5.75 8.81 4.93 Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment) 20.73 25.86 31.93 28.95 Internet Segment Marketing Expenses ($ per pair sold) 17.23 31.23 42.81 33.83 Operating Profit ($ per pair sold) -6.00 14.20 34.97 7.17 Operating Profit Margin -7.2% 16.0% 36.1% 8.4% Wholesale Segment Marketing Expenses ($ per pair sold) 9.32 13.49 18.13 11.79 Operating Profit ($ per pair sold) -1.33 6.95 12.08 4.69 Operating Profit Margin -2.6% 13.0% 22.4% 9.0% Industry 1 Company Latin America Low Average High F Distribution and Warehouse Costs ($ per pair available for sale) 5.19 9.80 15.51 5.19 Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment) 22.44 29.89 40.99 25.15 Internet Segment Marketing Expenses ($ per pair sold) 5.45 22.78 37.00 26.30 Operating Profit ($ per pair sold) 7.1 20.31 36.62 19.22 Operating Profit Margin 8.9% 22.6% 39.4% 22.3% Wholesale Segment Marketing Expenses ($ per pair sold) 2.05 9.35 14.86 10.79 Operating Profit ($ per pair sold) 0.14 7.79 13.24 9.82 Operating Profit Margin 0.3% 14.4% 24.0% 18.8% Private-Label Operating Benchmarks Industry 1 Company Low Average High F Cost Per Pair Sold (production, freight, tariffs, x-rates) 26.75 29.28 30.69 30.69 North America Margin Over Direct Cost ($ per pair sold) -0.19 +1.07 +3.60 -0.19 25.04 28.52 30.89 0.00 Europe-Africa Cost Per Pair Sold (production, freight, tariffs, x-rates) Margin Over Direct Cost ($ per pair sold) +0.02 +2.67 +5.43 0.00 Cost Per Pair Sold (production, freight, tariffs, x-rates) 20.46 22.11 23.40 0.00 Asia-Pacific Margin Over Direct Cost ($ per pair sold) +5.38 +7.61 +9.69 0.00 Cost Per Pair Sold (production, freight, tariffs, x-rates) 21.05 23.78 27.76 21.05 Latin America Margin Over Direct Cost (5 per pair sold) +0.78 +6.17 +9.37 +9.37Industry 1 COMPARATIVE COMPETITIVE EFFORTS Year 14 Co. F North America Competitive Efforts by Company Industry vs Ind. A B C D E F G H I J L Average Avg. INTERNET SEGMENT -5.4% Retail Price ($ per unit) 68.75 76.86 86.48 65.00 73.50 86.75 71.00 93.00 77.67 16,250 6,500 10,250 13,000 11,813 -13.2% Search Engine Advertising (so00s) 9,000 14,750 9,750 15,000 Free Shipping No No No No No NO No No None Near Avg 1.7* 10.0* 9.5* 4.4* 7.1* 7.5* 5.2* 5.0* 6.7* +6.0% S/Q Rating (1 to 10 stars) Model Availability 413 50 50 495 442 484 424 492 356 +24.0% 14,500 26,000 27,000 10,000 15,000 24,000 16,000 25,000 19,688 -23.8% Brand Advertising ($000s) 60 75 115 295 0 0 255 100 -100.0% Celebrity Appeal 68 93 81 86 81 86 54 70 77 +5.2% Brand Reputation (prior-year image) Online Orders (000s of pairs) 510 736 628 872 524 633 460 678 630 -16.8% Pairs Sold (5000s of pairs) 510 736 628 872 524 633 460 67 630 -16.8% Market Share (96) 10.1% 14.6% 12.5% 17.3% 10.4% 12.6% 9.1 13.5% 12.5% -2. 