HR Business As Unusual

SFIA THOUGHT LEADERSHIP WEBINAR JUNE 30, 2020 Monitoring the Impact of COVID-19 and the Road to Recovery

COVID-19 Featured Speaker:C O R O N O V I R U S Matt Powell Vice President & Senior Industry Advisor The NPD Group HR Business as Unusual

Webinar Host: Alli Schulman Manager, Communications & Marketing SFIA 1

Document classification: NPD Internal Only The NPD Group, Inc. | Proprietary and confidential Questions can be submitted to the GoToWebinar toolbar U.S. Sports Industry Recap

January – May 2020

Copyright 2020. The NPD Group, Inc. All Rights Reserved. This presentation is proprietary and confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD. About Matt Powell

Serves as Frequent Sports Industry 20 presentations 29 Advisor for Years as a Sport to senior executives Years in the Sporting Industry Analyst Goods industry The NPD Group of Athletic Retailers/Brands

Often quoted as 46 industry expert in 22,000+ 31,000+ Years in Retail Industry major business LinkedIn Connections Twitter Followers One of the top 1% most Complex: publications viewed LinkedIn profiles “One of the top 15 most influential people in Sneaker Media”

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 3 STATE OF U.S. RETAIL STATE OF U.S. RETAIL

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential U.S. Retailers, prior to Covid, were trimming their doors; the pandemic has put many more on the chopping block

# of U.S. Retail Door Closures 2000 - 2020 (est) Predictions are as high as 20,000 – 25,000 for 2020. 25,000 As of June 9th, 20,000 officially 20,000 announced

15,000 closures were

10,000

5,000 4,004 doors 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: Company data, news articles, credit Suisse estimates; 2017 to present, Coresight Research, Buisiness Insider, Cushman Wakefield

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 5 All sectors suffered during March and April but once stores opened mid May, Team and FTW posted gains

Weekly Dollar Sales % change YoY, 21 weeks ending May 30, 2020 Footwear Apparel Team Sports EQ

40.0 20.0 0.0 -20.0 -40.0 -60.0 -80.0 Jan Jan Jan Jan Feb Feb Feb Feb Mar Mar Mar Mar Mar Apr Apr Apr Apr May May May May week 1 week 2 week 3 week 4 week 1 week 2 week 3 week 4 week 1 week 2 week 3 week 4 week 5 week 1 week 2 week 3 week 4 week 1 week 2 week 3 week 4

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 6 The “bright spot” in footwear has been DTC But in Covid-19 times, all stores struggle

Footwear $ % Change, DTC vs. remaining channels 5ME May19 5ME May20 8%

-1%

-12% -20% DTC Remaining channels

*DTC = Factory Outlet + Vertical Shoe Stores Source: The NPD Group/Consumer Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 7 DTC remains a major portion of sales for top brands Consumers reporting DTC gains for both Nike and adidas YTD May20

Select Brands, Footwear $ volume % Select Brands, $ % change 5ME May 20 vs. 5ME May 19 Total Brand $ % DTC Other Outlets DTC others Loss 5ME May20

1% -17% 24% Nike -21%

adidas 18% -4% 31% -12%

-30% -29% 47% Skechers -28%

57% -16% -26% Vans -35%

Source: The NPD Group/Consumer Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 8 Nearly 30% of all Active Apparel sold is Private Label

Total Market vs. Private Label – ATHLETIC Athletic Private Label 12ME May20

Private Label Rest of Market 28% of Apparel

$56.1 B Y/Y Dollar % Growth : -3% $44.0 B Y/Y Unit % Growth : +1%

3% of Footwear

Y/Y Dollar % Growth : -9% Y/Y Unit % Growth : -14%

Apparel Footwear

Document classification: NPD Internal Only The NPD Group, Inc. | Proprietary and confidential The NPD Group/ Consumer Tracking Service 9 Exercise Habits are changing Compared to pre-COVID behavior, exercising at home has increased by more than 70% and twice as many consumers are using online or app based exercise classes.

