Macroeconomic & Market Update

Proprietary and Confidential

QUARTERLY REPORT MACROECONOMIC & MARKET UPDATE October 17, 2018 SEE SPECIAL REPORT: THE POWER OF OMNI CHANNEL (P. 8)

DAVID SHIFFMAN CATHY LEONHARDT SCOTT MOSES JEFF DERMAN GREGORY GRAMBLING PATRICK FURLONG Managing Director Managing Director Managing Director Managing Director Director Director Co-Head of Retail Co-Head of Retail Head of Food Retail (212) 508-1625 (212) 508-1674 (212) 508-1643 (212) 508-1642 (212) 508-1660 (212) 508-1675 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

To be added to the distribution list, please email Andrew Connolly at [email protected] Proprietary and Confidential TABLE OF CONTENTS

SECTION

I Special Report: The Power of Omni Channel 8

II Macroeconomic Update 15

II Financial and M&A Markets Update 27

III. Retail Market Update 32

V. Retail Trading and Operating Comparables Analysis 38

1 Proprietary and Confidential GLOBAL RETAIL GROUP

Senior Team

Peter J. Solomon Marc Cooper David Shiffman Cathy Leonhardt Michael Founder and Chief Executive Managing Director, Managing Director, Gottschalk Chairman Officer Co-Head of Retail Co-Head of Retail Managing Director, Head of Consumer

Scott Moses Jeffrey Derman Gregory Patrick Furlong Flore Gimello Managing Director Managing Grambling Director Vice President Head of Food Director Director Retail & Restaurants Additional Team Members Gaurav Ghosh, Associate Eric Bormel, Associate We advise clients in all retail and . We are a globally recognized strategic advisor to leading retail, consumer sectors, including: consumer, apparel, footwear and e-commerce companies . Unparalleled breadth and depth of industry knowledge, relationships Branded Apparel, Grocery & Food Retail and execution experience Footwear & Accessories Health, Wellness & Beauty . Strategy is to be the dominant retail centric advisory group Consumer Products Home Improvement . Our expertise encompasses the convergence of retail, consumer, Department Stores / Jewelry / Luxury e-commerce and digital media Broadlines / Mass Merchants Off Price . Collaborative effort with our tech, media and telecom bankers to provide clients a unique cross-sector perspective and approach that Discount & Dollar Restaurants leverages their knowledge, insights and sector relationships Drug Chain Specialty Hardlines . Provide M&A, restructuring and financing advisory services to E-Commerce Specialty Softlines clients ranging from multi-national, large-capitalization corporations Fitness / Performance Sporting Goods/Outdoor to smaller, high-growth, privately-held companies Apparel

2 Proprietary and Confidential SELECTED RETAIL GROUP TRANSACTIONS

PENDING PENDING PENDING PENDING PENDING PENDING €3,250,000,000 $437,000,000

Has sold select real estate assets to Has agreed to sell 185 stores’ pharmacy prescription files to Has divested and formed a joint venture with On its sale of Has agreed to be sold to newly Sale of Shop ‘n Save Assets to formed entity controlled by George Feldenkreis to to operate

Serving as financial advisor to V.F. Serving as financial advisor to Serving as financial advisor to Serving as financial advisor to Serving as financial advisor to Serving as financial advisor to the Corporation SUPERVALU Hudson’s Bay Company Fred’s Genesco Special Committee of Perry Ellis

OCTOBER 2018 SEPTEMBER 2018 A U G U S T 2018 AUGUST 2018 J U N E 2 0 1 8 M A Y 2 0 1 8 $275,000,000 $2,500,000,000 $558,000,000

Has acquired the remaining Has agreed to be sold to Has acquired the assets of Has been sold to outstanding equity interests of Has been sold to Senior Secured Credit Facility

Served as co-financial advisor to Served as financial advisor to Bare Served as financial advisor to Charlesbank Capital Partners and Served as financial advisor to Served as financial advisor to the Served as financial advisor to Necessities Stein Mart Partners Group Charlesbank Special Committee of The Finish Line DSW

M A R C H 2 0 1 8 M A R C H 2 0 1 8 FEBRUARY 2018 ** FEBRUARY 2018 NOVEMBER 2017 AUGUST 2017 $305,000,000 $788,000,000

Spin off of Has sold select assets to Has acquired Has agreed to acquire Has merged with Strategic investment by

from Indiana Grocery Group

Served as financial advisor to Served as financial advisor to Served as financial advisor to Served as financial advisor to Served as financial advisor to Groupe Rocher Apollo Co-Manager Flight Club El Rancho Central Grocers

AUGUST 2017 * * J U L Y 2 0 1 7 J U N E 2 0 1 7 ** M A Y 2 0 1 7 A P R I L 2 0 1 7 ** A P R I L 2 0 1 7 ** $3,900,000,000 $325,000,000 $446,000,000 $925,000,000 $840,000,000

$1 billion Senior Notes Senior Secured Credit Facilities $2.9 billion First Lien Term Loan Has sold select assets to Has been sold to $525 million Term Loan B $675 million First Lien Term Loan $315 million Delayed-Draw Fungible $250 million Second Lien Term Loan Term Loan B

Served as joint Lead Arranger Served as financial advisor to Served as joint Lead Arranger Served as financial advisor to Served as joint Lead Arranger and Bookrunner Marsh Supermarkets and Bookrunner Nutraceutical International Corporation and Bookrunner Served as Co-Manager

Reflects sell-side / strategic advisory engagements. 3 ** Natixis, a PJ SOLOMON affiliate, acted as the underwriting party on this transaction. Proprietary and Confidential SELECTED RETAIL GROUP TRANSACTIONS (CONT’D)

** A P R I L 2 0 1 7 M A R C H 2 0 1 7 M A R C H 2 0 1 7 FEBRUARY 2017 FEBRUARY 2017 JANUARY 2017 * $248,000,000 $174,200,000

Has been sold to Has divested Centre Lane Partners and Grand Has been sold to $30 million Revolving Credit Facility Has been sold to Wealth (subsidiary of Yue Yuen $165 million Term Loan Industrial (Holdings) Limited) have $53 million Commercial Mortgage to recapitalized Haggar, resulting in | Grand Wealth acquiring 100% of shares outstanding Served as financial advisor to Served as financial advisor to Served as financial advisor to Served as financial advisor to Kenneth Cole Productions and MBS Textbook Exchange and Served as restructuring advisor to Served as financial advisor to Haggar ModCloth Natixis provided real estate financing owner Leonard Riggio Nasty Gal on its Section 363 sale Finish Line

DECEMBER 2016 DECEMBER 2016 NOVEMBER 2016 SEPTEMBER 2016 SEPTEMBER 2016 AUGUST 2016 $950,000,000 $145,000,000 $196,600,000

Has divested Has been sold to Has agreed to acquire 865 stores Has sold select pharmacy assets to Has been sold to and certain assets from Has acquired |

Provided a fairness opinion to the Served as financial advisor to Served as financial advisor to Served as financial advisor to Served as financial advisor to Served as financial advisor to Southeastern Grocers Mi Pueblo Tractor Supply Company HSNi Skullcandy Board of Directors of Fred’s Inc.

J U N E 2 0 1 6 J U N E 2 0 1 6 M A Y 2 0 1 6 FEBRUARY 2016 FEBRUARY 2016 FEBRUARY 2016 $106,000,000

Formed a JV to distribute Calvin Klein, Tommy Hilfiger, Warner’s, Has sold its core business to Olga and Speedo in Mexico Has acquired Has been sold to

Served as financial advisor to Brooks Served as financial advisor to Served as financial advisor to Served as restructuring advisor to Served as financial advisor to Served as financial advisor to Brothers regarding strategic alternatives Haggen PVH Quiksilver DSW RevZilla

FEBRUARY 2016 JANUARY 2016 JANUARY 2016 NOVEMBER 2015 AUGUST 2015 J U L Y 2 0 1 5

$495,000,000 $59,000,000

Has sold Has acquired the remaining 55% Has agreed to acquire selected interest in the China joint venture for Pursued a strategic acquisition assets from Has acquired

Served as financial advisor to Served as financial advisor to Served as financial advisor to Served as financial advisor to Served as financial advisor on strategic Served as financial advisor to PVH Alex and Ani Chico’s FAS Key Foods alternatives to Fullbeauty Brands TJX

* Terminated transactions. Reflects sell-side / strategic advisory engagements. 4 ** Natixis, a PJ SOLOMON affiliate, acted as the underwriting party on this transaction. Proprietary and Confidential LEADING APPAREL PJ SOLOMON SERVED AS COMPANY FINANCIAL ADVISOR TO VF RESHAPES ITS CORPORATION . Enabled VF to continue to reshape its brand PORTFOLIO OF portfolio to deliver sustainable, long-term growth and superior returns to shareholders ICONIC BRANDS . Offered deep footwear industry knowledge . Provided complex carve-out advisory services to VF announced it divested its Reef brand to The inform client of implications of transaction and Rockport Group, a portfolio company of offered innovative solutions Charlesbank Capital Partners, in October 2018 . Example of PJ SOLOMON’s commitment to achieving comprehensive strategic solutions for corporate clients, tailored to generate long- term shareholder value Founded in 1899, VF Corporation is a global leader in the design and distribution of branded lifestyle apparel, footwear and accessories with a market capitalization of ~$37 billion. VF’s portfolio includes iconic brands such as Vans, The North Face, Timberland, Wrangler, Lee and Dickies.

With a heritage in surf culture and strength in sandals, Reef, which is headquartered in Carlsbad, CA, is an iconic beach lifestyle footwear and apparel brand.

The Rockport Group is home to the Rockport, Aravon and Dunham brands. With its diverse assortment of men's and women's footwear, products from Rockport can be found in various retail channels in more than 50 countries worldwide.

Based in Boston and New York, Charlesbank Capital Partners is a middle-market private equity investment firm managing more than $5 billion of capital.

5 Proprietary and Confidential

LEADING GROCERY PJ SOLOMON SERVING AS FINANCIAL ADVISOR TO WHOLESALER SUPERVALU

DIVESTS RETAIL . Offered deep industry knowledge of grocery, retail pharmacy, real estate and prescriptions BANNER . Performed complex financial analysis to inform client of implications of transaction and offer innovative structures and solutions On September 17, 2018, SUPERVALU announced that Schnuck Markets will acquire 19 . Example of PJ SOLOMON’s M&A advisory expertise and commitment to achieving long- of its 36 Shop ‘n Save grocery stores as well as term shareholder value prescription files at 10 other Shop ‘n Save pharmacy locations

SUPERVALU is one of the largest grocery wholesalers in the U.S., with annual sales of approximately $15 billion and a network of over 25 distribution centers

Schnuck’s is a leading supermarket chain with a strong presence across the Midwest. Founded in 1939 in St. Louis, Schnuck’s has a reputation for honesty, value and continued customer satisfaction

6 Proprietary and Confidential PJ SOLOMON APPOINTS MICHAEL GOTTSCHALK AS MANAGING DIRECTOR IN THE CONSUMER PRODUCTS GROUP

Biography Michael Gottschalk is a Partner and Managing Director in the Global Consumer Group. Mr. Gottschalk has been providing strategic and financial advice to clients for more than 25 years. His deep industry knowledge of the consumer products and retail industries and innovative thinking have made him a trusted advisor to domestic and international clients. Mr. Gottschalk’s selected advisory transactions included: Ganeden on its sale to the Kerry Group, Arbor on the sale of Columbus Foods to Hormel, Skagen on the sale of Method / Ecover to SC Johnson, Dean Foods on the acquisition of Friendly's Ice Cream and the acquisition of Alpro, Newell Brands on the acquisition of Sistema Plastics and the sale of its Hardware business, White Wave on its acquisition of Wallaby Yogurt, and So Delicious, and its later sale to Danone, Windpoint on the sale of Pelsis to LDC, Swander Pace on the sale of Renew Life to Clorox, and Pineridge Bakery to Aryzta, CSM on the acquisition of Best Michael Gottschalk Brands and the sale of its bakery business to Rhone Group, Saputo on the acquisition of Morningstar, Nestlé on the acquisition of Pfizer Infant Nutrition, Yoplait on its acquisition of Liberté, PAI on the sale of Yoplait, Lion Capital on the sale of Kettle Managing Director Foods and Wagamama, Unilever on the sale of Bertolli, St. Tropez on its sale to PZ Cussons, Grupo Lala on the acquisition of National Dairy Holdings, Hero on its acquisitions of Beech-Nut and Organix Brands, Harry & David on strategic alternatives and its restructuring, Catterton Partners on the sale of Archway & Mothers and the restructuring of Sleep Innovations, Sun Capital on its acquisition of Neckermann, JBS on its acquisition of Pilgrim’s Pride and Swift, Pirate's Booty on the sale to VMG, Apollo on its acquisition of Smart & Final, JLL on the sale of New World Pasta, Starwood Capital on the sale of Taittinger Champagne, Parmalat on its restructuring divestitures and Henkel on its acquisition of Right Guard. Previously Held Positions . Head of Consumer Group for the Americas, Rothschild . Managing Director in the Consumer and Retail, Lazard . Managing Director in the Consumer and Retail, Wasserstein, Perella & Co. . Attorney, Cravath, Swaine & Moore . CPA, Deloitte Haskins and Sells Academic Credentials . J.D., The University of Virginia School of Law . B.S. from The State University of New York at Albany

7 Proprietary and Confidential

THE POWER OF OMNI CHANNEL

8 Proprietary and Confidential ADAPTING TO THE NEW RETAIL LANDSCAPE Renewed focus on optimizing brick-and-mortar retail amidst rising online customer acquisition costs

CHANGING RETAIL ADVANTAGE OF OMNI-CHANNEL

. As e-commerce has gained market share in the retail industry, many traditional retailers have gained ground + Buy Online + Return in Store 1‒ Building robust omni-channel capabilities to defend against digitally native brands and retailers + Buy Online + Pick up in Store 2‒ Altering their in-store experience to keep up with rapidly changing trends . Despite its increased prevalence in the retail industry, + Research Online + Buy in e-commerce still only accounted for 9% of the global retail Store market in 2017 Research Online + Purchase . Moreover, customer acquisition costs are becoming prohibitively + + Online + Return in Store high leading to decreased ROAS for many digital retailers

‒ Cost per click increased ~25% in 2017 . Omni-channel customers tend to have much higher and more . Traditional retailers have the opportunity to compete more consistent spending habits than single-channel customers effectively, leveraging their store base and integrating digital and . Benefits of omni-channel have driven both digitally native and physical channels traditional retailers to expand their brick-and-mortar presence and improve their customers’ shopping experience

OMNI-CHANNEL CUSTOMERS…

SPEND 3X MORE MAKE 23% MORE REPEAT SHOPPING TRIPS WITHIN 6 THAN SINGLE-CHANNEL CUSTOMERS MONTHS

LESS LIKELY TO MAKE HIGHER BRAND LOYALTY RETURNS THAN SINGLE-CHANNEL CUSTOMERS THAN SINGLE-CHANNEL CUSTOMERS

9 Source: Statista. Proprietary and Confidential BRANDS AND RETAILERS ARE INNOVATING Traditional retailers and consumer brands are drastically enhancing the customer experience to attract and engage customers

New prototype in Los Angeles stocks products based on crowdsourced information using data collected from local NikePlus members; also began offering sessions through their Nike+ Running Clubs which allows customers to meet with Nike+ Experts to build training programs and train with other runners

Concept store in Los Angeles called Nordstrom Local offers manicures, alterations and personal styling – but no merchandise. The store also invites customers to gather and socialize over glasses of wine or beer while taking advantage of their new service offerings

New concept store in New York City offers a unique technology-driven retail experience. The store allows shoppers to “bike through Provence” using stationary bikes against a scenic French background, as well as try L’Occitane’s immersive virtual reality experience which takes customers through a 360-degree hot air balloon ride through southern France

Reinvented its flagship Samsung 837 store in New York City, which allows customers a unique opportunity to try all of Samsung’s cutting edge technology. The store offers couches and chairs for customers to use Samsung’s VR Tunnels and interact with other customers using virtual reality

In addition to superior in-store service, offers a host of highly curated outdoor experiences, from local hiking trips to international and domestic “Adventures” for REI customers. These trips are planned separately from any of REI’s products and are meant to strengthen REI’s relationship with customers’ outdoor experiences

Has built a best-in-class omni-channel interface which allows on-the-go customers to browse and pre- order a range of options. New Roastery locations feature super-premium coffee brewed on-site and augmented reality technology to enhance in-store experience and elevate the brand

New locations aim to be a place of respite and a distinctive shopping experience with the latest fashion finds, the most sought-after accessories and feel-good home decor and gifts customized for each individual location and site

10 Proprietary and Confidential RISE OF EXPERIENTIAL RETAIL Roll out of innovative, experiential retail formats 1

1. Malls are reorienting themselves around “attractions” to combat weak customer traffic trends, including entertainment venues such as VR gaming stations, premium bowling alleys, movie theaters and comedy clubs ‒ Malls have also been drastically improving their food offerings, ditching food courts and implementing higher-end, luxury restaurants and wine bars inside of malls to drive 2 customers traffic 2. “Eataly” pioneered the contemporary food hall concept which is spreading to other types of cuisines, including a Greek-style location in Providence and a beach-inspired Eataly restaurant in Chicago ‒ These cuisine-specific food halls offer a unique consumer experience with dozens of food options showcasing a variety of local food vendors 3 3. New retail concept, Showfields, is taking the entire 11 Bond St. building (Manhattan, NY) with over 14k sq. ft. ‒ This five-floor building will break the mold of traditional retail by offering themed floors, including health / wellness, home décor and fashion ‒ Brings together influencers and new brands 4. Neighborhood Goods is set to offer an innovative retail experience with pop-up shops and traditional retail space in 4 Dallas ‒ Store concept is aimed to “reinvent the traditional department store” experience by allowing ~15 brands to create their own “activations”, each highlighting their own unique aesthetic

11 Proprietary and Confidential DIGITALLY NATIVE RETAILERS EMBRACING TARGETED RETAIL FOOTPRINT

. Digitally native online retailers have begun to expand into physical stores in order to grow sales and increase customer retention . Many digitally native brands have experienced a “flattening of the curve” in terms of the returns from paid online marketing ‒ It is often cheaper to acquire customers in a physical location than to pay the marketing tollbooth operators (Google, Facebook and increasingly, Amazon) . Online clothing and accessory retailers in particular have been increasingly opening physical stores to allow customers to try on their products before purchasing . Home furnishing brands such as Serena & Lilly and Ballard Designs have also adopted retail formats to build an omni- channel experience and further elevate the brand