1 pts. WHOLESALE SEGMENT Wholesale Price ($ per pair) 49.00 54.82 61.50 48.50 52.60 62.00 50.00 66.50 55.62 5.4% 4.7* 10.0* 95* 4.4* 7.5* 5.2* +6.09% S/Q Rating (1 to 10 stars) 7.1* 5.0* 6.7* 413 50 50 495 442 484 424 492 356 Model Availability +24.0% Brand Advertising ($000s) 14,500 26,000 27,000 10,000 15.0 0 24,000 16,000 25,000 19,688 -23.8% 0.0% Rebate Offer ($ per pair) 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Delivery Time (weeks) 3 wks 3 wks 2 wks 3 wks 3 wks 2 wks 3 wks 2 wks 2.6 wks +15.4% Retailer Support ($ per outlet) 4,250 5,250 3,000 4,750 5,000 5,500 4 500 4 000 4,531 +10.4% Retailer Outlets 1.199 2 978 1,751 1,330 1,329 2,570 772 957 1, 611 -17.5% 60 75 115 295 255 100 -100.09% Celebrity Appeal Brand Reputation (prior-year image) 68 93 81 86 81 86 54 70 77 +5.2% 2,282 3.436 2,265 2,598 Pairs Demanded (000s of pairs) 3,398 2,200 2,999 2,024 2,180 -15.3% Gained / Lost (due to stockouts) +8 -60 +8 +12 +8 +10 +7 +8 0 2,290 3,376 2,273 3,410 2,208 3.009 2031 2,188 2,598 -15.0% Pairs Sold (000s of pairs) Market Share (6 11.0% 16.2% 10.9% 16.4% 10.6% 14.5% 9.8% 10.5% 12.5% -1.9pts. PRIVATE-LABEL SEGMENT Total Offer Price (maximum = $45.62) 34.99 31.35 31.42 31.00 31.50 31.50 0.00 31.50 Private-Label S/Q Rating (minimum = 5.0 stars) 5.0* 5.0* 5.0* 5.3* 5.0* 5.0* 0.0* 5.1* Pairs (000s) Pairs Offered / Available (000s) 1,455 605 290 610 588 607 0 606 Demand = 2,424 Pairs Sold (000s) 605 290 606 317 606 Offered = 4,761 Market Share (6) 0.0% 25.0% 12.0% 25.0% 13.1% 25.0% 0.0% 0.09 Sold = 2,424 Note: A market share limitation of 25.0% was imposed by chain retailers to help reduce market domination by a few private-label suppliers and promote competition among more suppliers. INTERNET SEGMENT - NORTH AMERICA WHOLESALE SEGMENT - NORTH AMERICA High End High End A B G G O Rating Q Rating D DNorth America - Company F Year 14 - Help Print Retailer Support ($ per outlet) 4,250 5,250 3,000 4,750 5,000 5,500 4,500 4,000 4,531 +10.4% Retailer Outlets 1,199 2,978 1,751 1,330 1,329 2,570 772 957 1.611 -17.5% Celebrity Appeal 60 75 115 295 0 0 255 100 -100.0% Brand Reputation (prior-year image) 68 93 81 86 81 86 54 70 77 +5.2% Pairs Demanded (000s of pairs) 2,282 3.436 2,265 3,398 2,200 2,999 2,024 2,180 2,598 -15.3% Gained / Lost (due to stockouts) +8 -60 +8 +12 +8 +10 +7 +8 Pairs Sold (000s of pairs) 2,290 3,376 2,273 3,410 2,208 3,009 2,031 2,188 2,598 -15.0% Market Share (6) 11 0% 16.2% 10.9 16.4% 10.6% 14.5% 9.8% 10.5% 12.5% -1.9pts. PRIVATE-LABEL SEGMENT Total Offer Price (maximum = $45.62) 34.99 31.35 31.42 31.00 31.50 31.50 0.00 31.50 Private-Label S/Q Rating (minimum = 5.0 stars) 5.0* 5.0* 5.0* 5.3* 5.0* 5.0* 0.0* 5.1* Pairs (000s) Pairs Offered / Available (000s) 1,455 605 290 610 588 607 0 606 Demand = 2,424 Pairs Sold (000s) 0 605 290 606 317 606 0 Offered = 4,761 Market Share (6) 0.0% 25.0% 12.0% 25.0% 13.1% 25.0% 0.0% 0.0% Sold = 2,424 Note: A market share limitation of 25.0% was imposed by chain retailers to help reduce market domination by a few private-label suppliers and promote