Exercise at a gym Exercise at home Online/app based exercise classes Yoga Bicycle riding

63% 51% 50%

43% 38% 21% 25% 29% 13% 14% 11% 11% 27% 9% 11% 10% 2% 6%

Before COVID-19 During COVID-19 Plan to do After Before COVID-19 During COVID-19 Plan to do After COVID-19 COVID-19 Source: The NPD Group/ Checkout

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 10 DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 11 Current ONLINE trends 5ME May20

Fashion Apparel Active Apparel Fashion Footwear Athletic Footwear

flat +19% -11% +25% $15B $6B $3B $6B

Year over year % change

Online Dollars —5ME May 2020

Source: The NPD Group/Consumer Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 12 Online penetration in Footwear during the shutdown is over 50%; for Apparel, online volume is 45% of sales

% Footwear sales % Apparel sales Store Online Store Online

28 28 25 28 25 51 28 45

Jan + Feb 19 Jan + Feb 20 Jan + Feb 21 Mar - May 19 Mar - May 20 Jan + Feb 19 Jan + Feb 20 Jan + Feb 21 Mar - May 19 Mar - May 20

Source: The NPD Group/Consumer Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 13 U.S. ATHLETIC FOOTWEAR

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 14 Footwear was off to a good start… then Covid-19

Athletic Footwear $ Volume , in billions

March - May down The first 2 months of 2020 were up +3% -32% to last year

$2,856 $2,956 $5,437 $3,694

Jan + Feb '19 Jan + Feb '20 Mar - May '19 Mar - May '20

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 15 Covid losses take FTW down -20% YTD

Athletic Footwear $ Volume, in billions

YTD May20 vs. PY -$1.6B -19.8% -21.8% in units, ASP +2.6% $7,839 $8,371 $8,293 $6,650

5ME May17 5ME May 18* 5ME May19 5ME May 20

rd * Q1 18 contains the 53 week in January 2018 Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 16 All categories of footwear losing ground YTD

Footwear $ Volume by Super Category $5,000 $4,500 $4,000 -17% Sport Leisure $3,500 $3,000 $2,500 -24%

Millions $2,000 Performance $1,500 $1,000 -28% $500 Outdoor Work/OCC/Safety $0 -7% 5ME May17 5ME May18 5ME May19 5ME May20

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 17 Many brands with double digit losses – only Brooks pulls out a net $ gain

Top Athletic Footwear Brands, $ Volume, (in millions) Top Athletic Footwear Brands, Absolute $ Change, (in millions) 5ME May20 5ME May20 vs. 5ME May19

$2,201 Nike -$544 -20% $827 Jordan -$50 -6% $639 adidas -$169 -21% $310 Skechers -$93 -23% $262 New Balance -$68 -21% $176 Brooks $16 +10% $154 Under Armour -$62 -29% $141 ASICS -$26 -16% $140 Vans -$56 -28% $122 Puma -$4 -4% $107 Converse -$77 -42% Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 18 Losses extend to nearly every class of footwear

Soccer/Footba ll, $75 Golf, $78 Baseball, $101 Walking $120 Skate $149 Sport Slide Hiking/Trekking $180 $178 Cold/All Weather Boots Basketball $192 $194 Top Athletic Footwear Classes, Incremental $ Sales, in millions Training $267 5ME May20 vs. 5ME May19 Work/OCC/Safety $293 $8,800

Running $8,200 $699

Millions $7,600 $7,000 $702 $224 $23 $85 $68 $59 $68 $36 $6,400 $67 $14 $85 $41 $71 $98

$5,800

Sport Lifestyle $5,200 $3,525 $4,600 $8,293 $6,650 $4,000

Golf Skate Running Tr aining Walking Baseball Al l Other Basketball 5ME May19 Sport Slide 5ME May20 Sport Lifestyle Hiking/Trekking Soccer/Football Work/OCC/Safety

Athletic FTW 5ME May 20 $ (M) Cold/All Weather Boots Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 19 Top categories moved upwards as stores opened; those posting May gains include Sports Lifestyle and Sport Slides Top FTW Categories, Weekly Dollar Sales % change YoY, 21 weeks ending May 30, 2020

100.0 Sport Lifestyle Running 60.0 Work/OCC/Safety

20.0 Training Basketball -20.0 Cold/All W. Boots

-60.0 Hiking/Trekking Sport Slide -100.0 Jan Jan Jan Jan Feb Feb Feb Feb Mar Mar Mar Mar Mar Apr Apr Apr Apr May May May May week 1 week 2 week 3 week 4 week 1 week 2 week 3 week 4 week 1 week 2 week 3 week 4 week 5 week 1 week 2 week 3 week 4 week 1 week 2 week 3 week 4