Serena & Lily’s Pacific Palisades Retail Store

12 Proprietary and Confidential DIGITALLY NATIVE MEETS RETAIL Digitally native brands revitalizing retail

From exclusively e-commerce origins, Warby Parker has opened storefronts across the country which offer in-store eye 84 Retail Locations exams and allow customers to demo products

Men’s clothing brand and now subsidiary of Walmart, Bonobos has opened several brick-and-mortar locations alongside a series of popup stores. These stores do not carry 58 Retail Locations inventory but allow customers to try on clothing and place orders in-store

Direct to consumer footwear company famous for its environmentally-friendly wool sneakers, Allbird has opened 3 Retail Locations stores in New York, Los Angeles and San Francisco

Cuyana’s “fewer, better” mantra lends itself to an attractive shopping experience. The women’s premium essentials brand has opened stores in New York, Los Angeles and San 4 Retail Locations Francisco

Online-focused mattress retailer has plans to open 200 brick- and-mortar locations across the US due to the success of the 19 Retail Locations Company’s previously opened popup stores

Offers an innovative in-store experience through their state-of- the-art fitting rooms. Shoppers can add items into their fitting 13 Retail Locations room by selecting on digital monitors or request alternate sizes, patterns and colors

13 Proprietary and Confidential ADAPTING TO THE NEW RETAIL LANDSCAPE

. As e-commerce has transformed the retail industry, traditional brick and mortar retailers are finding success leveraging what they do well in-store to the digital environment . Winners are applying their merchandising expertise and product selection they’ve developed in-store while simultaneously building robust omni-channel capabilities to compete with pure-play competitors . More than ever, brands must understand why people come into their stores and craft in-store experiences to drive repeat visits . An essential part of competing in retail today is tying the brick-and-mortar visit with a digital relationship, elevating both experiences simultaneously

14 Proprietary and Confidential

MACROECONOMIC UPDATE

15 Proprietary and Confidential CURRENT MACROECONOMIC SUMMARY

Positive Developments Continued Concerns

 U.S. Real GDP increased +4.2% in Q2 2018 after +2.0% in Q1 2018  Recent tariffs on major industries and countries have stoked fears of a economies and impacted global sentiment ‒ Primarily reflects positive contributions from business investment, consumer “trade war” among leading spending, government spending and a surge in exports ahead of tariff ‒ Trump administration announced tariffs on $200 billion of Chinese goods in retaliation from China September 2018 – 10% tax will take effect on September 24 and rise to 25%  Labor market remains strong with low unemployment and high wage growth at year end; China retaliated with tariffs on $60 billion of U.S. goods ‒ Jobs increased 134,000 in September 2018 and unemployment fell to 3.7%,  Volatile global equity market, notwithstanding a nine-year bull market and though underemployment remains elevated in some states and Labor Force valuations for many asset classes near all-time highs Participation Rate remains relatively low ‒ Technology sector stocks, which led the bull run, have maintained ‒ Wages grew 2.8% in September, continuing their upward trajectory unprecedented momentum and currently trade at peak valuations  Revamped NAFTA deal, renamed USMCA, has alleviated much of the trade ‒ Concerns about market power and data privacy practice among large tech angst in the market companies are beginning to surface ‒ Canada and the U.S. ended weeks of intense bargaining with a trade deal  Weakening international currencies (amid strengthening U.S. Dollar) likely that gives American farmers major new access to the dairy market to negatively impact exports  Increased earnings from tax overhaul reflected in investment spending  Inflationary trends – particularly wage inflation – are driving Fed rate hikes; ‒ Surges in capex and R&D spending of 19% and 14%, respectively, during current inflation roughly at the Fed target but should be closely monitored 1H 2018 as companies put increased profits to work ‒ August saw highest YoY core inflation increase since September 2008  Oil prices have shown material recovery from mid-2017 through, currently season employment push, with wage and perk increases trading at ~$78 per barrel ‒ Retailers’ holiday to combat potential shortages, may drive continued wage inflation  Recent Fed actions reflect strength of U.S. economy amid lengthy recovery  The IMF says that it expects growth of 3.7% in 2018 and 2019, down from an Fed raised rates to a range of 2.0 to 2.25% at September meeting, the third ‒ estimate of 3.9% just three months ago hike this year First downgrade to world outlook since July 2016 ‒ Decision to begin unwinding $4.5 trillion balance sheet in October ‒ Trade wars and struggling emerging markets drove the downward revisions  PMI rose to 61.3 in August 2018, a strong recovery after July drop to 58.1 ‒ for global growth  Corrections to auction processes for the VIX following a February 2018 spike has seen the volatility index decline to much more comfortable levels  Amazon and other large online marketplaces continue to meaningfully impact various brick-and-mortar segments  The yield on the 10-year Treasury note hit its highest level since July 2011 and the yield on the 30-year Treasury bond hit its highest level since ‒ $15/hour wages put considerable pressure on various competing subsectors October 2014, leading to a steepening yield curve ‒ Indications of a retail revival following summer 2018 were muted as August  U.S Dollar continues to strengthen with rising interest rates and tax cuts retail sales rose only 0.1% within several subcategories (e.g., department stores, furniture apparel / accessory stores)  Loose monetary policy continues around the globe; several national banks have maintained zero or negative policy rates into late Q3 2018  Annual budget deficit expected to exceed $1 trillion starting in 2019 ‒ ECB QE program expected to conclude in December 2018 ‒ Budget deficit through July 2018 is 21% higher than in 2017 BOJ announced changes to QE program in July 2018, with guidance for ‒  Underfunded states, municipalities, pension liabilities and U.S. territories extremely low rates and framework for “powerful continuous easing” (e.g., Puerto Rico) ‒ Status of programs needs to be monitored as the OECD has warned that global economic expansion may have peaked

16 Proprietary and Confidential U.S. REAL GDP INCREASED +4.2% IN Q2 2018

U.S. Real GDP Growth (Constant 2009 Dollars) (1)

(Annualized Quarter over Quarter % Change) 10% 8% Q2 2018 6% +4.2% 4% 2% 0% (2%) (4%) (6%) (8%) (10%) 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Source: Bureau of Economic Analysis as of October 2018. (1) Wall Street analysts estimate 2018 growth to be 2.9% per Bloomberg as of October 2018. U.S. Real GDP (Constant 2009 Dollars) FOMC GDP Growth Projections Over Time

Consumption Investment Government Net Exports FOMC participants marginally increased their $20 $18.5 $17.1 estimates for 2018 growth in June $16.5 $16.7 4.0% 18 $15.6 $16.0 $3.2 $14.8 $14.8 $15.0 $15.4 16 $14.4 $2.9 $2.9 $2.9 $2.9 $2.8 $3.3 3.5% 14 $3.0 $3.1 $3.0 $2.9 $3.1 $2.9 $2.9 $3.0 12 $2.5 $2.6 $2.8 $2.4 $1.9 $2.1 $2.2 $12.8 3.0% 10 $11.3 $11.6 $11.9 $10.4 $10.6 $10.9 8 $10.0 $9.8 $10.0 $10.3 2.5% 6 4 2.0% 2 ($0.6) ($0.4) ($0.5) ($0.5) ($0.4) ($0.4) ($0.4) ($0.5) ($0.6) ($0.6) ($0.8) 0 1.5% (2) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q2 2018 Nov-11 Nov-12 Oct-13 Sep-14 Aug-15 Jul-16 Jul-17 Jun-18 YoY (0.3%) (2.8%) 2.5% 1.6% 2.2% 1.7% 2.6% 2.9% 1.5% 2.3% 8.7% Growth % 2014E 2015E 2016E 2017E 2018E 2019E Source: Bureau of Economic Analysis as of October 2018. Source: FOMC as of June 2018. 17 Proprietary and Confidential UNEMPLOYMENT NEAR 2000 AND 2007 LOWS; INITIAL CLAIMS NEAR 50-YEAR LOW; JOB OPENINGS AND THE QUIT RATE REMAIN ELEVATED; LABOR FORCE PARTICIPATION REMAINS RELATIVELY LOW BUT HAS IMPROVED U.S. Unemployment Rate (1) Labor Force Participation & Employment Rates Job Openings (2) (1) Labor Force Participation Rate Employment-to-Population Ratio Unemployment Rate Underemployment Rate (Millions) Prime Age Labor Force Unemployment Avg. 1-Year4.0% Underemployment Avg. Oct 2009 Labor Force Avg. Prime-Age Avg. Emp. / Pop. Avg Job Openings Avg. 6.9 20% 1-Year62.8% 1-Year81.9% 1-Year60.3% 7.0 5-Year5.1% 1-Year7.8% 17.4% 1-Year 6.3 3-Year8.8% 3-Year62.8% 3-Year81.6% 3-Year60.0% 10-Year6.9% 6.5 3-Year 5.9 20-Year5.9% 5-Year10.0% 5-Year62.8% 5-Year81.3% 5-Year59.6% 16% 10-Year12.7% 10-Year63.6% 10-Year81.6% 10-Year59.2% 5-Year 5.4 40-Year6.3% 20-Year65.0% 20-Year82.4% 20-Year61.2% 6.0 20-Year10.7% 10-Year 4.3 Nov 1982 85% 90% Oct 2009 81.8% 5.5 12% 10.8% 80% June 1975 10.2% 5.0 9.0% Jun 1992 7.5% 75% 8% 7.8% 4.5 Average U. 70% 6.3% 70% 4.0 65% 4% 3.7% 62.7% 3.5 60% 60.4% 3.0 0% 55% 2.5 19701978 19861994 20022010 2018 50% 50% 2.0 197019781986199420022010 2018 2001200320062009201220152018 Source: BLS as of October 2018 (September represents latest available data). Source: BLS as of October 2018 (September represents latest available data). (1) Unemployment represents U-3 rate. Underemployment represents U-6 (2) Defined as the civilian labor force as a percentage of the total civilian Source: BLS as of October 2018 (July represents latest available data). rate and is defined as total unemployed, plus all marginally attached population; the civilian labor force is defined as those either unemployed or workers plus total employed part time for economic reasons, as a percent of employed and excludes those who want a job and have looked for work in the all civilian labor force plus all marginally attached workers. past 12 months, but who are not currently looking.

Initial and Continuing Jobless Claims Change in Nonfarm Payrolls Quit Rate (Thousands) (Thousands) (Percent of Employment) Initial Jobless Claims Continuing Jobless Claims After ~8.8 million jobs were lost in 2008 and 2009, 3.0% Quit Rate Avg. recent payroll figures remain positive through 2017; 1-Year 2.3% 700 8,000 ~6.1 million people remain unemployed 3-Year 2.1% (not including those who have left the Labor Force) 5-Year 2.0% 600 2.5% 10-Year 1.8% 2.4% 600 6,000 23 500 15 400 consecutive consecutive negative negative 400 months 2.0% 4,000 200 months 134 300 0 207 200 2,000 (200) 46 96 1.5% 1,650 consecutive 100 consecutive (400) positive positive 0 0 months months 1.0% 1970 1974 1979 1984 1989 1994 1998 2003 2008 2013 2018 (600) 2001 2003 2006 2009 2012 2015 2018 Recessionary Periods (800) 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Source: BLS as of October 2018. Source: BLS as of October 2018 (September represents latest available Source: BLS as of October 2018 (July represents latest available data). data). 18 Proprietary and Confidential WHILE UNEMPLOYMENT AND UNDEREMPLOYMENT (1) ARE LOWER THAN LONG-TERM AVERAGES, CERTAIN STATES CONTINUE TO ENDURE ELEVATED UNDEREMPLOYMENT September unemployment decreased to 3.7% and underemployment increased to 7.5% Current U.S. Unemployment Rate: 3.7% (2) Current U.S. Underemployment Rate: 7.5% (3)

4.5% 8.9% 5.1% 2.6% 8.0% 3.6% 2.9% 5.7% 3.2% 7.1% 3.0% 6.2% 3.0% 2.8% 6.2% 6.2% 3.8% 8.3% 2.8% 2.7% 6.6% 6.2% 3.9% 4.1% 8.0% 8.9% 4.2% 8.7% 7.3% 2.5% 3.6% 5.7% 7.5% - RI 2.8% 6.1% 4.1% 4.0% - RI 9.0% 9.0% - CT 4.1% 3.5% 4.6% 4.3% - CT 8.8% 6.7% 8.7% 8.7% - NJ 4.5% 4.2% - NJ 9.7% 6.2% 3.1% 2.9% 6.1% 8.3% - DE 3.3% 5.3% 6.6% 6.9% 10.4% 3.3% 3.9% - DE 9.8% - D.C. 4.4% 7.7% 7.2% 3.0% 5.6% - D.C. 8.1%- MD 4.2% 9.2% 3.7% 3.6% 3.9% 4.2% - MD 7.6% 7.2% 7.9% 3.6% 7.8% 9.1% 9.8% 4.6% 4.6% 3.4% 7.5% 4.1% 8.8% 7.5% 4.8% 8.3% 3.8% 3.9% 7.6% 5.0% 9.2% 6.7% 13.0% 3.7% 8.3% 2.1% 5.5%

Unemployment Rate Unemployment Avg. Underemployment Rate Underemployment Avg.

> 10.0% 1-Year 4.0% > 10.0% 1-Year 7.8%

5-Year 5.1% 3-Year 7.6% - 10.0% 8.1% - 10.0% 8.8% 10-Year 6.9% 5-Year 10.0% 5.1% - 7.5% 6.1% - 8.0% 20-Year 5.9% 10-Year 12.7%

0.0% - 5.0% 40-Year 6.3% 0.0% - 6.0% 20-Year 10.7%

Source: BLS as of October 2018. (1) Includes unemployed workers who are actively looking for work, involuntarily part-time workers and marginally attached workers (those who desire and are available for a job, but are not actively looking). (2) National unemployment rate (U-3) reflects September 2018; state unemployment rates reflect August (the latest available data); arrows demonstrate decreases (green) and increases (red) in a state’s unemployment rate over the prior month. (3) National underemployment rate (U-6) reflects September 2018; state underemployment rates reflect 12 month average for period ending Q2 2018, the latest 19 available data. State underemployment figures are updated quarterly. Proprietary and Confidential EVERY STATE’S UNEMPLOYMENT RATE IS LOWER THAN IN 2012

U.S. Unemployment Rate Change Since 2012: 4.1% (1)

3.5% 0.5% 2.3% 2.7%

4.2%

1.3% 4.0% 2.2% 4.9% 4.3% 2.9% 1.5% 5.0% 4.3% 3.0% 2.5% 1.2% 4.2% 6.2% - RI 3.8% 4.9% 4.8% 2.6% 5.2% - NJ 6.5% 2.1% 3.4% - DE 4.9% 2.3% 3.5% 2.4% 3.2% - D.C. 3.8% 3.0% 2.8% - MD 6.0% 4.2% 1.5% 5.3% 4.0% 3.6% 2.4% 5.6% 4.2% 4.0% 5.2%

2.7%

1.8%

4.7% Unemployment Avg. 0.3% 3.7% Unemployment Change > 6.0% 1-Year 4.0% 5-Year 5.1% 4% - 6% 10-Year 6.9% 2% - 4% 20-Year 5.9%

0% - 2% 40-Year 6.3%

Source: BLS as of October 2018. (1) National unemployment rate (U-3) reflects September 2018; state unemployment rates reflect August 2018 (the latest available data); arrows demonstrate decreases 20 (green) and increases (black or white) in a state’s unemployment rate over August 2012. Proprietary and Confidential UNEMPLOYMENT BY COUNTY – 12-MONTH AVERAGE

Current U.S. Unemployment Rate: 3.7% (1)

8.0% and over

7.0% - 7.9% Unemployment Avg.

6.0% - 6.9% 1-Year 4.0%

5.0% - 5.9% 5-Year 5.1%

4.0% - 4.9% 10-Year 6.9% 20-Year 5.9% 3.0% - 3.9% 40-Year 6.3% 2.9% and below

Source: Bureau of Labor Statistics as of October 2018 (data reflects August 2018, the latest available data). 21 (1) National unemployment rate (U-3) reflects August 2018. Proprietary and Confidential AS CONSUMER CONFIDENCE CONTINUES TO CLIMB, U.S. RETAIL SALES HAVE STEADILY INCREASED, PARTICULARLY ONLINE

Consumer Confidence and S&P 500 U.S. Real Consumer Spending and Disposable Income

Consumer Confidence S&P 500 Index Change in Consumer Spending Change in Disposable Income 150 3,000 2.5% 8.0% 2,902.5 2.0% 130 134.7 6.0% 2,500 1.5% 110 1.0% 4.0% 2,000 2.2% 90 0.5% 2.0% 0.0% 70 1,500 (0.5%) 0.0% 50 (1.0%) (2.0%) 1,000 (1.5%) 30 (4.0%) (2.0%) 10 500 (2.5%) (6.0%) 2000 2002 2005 2007 2010 2012 2015 2018 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Source: Conference Board Consumer Confidence Index as of October 2018 (August represents the latest Source: BEA as of October 2018 (July represents latest available data). available data); S&P 500 Index as of August 31, 2018. Savings Rate Cons. Lev. (1) and Fin. Oblig. Ratio (2) Consumer Credit and Retail Sales

Cons. Leverage Avg. Fin. Oblig. Avg. Savings Rate (Savings as % of DPI) ($ in billions) 1-Year10.3% 1-Year15.8% 10-Year10.8% 10-Year16.1% Consumer Credit Seasonally Adjusted 18% Savings Average 20-Year11.5% 20-Year16.6% Outstanding Monthly Retail 1-Year 6.8% YoY % Change Sales 7.0% 15% 480 15% 5-Year Financial Consumer Leverage 10-Year 7.0% 20% Obligations Ratio (Household Debt $447 20-Year 5.9% Service Ratio) 440 12% 40-Year 7.4% 18% 10% 400 16% 15.8% 9% 5.1% 6.7% 5% 360 14%

6% 12% 320 0% 10.2% 3% 10% 280 8% '83 '86 '89 '93 '96 '00 '03 '07 '10 '14 '17 (5%) 240 0% '00 '02 '04 '06 '09 '11 '13 '15 '18 '65 '71 '78 '84 '91 '98 '04 '11 '18 Source: Federal Reserve Board as of October 2018 (Q1 ’18 represents the latest available data). Source: Federal Reserve Bank of St. Louis as of October 2018 (July (1) Reflects the ratio of debt payments to disposable income. Debt payments Source: Bloomberg (Consumer Credit) and Census (Retail Sales) as of represents the latest available data). DPI is Disposable include interest and principal payments on revolving and closed-end debt. October 2018 (August represents the latest available data for Personal Income. (2) Reflects the ratio of debt payments, automobile lease payments, rental Retail Sales and July for Consumer Credit). payments on tenant-occupied property, homeowners' insurance and property tax payments to disposable income. 22 Proprietary and Confidential THE STEADY INCREASE IN MORTGAGE RATES HAS SLOWED REFINANCING ACTIVITY AND HOME PRICE INCREASES