competition among more suppliers. INTERNET SEGMENT - NORTH AMERICA WHOLESALE SEGMENT - NORTH AMERICA High End High End D B I A P B B G G D D E Price and S/Q Rating Price and S/Q Rating F F G 0 IQ I H A A E E 50 Models 500 Models Low End 50 Models 500 Models Product Line Breadth Product Line BreadthFACILITY SPACE North America Europe-Africa Asia-Pacific Latin America Total (all facilities) Facility Space Available in Year 15 (000s of pairs) 5,000 pairs 0 pairs 6,000 pairs 5,000 pairs 16,000 pairs Completion of New/Additional Space (construction initiated in Y15) 0 0 0 Facility Space Available (to house construction equipment in Y16) 5,000 pairs 0 pairs 6,000 pairs 5,000 pairs 16,000 pairs Beginning Gross Investment in Facility Space (5000s) $ 101,500 $ 119,500 $ 85,500 $ 306,500 + Investment in Additional Facility Space (initiated in Y15) O 0 0 + Capital Cost for Improved Working Conditions (CSRC) 0 0 0 Gross Investment in Facility Space ($000s) 101,500 oooooo 119,500 85,500 306,500 - Accumulated Depreciation (through Year 15) 32, 190 27,290 7,902 67,382 - Current Year 16 Depreciation (2.5% of gross investment) 2,538 2,988 2, 138 7,664 Net Investment in Facility Space ($000s) $ 66,772 $ 89,222 $ 75,460 $ 231,454 Construction Work-In-Progress (new space to be available in Y17) 0 pairs 0 pairs 0 pairs 0 pairs 0 pairs Capital Cost of Construction Work-In-Progress ($0005) 0 0 0 0 0 FOOTWEAR PRODUCTION EQUIPMENT North America Europe-Africa Asia-Pacific Latin America Total (all facilities) Production Equipment In-Place in Y15 (000s of pairs without OT) 0 pairs 0 pairs 2,000 pairs 5,000 pairs 7,000 pairs Purchase of Additional Equipment - New 0 0 0 0 (at the beginning of Year 16) Refurbished 1,500 4,000 5,500 Equipment Sold (at the beginning of Year 16) 0 0 0 0 Production Equipment Available in Y16 (000s of pairs wo OT) 1,500 pairs 0 pairs 6,000 pairs 5,000 pairs 12,500 pairs Percentage of New vs. Refurbished Equipment in Y16 0.0% 100.0% 0.0% 0.0% 33.0% 67.0% 100.0% 0.0% 56.0% 44.0% Beginning Gross Investment in Equipment (ooos) $ 105,600 $ 136,000 $ 132,000 $ 373,600 + Capital Cost of New Equipment (purchased in Year 16) 0 + Capital Cost of Refurbished Equipment (purchased in Y16) 21,600 57,600 79,200 + Capital Cost of Production Improvement Options 9,600 25,600 35,200 + Capital Cost of Energy Efficiency Initiatives 0 0 0 - Capital Cost of Equipment Sold 0 ooooooooo c 0 Gross Investment in Production Equipment 136,800 219,200 132,000 488,000 - Accumulated Depreciation (through Year 15) 83,840 65,440 44,800 194,080 - Current Year 16 Depreciation (10% of gross investment) 3,120 13,600 13,200 29,920 Net Investment in Production Equipment ($000s) $ 49,840 $ 140, 160 $ 74,000 $ 264,000 Production - New Option Ordered in Year 16 none none none none Improvement Capital Cost of Option Ordered (3000s) 0 0 Options Options in Place (ordered in prior year) BC none BC BC