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 20 All wearer segments posting double digits losses

Footwear by Gender, $ Volume, in billions 5ME May17 5ME May18 5ME May19 5ME May20

$4,500 $4,000 -20% $3,500 $3,000 $2,500 -18% $2,000 -22% $1,500 $1,000 $500 $3,232 $2,074 $1,344 $0 Men Women Children Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 21 YTD 2020 only 14% of Athletic FTW purchased was used for sport

% of Athletic Footwear used for Sport

16.9

15.1 14.4

5ME May18 5ME May19 5ME May20

Source: The NPD Group/Consumer Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 22 U.S. ACTIVE APPAREL

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 23 Apparel was +1% to last year before Covid -19 hit

Active Apparel $ Volume, in billions

March – May down The first 2 months of 2020 were +1% -28% to last year

$3,548 $3,568 $6,467 $4,668

Jan + Feb '19 Jan + Feb '20 Mar - May '19 Mar - May '20

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 24 YTD Activewear down nearly $2B on declining units and ASPs

Active Apparel $ Volume, in billions

5ME May 20 vs. PY -$1.8B -17.8% -8.9% in units, ASP -9.7% $9,472 $10,389 $10,014 $8,236

5ME May17 5ME May 18 5ME May19 5ME May 20

* Q1 18 contains the 53rd week in January 2018 Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 25 Both Premium and AS/SG were positive in 2019 then Covid-19 forces deep decline

Activewear $ % Monthly Growth, Select Channels

Premium/Mid-Tier AS/SG 60.0 40.0 20.0 0.0 -20.0 -40.0 -60.0 -80.0 Jul 2017 Jul 2018 Jul 2019 Jul Jan 2017 Jan 2018 Jan 2019 Jan 2020 Jan Jun 2017 Jun 2018 Jun 2019 Jun Oct2017 Oct2018 Oct2019 Apr 2017 Apr 2018 Apr 2019 Apr 2020 Feb 2017 Sep 2017 Feb 2018 Sep 2018 Feb 2019 Sep 2019 Feb 2020 Dec 2017 Dec 2018 Dec 2019 Dec Aug 2017 Aug 2018 Aug 2019 Nov 2017 Nov 2018 Nov 2019 Nov Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar May 2017 May 2018 May 2019 May 2020 May

rd Data contains the 53 week in January 2018 Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 26 Biggest losses were in Knit Shirts, Swimwear and Pants

All Others, $426 Headwear $133 Bras $232 Underwear Bottoms $314 Activewear Apparel Classes, Incremental $ Sales (M) Swimwear $610 5ME May20 vs. 5ME May19 Outerwear Tops $738 $11,000 Shorts $871 Millions $9,000 $489 $215 Socks $957 $124 $431 $134 $173 Sweatshirts $7,000 $984 Knit $5,000 $8,236 Shirts $10,014 $1,407 $3,000

Pants Bras Pants Shorts Socks Al l Other $1,564 Knit Shirts Swimwear Headwear 5ME MAY 19 Sweatshirts 5ME May 20 Outerwear Tops Activewear 5ME May20 ($ M) Underwear Bottoms Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 27 Sport brands down double digits; only Champion gaining with sales +3% to last year

Active Apparel $ Volumes, Top 11 Brands

5ME May17 5ME May18 5ME May19 5ME May20

$ % change to PY flat

-19%

-26% -29% +22% -5% +3% -29% -26% +1% -17%

Private Label Nike Under adidas Hanes Fruit Of The Champion Columbia The North Dickies Puma Armour Loom Face

* Unsuppressed brands only Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 28 Apparel down double digits across all wearers

Active Apparel by Wearer Segment, $ Volumes Growth and Dollar change, 5ME May 20 vs 5ME May 19 5ME May 17 5ME May 18 5ME May 19 5ME May 20

-19% -$908M -15% -$557M

-21% -$313M

$4,316 $4,809 $4,730 $3,822 $3,727 $4,012 $3,770 $3,212 $1,429 $1,567 $1,515 $1,201

Men's Women's Kids' Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 29 Many categories losing in Women’s but small upticks occurring YTD in Sweatshirts and Shorts