Home Sales Homebuilder Confidence Home Prices 30-Yr Fixed Rate

(millions of units) Builder Conf. Average 1-Year69.3 Case-Shiller Index YoY % Change Existing Homes Sold 80 3-Year65.3 10% New Family Homes Sold 5-Year60.9 67 2.0 8.0 70 10-Year42.5 220 20.0% 214 8% 60 200 7.0 10.0% 1.5 50 5.9% 180 6% 6.0 0.0% 40 4.55% 1.0 5.3 160 5.0 30 (10.0%) 4% 0.6 140 0.5 20 4.0 120 (20.0%) 2% 10 100 (30.0%) 0.0 3.0 0 0% 200020042009 2013 2018 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '00'02'05'07'10'12'15'18 '00 '03'06'09 '12'15'18 Source: U.S. Department of Commerce; Bureau of The Source: National Association of Home Builders as of Source: S&P / Case-Shiller Composite-20 Home Price Source: Freddie Mac as of October 2018 (August Census Construction Reports as of October October 2018 (September represents the latest Index as of July 2018 (July represents the represents the latest available data). 2018 (July represents the latest available data available data). latest available data). for Existing Homes Sold and New One-Family Homes Sold). Foreclosures Housing Starts

(millions of units) Subprime Foreclosures Pending Home Sales Alt-A Foreclosures Mortgage Applications Multi-Family Starts Prime Foreclosures 2.7 Single-Family Starts 0.20 20% 550 2.4 2.1 2.0 0.16 2.1 1.8 1.8 1.7 1.8 1.6 1.6 1.6 1.6 15% 450 1.5 1.5 1.5 1.4 1.3 0.12 1.5 1.2 1.2 1.3 0.11 1.1 1.2 1.2 0.9 1.0 0.9 0.8 0.08 10% 350 0.9 0.6 0.6 0.6 0.6 0.04 0.3 5% 250 0.0 0.00 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018E

0% 150 '05 '08 '11 '14 '17 Source: National Association of Home Builders (Housing Starts) and National Association of Realtors (Pending Home Sales) as of October 2018. Source: Bloomberg (Foreclosures) and Mortgage Bankers Association (Mortgage Applications) as of December 2017. Note: Foreclosure statistics as a percentage of loans in delinquency includes only non-agency U.S. residential loans. 23 Proprietary and Confidential U.S. MANUFACTURING CONTINUES TO EXPAND AT A FAST PACE; CEO CONFIDENCE REMAINS STRONG, ALTHOUGH INDUSTRIAL PRODUCTION WAS SLIGHTLY NEGATIVE

Purchasing Managers Index (PMI) U.S. Industrial Production Growth Rate

Average Average 1-Year0.4% 70 1-Year59.3 12% 5-Year0.8% 5-Year54.8 10-Year0.2% 10-Year53.3 61.3 8% 20-Year1.0% 60 4% (0.4%) 0% 50 (4%)

(8%) 40 (12%)

(16%) 30 1990199319961999200220052008201120152018 2000 2002 2004 2006 2009 2011 2013 2015 2018

Source: ISM as of October 2018 (August represents the latest available data). Source: ISM as of October 2018 (August represents the latest available data).

After-Tax Corp. Profits CEO Confidence Index U.S. Capacity Utilization Durable Goods Orders

$1,534 Average 90% Average $1,600 10 Average 1-Year 7.2 1-Year 77.3% $310 1-Year $245 5-Year 6.5 5-Year 76.9% 1,400 5-Year $236 8 85% 10-Year 75.5% 290 10-Year 5.7 7.1 10-Year $217 1,200 20-Year 77.2% 270 246.8 250 1,000 6 80% 78.1 230 800 4 75% 210 600 190 2 70% 170 400 150 200 0 65% 130 '90 '94 '98 '02 '06 '10 '14 '18 '02 '04 '07 '09 '11 '13 '15 '18 '90 '94 '98 '02 '06 '10 '14 '18 '00 '03 '06 '09 '12 '15 '18 Source: BEA as of October 2018 (Q2 ’18 Source: CEO Magazine as of October 2018 Source: Federal Reserve as of October 2018 Source: U.S. Census Bureau as of October 2018 represents the latest available data). (August represents the latest available (August represents the latest available (July represents the latest available data). data). Figures include the manufacturing, data). mining and electric and gas utilities industries. 24 Proprietary and Confidential OIL PRICES CONTINUE TO CLIMB FROM PRIOR TROUGHS AND RECENT DOLLAR STRENGTH HAS PERSISTED

NYMEX Crude Oil Price ($/Barrel) Gold ($/Troy Oz.) Corn ($/Bushel) Cotton ($/Bushel)

6/10/11 — 7/3/08— Average $9.00 high $7.87 Average high $145 1-Year$3.69 8/21/12 — 1-Year$80.32 3/7/11 — 6/27/08 — $150 9/5/11 — 3-Year$3.66 high $8.31 $225 3-Year$72.14 high $214.14 Average 2/24/12— high $1,900 10/4/12 — 8.00 5-Year$3.81 high $7.55 5-Year$72.06 1-Year $63 4/29/11— high $110 $2,000 Average high $1,790 200 3-Year $51 high $114 1-Year$1,285 125 5-Year $62 7.00 9/6/13— 3-Year$1,250 8/2/16 — 175 7/14/06— high $111 1,600 5-Year$1,245 high $1,368 6/2/09 100 high $77 6.00 — high 150 3/14/08 — 2/22/07 1,200 — $4.50 $70.32 high $1,003 $1,207 5.00 high $4.35 125 75 12/19/13 — 3/5/08 — 5/5/14 — 10/4/11— 5/12/06 — low $1,189 4/2/04 — 6/29/10 — high $94.75 low $76 12/17/15 4.00 10/9/03 — high $89.28 $78.55 800 high $715 — high $3.31 low $3.25 100 50 low $1,051 high $82.73 1/18/07— $3.52 11/12/08 — 3.00 9/30/14 — 75 low $50 12/19/08 7/23/07 — 12/5/08 low $712 — low $3.21 25 low $34 400 low $3.10 low $2.94 11/13/02— 2/11/16 2.00 50 low $25 low $26 10/25/01 — Low $28.52 0 0 1.00 25 '00'02 '04'07'09 '11'14 '16'18 '00 '02 '05'07'10 '12 '15'18 '00'02'05 '07'10 '12'15 '18 '02'04'06'08'10'12'14'16'18 Source: NYMEX as of October 2018. Source: Capital IQ as of October 2018. Source: CBOT as of October 2018. Source: Capital IQ as of October 2018.

USD / EUR & USD / GBP USD / JPY USD / CNY USD / EUR USD / GBP Stronger Average Average 1-Year¥110.46 9.0 US$ 1-Year €1.3 10/25/00— € 0.84 £1.3 ¥150 3-Year¥111.24 3-Year € 0.88 Fixed high €1.21 5-Year € 0.85 2/7/02— 5-Year¥110.97 at ￥8.28 10-Year € 0.80 high ¥134.71 10-Year¥99.24 Average 1.1 8.0 1.1 1-Year£0.74 6/22/07— 12/05/14— 3-Year£0.74 130 high ¥123.89 high ¥121.46 5-Year£0.70 Average 10-Year£0.67 0.9 1-Year ￥6.53 3-Year ￥6.63 ￥6.85 1/23/09 €0.85 5/22/13— 7.0 0.9 — 5-Year ￥6.45 Fixed high £0.73 £0.76 110 high ¥103.52 ¥112.52 at ￥6.83 10-Year ￥6.50 0.7

6/22/07— 0.7 90 low ¥102.05 6.0 0.5 11/8/07— 4/22/08 Weaker low £0.47 — low €0.63 10/27/11— US$ low ¥75.81 0.5 0.3 70 5.0 '00 '03 '06 '09 '12 '15 '18 '00 '02 '05 '07 '10 '12 '15 '18 '00 '02 '05 '07 '10 '12 '15 '18 Source: Capital IQ as of October 2018. Source: Capital IQ as of October 2018. Source: Capital IQ as of October 2018. 25 Proprietary and Confidential AMID MODERATE GDP GROWTH, EUROZONE BOND YIELDS REMAIN NEAR POST-CRISIS LOWS

Euro-Zone Unemployment and GDP Growth Sovereign Credit Yields (10-Yr Benchmark)

(1) (2) April. ‘18 Unemployment Rate GDP Growth 39% Greece 19.1% Q1 ‘18 / Q2 ‘18 0.9% 0.2% 34% Spain 15.1% 0.7% 0.6%

29% Italy 10.4% 0.3% 0.2%

24% France 9.2% 0.2% 0.2%

19% Portugal 6.8% 0.4% 0.6%

14% EU27 7.3% 0.4% 0.4%

(3) 9% Greece 4.7% Ireland 5.6% U.S. 3.1% (0.4%) 2.5% Italy 2.8% Portugal 1.9% UK 1.6% 4% U.K. Spain 1.5% 4.0% 0.2% 0.4% France 0.9% Ireland 0.7%(3) Germany 0.5% -1% '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Germany 3.4% 0.4% 0.5%

Source: Eurostat, Hellenic Statistic Authority and Bloomberg as of October 2018. (1) Ireland data represents August 2018.Greece and U.K data represent June 2018 (the latest available); Eurostat defines unemployed persons as persons aged 15 to 74 who are without work, are available to start work within the next two weeks and have actively sought employment at some time during the previous four weeks. (2) Represents percentage change compared with the previous quarter. 26 (3) Ireland data till June 9, 2016. Proprietary and Confidential

FINANCIAL AND M&A MARKETS UPDATE

27 Proprietary and Confidential U.S. M&A ACTIVITY REMAINED STRONG, WITH $1.3 TRILLION IN YTD VOLUME, DRIVEN PRIMARILY BY INCREASED STRATEGIC ACQUISITIONS

Global Announced M&A Volume (Inflation Adjusted) U.S. Announced M&A Volume (Inflation Adjusted) Global M&A as a % of GDP (1) U.S. M&A as a % of GDP (1) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD (2) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD (2) 4.0% 4.8% 6.0% 5.9% 3.1% 2.3% 2.8% 2.6% 2.5% 2.6% 3.5% 4.5% 4.0% 3.4% 3.4% 6.1% 7.7% 9.4% 8.8% 5.1% 3.9% 4.7% 4.9% 4.8% 5.2% 7.6% 9.1% 8.2% 5.8% 6.8% Volume ($ in trillions) # of Deals (000s) Volume ($ in trillions) # of Deals (000s) $7.0 38.2 40 $2.5 15

6.0 31.8 35 30.4 8.6 8.8 11.9 2.0 9.6 12 27.6 27.9 28.0 30 9.0 26.9 8.2 9.9 10.0 5.0 24.6 26.3 $1.7 23.3 $1.5 $1.5 21.5 $3.9 22.3 25 1.5 7.9 7.9 7.5 $1.5 9 4.0 20.6 20.3 $1.2 7.3 7.6 7.4 $1.3 19.0 $3.7 20.3 19.9 $3.4 7.2 6.7 7.0 $1.3 17.6 $3.0 20 $1.0 $1.1 $2.8 $2.8 $2.7$2.7 $0.9 5.4 3.0 $2.6 1.0 $0.8 $0.9 6 $2.3 15 $0.7 $0.8 $0.8 $0.8 $2.2 $2.2 $2.0$2.0 $1.9 $0.6 # ofDeals'000 in # # of'000Deals in $0.6 2.0 $1.6$1.8 $1.5 10 0.5 3

1.0 5 0.0 0 0.0 0 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD # of Deals with a Value > $1.0 Billion # of Deals with a Value > $1.0 Billion 342 386 503 597 311 214 362 326 364 351 470 513 484 505 429 126 156 212 244 10068 145 117 164 151 219 236 233 227 199

Global Announced LBO Volume (Inflation Adjusted) U.S. Announced LBO Volume (Inflation Adjusted)

Volume ($ in billions) # of Deals (000s) Volume ($ in billions) # of Deals (000s) $875 2.5 $436 $787 2.2 $450 $420 1.0 750 375 $647 2.0 0.8 0.8 625 0.7 0.7 1.6 300 0.6 0.6 1.4 1.3 1.5 0.5 0.5 500 1.3 0.5 0.5 0.6 1.1 1.2 0.5 0.5 1.1 1.0 1.0 1.2 1.0 0.9 0.4 0.4 1.0 225 375 0.9 1.0 0.9 1.0 0.3 $272 0.6 0.4 $251 150 $134 0.3 $136 # ofDeals'000 in

# # ofDeals'000 in $114 250 $217 $226 $105 $101 $175 0.2 0.2 0.2 $95 $87 $123 $150$146 $153 $143 $76 $73 $88 $115 $119 $122 $113 0.5 $63 0.2 125 $84 75 $45 $43 $16 $39 $29 $24 0 0.0 0 0.0 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 'YTD # of Deals with a Value > $1.0 Billion # of Deals with a Value > $1.0 Billion 11 23 21 49 53 91 107 26 8 36 36 37 29 39 50 47 39 33 3 7 6 24 22 46 55 12 4 27 18 22 18 26 30 30 18 17 LBO Volume as % of M&A Volume (%) LBO Volume as % of M&A Volume (%) 4% 8% 6% 10% 10% 19% 16% 5% 3% 7% 7% 6% 8% 5% 7% 6% 9% 4% 2% 7% 4% 10% 11% 27% 28% 5% 4% 11% 9% 9% 12% 7% 8% 7% 10% 5%

Source: Bloomberg and Capital IQ as of October 2018. Note: Inflation adjusted volume numbers are adjusted to the CPI-U Index. 28 (1) Global and U.S. GDP figures at current prices per the International Monetary Fund. Proprietary and Confidential U.S. EQUITY MARKET CONTINUED ITS GROWTH IN Q3 2018 WITH THE DOW, S&P AND NASDAQ ALL UP; IPO MARKET CONTINUES TO GROW SINCE 2015 LOWS

Equity Market Performance 10 Year 5 Year LTM

Peak vs. Trough Dow S&P NASDAQ Dow 307% 250% 400% 140% 26,657 2,931 8,028 S&P 500 333% NASDAQ 539% NASDAQ: NASDAQ: YTD: +113% +268% 130% NASDAQ: 200% 300% Dow: + 24% +73% Dow: S&P: 120% S&P: + 19% +149% S&P: 150% +72% Dow: 110% + 17% 200% +148%

100% 100% 100% 90%

50% 80% 0% 09/1309/1409/1509/1609/1709/18 09/08 09/10 09/12 09/14 09/16 09/18 1/2 3/30 6/25 9/20 Source: Capital IQ as of October 2018. Dow S&P 500 NASDAQ Source: Capital IQ as of October 2018. VIX S&P Volatility Index Equity Mutual Fund Flows IPO Volume and # of Deals

50 ($ in billions) $80 Volume # of Deals High $65$64 40.7 $56 90 800 40 60 $37 $38 80 $80.0 $34 $33 $30 40 $26 $17 $70 600 30 $17 $15 20 $7 60 0 50 400 20 ($7) ($5) (20)($7) ($8) ($6) 40 ($13) ($7)($12) ($8) ($18)($13) 30 234 Current (40) 10 11.8 ($21) ($33) 20 200 Low ($41) ($38) 9.1 (60) 10 ($61) ($60) 0 (80) 0 0 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2000 2004 2008 2012 2016 LTM Source: Capital IQ as of October 2018. 2011 2012 2013 2014 2015 2016 2017 2018 Represents CBOE Volatility S&P 500 Index. Source: Lipper US Fund Flows as of October 2018. Source: Capital IQ as of October 2018. 29 Proprietary and Confidential ALL-IN BBB YIELDS REMAIN IN LINE WITH THEIR LONG-TERM AVERAGES, BUT CONTINUE TO INCREASE

10-Year BBB Spread Over Treasuries (15 Years) 10-Year BBB Spread Over Treasuries (LTM)

Average15-Yr10-Yr5-Yr1-Yr Average LTM 9M6M3M BBB Spread196 bps215 bps183 bps194 bps BBB Spread194 bps198 bps210 bps221 bps Treasury3.1%2.5%2.3%2.7% Treasury2.7%2.9%2.9%2.9% 700 7.5% 400 3.5% 10-Yr BBB Spread (bps) 10-Yr U.S. Treasury (%) 10-Yr BBB Spread (bps) 10-Yr U.S. Treasury (%) 600 3.1% 6.0% 3.0% 300 500 4.5% 2.5% 400 226 200 3.1% 300 3.0% 2.0% 226 200 100 1.5% 1.5% 100

0 0.0% 0 1.0% '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Sep-17 Nov-17 Jan-18 Feb-18 Apr-18 Jun-18 Aug-18 Sep-18

10-Year BBB All-In Yield (15 Years) 10-Year BBB All-In Yield (LTM)

Average15-Yr10-Yr5-Yr1-Yr Average LTM 9M6M3M All-In Yield5.1%4.6%4.2%4.7% All-In Yield4.7%4.8%5.0%5.1% 10% 10%

9% 8% 8% 15-Year 6% Average 7% 5.1% 5.4% 15-Year 6% Average 4% 5.1% 5.4% 5% 2% 4%

3% 0% '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 Sep-17 Nov-17 Jan-18 Feb-18 Apr-18 Jun-18 Aug-18 Sep-18 Source: Capital IQ as of October 2018. 30 Proprietary and Confidential HIGH YIELD BOND YIELDS REMAIN IN LINE WITH 10-YEAR AVERAGES; THE LEVERAGED LOAN MARKET CONTINUES TO BE ROBUST AMID A LOW DEFAULT RATE

Leveraged Loan Update High-Yield Bond Update

Leveraged Loan Average Price and BB and B Spreads (1) Average High-Yield Bond Yields

Avg. Price (% of Par) BB B 24% Dec 2008 120% 1,900 bps 20.6% 20%

98.3% Nov 2000 100% 16% 14.8% 1,000 Oct 2011 Feb 2016 12% 9.9% 10.4% 80% 10 Year Avg. 8.0% 387 8% 7.3% 244 60% 100 4% 1998 2000 2003 2005 2008 2010 2013 2015 2018 199820002003200520082010201320152018 Institutional Leveraged Loan New-Issue Activity (Inflation Adjusted) High-Yield Bond New-Issue Activity (Inflation Adjusted) $974 $1,000 Volume ($ in billions) $700 Volume ($ in billions) $814 800 $705 600 $419 $459 500 $496 $393 $368 600 $395 $339 $328 $483 400 $205 $303 $231 $321 $268 $292 400 $337 300 $202 $181 $206 $238 $200 $250 $131 $175 $174 200 $133 200 $79 $120 $82 $93 $47 $44 100 $60 0 0 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 LTM '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 LTM Leveraged Loan Defaults (Inflation Adjusted) High-Yield Bond Defaults (Inflation Adjusted)

Volume ($ in billions) LTM Default Rate (by # of Issuers) (2) Volume ($ in billions) LTM Default Rate (by # of Issuers) $100 8% $125 $108 10% 100 $76 8% 75 6% $78 $34 75 $47 6% 50 $34 4% 50 $38 4% $33 $29 $22 $20 $18 $20 $24 2.7% 25 $11 $11 $13 $12 $15 $13 $12 2% 25 $11 $15 2% $4 $7 $9 1.4% $9 $4 $9 $8 $17 $2 $1 $1 $3 0 0% 0 0% '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 YTD '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17YTD # of Defaults 26 23 12 6 11 5 3 60 90 31 10 22 13 16 21 26 24 8 138 87 61 29 21 18 11 42 70 21 21 20 21 17 29 50 23 16 Source: Wall Street research and market indices as of October 2018 (Leveraged Loan Average Price as of October 2018, the latest available data). Note: Inflation adjusted volume numbers are adjusted to the CPI-U Index. (1) BB and B data represent spreads to worst over comparable treasuries. 31 (2) Represents par-weighted default rates. Proprietary and Confidential

RETAIL MARKET UPDATE

32 Proprietary and Confidential

RETAIL SECTOR NEWS UPDATE Food Retail & Restaurants Retail Recent Events Recent Events (Cont.)

