Investor Presentaiton

Financials . • • • FOCUSED STRATEGY Investment phase near complete and focusing on improved profitability Pathway to mid-teens operating margin through improvement in gross margin and SG&A Priority remains returning capital to shareholders over acquisitions Generate strong FCF: returned more than $417 million in common stock since 2011* • MARGIN ENHANCEMENT • Strategic adjustments to create efficiencies in supply chain Optimizing SKU count, reducing development costs and improving our go-to-market process Growth in DTC and international over the long-term • . • • EXPENSE MANAGEMENT Significant investments in place Continuing to evaluate and streamline expense structure Brand management realignment and office consolidation reduces overhead of brand leadership, sales operations and expense structure Business transformation and improved processes expected to create savings long-term *As of December 31, 2015. 23

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