Others $113 Skirts/Skorts $43 Panties $45 Women’s Activewear Apparel Classes, Incremental $ Sales Socks $197 5ME May 20 vs. 5ME May 19 Bras $215 Outerwear Tops $244 $4,000 Shorts $3,700 $263 $4 $6 $3,400 $45 Sweatshirts Millions $302 $406 $3,100 $105 $56 $2,800 Knit Shirts $410 $2,500 Swimw $2,200 ear $1,900 $3,212 $578 $1,600 Pants Bras Pants Socks $718 Shorts Panties All Other Knit Shirts Swimwear Sweatshirts W Activewear 5ME May20 ($M) 5ME MAY 19 5ME May 20 Outerwear Tops

Cold W. Undergarments

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 30 Only 25% of Activewear is used to work out

% of Activewear used for Sport

27.8 26.7 24.6

5ME May18 5ME May19 5ME May20

Source: The NPD Group/Consumer Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 31 U.S. TEAM SPORTS EQUIPMENT

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 32 Team sports equipment was in great shape at the beginning of 2020, +13%

Team Sports Equipment $ Volume , in millions

-23%

+13%

$710 $803 $2,105 $1,631

Jan + Feb '19 Jan + Feb '20 Mar - May '19 Mar - May '20

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 33 The 13% lift from the beginning of 2020 was offset by the Covid losses in March thru May

Team Sport Equipment $ Volume, in billions

5ME May 20 vs. 5ME May 19 -$381M -13.5% -14.0% in units, ASP +0.5%

$2,558 $2,820 $2,816 $2,435

5ME May17 5ME May 18 5ME May19 5ME May 20 * Data presented in this deck contains the 53rd week in January 2018 Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 34 YTD results reveal categories posting gains, despite the current environment

Team Sports Equipment, 5ME May 20 $ Sales and Growth by Category Bubble size indicates $ % Size of Category, vertical axis indicate $ growth to PY

45% Basketball Combat & +38% Wrestling 25% +26% Gen. Team Racquet Sports Gear Hockey Sports +6% +8% +19% 5% Football flat Golf Lacrosse -15% -15% Soccer -21% -26% Baseball -35% Softball Team EQ Bags Protective Gear -39% -29% -48% -55% Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 35 Team Sports Equipment market dynamics Top Team Sport Equipment Categories, $ % Growth Growth Jan + Feb 2020 Mar -May 2020

Combat & Wrestling 42 Categories Basketball 41 Racquet Sport 18 growing both Hockey 16 before and after Volley Ball 11 General Team Sports Gear 3 shutdown

Football -13 Track & Field 4 Golf -22 Grand Total -23 Soccer -30 Team Sports Equipment Bags -40 Other Sports Gear -46 Lacrosse -46 Field Hockey -47 Baseball & Softball -55 Universal Protective Gear -72 Bowling -80 Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 36 As reopening begins in May, we see Racquet Sports and Golf go from negative to positive

100.0 Top Team Sport Equipment Categories, $ % Growth, Monthly

80.0 Combat & Wrestling, 50.5 60.0

40.0 Racquet Sport, 35.9 Golf, 21.5 20.0 Basketball, 24.0 0.0 Gen. Team Sports Gear, -6.7 Soccer, -15.2 -20.0 Football, -3.4 Team Sports EQ Bags, -13.1 -40.0

-60.0 Baseball & Softball, -48.2

-80.0 Univ. Protective Gear, -73.3 -100.0 Jan-20 Feb-20 Mar-20 Apr-20 May-20

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 37 Team Sports Equipment Brands – Leaders and Bleeders LEADERS BLEEDERS Incremental $ Gain Incremental $ Loss Brand* Brand* 5ME May 20 5ME May 20 Spalding +$40M Easton -$68M Lifetime +$39M Rawlings -$68M Everlast +$11M Taylormade -$42M Silverback +$9M Callaway Golf -$33M Wilson +$8M Under Armour -$29M Franklin +$8M Nike -$29M Goalrilla +$5M Louisville Slugger -$22M Penn +$4M DeMarini -$17M Century +$4M Shock Doctor -$14M Cobra Puma Golf +$4M Mizuno -$10M

* Non suppressed brands only Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 38 Team Sports Equipment Subclasses – Leaders and Bleeders LEADERS BLEEDERS $ % $ % Subclasses $ Gain Subclasses $ Loss growth 5ME May 20 decline 5ME May 20