. 10/15/2018: Cavalli reported to be seeking a minority partner to fund growth . 9/26/2018: Papa John’s founder John Schnatter reportedly approached . 10/15/2018: Sears Corporation filed for chapter 11 bankruptcy protection; private equity firms regarding bid participation with first round bids expected CEO Eddie Lampert resigns by the end of October . 10/14/2018: Walmart announced its acquisition of leading intimates e- . 9/25/2018: Inspire Brands, a US-based fast food chain operator backed by commerce company, Bare Necessities. PJ SOLOMON advised Bare Roark Capital, agreed to acquire Sonic Corp, a drive-in fast food restaurant Necessities on the sale chain for $2.3B . 10/12/2018: StockX, a Detroit-based startup and “stock market of things” . 9/25/2018: Michael Kors has agreed to acquire Gianni Versace from announced that it has raised $44M in Series B Funding Blackstone for $2.15B . 10/10/2018: DSW and Authentic Brands agreed to acquire Camuto Group . 9/24/2018: Empire Company, a Canada-based diversified company with for ~$375M businesses in food retail, theaters and more, has agreed to acquire Farm . 10/5/2018: Mattress Firm, a US-based mattress retailer, filed for bankruptcy Boy, a Canada-based operator of grocery retail stores for $620M and plans to close up to 700 stores . 9/21/2018: OKA Direct, a UK-based home furnishing company backed by . 10/4/2018: Walgreens acquired an undisclosed minority stake in Birchbox, a Invest Industrial, has acquired an undisclosed majority stake in Wisteria, a US-based beauty care subscription company US-based home furnishings and accessories retailer . 10/4/2018: The Rockport Company, a Boston-based footwear and accessory . 9/21/2018: Claire’s Stores, a teen jewelry retailer, is nearing an exit from manufacturer, has agreed to acquire Reef Holdings, a California-based Chapter 11 now that it has collected confirmation of its reorganization plan footwear and apparel distributor, from VF Corp. PJ SOLOMON is advising VF after reaching a settlement with Oaktree Capital Corp. on the transaction . 9/21/2018: Farfetch (FTCH.N), a London-based online luxury retailer, priced . 10/3/2018: Barnes & Noble (BKS) launched a strategic review of alternatives its shares above its target range in a New York IPO valuing the company at more than $5.8B after it received “expression of interest” from multiple parties, including from the retailer’s founder and chairman Leonard Riggio . 9/19/2018: Founder Sport Group, a US-based manufacturer of team . 10/2/2018: Yeti, a US-based retailer of premium coolers, announced it is sportswear, has acquired Teamwork Athletic Apparel, a US-based on- seeking to raise $100M in an inital public offering demand apparel manufacturer serving team uniform dealers . 10/2/2018: Walmart announced its acquisition of Eloquii, a women’s plus- . 9/19/2018: Mac Acquisitions, doing business as Romano’s Macaroni Grill, sized retailer based in Ohio and New York for ~$100M acquired Sullivan’s Steakhouse from Del Frisco’s Restaurant Group for $32M . 10/1/2018: Perry Ellis, along with leading proxy advisory firms ISS and Glass Lewis, recommend shareholders vote “FOR” a proposed transaction with . 9/19/2018: Amazon has agreed to acquire Aditya Birla Retail, an India- George Feldenkreis on October 18. PJ SOLOMON is serving as financial based retailer of chain food and grocery units for $580M advisor to the Special Committee of Perry Ellis . 9/18/2018: Schnucks has agreed to acquire assets of Shop ‘n Save. PJ . 9/28/2018: Northern Tier Retail, a US-based operator of convenience stores, SOLOMON is advising Shop ‘n Save on the transaction has acquired 13 convenience stores of Croix Oil . 9/17/2018: Markel Corp agreed to acquire a majority interest in Brahmin . 9/28/2018: Revolve Group, an online fashion retailer backed by TSG Leather Works, a creator of fashion leather handbags Consumer Partners filed for an IPO with a placeholder value of $100M . 9/14/2018: Essendant, a US-based wholesale distributor of office supply . 9/27/2018: Giant Eagle, an operator of corporate and franchised products, agreed to be acquired by Staples for $942M supermarkets, has agreed to acquire Rick Oil Company, an operator of . 9/13/2018: Walmart agreed to acquire Cornershop, an online marketplace convenience stores and gas stations operating in Mexico and Chile for $225M

Source: Public filings and Wall Street research. 33 Proprietary and Confidential RETAIL SECTOR NEWS UPDATE (CONT.) Food Retail & Restaurants Retail

Recent Events Recent Events (Cont.)

. 9/11/2018: Hudson’s Bay Company has sold select real estate assets to and . 8/15/2018: Lagardere Travel Retail, a France-based operator of travel retail formed a joint venture with Signa to operate Kaufhof and Karstadt. PJ stores and distribution outlets, agreed to acquire Hojeij Branded Foods, a SOLOMON is advising Hudson’s Bay Company on the transaction US-based operator of airport restaurants for $330M . 9/10/2018: Fred’s has agreed to sell 168 stores’ pharmacy prescription files to . 8/14/2018: Blue Point Capital acquired Next Level Apparel, a designer, Walgreens. PJ SOLOMON is advising Fred’s on the transaction retailer and supplier of apparel to the promotional product and ad specialty . 8/31/2018: Elevate Brandpartners, a US-based brand management firm, market acquired a 50% stake in Princess Polly Online, an Australia-based online . 8/13/2018: Lineage Grow Company agreed to acquire FLRish, a California- fashion boutique based retailer of cannabis dispensary stores for $152M . 8/28/2018: Parkland Fuel, a Canada-based operator of retail and wholesale . 8/13/2018: VF Corporation announced intention to create two independent, fuels and convenience stores, agreed to acquire Missouri Valley Petroleum, publicly traded companies, VF Corporation and NewCo (yet to be named) a US-based supplier of fuel products and operator of convenience stores . 8/9/2018: Leonard Green & Partners agreed to acquire The Shade Store, a . 8/28/2018: Ermenegildo Zegna, an Italy-based men’s clothing brand, agreed US-based provider of custom window treatments through retail showrooms to acquire an 85% stake in Thom Browne, a US-based men’s apparel retailer and internet . 8/28/2018: B&S Group, a Netherlands-based wholesaler and distributor of . 8/9/2018: GSR Capital, a Hong Kong-based private equity firm, agreed to fast-moving consumer goods, agreed to acquire a 75% stake in acquire an 18% stake in tZERO, a blockchain subsidiary of Overstock.com, Fragrancenet.com, US-based online personal care retailer for $270M at a $1.5B valuation . 8/27/2018: Walmart introduced Premium Outdoor Store curated by . 8/6/2018: Sinelli Concepts, a US-based restaurant operator, acquired Moosejaw, marking the first time that Walmart is creating an online store on Paciugo Franchising, a manufacturer and supplier of ice cream products its flagship site for one of its acquired retailers . 8/5/2018: Chevys Fresh Mex and El Torito, an operator of Mexican fast- . 8/24/2018: Leonard Green & Partners agreed to acquire intellectual property casual restaurants owned by RM Holdco, sought bankruptcy protection to assets from Brookstone Holdings for $50M complete a sale of their assets to one of their equity holders Z Capital Group . 8/21/2018: Serta Simmons, a bedding products manufacturer, agreed to for $46.75M acquire Fosbrooke, a manufacturer and e-retailer of mattresses . 8/2/2018: Focus Brands, the developer of food-service brands backed by . 8/21/2018: General Atlantic, a private equity and venture capital firm, made a Roark Capital, agreed to acquire Jamba Juice (JMBA) for $200M strategic investment in European Wax Center, a US-based company . 8/2/2018: Brookstone, a New Hampshire-based retailer of entertainment, engaged in providing facial and body wax treatment services wellness and travel products, filed for Chapter 11 bankruptcy and plans to . 8/17/2018: Cava Group, an operator of Mediterranean restaurants backed by close its mall locations and sell the remainder of its business Panera Bread founder Rob Shaich, agreed to acquire Zoe’s Kitchen for . 7/26/2018: Peninsula Capital acquired a 33% stake in Kiko Cosmetics, an $12.75 per share or ~$300M in cash Italy-based cosmetics firm for $94M . 8/15/2018: Independent Pet Partners, a US-based holding company . 7/26/2018: United Natural Foods, a US-based distributor of food and related engaged in operating pet stores, acquired Natural Pawz, a retailer of natural products, acquired SuperValu, a US-based grocery retailer for $2.8B holistic pet foods and accessories . 7/16/2018: La-Z-Boy, agreed to acquire Joybird, a US-based e-commerce . 8/15/2018: Best Buy agreed to acquire GreatCall, a US-based provider of retailer and manufacturer of furniture mobile health and safety solutions for older adults and their family caregivers . 7/9/2018: ABG completed its previously announced acquisition of Nine West / for $800M Bandolino . 7/8/18: Amazon acquired Pillpack, a direct-to-consumer pharmacy, for just Source: Public filings and Wall Street research. 34 under $1 billion Proprietary and Confidential MOST RETAIL SECTORS ARE TRADING ABOVE HISTORICAL AVERAGES, PARTICULARLY HARDLINES, DISCOUNT AND BRANDED APPAREL & FOOTWEAR

Food & Drug (1) Discount/Off-Price (2)

Summary Summary High 11.9x High 13.8x 15.0x Low 6.5x 15.0x Low 5.9x Mean 8.8x Mean 9.7x 12.0x Current/Mean 103% 12.0x Current/Mean 136% 13.1x 9.0x 9.2x 9.0x 6.0x 6.0x 3.0x 3.0x 10/0810/1010/1210/1410/1610/18 10/0810/1010/1210/1410/1610/18

Hardlines (3) Branded Apparel & Footwear (4)

Summary Summary High 11.9x High 16.4x 15.0x Low 5.4x 18.0x Low 4.8x Mean 9.5x Mean 11.7x Current/Mean 114% Current/Mean 134% 12.0x 10.8x 15.0x 15.7x 12.0x 9.0x 9.0x 6.0x 6.0x 3.0x 3.0x 10/08 10/10 10/12 10/14 10/16 10/18 10/08 10/10 10/12 10/14 10/16 10/18 Softlines (5) Broadlines (6)

Summary Summary High 9.3x High 10.8x Low 3.5x Low 3.9x 15.0x Mean 7.5x 15.0x Mean 6.7x Current/Mean 96% Current/Mean 89% 12.0x 12.0x 9.0x 9.0x 7.2x 6.0x 6.0x 5.9x 3.0x 3.0x 10/08 10/10 10/12 10/14 10/16 10/18 10/08 10/10 10/12 10/14 10/16 10/18 Source: Company filings and Capital IQ as of October 5, 2018. (1) Includes ATD.B, CASY, COST, CVS, DELB, EMP.A, IMKT.A, AD, KR, L (through Q1 2009), MRU, NGVC (through Q4 2011), Publix (through Q4 2010), RAD, SFM (through Q2 2013), SVU, UNFI, VLGE.A, WMK, WFM and PJC.A. (2) Includes BIG, BURL, DG, DLTR, DOL (through Q4 2005), FIVE (through Q4 2012), OLLI, ROST, PSMT, TGT, TJX and WMT. (3) Includes AZO, BBY, CENT, DKS, GME, HD, LOW, ODP, ORLY, TIF, TSCO, ULTA, and SHW. (4) Includes COH, COLM, HBI, KORS, NKE, PVH, RL, SHOO, UAA, VFC, and WWW. (5) Includes ANF, AEO, CRI, CHS, DSW, GPS, GCO, LB, SKX, SHOO, PLCE, URBN, and ZUMZ. 35 (6) Includes BONT, DDS, JCP, KSS, M, JWN, SHLD and SSI. Proprietary and Confidential RETAIL SUBSECTOR COMPS WERE POSITIVE THROUGH Q2 2018

Food & Drug (1) Discount/Off-Price (2)

8% 8% 4.5% 4% 4% 1.9% 0% 0%

(4%) (4%)

(8%) (8%) 123412341234123412341234123412341234123412341234123412 123412341234123412341234123412341234123412341234123412 Quarter: Quarter: 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Hardlines (3) Branded Apparel & Footwear (4)

10% 8% 5.7% 5% 4% 0.5% 0% 0%

(5%) (4%)

(10%) (8%) 123412341234123412341234123412341234123412341234123412 123412341234123412341234123412341234123412341234123412 Quarter: Quarter: 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Softlines (5) Broadlines (6)

8% 10% 3.4% 4% 5% 1.6% 0% 0%

(4%) (5%)

(8%) (10%) 123412341234123412341234123412341234123412341234123412 123412341234123412341234123412341234123412341234123412 Quarter: Quarter: 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Company filings and Capital IQ as of October 5, 2018. (1) Includes ATD.B, CASY, COST, CVS, DELB, EMP.A, IMKT.A, AD, KR, L (through Q1 2009), MRU, NGVC (through Q4 2011), Publix (through Q4 2010), RAD, SFM (through Q2 2013), SVU, UNFI, VLGE.A, WMK, WFM and PJC.A. (2) Includes BIG, BURL, DG, DLTR, DOL (through Q4 2005), FIVE (through Q4 2012), OLLI, ROST, PSMT, TGT, TJX and WMT. (3) Includes AZO, BBY, CENT, DKS, GME, HD, LOW, ODP, ORLY, TIF, TSCO, ULTA, and SHW. (4) Includes COLM, HBI, KORS, NKE, PVH, RL, SHOO, TPR, UAA, VFC, and WWW. (5) Includes ANF, AEO, CRI, CHS, DSW, GPS, GCO, LB, SKX, SHOO, PLCE, URBN, and ZUMZ. 36 (6) Includes BONT, DDS, JCP, KSS, M, JWN, SHLD and SSI. Proprietary and Confidential RETAIL EQUITIES HAVE UNDERPERFORMED THE BROADER MARKET OVER THE PAST THREE YEARS BUT HAD GAINED GROUND UNTIL RECENTLY

S&P Retail Index vs. S&P 500

Three-Year One-Year YTD 150% S&P 500 130% 115% +45% 140% 120% 110% 130% S&P Retail S&P 500 +15% +7% 120% 110% S&P 500 105% S&P Retail 110% S&P Retail +13% +5% +6% 100% 100% 100%

90% 90% 95% 80%

70% 80% 90% 10/1507/1604/1701/1810/18 10/1701/1804/1807/1810/18 02/0112/0320/0528/0705/10

Performance by Retail Subsector

Three-Year (1) One-Year YTD (6) Hardlines Broadlines(6) Broadlines 180% +50% 170% +45% 140% +21% Discount/ 160% Branded Branded (2) Off-Price Apparel & 130% Apparel & 150% 150% (4) (4) +43 % Footwear Footwear 140% +41% 120% +19% Branded (1) Hardlines (1) Hardlines 120% Apparel & 130% Footwear (4) +24% 110% +10% 120% Food & +17% Discount/ (3) Off-Price (2) 100% Drug 90% Food & 110% 4% Drug (3) +24% 100% Discount/ (1)% Food & 90% (2) (3) Off-Price (6) Drug 60% Broadlines 90% +17 % 4% (19%) 80% (5) 80% Softlines (5) Softlines Softlines (5) (21%) 70% +5% 30% (27%) 70% 10/15 07/16 04/17 01/18 10/18 10/17 01/18 04/18 07/18 10/18 02/01 12/03 20/05 28/07 05/10

Source: Company filings and Capital IQ as of October 5, 2018. (1) Includes AZO, BBY, CENT, DKS, GME, HD, LOW, ODP, ORLY, TIF, TSCO, ULTA, and SHW. (2) Includes BIG, BURL, DG, DLTR, DOL (through Q4 2005), FIVE (through Q4 2012), OLLI, ROST, PSMT, TGT, TJX and WMT. (3) Includes ATD.B, CASY, COST, CVS, DELB, EMP.A, IMKT.A, AD, KR, L (through Q1 2009), MRU, NGVC (through Q4 2011), Publix (through Q4 2010), RAD, SFM (through Q2 2013), SVU, UNFI, VLGE.A, WMK, WFM and PJC.A. (4) Includes COH, COLM, HBI, KORS, NKE, PVH, RL, SHOO, UAA, VFC, and WWW. 37 (5) Includes ANF, AEO, CRI, CHS, DSW, GPS, GCO, LB, SKX, SHOO, PLCE, URBN, and ZUMZ. 37 (6) Includes BONT, DDS, JCP, KSS, M, JWN, SHLD and SSI. Proprietary and Confidential

RETAIL TRADING AND OPERATING COMPARABLES ANALYSIS

38 Proprietary and Confidential BROADLINES – TRADING ANALYSIS

Broadlines (Discount Off-Price Department Stores)