Basketball Portable Hoops/Systems 77% +$69M Non-Wood Bats -46% -$89M

Basketball In-ground Hoops/Systems 46% +$18M Baseball & Softball Gloves & Mitts -36% -$57M

Punching Bags 47% +$13M Golf Drivers -26% -$32M

Badminton & Volleyball Sets 56% +$8M Bat Bag & Backpacks -51% -$31M

Golf Swinging & Putting Mats 73% +$7M Baseball & Softball Batting Gloves -45% -$26M

Tennis Racquet 21% +$7M Batting Helmets -49% -$26M

Golf Nets & Screens 117% +$7M Golf Balls -9% -$25M

Tennis Balls 15% +$7M Golf Iron Set -19% -$22M

Golf Push Carts 63% +$7M Soccer Shin Guards -56% -$21M

Official Basketball - 29.5 / 30 7% +$6M Mouthguard -45% -$17M

Source: The NPD Group/Retail Tracking Service DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 39 U.S. HEALTH and FITNESS EQUIPMENT

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 40 Health & Fitness EQ was growing during the first months of 2020 But when the U.S. locked down, sales jumped up

Health & Fitness EQ $ Volume , in billions

March + April 2020 up +6% +230% to prior year

$393 $417 $333 $766

Jan + Feb '19 Jan + Feb '20 Mar + Apr 19 Mar + Apr 20

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 41 Health and Fitness Equipment up +63% over last year U.S. Health and Fitness EQ , $ Volume, in billions

+$457M +62.9% +45.5% in units, ASP +12.0%

$729 $784 $726 $1,183

4ME Apr17 4ME Apr18 4ME Apr19 4ME Apr20

* Data presented in this deck contains the 53rd week in January 2018 Source: The NPD Group/Retail Tracking Service/ Sports EQ TMM

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 42 Every category in Health & Fitness EQ up double digits

Health & Fitness EQ by Category, $ volumes YTD Apr17 YTD Apr18 YTD Apr19 YTD Apr20

$750

+70% $500 +67% Millions

$250 +45% +70% +27% +74% +36%

$0 Cardiovascular Free Weight Fitness Strength Home Gym Yoga & Mat Home Gym Machines Equipment Accessories Training Weight Pilates Accessories Products Machines

Source: The NPD Group/Retail Tracking Service/ Sports EQ TMM

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 43 Double digit growth is occurring in nearly every class of fitness equipment

Top 10 Health & Fitness Classes, $ Sales % Change YTD Apr 20 vs. YTD Apr 19

All Others $194

Body Weight 101% 97% Rubber TubingMachines & Bands, $30 $35 Yoga Mats $46 85% 82% Rowing Machines $52 71% 68% 68% Weight Benches $74 57% Other Fitness Accessories $77 Elliptical Trainers $79 33% 36% Stationary Bikes 21% $145 Treadmills $213

Weights Weights Treadmills Yoga Mats All Others $238 Stationary Bikes Weight Benches Elliptical Trainers Rowing Machines Health & Fitness YTD Apr20 Rubber Tubing &Body Bands Weight Machines Other Fitness Accessories

Source: The NPD Group/Retail Tracking Service/ Sports EQ TMM

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 44 Health & Fitness subclasses – Leaders and Bleeders LEADERS BLEEDERS Incremental $ Gain Incremental $ Loss Top 10 Subclasses Bottom 10 Subclasses YTD Apr20 YTD Apr20

Treadmills +$86M Weightlifting Gloves & Grips -$3.2M

Spin Bikes +$39M Vertical Climbers -$1.5M Handheld (Manual) Massage Dumbbells +$37M Products -$1.2M Rowing Machines +$24M Inversion Tables -$1.1M

Yoga Mats +$21M Weightlifting Wraps & Supports -$1.0M

Exercise & Fitness Mats +$19M Weightlifting Belts -$0.9M

Upright Elliptical Trainers +$17M Other Treadmills -$0.5M

Recumbent Stationary Bikes +$17M Yoga Towels -$0.3M Cages & Towers & Hand & Grip Strengtheners Attachments +$14M -$0.3M Upright Stationary Bikes +$14M Weighted Belts -$0.3M

Document classification: NPD Internal Only The NPD Group, Inc. | Proprietary and confidential Source: The NPD Group/Retail Tracking Service/ Sports EQ TMM 45 Health & Fitness brands – Leaders and Bleeders