Wal-Mart Stores (1) $94.81 86.2 % (4.0) % $277,673 $318,624 $510,164 0.6 x 9.8 x 9.7 x 9.8 x 19.8 x 20.0 x 6.7 % 3.0 x 2.2 % 7.6 % Costco Wholesale 226.95 92.6 21.9 99,447 98,979 141,576 0.7 17.0 16.3 15.0 32.1 28.6 11.5 2.8 1.0 26.3 Target (2) 84.61 93.6 29.7 44,535 56,699 73,580 0.8 8.3 8.7 8.5 15.7 15.0 7.7 2.0 3.0 27.8 Dollar General 104.76 93.0 12.6 27,817 30,331 24,591 1.2 12.1 11.5 10.7 17.2 15.5 14.1 1.2 1.1 28.8 Dollar Tree 81.14 69.6 (24.4) 19,302 23,697 22,757 1.0 9.0 9.5 8.8 14.8 13.3 10.6 1.4 -- 25.4 Five Below 114.58 84.2 72.8 6,385 6,120 1,406 4.4 29.1 27.2 21.9 44.6 37.2 28.1 1.6 -- 28.4 Ollie's Bargain Outlet 87.97 90.1 65.2 5,516 5,508 1,159 4.8 33.8 31.0 26.5 NM 42.3 25.0 NM -- 19.2 BJ's Wholesale Club 23.98 72.8 NM 3,247 5,172 13,009 0.4 11.4 9.9 9.2 19.5 16.0 20.2 1.0 -- -- Big Lots 42.69 66.3 (24.0) 1,722 2,087 5,247 0.4 5.8 5.6 5.4 9.6 8.9 NA NM 2.8 27.6 Smart & Final 5.06 48.2 (40.8) 384 1,002 4,667 0.2 6.4 5.4 5.2 11.6 11.0 6.0 1.9 -- (29.4)

Discount Stores Mean 1.4 x 14.3 x 13.5 x 12.1 x 20.5 x 20.8 x 14.5 % 1.9 x 2.0 % 16.2 % Median 0.7 10.6 9.8 9.5 17.2 15.8 11.5 1.8 2.2 25.8

The TJX Companies $109.44 96.6 % 43.1 % $67,718 $67,077 $37,743 1.8 x 1 3.5 x 13.5 x 12.7 x 22.3 x 20.2 x 11.1 % 2.0 x 1.4 % NM % Ross Stores 95.87 95.3 19.5 35,795 34,805 14,723 2.4 14.4 14.6 13.6 23.3 21.1 10.6 2.2 0.9 NM Burlington Stores 155.48 88.6 26.4 10,503 11,567 6,409 1.8 16.0 14.6 13.1 25.1 21.7 21.6 1.2 -- NM PriceSmart (3) 76.03 80.5 (11.7) 2,312 2,278 3,122 0.7 12.3 12.6 11.2 26.2 NM 7.0 3.7 0.9 10.4 Citi Trends 26.43 75.7 (0.1) 346 269 782 0.3 5.9 5.6 5.1 15.0 13.2 NA NM 1.2 10.1 Tuesday Morning 3.21 78.3 16.7 147 176 1,006 0.2 37.3 31.0 8.5 NM NM NA NM -- (11.6) Stein Mart 2.15 53.2 85.3 103 268 1,308 0.2 9.6 NM NM NM NM NA NM -- (15.1)

Off-Price Mean 1.1 x 15.6 x 15.3 x 10.7 x 22.4 x 19.0 x 12.6 % 2.3 x 1.1 % (1.5) % Median 0.7 13.5 14.1 12.0 23.3 20.6 10.9 2.1 1.1 (0.8)

Kohl's $72.65 88.1 % 34.0 % $12,112 $14,978 $19,413 0.8 x 6.0 x 6.2 x 6.1 x 13.2 x 12.5 x 7.7 % 1.7 x 3.4 % 18.1 % Nordstrom (4) 61.49 92.7 29.8 10,365 11,756 15,959 0.7 7.2 7.2 6.9 17.1 16.3 6.7 2.6 2.4 NM Macy's 33.38 79.5 32.5 10,247 14,693 24,978 0.6 5.6 5.3 5.7 8.2 9.3 6.5 1.3 4.5 32.1 Dillard's 72.87 73.8 21.3 2,002 2,688 6,498 0.4 5.2 5.4 5.7 11.5 11.4 9.7 1.2 0.5 15.2 J. C. Penney Company 1.76 37.1 (44.3) 554 4,588 12,154 0.4 5.8 7.5 6.6 NM NM 20.0 NM -- (5.1) Stage Stores (5) 1.85 56.9 10.1 52 298 1,624 0.2 32.8 NM NM NM NM NM NM 10.8 (18.7) Sears Corporation (6) 0.41 6.0 (88.6) 44 5,152 14,298 0.4 NM NM NM NM NM NA NM -- NM

Department Stores Mean 0.5 x 10.4 x 6.3 x 6.2 x 12.5 x 12.4 x 10.1 % 1.7 x 4.3 % 8.3 % Median 0.4 5.9 6.2 6.1 12.4 11.9 7.7 1.5 3.4 15.2

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate consensus estimates from ThomsonOne. Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma adjustments for post close acquisitions and divestitures. (a) Enterprise value represents equity value plus book value of total debt, preferred stock and minority interest less cash. (b) Dividend yield represents annualized dividend per share divided by current share price. (c) Return on Equity is defined as LFY Earnings from Continuing Operations divided by Average Total Equity. (1) In May 2018, Flipkart’s board approved the sale of a 75% stake in the business to Walmart for $15 billion. In February 2018, Walmart acquired Spatialand, a virtual reality startup. In June 2017, Wal-Mart announced the acquisition of Bonobos for ~$310 million. In August 2016, Wal-Mart announced the acquisition of Jet.com for ~$3.3 billion. Wal-Mart has also recently acquired Shoebuy.com, Modcloth and MooseJaw. (2) In March 2018, Target reportedly entered into partnership talks with Kroger. In December 2017, Target announced the acquisition of Shipt for ~$550 million. (3) In March 2018, PriceSmart acquired package delivery service and online retailer, Aeropost. (4) In October 2017, the Nordstrom family announced a suspension of its attempt to take Nordstrom private. In March 2018, Nordstrom acquired BevyUp and MessageYes. (5) In March 2017, Stage Stores acquired select assets from Gordmans. (6) In May 2018, Sears began exploring the sale of its Kenmore brand, Sears Home Improvement Products Business and Parts Direct Business. In January 2017, Black & 39 Decker signed a definitive agreement to acquire the Craftsman brand from Sears for ~$780 million. Proprietary and Confidential BROADLINES – OPERATING ANALYSIS

Broadlines (Discount Off-Price Department Stores) Operating Efficiency Credit Statistics Store Comp Store Sales LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Total Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name Count LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int.

Wal-Mart Stores (1) 11,200 2.1 % 4.5 % 2.1 % $32,639 25.2 % 7.0 % 6.4 % 4.3 % 1.9 % 4.5 % AA 1.7 x 1.2 x 2.0 x 10.3 x Costco Wholesale (2) 762 9.5 9.5 10.2 5,821 13.0 4.3 4.1 3.2 1.8 2.3 A+ 1.1 NM 1.3 20.9 Target 1,835 1.3 4.9 3.0 6,839 28.8 9.5 9.3 5.9 4.3 5.0 A 2.0 1.8 2.0 7.2 Dollar General 15,015 2.7 3.7 2.1 2,512 30.8 14.8 10.2 8.5 2.9 7.4 BBB 1.1 1.0 2.6 18.4 Dollar Tree 15,073 1.9 3.7 4.0 2,627 37.3 17.6 11.5 8.9 3.3 8.2 BBB- 1.9 1.7 3.3 7.1 Five Below 692 6.5 2.7 3.2 211 36.3 22.7 15.0 12.3 6.0 9.0 -- -- NM 2.0 NM Ollie's Bargain Outlet 276 3.3 4.4 1.9 163 40.0 18.3 14.0 12.9 1.8 12.2 -- 0.1 NM 1.5 50.2 BJ's Wholesale Club 215 (0.9) 2.0 0.4 454 17.8 5.9 3.5 2.2 1.3 2.2 B 4.3 4.2 5.0 1.6 Big Lots (3) 1,416 0.4 1.6 (3.0) 361 40.6 13.2 6.9 4.8 5.3 1.6 BBB 1.2 1.0 3.5 10.5 Smart & Final 322 1.0 1.3 1.2 158 17.6 6.2 3.4 1.2 3.1 0.3 B 4.3 3.9 5.1 0.3

Discount Stores Mean 28.8 % 11.9 % 8.4 % 6.4 % 3.2 % 5.3 % 1.8 x 2.1 x 2.8 x 14.1 x Median 29.8 11.3 8.1 5.4 3.0 4.7 1.4 1.7 2.3 10.3

The TJX Companies 4,194 2.0 % 6.0 % 3.0 % $4,973 29.0 % 17.6 % 13.2 % 11.1 % 3.0 % 10.2 % A+ 0.4 x NM x 1.8 x 60.2 x Ross Stores 1,651 4.0 5.0 3.0 2,417 32.4 20.2 16.4 14.2 2.6 13.8 A- 0.2 NM 1.3 NM Burlington Stores 651 3.4 2.9 4.8 722 41.9 16.5 11.3 8.3 4.4 6.9 BB 1.6 1.5 3.0 7.4 PriceSmart 41 1.5 5.6 5.7 185 16.0 6.4 5.9 4.3 3.5 2.4 -- 0.6 NM 1.0 14.1 Citi Trends 553 4.5 3.3 2.1 45 38.5 12.8 5.8 3.3 1.8 4.0 -- -- NM 3.3 NM Tuesday Morning 726 3.9 2.4 9.1 5 33.9 12.2 0.5 (2.1) 3.1 (2.6) -- 8.2 6.1 6.1 NM Stein Mart 289 (6.2) 0.7 (0.7) 28 26.5 9.5 2.1 (0.3) 1.0 1.1 -- 6.2 5.9 6.1 1.8

Off-Price Mean 31.2 % 13.6 % 7.9 % 5.5 % 2.8 % 5.1 % 2.5 x 4.5 x 3.2 x 20.9 x Median 32.4 12.8 5.9 4.3 3.0 4.0 0.6 5.9 3.0 10.7

Kohl's 1,158 1.5 % 3.1 % 3.6 % $2,479 36.5 % 14.3 % 12.8 % 7.8 % 3.0 % 9.8 % BBB- 1.6 x 1.2 x 2.1 x 6.7 x Nordstrom (4) 373 0.8 4.0 0.6 1,641 35.4 11.9 10.3 6.0 4.1 6.2 BBB+ 1.7 0.8 2.3 8.1 Macy's (5) 860 (2.2) 2.3 4.2 2,627 39.4 11.9 10.5 6.6 2.1 8.5 BBB- 2.1 1.7 2.5 7.2 Dillard's 267 -- 1.0 2.0 517 34.7 8.4 8.0 4.5 2.3 5.6 BB+ 1.6 1.3 1.8 6.3 J. C. Penney Company 865 0.1 0.3 0.2 792 33.7 8.1 6.5 1.9 3.5 3.0 B- 5.3 5.1 5.5 1.2 Stage Stores (6) 832 (3.6) (0.2) (2.8) 9 22.1 7.2 0.6 (3.3) 2.2 (1.7) -- 30.0 27.0 7.9 NM Sears Corporation (7) 866 (13.5) (3.9) (11.9) (1,087) 22.2 (4.3) (7.6) (9.4) 0.5 (8.1) CCC- NM NM NM NM

Department Stores Mean 32.0 % 8.2 % 5.9 % 2.0 % 2.5 % 3.3 % 7.0 x 6.2 x 3.7 x 5.9 x Median 34.7 8.4 8.0 4.5 2.3 5.6 1.9 1.5 2.4 6.7

Softlines (Specialty)

Lululemon Athletica $143.71 87.2 % 82.9 % $19,023 $18,345 $2,921 6.3 x 25.7 x 22.9 x 19.7 x 40.1 x 33.9 x 19.1 % 2.1 x -- % 25.7 % Gap 26.67 74.7 (21.7) 10,260 9,901 16,484 0.6 5.1 5.2 4.9 10.3 9.7 9.3 1.1 3.6 28.5 L Brands 31.38 49.7 (47.9) 8,631 13,567 13,050 1.0 6.2 7.2 7.1 12.3 11.9 11.4 1.1 7.6 NM Urban Outfitters 38.59 73.5 10.1 4,212 3,608 3,830 0.9 7.7 7.1 6.5 14.4 13.2 15.6 0.9 -- 13.1 Tailored Brands 22.34 62.2 2.3 1,115 2,262 3,312 0.7 6.5 6.5 6.1 8.9 7.7 NA NM 3.2 NM Chico's FAS 7.63 70.0 (13.5) 959 781 2,227 0.4 3.6 3.8 3.7 12.1 10.7 12.5 1.0 4.5 14.4 Duluth Trading 28.94 81.1 62.1 943 1,021 512 2.0 21.4 19.1 15.7 34.5 28.4 22.5 1.5 -- 18.6 Ascena Retail Group 4.52 85.5 92.3 869 1,957 6,578 0.3 3.8 4.6 4.2 NM NM 22.0 NM -- (4.9) Express 8.40 71.9 (17.2) 616 491 2,156 0.2 3.3 3.6 3.4 17.9 15.6 NA NM -- 5.9 Lands End 15.12 48.5 (22.7) 487 782 1,444 0.5 11.8 10.6 9.5 36.0 25.0 20.0 1.8 -- 11.4 Vera Bradley 13.33 76.7 9.4 469 335 446 0.8 5.7 7.5 7.2 22.2 20.5 14.3 1.6 -- 5.9 J. Jill 5.56 57.8 (28.7) 243 422 712 0.6 4.1 4.4 4.2 8.1 7.8 9.9 0.8 -- 33.0 New York & Company 3.67 66.1 28.3 238 143 928 0.2 3.9 3.9 3.4 18.4 12.2 NA NM -- 13.4 Destination XL Group 2.58 84.6 17.3 127 182 475 0.4 8.4 7.7 5.8 NM NM NA NM -- (18.5) Francesca's 3.29 38.8 (55.0) 119 96 458 0.2 3.2 3.0 2.1 21.9 12.2 NA NM -- 0.5 Destination Maternity (1) 4.41 64.5 48.5 64 99 401 0.2 11.5 NM NM NM NM NA NM -- (45.0) Christopher & Banks 0.66 44.9 (48.0) 25 2 364 0.0 NM NM 0.8 NM NM 15.0 NM -- (46.2)

Specialty Apparel / Accessories Mean 0.9 x 8.2 x 7.8 x 6.5 x 19.8 x 16.1 x 15.6 % 1.3 x 4.7 % 3.7 % Median 0.5 6.0 6.5 5.4 17.9 12.2 15.0 1.1 4.0 11.4

Carter's (2) $95.72 74.2 % (18.5) % $4,448 $4,948 $3,428 1.4 x 10.3 x 9.8 x 9.3 x 14.8 x 13.6 x 9.2 % 1.6 x 1.9 % 38.2 % American Eagle Outfitters 21.27 71.2 13.1 3,773 3,409 3,977 0.9 6.4 6.6 6.1 14.3 13 .0 13.0 1.1 2.6 21.6 The Children’s Place 134.25 83.0 (7.6) 2,202 2,185 1,945 1.1 9.6 9.1 8.2 16.2 13.7 8.5 1.9 1.5 17 .8 Abercrombie & Fitch Co.18.43 62.1 5.7 1,230 956 3,626 0.3 2.8 3.2 3.1 21.8 18.8 15.9 1.4 4.3 3.6 Buckle 19.81 66.8 (16.6) 958 737 911 0.8 4.5 4.6 5.0 9.5 10.3 (10.8) NM 13.9 22.8 Zumiez 22.78 69.7 9.4 581 454 979 0.5 5.0 5.3 4.9 13.5 12.4 15.0 0.9 -- 10.0 Tilly's 16.70 65.6 13.1 491 367 598 0.6 6.6 6.4 6.0 19.2 16.2 12.0 1.6 -- 15.3 The Cato Corporation18.95 70.5 19.0 453 228 850 0.3 4.8 4.8 5.1 15.2 14.6 NA NM 7.0 4.9

Specialty Apparel / Accessories -Teen/Jrs/Children Mean 0.7 x 6.3 x 6.2 x 6.0 x 15.6 x 14.1 x 9.0 % 1.4 x 5.2 % 16.8 % Median 0.7 5.7 5.9 5.5 15.0 13.7 12.0 1.5 3.5 16.6

Softlines (Specialty) Operating Efficiency Credit Statistics Store Comp Store Sales LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name Count LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int.