LEADERS BLEEDERS Incremental $ Gain Incremental $ Loss Brand* Brand* YTD Apr20 YTD Apr20

NordicTrack +$64M Total Gym -$5.1M

Cap Barbell +$39M MAXI CLIMBER -$1.5M Private Label +$38M Empower -$1.4M

Spri +$24M Harbinger -$1.0M Sunny Health & Fitness +$21M Simply Fit -$0.5M Marcy +$21M ACE -$0.4M

Pro-form +$20M Capelli Sport -$0.3M Schwinn +$19M Body Solid -$0.3M Balancefrom +$18M Precor -$0.3M Bowflex +$16M LifeSpan Products -$0.3M *Unsuppressed brands only Document classification: NPD Internal Only The NPD Group, Inc. | Proprietary and confidential Source: The NPD Group/Retail Tracking Service/ Sports EQ TMM 46 U.S. OUTDOOR INDUSTRY

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 47 Outdoor was down at the beginning of 2020, falling -43% in March + April

Outdoor Industry $ Volume , in billions

March + April -7% 2020 down -43% to prior year

$2,798 $2,608 $3,049 $1,752

Jan + Feb '19 Jan + Feb '20 Mar + Apr '19 Mar + Apr '20

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 48 For YTD April, results were off by -25%

U.S. Outdoor Industry $ Volume, in billions

-$1.5B -25.4% -28.1% in units $5,587 $5,716 $5,847 $4,360

YTD Apr17 YTD Apr18 YTD Apr19 YTD Apr20

Source: The NPD Group/Retail Tracking Service/ Industry View

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 49 All sectors in double digit decline YTD April 2020

-26% -25% -19% -35%

APPAREL FOOTWEAR EQUIPMENT ACCESSORIES

58% of volume 19% of volume 18% of volume 5% of volume -$906M -$282M -$182M -$117M

Source: The NPD Group/Retail Tracking Service/ Industry View

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 50 AS/SG and Outdoor Specialty doors down double; Sport Specialty Ecom up in all sectors except Accessories

U.S. Outdoor Industry $ % Growth (Loss) by Channel Channel Size Change 4ME Apr20 vs. 4ME Apr19, Channel Size 4ME Apr20

Sport Specialty Apparel Footwear Equipment Accessories Ecomm +8% Outdoor Specialty AS/SG -34% -29% 17 22 1

-10 -29 -28 -26 -33 -36 -35 -45 -42

AS/SG Outdoor Specialty Sport Specialty Ecommerce

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential n Source: The NPD Group/Retail Tracking Service/ Industry View 51 Most categories down double digits in the Outdoor Industry Top 10 Outdoor Industry Categories, $ Sales % Change 4ME Apr20 vs. 4ME Apr19

Others $225 Cold W. Undergarments $68 WaterSports $101 Bags $157 Camping $166 UndergarmentsApparel $180 -12% Accessories $293 -17% Accessories $398 -23% -22% -25% -25% -25% Outerwear $762 -31% -30% -33% -33% Footwear $837

Sportsw Bags ear Others $1,174 Footwear Camping Sportswear Outerwear Accessories WaterSports $ Size 4ME Apr20 Undergarments Apparel Accessories Cold W. Undergarments

Document classification: NPD Internal Only The NPD Group, Inc. | Proprietary and confidential Source: The NPD Group/Retail Tracking Service/ Industry View 52 Outdoor Industry subclasses – Leaders and Bleeders LEADERS BLEEDERS Incremental $ Gain Incremental $ Loss Subclass Subclass 4ME Apr20 4ME Apr20

Dehydrated Food +$5M Outerwear Tops -$208M

Slippers +$4M Knit Shirts -$157M

Portable Power +$4M Running -$107M

Water Filters +$3M Pants -$101M

Smokers +$2M Headwear -$86M Other Cookware Appliances +$2M Shorts -$77M Kayaks +$1M Socks -$61M

Climbing Crash Pads +$1M Hiking/Trekking -$57M Kid Trailers/Carriers +$1M Outerwear Bottoms -$50M Backcountry Accessories +$1M Handwear -$42M

Document classification: NPD Internal Only The NPD Group, Inc. | Proprietary and confidential Source: The NPD Group/Retail Tracking Service 53 U.S. CYCLING

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 54 Cycling, at the beginning of 2020 was already up +21% Cycling $ Volume , in billions March + April 2020 up +55% to prior year

+21%

$495 $600 $1,080 $1,672

Jan + Feb 19 Jan + Feb 20 Mar + Apr 19 Mar + Apr 20

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 55 YTD Cycling up by nearly $700M, +44%

Cycling, $ Volume, in billions +$697M +44.3% +24.6% in units, ASP +15.8%

$1,595 $1,652 $1,575 $2,273

YTD Apr17 YTD Apr18 YTD Apr19 YTD Apr20

* Data presented in this deck contains the 53rd week in January 2018 Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 56 All categories up double digits; Bicycles, the largest, +62%, +$553M

Cycling by Category, $ volumes 4ME Apr17 4ME Apr18 4ME Apr19 4ME Apr20 $2,000 +62% $1,500 Millions

$1,000

$500 +19% +28% +23% +13%

$0 Bicycles Bike Parts Bike Accessories Helmets/FTW/Gloves Shop Services

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 57 Largest volumes are in Mountain and Children’s bikes; biggest growth in smaller class, Lifestyle, up +120% YTD

Top 10 Cycling Classes, $ Sales % Change 4ME Apr 2020 vs. 4ME Apr 2019

Others $478 120% Components $102 95% Bike Service/Repairs $105 Tires/Tubes 76% $108 70% $108 65% Lifestyle/Le isureHelmets$134 35% 36% $135 18% 23% Road $162 8% 8% Transit/Fitn ess $204 Childrens $301 Road Mountain Helmets Mountain Childrens All Others $435 Tires/Tubes Components Transit/Fitness Lifestyle/LeisureElectric Bicycles YTD Apr20 Bike Service/Repairs

Source: The NPD Group/Retail Tracking Service

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 58 Cycling subclasses – Leaders and Bleeders LEADERS BLEEDERS Incremental $ Gain Incremental $ Loss Top 10 Subclasses Bottom 10 Subclasses 4ME Apr20 4ME Apr20

Front Suspension Bicycles +$108M Mountain Frames -$3.1M

Cross/Hybrid Bicycles +$81M Bike Rentals -$2.8M

Full Suspension Bicycles +$57M Bike Gloves -$2.1M

Cruiser/Classic Bicycles +$56M 27 Inch/ 700C/ 650C Wheels -$1.9M

Electric Bicycles +$53M Sport Perf. Road Bicycles -$1.5M

24 inch Bicycles +$37M Cable Locks -$0.6M

Helmets +$35M Bike Headlights -$0.5M

20 inch Bicycles +$29M U-Locks -$0.5M

16 inch Bicycles +$25M Touring Road Bicycles -$0.4M

18 inch Bicycles +$18M Other Wheels -$0.3M

Document classification: NPD Internal Only The NPD Group, Inc. | Proprietary and confidential Source: The NPD Group/Retail Tracking Service 59 Cycling brands – Leaders and Bleeders

LEADERS BLEEDERS Incremental $ Gain Incremental $ Loss Brand* Brand* 4ME Apr20 4ME Apr20 Schwinn +$77M Fuji -$9M Specialized +$74M Scott -$4M Trek +$68M Yeti Cycles -$4M Huffy +$65M Marin -$3M Mongoose +$28M Bike Rentals -$3M Giant +$27M Raleigh -$2M Santa Cruz +$27M Giro -$1M Cannondale +$24M Felt Racing -$1M Kent +$24M Zipp -$1M Electra +$18M Sidi -$1M *Unsuppressed brands only Document classification: NPD Internal Only The NPD Group, Inc. | Proprietary and confidential Source: The NPD Group/Retail Tracking Service 60 What brands and retailers must do now

1 Preserve liquidity 6 Rationalize store base

2 Brand equity 7 Embrace change

3 Brand purpose 8 The customer is in charge

4 Empathy 9 Markdown adverse products

5 Ecommerce 10 Time for transformation

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 61 THANK YOU

DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential 62 Register for the latest SFIA webinars at www.sfia.org/calendar

Expert Panelist: Host: Have any Matt Powell Alli Schulman questions? [email protected] [email protected] Additional questions or The NPD Group SFIA contact information can be Vice President & Senior Industry Advisor Manager, Communications & Marketing submitted to [email protected]

Thank you to all of our participants! DocumentThe classification: NPD Group, NPD Inc. Internal | Proprietary Only and confidential