Lululemon Athletica (1) 415 1.0 % 10.0 % 8.0 % $715 54.3 % 30.8 % 24.5 % 20.7 % 6.6 % 17.9 % -- 0.1 x NM x 1.3 x NM x Gap (2) 3,626 3.0 2.0 1.0 1,941 38.4 20.0 11.8 8.4 4.7 7.0 BB+ 0.6 NM 2.8 16.1 L Brands (3) 3,069 (3.0) 3.0 3.0 2,186 44.0 23.1 16.8 12.3 5.2 11.5 BB 2.6 2.3 3.6 3.8 Urban Outfitters (4) 608 (1.0) 13.0 10.0 467 33.6 19.7 12.2 9.0 2.5 9.7 ---- NM 2.3 NM Tailored Brands (5) 1,469 0.1 1.7 2.1 347 42.2 18.2 10.5 7.3 2.6 7.9 B+ 3.5 3.3 4.6 2.8 Chico's FAS 1,460 (7.7) (3.2) (5.9) 216 38.1 19.2 9.7 5.6 2.3 7.5 -- 0.3 NM 3.1 NM Duluth Trading 33 48 55.0 10.5 9.3 7.5 10.4 (1.1) -- 1.6 1.6 2.1 NM Ascena Retail Group (6) 4,622 (2.0) 4.0 (3.0) 515 57.6 20.6 7.8 2.3 2.8 5.0 B 2.6 2.1 4.7 2.9 Express 631 (3.0) 1.0 1.0 147 39.6 17.1 6.8 2.8 2.1 4.8 -- 0.4 NM 3.8 NM Lands End 167 2.7 (5.8) (18.9) 66 42.3 6.5 4.6 2.8 2.8 1.8 B- 7.4 4.5 7.0 0.9 Vera Bradley 160 (6.7) (4.9) (8.5) 59 56.8 21.0 13.1 9.1 2.6 10.5 ---- NM 2.2 NM J. Jill 273 6.4 2.2 2.3 103 59.5 23.2 14.4 9.3 4.7 9.8 -- 2.3 1.7 3.7 3.7 New York & Company 426 1.0 1.7 2.7 37 41.1 13.9 3.9 1.6 1.0 2.9 ---- NM 4.3 31.4 Destination XL Group (7) 216 0.9 3.3 2.2 22 44.9 18.7 4.6 (1.8) 3.4 1.2 -- 2.8 2.5 5.2 1.5 Francesca's 742 (11.0) (13.0) (16.0) 30 40.5 15.6 6.6 1.6 6.2 0.4 ---- NM 3.4 4.5 Destination Maternity1,114 (1.5) 1.2 (0.1) 9 51.6 15.6 2.2 (2.0) 1.4 0.8 -- 4.2 4.0 5.7 0.7 Christopher & Banks 461 (2.5) 0.8 (2.6) (12) 30.4 12.6 (3.3) (6.5) 0.8 (3.3) ---- NM 7.2 NM

Specialty Apparel / Accessories Mean 45.3 % 18.0 % 9.1 % 5.3 % 3.6 % 5.5 %1.7 x 2.7 x 4.0 x 6.8 x Median 42.3 18.7 9.3 5.6 2.8 5.00.6 2.4 3.7 3.3

Carter's (8) 1,049 2.7 % 0.9 % 3.0 % $478 44.0 % 18.7 % 13.9 % 11.4 % 2.0 % 12.0 % BB+ 1.4 x 1.0 x 2.6 x 13.0 x American Eagle Outfitters1,054 4.0 9.0 9.0 535 44.4 22.3 13.4 9.2 4.6 8.8 ---- NM 2.4 NM (9) The Children’s Place 992 5.8 13.2 (1.8) 229 37.4 20.0 11.8 8.1 3.3 8.5 -- 0.4 NM 2.7 62.0 Abercrombie & Fitch Co. (10) 850 3.0 3.0 5.0 337 59.9 20.0 9.3 4.0 2.7 6.6 BB- 0.9 NM 3.6 10.1 Buckle 456 (7.2) 1.4 (3.1) 164 49.8 25.8 18.0 14.8 1.4 16.6 ---- NM 1.8 NM Zumiez 700 7.9 9.5 7.5 90 34.0 17.9 9.2 6.4 2.1 7.1 -- 0.1 NM 3.0 NM Tilly's 226 1.0 4.4 0.1 56 31.2 17.3 9.3 5.5 2.3 7.1 ---- NM 2.8 NM The Cato Corporation1,350 (12.0) 4.0 (1.0) 47 36.7 14.0 5.5 3.4 0.8 4.8 ---- NM 3.6 NM

Specialty Apparel / Accessories -Teen/Jrs/Children Mean 42.2 % 19.5 % 11.3 % 7.9 % 2.4 % 8.9 %0.3 x 1.0 x 2.8 x 28.3 x Median 40.7 19.3 10.5 7.2 2.2 7.80.0 1.0 2.7 13.0

Apparel and Footwear

Foot Locker (1) $49.70 83.7 % 6.0 % $5,710 $4,884 $7,887 0.6 x 5.3 x 5.5 x 5.3 x 11.1 x 10.1 x 8.3 % 1.3 x 2.8 % 11.4 % DSW (2) 27.95 80.7 30.5 2,244 1,955 2,932 0.7 7.1 7.2 6.7 16.3 14.9 8.0 2.0 3.6 0.2 Genesco (3) 42.49 81.9 30.7 858 895 2,946 0.3 5.1 5.3 5.1 13.1 12.0 15.0 0.9 -- (12.7) Boot Barn (4) 27.13 85.8 63.3 760 964 701 1.4 13.7 13.3 11.1 27.4 22.1 23.8 1.2 -- 17.1 Shoe Carnival 38.62 85.8 44.4 621 583 1,057 0.6 7.9 8.6 8.0 18.0 16.5 10.0 1.8 0.8 10.3

Footwear Retail Mean 0.7 x 7.8 x 8.0 x 7.2 x 17.2 x 15.1 x 13.0 % 1.4 x 2.4 % 5.2 % Median 0.6 7.1 7.2 6.7 16.3 14.9 10.0 1.3 2.8 10.3

Nike (5) $75.91 88.2 % 21.4 % $120,553 $119,770 $37,275 3.2 x 22.0 x 22.9 x 19.1 x 34.0 x 26.4 x 14.4 % 2.4 x 1.1 % 19.8 % Skechers USA 25.64 59.5 (32.2) 4,083 3,421 4,470 0.8 6.7 6.8 6.1 14.7 12.8 10.0 1.5 -- 12.7 Wolverine World Wide 34.81 87.5 9.2 3,310 3,623 2,261 1.6 16.3 11.6 10.9 16 .3 14.8 11.3 1.4 0.9 6.3 Deckers Brands 104.39 83.7 30.1 3,139 2,754 1,944 1.4 9.6 10.0 8.9 18.5 15.2 12.0 1.5 -- 13.9 Steve Madden 30.28 77.0 (35.2) 2,657 2,408 1,590 1.5 13.5 11.2 10.4 16.9 15.2 8.5 2.0 1.8 16.6 Caleres (6) 34.23 83.3 2.2 1,479 1,575 2,816 0.6 7.8 7.6 7.1 13.9 12.7 NA NM 0.8 13.9 Crocs 19.94 90.3 57.8 1,358 1,371 1,054 1.3 14.2 16.3 10.0 45.3 25.9 10.0 4.5 -- 6.9 Weyco 31.39 78.6 5.6 314 287 288 1.0 10.3 NM NM NM NM NA NM 2.9 8.7 Rocky Brands 24.75 74.0 31.0 183 175 251 0.7 8.5 7.6 7.1 14.6 13.4 NA NM 1.9 8.9

Footwear Wholesale Mean 1.3 x 12.1 x 11.8 x 10.0 x 21.8 x 17.0 x 11.0 % 2.2 x 1.6 % 12.0 % Median 1.3 10.3 10.6 9.5 16.6 15.0 10.6 1.8 1.4 12.7

V.F. Corporation (7) $87.43 90.1 % 18.1 % $34,663 $37,674 $12,701 3.0 x 22.3 x 18.1 x 16.1 x 25.5 x 21.7 x 12.1 % 2.1 x 2.1 % -- % Tapestry (8) (9) 43.82 79.0 (0.9) 12,692 13,042 5,880 2.2 11.2 9.9 9.1 16.6 14.7 12.5 1.3 3.1 12.7 Ralph Lauren 121.42 82.2 17.1 9,851 8,679 6,226 1.4 9.1 9.1 8.3 18.7 17.2 10.9 1.7 2.1 6.3 PVH 126.05 74.5 (8.1) 9,670 12,217 9,504 1.3 10.6 9.5 8.8 13.6 12.1 14.1 1.0 0.1 12.9 Michael Kors (10) 63.61 83.7 1.0 9,489 10,143 4,969 2.0 8.6 9.5 8.4 14.3 12.1 5.5 2.6 -- 36.0 Under Armour (Class A) (11) 18.67 75.6 29.4 7,993 8,575 5,126 1.7 26.1 25.5 20.6 NM NM 28.3 NM -- (8.1) Columbia Sportswear Company87.11 91.1 21.2 6,094 5,334 2,612 2.0 14.7 14.0 12.9 25.1 22.4 11.2 2.2 1.0 8.9 Hanesbrands (12) 16.36 67.8 (21.8) 5,898 9,998 6,631 1.5 9.6 9.1 8.9 9.3 8.6 (0.4) NM 3.7 4.2 G-III Apparel Group (13) 37.78 73.8 2.4 1,858 2,310 2,976 0.8 9.1 8.8 8.1 14.4 12.8 23.3 0.6 -- 9.6 Guess? 20.97 77.8 24.2 1,699 1,540 2,508 0.6 8.9 8.5 7.3 20.4 16.1 21.8 0.9 4.3 0.7 Oxford Industries 79.74 82.0 6.1 1,352 1,370 1,104 1.2 10.2 9.3 8.7 17.4 15.6 11.0 1.6 1.7 16.6 Fossil 20.67 64.3 166.0 1,021 1,177 2,755 0.4 7.8 6.7 5.8 36.3 25.8 2.9 12.5 -- (23.6) Movado Group 38.21 71.1 18.7 885 709 611 1.2 8.6 NM NM 15.3 12.7 10.0 1.5 2.1 0.2 Perry Ellis International (14) 27.42 92.7 9.5 420 438 881 0.5 9.3 7.5 6.9 14.4 12.4 12.0 1.2 -- 13.9 Clarus Corporation (15) 10.37 86.4 32.1 307 321 198 1.6 24.2 17.7 13.7 18.9 14.2 10.0 1.9 1.0 2.5 Vince 12.40 51.3 100.3 144 202 271 0.7 31.3 NM NM NM NM NA NM -- NM Delta Apparel (16) 17.32 78.4 (14.3) 123 239 394 0.6 9.3 8.5 NM 14.8 NM 15.0 1.0 -- 0.2 Differential Brands Group (17) 4.20 61.0 342.1 59 136 162 0.8 18.0 10.1 8.9 NM NM NA NM -- (12.9)

Apparel/Active/Accessories Mean 1.3 x 13.8 x 11.4 x 10.2 x 18.3 x 15.6 x 12.5 % 2.3 x 2.1 % 4.7 % Median 1.3 9.9 9.4 8.8 16.6 14.5 11.6 1.6 2.1 4.2

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate consensus Corporation completed the divestiture of its Licensed Sports Group business to Fanatics for estimates from ThomsonOne. $225 million. In August 2017, V.F. Corporation announced the acquisition of Williamson- Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma Dickie for ~$820 million in cash (11.0x EV / LTM EBITDA). In March 2018, VF sold its Nautica adjustments for post close acquisitions and divestitures. brand to Authentic Brands Group and acquired Altra Running from ICON Health & Fitness. In (a) Enterprise value represents equity value plus book value of total debt, preferred stock and October, VF announced its sale of Reef to the Rockport Group, PJ Solomon advised V.F. minority interest less cash. (8) In July 2017, Tapestry completed the acquisition of Kate Spade for $18.50 per share, or $2.4 (b) Dividend yield represents annualized dividend per share divided by current share price. billion (10.2x EV / EBITDA). (c) Return on Equity is defined as LFY Earnings from Continuing Operations divided by Average (9) In October 2017, Coach changed its name to Tapestry. Total Equity. (10) In October 2017, Michael Kors completed the acquisition of Jimmy Choo for £2.30 per share, (1) In January 2018, Foot Locker made a $15 million strategic investment in women’s luxury or ~$1.2 billion (17.5x EV / LTM EBITDA). apparel company Carbon38. (11) In July 2018, Under Armour entered into an agreement to sell its Brazilian division. (2) In October 2018, DSW announced its acquisition alongside Authentic Brands of the Camuto (12) In February 2018, HanesBrands acquired Bras N Things for $400 million. Group for $375 million. In May 2018, DSW acquired the remaining outstanding equity (13) In July 2016, G-III announced the acquisition of Donna Karan for $650 million. interests in Town Shoes. PJ SOLOMON advised DSW on the transaction. (14) In June 2018, Perry Ellis agreed to be taken private by George Feldenkreis-led investor group (3) In February 2018, Genesco announced it was exploring a possible sale of Lids. for $27.50 per share, or $437 million. (4) In July 2018, Boot Barn acquired Drysdale. In April 2018, Boot Barn acquired Lone Star (15) In August 2017, Clarus Corporation acquired Sierra Bullets for $79 million, or 6.3x LTM Western & Casual. EBITDA. In August 2017, Black Diamond changed its name to Clarus Corporation. (5) In March 2018, Nike acquired consumer data analytics firm, Zodiac. (16) In March 2018, Delta Apparel acquired TeeShirt Ink. (6) In July 2018, Caleres announced the acquisition of a controlling interest in Blowfish Malibu. (17) In June 2018, Differential Brands Group acquired part of Global Brands Group’s North 43 (7) In April 2018, V.F. Corporation completed the acquisition of Icebreaker. In May 2017, V.F. American licensing business for ~$1.4 billion. Proprietary and Confidential APPAREL AND FOOTWEAR – OPERATING ANALYSIS

Apparel and Footwear Operating Efficiency Credit Statistics Store Comp Store Sales LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name Count LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int.

Foot Locker 3,284 (3.1) % 0.5 % (2.8) % $918 42.6 % 23.0 % 11.6 % 9.4 % 3.0 % 8.6 % BB+ 0.1 x NM x 3.0 x 56.6 x DSW 517 (0.4) 9.7 2.2 275 36.4 17.1 9.4 6.8 2.1 7.3 -- -- NM 2.7 NM Genesco 2,657 -- 3.0 (1.0) 175 48.7 22.0 5.9 3.3 3.1 2.8 -- 0.5 0.2 4.5 16.1 Boot Barn 230 5.2 11.6 12.1 70 31.1 16.4 10.1 7.6 3.7 6.3 -- 3.0 2.9 4.2 2.9 Shoe Carnival 405 0.3 6.7 1.3 74 29.7 13.6 7.0 4.8 0.9 6.1 -- -- NM 2.9 NM

Footwear Retail Mean 37.7 % 18.4 % 8.8 % 6.4 % 2.6 % 6.2 % 0.7 x 1.5 x 3.5 x 25.2 x Median 36.4 17.1 9.4 6.8 3.0 6.3 0.1 1.5 3.0 16.1

Nike 1,181 4.0 % 3.0 % 4.0 % $5,443 44.0 % 16.9 % 14.6 % 12.5 % 3.0 % 11.6 % AA- 0.6 x NM x 1.4 x 33.9 x Skechers USA (1) 668 4.0 4.5 9.5 508 47.8 16.7 11.4 9.0 2.7 8.7 -- 0.2 NM 2.0 65.8 Wolverine World Wide 80 223 40.6 11.5 9.9 8.3 0.9 8.9 BB+ 3.0 1.4 3.4 6.7 Deckers Brands (2) 160 7.0 6.2 15.0 287 49.2 18.7 14.8 12.3 2.0 12.8 -- 0.1 NM 1.4 51.7 Steve Madden 208 4.0 1.6 (1.2) 178 37.3 14.8 11.2 9.9 0.8 10.4 -- -- NM 1.5 NM Caleres (3) 1,013 1.4 2.6 (0.8) 201 41.9 13.3 7.1 5.4 1.4 5.7 BB 1.0 0.5 3.3 10.0 Crocs (4) 425 (1.7) 7.1 7.6 97 50.8 17.3 9.2 6.2 0.4 8.8 -- 0.0 NM 2.8 NM Weyco 9 (5.0) 2.0 6.0 28 39.5 13.3 9.7 8.2 0.5 9.2 -- -- NM 1.6 NM Rocky Brands 21 33.2 8.7 8.2 5.9 2.0 6.2 -- -- NM 0.4 40.1

Footwear Wholesale Mean 42.7 % 14.6 % 10.7 % 8.6 % 1.5 % 9.2 % 0.5 x 0.9 x 2.0 x 34.7 x Median 41.9 14.8 9.9 8.3 1.4 8.9 0.1 0.9 1.6 37.0

V.F. Corporation 1,513 1,691 50.8 % 16.4 % 13.3 % 11.0 % 2.0 % 11.4 % A 2.1 x 1.8 x 2.8 x 14.3 x Tapestry (5) (6) 1,432 1.5 % 2.0 % 3.0 % 1,169 66.2 28.8 19.9 15.5 4.5 15.3 BBB- 1.4 0.3 2.8 10.5 Ralph Lauren Corporation 1,117 (7.0) (3.0) -- 954 61.1 22.5 15.3 10.9 2.6 12.7 A- 0.9 NM 2.5 45.0 PVH (7) 1,600 (4.0) 2.0 5.0 1,150 55.3 19.1 12.1 8.6 3.9 8.2 BBB- 2.6 2.2 3.8 6.2 Michael Kors (8) 847 2.3 0.2 2.3 1,182 61.1 31.3 23.8 19.4 2.9 20.8 BBB- 0.7 0.6 2.0 36.1 Under Armour (Class A) 181 329 44.8 9.3 6.4 2.9 4.1 2.3 BB 2.4 1.8 3.5 3.3 Columbia Sportswear Company 134 362 47.8 17.3 13.8 11.6 2.2 11.6 -- -- NM 1.2 NM Hanesbrands 170 1,039 39.4 18.5 15.7 13.7 1.5 14.2 BB 4.3 3.9 4.6 5.2 G-III Apparel Group 347 254 37.5 12.5 8.5 7.3 1.2 7.3 BB- 1.9 1.8 3.2 5.0 Guess? 1,162 (4.5) 3.0 2.0 173 35.9 18.4 6.9 4.3 3.6 3.3 -- 0.2 NM 3.8 26.6 Oxford Industries (9) 227 3.0 8.0 (1.0) 135 56.7 18.5 12.2 8.3 3.9 8.3 -- 0.2 0.1 2.2 32.7 Fossil 577 (6.0) -- 5.0 151 49.5 11.6 5.5 2.9 0.7 4.8 -- 2.6 1.0 4.4 3.0 Movado Group 43 83 53.8 16.7 13.5 11.8 1.5 12.1 -- -- NM 1.1 64.3 Perry Ellis International 47 37.7 8.3 5.3 3.7 0.9 4.4 B+ 0.8 0.4 2.7 5.9 Clarus Corporation (10) 13 35.1 7.2 6.7 2.8 1.6 5.1 -- 1.2 1.0 1.6 8.9 Vince 58 4.5 14.4 12.3 6 45.7 10.7 2.4 (1.0) 0.6 1.8 -- 9.8 9.0 6.9 0.8 Delta Apparel 26 19.6 8.8 6.5 4.0 1.5 5.0 -- 4.6 4.5 4.9 3.7 Differential Brands Group 62 8 42.5 10.4 4.7 1.0 0.8 3.9 -- 10.8 10.1 8.1 0.7

Apparel/Active/Accessories Mean 46.7 % 15.9 % 10.7 % 7.7 % 2.2 % 8.5 % 2.6 x 2.8 x 3.5 x 16.0 x Median 46.7 16.5 10.3 7.8 1.8 7.8 1.7 1.8 3.0 6.2

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate (3) Caleres SSS% for Famous Footwear division. consensus estimates from ThomsonOne. (4) Crocs SSS% for Americas segment. Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma (5) Coach SSS% for North American segment. adjustments for post close acquisitions and divestitures. (6) In October 2017, Coach changed its name to Tapestry. (a) Excludes business acquisitions where applicable and available. (7) PVH SSS% for Calvin Klein North America. (b) S&P Credit Rating. (8) Michael Kors SSS% for North American segment. (c) Debt adjusted for the capitalization of operating leases at 6.0x rent expense. (9) Oxford Industries SSS% for Tommy Bahama division. (1) Skechers SSS% for domestic segment. (10) In August 2017, Black Diamond changed its name to Clarus Corporation. (2) Deckers SSS% for retail segment. 44 Proprietary and Confidential APPAREL AND FOOTWEAR – TRADING ANALYSIS (CONT.)

Apparel and Footwear (cont.)

Cintas $186.97 86.0 % 20.0 % $20,323 $22,745$6,5633.5 x 17.1 x 16.7 x 15.0 x 29.0 x 2 4.8 x 14.0 % 2.1 x0.9 % 28.3 % UniFirst Corporation158.07 81.9(4.1)3,0252,7871,6661.79.9 10.49.4 25.0 NM 10.02.50.38.6 Superior Group of Companies (1) 18.32 63.5(31.4) 281405296 1.4 12.9 11.89.1 16.4 12.3 13.51.22.29.9 Lakeland Industries 13.45 79.8(7.6) 1099699 1.0 10.19.47.4 16.9 13.0 10.01.7 -- (0.3)

Uniform / Protectivewear Mean 1.9 x 12.5 x 12.1 x 10.2 x 21.8 x 16.7 x 11.9 % 1.9 x1.1 % 11.6 % Median 1.5 11.5 11.19.2 20.9 13.0 11.81.90.99.3

Sequential Brands Group (2) $1.46 50.2 % (18.0) % $93$768$166 4.6 x 8.0 x 7.5 x 7.2 x 2.7 x 2.1 x 15.0 % 0.2 x -- (40.6) % Xcel Brands 2.10 58.3(36.4) 385332 1.69.25.85.07.05.8 10.00.7 -- (9.3) Iconix Brand Group (3) 0.23 4.3(82.0) 16715204 3.58.07.18.10.71.2 NANM -- NM Cherokee (4) 0.67 21.1(64.7)9 5327 1.9 21.15.54.4 NM 19.1 NANM -- NM

Licensing / Brand Management Mean 2.9 x 11.6 x 6.5 x 6.2 x 3.4 x 7.1 x 12.5 % 0.4 x -- % (24.9) % Median 2.78.66.46.12.74.0 12.50.4 -- (24.9)

Apparel and Footwear (cont.) Operating Efficiency Credit Statistics Store Comp Store Sales LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name Count LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int.

Cintas $1,329 44.9 % 21.6 % 20.2 % 16.0 % 4.2 %16.1 % BBB+ 1.9 x1.8 x2.2 x10.1 x UniFirst Corporation 281 37.817.816.9 11.27.09.9 ---- NM 0.3 NM Superior Group of Companies (1) 31 35.511.110.68.41.69.1 -- 4.14.04.218.4 Lakeland Industries 9 38.010.39.58.71.77.9 -- 0.2 NM 0.665.4

Uniform / Protectivewear Mean 39.0 % 15.2 % 14.3 % 11.1 % 3.6 %10.7 %1.5 x2.9 x1.8 x31.3 x Median 37.914.413.8 10.02.99.51.02.91.418.4

Sequential Brands Group $96 59.361.2 % 57.5 % 55.1 % 3.9 %53.6 % -- 6.5 x6.3 x6.4 x1.4 x Xcel Brands 6 98.720.217.8 12.73.614.3 -- 3.92.54.14.1 Iconix Brand Group 89 100.045.243.7 42.40.343.3 CCC 8.07.28.01.3 Cherokee 2 100.012.29.23.50.78.5 -- 20.017.316.50.3

Licensing / Brand Management Mean 89.5 % 34.7 % 32.1 % 28.4 % 2.1 %29.9 %9.6 x8.4 x8.8 x1.8 x Median 99.432.730.8 27.62.128.87.36.87.21.4

Williams-Sonoma (1) $60.89 82.3 % 17.8 % $4,905 $5,030 $5,457 0.9 x 7.7 x 7.5 x 7.3 x 14.0 x 13.4 x 10.4 % 1.3 x 2.8 % 23.3 % Aaron's 49.87 89.1 25.1 3,450 3,628 3,606 1.0 7.1 9.2 8.1 14.7 12.8 16.6 0.9 0.2 17.9 Restoration Hardware 124.30 75.6 44.2 2,764 3,833 2,461 1.6 11.6 10.5 9.0 16.3 15.0 23.6 0.7 -- NM Michaels 16.09 57.7 (33.5) 2,757 5,473 5,340 1.0 6.9 6.8 6.8 6.8 6.3 8.7 0.8 -- NM Bed Bath & Beyond (2) 13.53 54.7 (38.5) 1,868 2,285 12,359 0.2 2.5 2.6 3.2 5.6 7.8 (20.8) NM 4.7 12.4 At Home 27.33 66.7 (10.1) 1,735 2,241 1,051 2.1 14.2 11.4 9.4 20.9 18.2 23.7 0.9 -- 3.3 Sleep Number (3) 32.40 79.6 (13.8) 1,131 1,311 1,471 0.9 8.8 8.5 7.7 17.9 14.3 18.8 1.0 -- NM Rent-A-Center (4) 14.31 95.8 28.9 766 1,226 2,637 0.5 12.9 7.5 6.4 15.9 13.0 2.5 6.4 -- 6.2 Ethan Allen Interiors 20.45 64.5 (28.5) 543 522 767 0.7 7.6 7.5 6.7 15.4 12.9 13.7 1.1 3.7 9.3 The Container Store 9.99 80.5 110.8 488 774 870 0.9 8.9 7.9 7.4 24.3 19.0 NA NM -- 8.9 Haverty Furniture 21.12 83.3 (6.8) 444 422 821 0.5 6.0 6.0 5.8 15.2 14.7 9.8 1.6 3.4 7.4 The Lovesac Company21.63 74.9 NM 291 243 123 2.0 NM NM 25.7 NM NM NA NM -- (28.7) Bassett Furniture Industries20.95 51.2 (44.3) 223 175 458 0.4 5.3 NM NM NM NM NA NM 4.1 5.9 Kirkland's 9.46 70.2 (20.9) 147 111 646 0.2 3.0 3.1 2.8 18.7 15.8 16.0 1.2 -- 2.2 Pier 1 Imports 1.53 25.8 (63.0) 127 209 1,709 0.1 14.6 NM 4.9 NM NM 17.1 NM -- (24.2)

Home Furnishings and Décor Mean 0.9 x 8.4 x 7.4 x 7.9 x 15.5 x 13.6 x 11.7 % 1.6 x 3.2 % 3.7 % Median 0.9 7.7 7.5 7.0 15.7 13.9 14.8 1.0 3.6 6.8

The Home Depot (5) $192.47 89.3 % 1.6 % $220,212 $242,220 $104,319 2.3 x 14.0 x 13.6 x 12.9 x 20.1 x 18.7 x 13.8 1.5 x 2.1 % NM % Lowe's Companies 105.36 89.5 13.4 85,447 99,010 70,511 1.4 12.3 12.8 11.7 20.4 17.5 16.2 1.3 1.8 NM Sherwin-Williams 406.97 84.8 (0.7) 37,804 48,024 17,225 2.8 17.3 16.2 14.2 21.1 18.2 13.2 1.6 0.8 NM Tractor Supply Company86.67 93.7 15.9 10,557 11,060 7,571 1.5 12.7 12.8 11.9 2 0.6 18.8 13.7 1.5 1.4 34.5 Floor and Décor 27.33 46.9 (43.9) 2,659 3,049 1,571 1.9 17.1 16.0 12.7 28.5 22.8 34.2 0.8 -- 31.9 Lumber Liquidators 13.22 35.9 (57.9) 378 402 1,062 0.4 14.3 11.2 7.2 25.4 13.8 30.0 0.8 -- (9.5) Tile Shop 6.49 61.8 (32.4) 342 362 347 1.0 8.1 7.9 7.1 32.5 24.0 20.0 1.6 3.1 2.7 Sears Hometown and Outlet2.55 64.6 (1.9) 58 179 1,594 0.1 NM NM NM NM NM NA NM -- (33.6)

Home Improvement Mean 1.4 x 13.7 x 12.9 x 11.1 x 24.1 x 19.1 x 20.2 % 1.3 x 1.9 % 5.2 % Median 1.4 14.0 12.8 11.9 21.1 18.7 16.2 1.5 1.8 2.7

Planet Fitness $46.42 83.9 % 34.0 % $4,093 $4,635 $472 9.8 x 23.4 x 21.5 x 18.5 x 40.9 x 33.7 x 20.3 % 2.0 x -- % NM % Party City 11.30 66.7 (19.0) 1,090 2,963 2,419 1.2 7.8 7.0 6.6 6.1 5.6 20.3 0.3 -- 21.7 Barnes & Noble 6.78 84.8 1.2 494 661 3,604 0.2 6.3 4.1 4.4 13.7 16.3 10.0 1.4 8.8 (26.1) (6) Town Sports Fitness 8.61 58.0 55.1 234 376 423 0.9 6.4 6.5 5.8 NM NM NA NM -- NM Build-A-Bear Workshop 8.17 78.2 (11.2) 119 99 358 0.3 3.3 4.0 3.6 17.4 15.1 NA NM -- 7.7 Trans World Entertainment 0.92 35.4 (49.6) 33 35 437 0.1 NM NM NM NM NM NA NM -- (34.3) YogaWorks 1.02 28.3 (64.0) 17 1 58 0.0 NM NM NM NM NM NA NM -- NM

Entertainment (Book/Video/Music/Toy/Hobby) Mean 1.8 x 9.5 x 8.6 x 7.8 x 19.5 x 17.7 x 16.9 % 1.2 x 8.8 % (7.7) % Median 0.3 6.4 6.5 5.8 15.5 15.7 20.3 1.4 8.8 (9.2)

Office Depot (7) (8) $2.82 71.8 % (20.3) % $1,564 $2,582 $10,659 0.2 x 5.1 x 4.7 x 4.5 x 8.5 x 7.7 x (3.2) % NM x 3.5 % 5.0 % Essendant (9) 12.69 74.3 36.9 478 971 5,002 0.2 11.3 NM NM 33.4 10.6 14.0 2.4 4.4 (26.1)

Office Products

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate consensus (3) In October 2017, Select Comfort changed its name to Sleep Number. estimates from ThomsonOne. (4) In June 2018, Rent-a-Center agreed to a $15.00 per share takeover offer from Vintage Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma capital, or ~$1.4 billion. adjustments for post close acquisitions and divestitures. (5) In December 2017, The Home Depot announced the acquisition of The Company Store. (a) Enterprise value represents equity value plus book value of total debt, preferred stock In February 2018, The Home Depot announced a partnership agreement with Tesla. and minority interest less cash. (6) In February 2018, Town Sports Fitness agreed to acquire Total Woman Gym and Spa. (b) Dividend yield represents annualized dividend per share divided by current share price. (7) In April 2017, Platinum Equity acquired Office Depot’s Australian and New Zealand (c) Return on Equity is defined as LFY Earnings from Continuing Operations divided by business. Average Total Equity. (8) In October 2017, Office Depot announced the acquisition of CompuCom Systems for $1 (1) In November 2017, Williams-Sonoma acquired 3D-Imaging and augmented reality firm billion, or 10.2x LTM EBITDA. Outward for ~$112 million. (9) In September 2018, Essendant announced it would accept a bid from Staples (2) In November 2016, Bed Bath & Beyond acquired PersonaliztionMall.com for $190 (Sycamore Partners) for $12.80 per share (Staples had previously offered $11.50 per million. In June 2016, Bed Bath & Beyond acquired One Kings Lane for $11.8 million. share). 47 Proprietary and Confidential HARDLINES (SPECIALTY) – OPERATING ANALYSIS

Hardlines (Specialty) Operating Efficiency Credit Statistics Store Comp Store Sales LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name Count LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int.

Williams-Sonoma 627 3.2 % 4.6 % 5.5 % $651 36.8 % 16.9 % 11.9 % 8.5 % 3.4 % 8.5 % -- 0.5 x 0.2 x 2.1 x NM x Aaron's 1,179 (7.0) (1.8) (4.4) 511 49.3 20.1 14.2 12.1 1.8 12.4 -- 0.5 0.3 2.2 25.8 Restoration Hardware 121 6.0 5.0 1.0 329 39.0 17.4 13.4 10.4 5.3 8.0 -- 3.3 3.2 3.9 2.8 Michaels 1,287 0.9 (0.4) 0.4 798 39.1 22.9 15.0 13.2 2.9 12.1 BB- 3.6 3.4 4.4 4.6 Bed Bath & Beyond1,560 (1.3) (0.6) (0.6) 932 35.0 12.5 7.5 4.9 3.1 4.5 BBB- 1.6 0.4 3.3 7.4 At Home 165 6.5 2.8 0.9 158 32.8 23.8 15.0 10.5 27.9 (12.9) B+ 3.3 3.2 4.3 NM Sleep Number (1) 565 4.0 9.0 (4.0) 149 61.2 15.3 10.2 6.0 3.7 6.5 -- 1.2 1.2 2.8 38.3 Rent-A-Center3,850 (6.2) 3.7 0.8 95 63.9 11.4 3.6 0.8 1.6 2.0 CCC+ 6.1 4.9 6.0 1.1 Ethan Allen Interiors (2) 301 8.5 2.3 (4.3) 69 54.2 13.1 9.0 6.4 2.4 6.5 -- 0.0 NM 1.9 NM The Container Store 91 0.9 4.7 2.7 87 58.4 20.1 10.0 6.2 3.1 7.0 B 3.4 3.3 4.7 2.1 Haverty Furniture 121 (1.3) 1.3 (1.1) 70 54.2 12.2 8.5 4.8 3.5 5.0 -- 0.8 NM 2.4 18.0 The Lovesac Company 72 19.5 34.2 28.2 (8) 56.0 5.5 (6.4) (8.8) 7.8 (14.3) ---- 6.1 13.0 NM Bassett Furniture Industries 96 1.9 (1.7) (1.8) 33 60.9 14.8 7.2 4.3 3.8 3.4 -- 0.0 NM 3.1 67.0 Kirkland's 426 0.3 (3.9) 1.4 37 32.2 15.0 5.7 1.3 5.1 0.6 ---- NM 3.7 13.4 Pier 1 Imports 989 (2.0) 11.4 (8.2) 14 33.9 15.4 0.8 (2.7) 3.1 (2.3) B- 13.9 5.8 6.4 NM

Home Furnishings and Décor Mean 47.1 % 15.8 % 8.4 % 5.2 % 5.2 % 3.1 %2.5 x 2.9 x 4.3 x 18.1 x Median 49.3 15.3 9.0 6.0 3.4 5.01.2 3.2 3.7 10.4

The Home Depot (3) 2,286 6.8 % 8.0 % 4.2 % $17,260 34.2 % 17.6 % 16.5 % 14.5 % 2.1 % 14.5 % A 1.5 x 1.3 x 1.7 x 14.1 x Lowe's Companies2,155 4.0 5.2 3.5 8,045 34.2 12.3 11.4 9.2 1.7 9.7 A- 2.0 1.7 2.3 10.6 Sherwin-Williams4,900 5.3 6.8 5.2 2,778 43.4 19.2 16.1 12.3 1.4 14.7 BBB 3.7 3.7 4.1 6.9 Tractor Supply Company1,725 2.7 5.6 3.7 872 34.4 15.9 11.5 9.3 3.6 7.9 -- 0.7 0.6 2.1 34.5 Floor and Décor 88 16.6 11.4 15.6 178 41.2 16.5 11.4 8.6 7.7 3.7 BB- 0.9 0.9 2.5 6.5 Lumber Liquidators 406 5.4 4.7 2.9 28 35.6 5.8 2.6 1.3 1.0 1.7 -- 1.2 0.9 3.8 NM Tile Shop 140 0.5 (1.8) (6.8) 45 68.7 23.8 12.8 4.9 8.0 4.9 -- 0.7 0.5 3.1 8.2 Sears Hometown and Outlet 783 (8.4) 0.9 (10.5) (18) 22.1 1.9 (1.1) (1.9) 0.5 (1.6) -- NM NM 14.0 NM

Home Improvement Mean 39.2 % 14.1 % 10.2 % 7.3 % 3.2 % 6.9 %1.5 x 1.3 x 4.2 x 13.5 x Median 35.0 16.2 11.5 8.9 1.9 6.41.2 0.9 2.8 9.4

Planet Fitness1,608 10.2 % 10.2 % 11.1 % $198 56.1 % 46.6 % 41.9 % 34.8 % 6.7 % 35.2 % -- 3.5 x 2.8 x 3.8 x 4.9 x Party City 900 (0.7) 0.1 2.4 381 26.1 26.8 15.7 12.3 3.3 12.4 -- 5.1 4.9 5.4 3.2 Barnes & Noble 629 (5.4) (6.1) (4.1) 104 30.1 11.1 2.9 0.6 2.2 0.7 -- 1.7 1.6 4.9 2.2 Town Sports Fitness 177 1.6 1.8 1.7 59 55.9 45.2 13.9 4.6 5.8 8.1 B- 3.4 2.4 5.2 2.6 (4) Build-A-Bear Workshop 365 30 47.2 21.3 8.4 3.9 5.0 3.4 ---- NM 3.6 NM Trans World Entertainment 241 (8.7) (6.7) (8.5) (20) 31.6 1.3 (4.6) (7.3) 1.4 (5.9) -- NM NM 28.1 NM YogaWorks 71 (7) 61.8 6.7 (12.5) (28.1) 3.4 (15.9) ---- 2.1 17.1 NM

Entertainment (Book/Video/Music/Toy/Hobby) Mean 44.1 % 22.7 % 9.4 % 3.0 % 4.0 % 5.4 %2.3 x 2.8 x 9.7 x 3.2 x Median 47.2 21.3 8.4 3.9 3.4 3.42.6 2.4 5.2 2.9

Office Depot 1,400 (5.0) % (2.0) % (4.0) % $509 23.5 % 9.1 % 4.8 % 3.6 % 1.9 % 2.9 % B 3.5 x 2.0 x 4.7 x 3.2 x Essendant 86 13.4 2.8 1.7 0.8 0.8 0.9 -- 6.1 5.8 6.1 1.6

Office Products

Hardlines (Specialty) (cont.)

Dick's Sporting Goods (1) $33.45 84.2 % 16.4 % $3,381 $3,428 $8,696 0.4 x 4.7 x 5.1 x 4.9 x 10.7 x 10.1 x 6.8 % 1.6 x 2.7 17.3 % Hibbett Sports 19.00 64.2 (6.9) 353 236 990 0.2 2.9 3.6 3.7 11.5 10.6 6.2 1.9 -- 11.4 Sportsman's Warehouse 5.20 74.4 (21.3) 223 450 845 0.5 7.0 6.5 5.9 8.7 7.5 10.0 0.9 -- 37.5 Big 5 Sporting Goods 5.32 54.6 (30.0) 114 203 987 0.2 8.5 6.6 5.4 20.7 13.6 (1.3) NM 11.3 (4.4)

Sporting Goods Mean 0.3 x 5.8 x 5.4 x 5.0 x 12.9 x 10.4 x 5.4 % 1.4 x 7.0 % 15.4 % Median 0.3 5.8 5.8 5.1 11.1 10.3 6.5 1.6 7.0 14.3

Central Garden & Pet Company (2) $32.71 72.7 % 19.0 % $1,745 $2,233 $2,204 1.0 x 10.5 x 10.3 x 9.7 x 17.6 x 16.5 x 10.7 % 1.6 x -- % 17.1 %

Pet

O'Reilly Automotive $339.54 96.6 % 41.2 % $27,354 $30,571 $9,269 3.3 x 15.2 x 14.8 x 14.1 x 21.3 x 19.3 x 16.4 % 1.3 x -- % NM % AutoZone (3) 774.96 97.1 8.9 19,949 24,737 11,221 2.2 10.7 10.1 9.9 14.9 13.1 11.4 1.3 -- NM Advance Auto Parts 165.12 96.3 65.6 12,232 12,375 9,420 1.3 13.3 12.7 11.6 23.8 2 0.8 17.1 1.4 0.1 15.8 Monro Inc. (4) 66.43 90.4 16.6 2,185 2,583 1,145 2.3 14.0 13.7 13.0 27.3 25.6 6.0 4.6 1.2 10.8

Automotive Parts/Service Mean 2.3 x 13.3 x 12.8 x 12.2 x 21.8 x 19.7 x 12.7 % 2.1 x 0.7 % 13.3 % Median 2.2 13.7 13.2 12.3 22.6 20.1 13.9 1.3 0.7 13.3

CarMax $67.86 83.1 % 5.8 % $11,850 $25,402 $18,661 1.4 x 19.6 x 19.2 x 17.5 x 15.6 x 13.8 x 12.1 % 1.3 x -- % 21.9 % Penske Automotive Group 43.81 79.9 (8.4) 3,718 5,824 22,610 0.3 7.7 7.4 7.1 8.2 8.0 6 .8 1.2 3.3 29.3 AutoNation 38.06 61.4 (25.9) 3,420 6,006 21,768 0.3 6.3 6.1 6.2 8.1 7.8 1.1 7.2 -- 17.6 Lithia Motors 74.50 58.2 (34.4) 1,803 2,916 11,140 0.3 5.9 6.5 6.0 7.8 7.3 12.2 0.6 1.6 23.6 Carvana (5)(6) 46.90 64.6 145.3 1,607 2,132 1,326 1.6 NM NM NM NM NM NA NM -- NM Asbury Automotive Group 59.94 77.1 (6.3) 1,220 2,086 6,606 0.3 6.2 6.5 6.5 7.6 7.6 15.5 0.5 -- 40.7 Group 1 Automotive 55.01 65.1 (22.5) 1,051 2,444 11,736 0.2 5.3 6.4 6.4 6.3 6.1 1.6 3.8 1.9 21.7 Sonic Automotive 17.46 74.0 (5.4) 746 1,709 10,080 0.2 4.8 6.5 6.1 9.0 8.5 0.0 336.9 1.4 12.9 America's Car-Mart 71.58 79.7 60.3 493 650 630 1.0 12.6 10.4 9.3 16.7 12.6 19.5 0.9 -- 17.0

Automotive (d) Mean 0.6 x 8.5 x 8.6 x 8.1 x 9.9 x 8.9 x 8.6 % 44.1 x 2.0 % 23.1 % Median 0.3 6.3 6.5 6.4 8.1 7.9 9.4 1.2 1.7 21.8

Ulta $275.64 95.0 % 23.2 % $16,475 $16,089 $6,312 2.5 x 14.8 x 14.1 x 12.4 x 25.2 x 21.5 x 20.6 % 1.2 x -- % 36.3 % Sally Beauty 18.02 94.0 (3.9) 2,160 3,922 3,941 1.0 6.8 6.9 7.3 8.5 8.4 7.1 1.2 -- NM (7) Regis 19.63 87.6 27.8 869 849 1,214 0.7 9.1 11.2 7.3 NA 23.4 9.0 NA -- 12.2

Beauty Mean 1.4 x 10.3 x 10.7 x 9.0 x 16.8 x 17.7 x 12.2 % 1.2 x -- % 24.3 % Median 1.0 9.1 11.2 7.3 16.8 21.5 9.0 1.2 -- 24.3

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate consensus estimates from ThomsonOne. Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma adjustments for post close acquisitions and divestitures. (a) Enterprise value represents equity value plus book value of total debt, preferred stock and minority interest less cash. (b) Dividend yield represents annualized dividend per share divided by current share price. (c) Return on Equity is defined as LFY Earnings from Continuing Operations divided by Average Total Equity. (d) Enterprise value adjusted to exclude floor plan financing. (1) In October 2016, Dick’s acquired Golfsmith’s IP assets, inventory and 30 stores for $70 million at bankruptcy auction. (2) In March 2018, Central Pet & Garden acquired General Pet Supply. (3) In February 2018. Autozone sold its AutoAnything division to Kingswood Capital Management. (4) In August 2017, Monro Muffler Brake Inc. announced a name change to Monro Inc. (5) In April 2018, Carvana acquired Car360, a vehicle digital touring technology business. (6) Carvana excluded from mean / median calculations. 49 (7) In October 2017, Regis Corps announced the sale of the majority of its North American hair salons to Beautiful Group, an affiliate of Regent. Proprietary and Confidential HARDLINES (SPECIALTY) – OPERATING ANALYSIS (CONT.)

Hardlines (Specialty) (cont.) Operating Efficiency Credit Statistics Store Comp Store Sales LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name Count LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int.

Dick's Sporting Goods 729 (0.3) % (1.9) % (0.9) % $737 29.1 % 14.7 % 8.5 % 5.6 % 3.9 % 4.6 % -- 0.2 x 0.1 x 2.7 x 39.1 x Hibbett Sports1,059 (3.8) 4.1 0.3 80 32.7 14.2 8.1 5.6 1.7 6.4 -- 0.0 NM 2.6 NM Sportsman's Warehouse 91 (6.5) 0.2 3.4 65 33.7 14.8 7.7 5.5 2.4 5.3 -- 3.5 3.5 4.7 3.0 Big 5 Sporting Goods 435 (1.2) (2.1) (7.5) 24 31.2 9.9 2.4 0.7 1.5 1.0 -- 4.0 3.7 5.5 3.9

Sporting Goods Mean 31.7 % 13.4 % 6.7 % 4.3 % 2.3 % 4.3 %1.9 x 2.4 x 3.9 x 15.3 x Median 32.0 14.5 7.9 5.5 2.0 5.01.9 3.5 3.7 3.9

Central Garden & Pet Company $212 30.6 % 11.2 % 9.6 % 7.5 % 1.6 % 8.1 % BB 3.3 x 2.3 x 3.6 x 5.0 x

Pet

O'Reilly Automotive 5,147 1.4 % 4.6 % 3.4 % $2,016 52.6 % 25.1 % 21.8 % 19.1 % 5.0 % 16.8 % BBB 1.6 x 1.6 x 2.2 x 14.1 x AutoZone (1) 5,618 0.5 0.6 2.2 2,320 53.2 23.5 20.7 17.9 4.9 15.7 BBB 2.2 2.1 2.6 10.1 Advance Auto Parts 5,026 1.8 2.8 (0.8) 932 43.6 15.6 9.9 7.3 1.4 8.5 BBB- 1.1 0.2 2.9 14.1 Monro Inc. (2) 1,262 1.8 1.9 10.3 184 38.4 19.1 16.1 11.6 3.8 12.2 -- 2.2 2.2 2.8 5.6

Automotive Parts/Service Mean 47.0 % 20.8 % 17.1 % 14.0 % 3.8 % 13.3 %1.8 x 1.5 x 2.6 x 11.0 x Median 48.1 21.3 18.4 14.7 4.4 14.01.9 1.8 2.7 12.1

CarMax (3) 194 2.0 % (2.1) % (2.3) % $1,299 15.1 % 8.9 % 7.0 % 6.0 % 1.7 % 5.3 % -- 10.5 x 10.4 x 9.5 x 13.5 x Penske Automotive Group 341 2.1 11.7 11.4 754 15.0 4.9 3.3 2.9 1.1 2.2 BB 7.6 7.6 7.1 2.7 (4) AutoNation 405 (1.8) 4.0 3.0 951 15.7 4.6 4.4 3.6 1.6 2.8 BBB- 6.8 6.8 6.8 2.6 Lithia Motors (5) 188 2.0 3.0 -- 496 15.0 5.4 4.4 3.9 1.3 3.1 BB+ 6.7 6.7 6.6 3.6 Carvana (6) (162) 9.5 (9.9) (12.2) (13.5) 8.2 (20.5) CCC+ NM NM NM NM Asbury Automotive Group (7) 97 (2.0) 4.0 2.0 336 16.2 5.5 5.1 4.6 0.7 4.4 BB+ 5.4 5.4 5.5 3.6 Group 1 Automotive (8) 228 (1.1) 11.0 7.7 462 14.6 5.0 3.9 3.4 1.0 2.9 BB+ 6.2 6.1 6.1 2.6 Sonic Automotive (9) 131 (0.1) 1.6 2.1 357 14.5 4.6 3.5 2.6 0.8 2.7 BB- 6.8 6.8 6.6 2.8 America's Car-Mart 140 5.2 12.1 10.5 52 48.5 9.3 8.2 7.5 0.4 7.8 -- 3.1 3.0 3.4 7.9

Automotive Mean 18.2 % 4.3 % 3.1 % 2.3 % 1.9 % 1.2 %6.6 x 6.6 x 6.5 x 4.9 x Median 15.0 5.0 4.4 3.6 1.1 2.96.8 6.7 6.6 3.2

Ulta 1,124 11.0 % 6.5 % 8.1 % $1,086 35.6 % 21.3 % 17.2 % 13.0 % 6.2 % 11.0 % ---- x NM x 1.2 x NM x Sally Beauty 5,170 (0.7) (2.0) (1.4) 576 49.5 20.7 14.6 11.8 2.2 12.4 BB- 3.2 3.1 4.0 3.9 Regis 8,168 0.5 0.7 1.6 93 34.3 20.7 7.6 4.4 2.4 5.2 -- 1.0 NM 4.1 6.0

Beauty Mean 39.8 % 20.9 % 13.1 % 9.7 % 3.6 % 9.6 %1.4 x 3.1 x 3.1 x 5.0 x Median 35.6 20.7 14.6 11.8 2.4 11.01.0 3.1 4.0 5.0

Hardlines (Specialty) (cont.)

Best Buy $72.45 85.9 % 5.8 % $19,892 $18,242 $43,171 0.4 x 6.8 x 6.9 x 6.6 x 14.2 x 13.2 x 13.3 % 1.1 x 2.5 % 28.0 % GameStop 14.80 71.6 (17.5) 1,509 2,048 9,072 0.2 3.4 3.4 3.5 4.8 5.2 (27.2) NM 10.3 (2.0) Conns 31.88 74.7 (10.3) 1,010 1,923 1,537 1.3 17.9 9.2 7.7 12.7 10.0 23.0 0.6 -- 6.3

Electronics Mean 0.6 x 9.3 x 6.5 x 5.9 x 10.6 x 9.5 x 3.0 % 0.8 x 6.4 % 10.8 % Median 0.4 6.8 6.9 6.6 12.7 10.0 13.3 0.8 6.4 6.3

Harley-Davidson $40.92 72.4 % (19.6) % $6,750 $13,263 $5,635 2.4 x 12.6 x 13.1 x 12.6 x 10.8 x 10.8 x 10.0 % 1.1 x 3.6 % 23.5 % Polaris (1) 93.30 67.8 (24.8) 5,807 6,738 5,789 1.2 10.0 8.5 7.4 14.3 12.7 15.0 1.0 2.6 30.2 Fox Factory (2) 59.27 81.1 52.6 2,242 2,299 535 4.3 25.4 18.8 17.1 28.3 25.2 13.5 2.1 -- 23.6

Powersports Mean 2.6 x 16.0 x 13.5 x 12.4 x 17.8 x 16.2 x 12.8 % 1.4 x 3.1 % 25.8 % Median 2.4 12.6 13.1 12.6 14.3 12.7 13.5 1.1 3.1 23.6

Callaway Golf (3) $23.27 94.3 % 67.0 % $2,198 $2,256 $1,235 1.8 x 13.5 x 15.1 x 13.7 x 23.3 x 21.8 x 25.0 % 0.9 x 0.2 % 15.3 % Acushnet 24.58 88.2 16.6 1,838 2,265 1,619 1.4 11.0 9.7 9.3 15.5 14.4 7.5 2.1 2.1 12.2 (4) Vista Outdoor 15.72 68.9 7.9 904 1,719 2,269 0.8 14.1 12.9 9.6 NM 35.9 NA NM -- (10.6) Johnson Outdoors 76.03 70.8 22.5 751 622 545 1.1 8.4 9.4 7.7 19.1 15.5 15.0 1.3 0.7 17.7 Nautilus 12.89 74.4 (3.4) 390 344 406 0.8 7.0 6.7 6.0 12.5 11.1 14.3 0.9 -- 14.7 Escalade Inc. 11.91 78.1 (3.2) 172 156 172 0.9 9.3 9.1 7.6 NM NM NA NM 4.2 20.9

Sports Equipment Mean 1.1 x 10.5 x 10.5 x 9.0 x 17.6 x 19.8 x 15.5 % 1.3 x 1.8 % 11.7 % Median 1.0 10.2 9.6 8.5 17.3 15.5 14.7 1.1 1.4 15.0

National Vision $42.22 90.5 % 51.7 % $3,186 $3,733 $1,461 2.6 x 24.8 x 21.5 x 19.2 x NM x 49.1 x 17.2 % NM x -- % 14.0 % (5) Camping World 21.34 44.8 (52.3) 790 2,664 4,631 0.6 7.3 7.1 5.8 9.5 7.1 11.1 0.9 2.9 NM Winmark Corporation149.21 79.7 15.3 577 629 72 8.8 15.3 NM NM NM NM NA NM 0.4 NM MarineMax 19.98 79.8 5.7 450 620 1,119 0.6 9.1 9.5 8.0 14.6 11.5 NA NM -- 9.4

Other Hardlines Mean 3.1 x 14.1 x 12.7 x 11.0 x 12.1 x 22.6 x 14.2 % 0.9 x 1.6 % 11.7 % Median 1.6 12.2 9.5 8.0 12.1 11.5 14.2 0.9 1.6 11.7

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate consensus estimates from ThomsonOne. Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma adjustments for post close acquisitions and divestitures. (a) Enterprise value represents equity value plus book value of total debt, preferred stock and minority interest less cash. (b) Dividend yield represents annualized dividend per share divided by current share price. (c) Return on Equity is defined as LFY Earnings from Continuing Operations divided by Average Total Equity. (1) In May 2018, Polaris purchased Boat Holdings for $850 million in cash. In October 2017, Polaris announced its agreement to acquire Transamerican Auto Parts for $665 million, or ~9.0x LTM EBITDA. (2) In December 2017, Fox Factory announced the acquisition of select assets of Flagship, DBA Tuscany Motor Co. (3) In January 2017, Callaway Golf announced the acquisition of Ogio for $75.5 million. In August 2017, Callaway announced the acquisition of TravisMathew for $125 million. (4) In July 2018, Vista Outdoor announced the sale of its eyewear brands, Bollé, Cébé and Serengeti. (5) In May 2017, Camping World acquired Gander Mountain and Overton’s for ~$38 million at bankruptcy auction. CampingWorld also acquired TheHouse.com in July 2017, Uncle Dan’s in October 2017 and Erehwon Mountain Outfitter in January 2018. In March 2018, Camping World agreed to acquire B & B RV and 51 River City Recreation World. Proprietary and Confidential HARDLINES (SPECIALTY) – OPERATING ANALYSIS (CONT.)

(1) Best Buy Co. 1,344 5.6 % 6.0 % 7.1 % $2,699 23.3 % 8.1 % 6.3 % 4.6 % 1.8 % 4.5 % BBB 0.3 x NM x 1.6 x 25.4 x GameStop 7,200 5.8 (0.5) (5.3) 603 32.7 11.4 6.6 5.1 1.2 5.5 BB 1.4 0.9 3.3 8.7 Conns (2) 119 (6.3) 0.3 (3.5) 108 26.1 11.3 7.0 5.0 1.5 5.5 B 8.5 NM 7.6 NM

Electronics Mean 27.4 % 10.3 % 6.6 % 4.9 % 1.5 % 5.2 %3.4 x NM x 4.2 x 17.1 x Median 26.1 11.3 6.6 5.0 1.5 5.51.4 NM 3.3 17.1

Harley-Davidson $1,055 33.5 % 19.0 % 18.7 % 14.6 % 3.7 % 15.1 % BBB+ 6.8 x 6.2 x 6.8 x 27.4 x Polaris 674 26.8 12.3 11.6 8.2 3.6 8.1 -- 1.7 1.4 1.9 13.9 Fox Factory 90 32.9 18.2 16.9 14.6 3.8 13.1 -- 0.7 0.5 1.1 23.8

PowerSports Mean 31.1 % 16.5 % 15.8 % 12.5 % 3.7 % 12.1 %3.1 x 2.7 x 3.2 x 21.7 x Median 32.9 18.2 16.9 14.6 3.7 13.11.7 1.4 1.9 23.8

Callaway Golf $167 46.8 % 15.1 % 13.6 % 12.0 % 2.5 % 11.0 % -- 0.6 x 0.3 x 1.2 x 21.4 x Acushnet 206 51.3 13.7 12.7 10.6 1.5 11.2 -- 2.2 1.9 2.5 9.7 Vista Outdoor 122 21.5 6.5 5.4 1.5 2.7 2.7 B+ 7.2 6.7 7.0 1.2 Johnson Outdoors 74 44.3 15.3 13.7 11.9 3.3 10.3 ---- NM 0.6 NM Nautilus 49 48.3 13.6 12.1 10.0 1.7 10.4 -- 0.8 NM 1.4 33.5 Escalade Inc. 17 25.4 10.3 9.7 7.5 1.3 8.4 ---- NM 0.3 19.2

Sports Equipment Mean 39.6 % 12.4 % 11.2 % 8.9 % 2.2 % 9.0 %1.8 x 3.0 x 2.2 x 17.0 x Median 45.5 13.7 12.4 10.3 2.1 10.40.7 1.9 1.3 19.2

National Vision1,050 6.5 % 10.4 4.6 $151 54.0 % 15.9 % 10.3 % 5.7 % 6.7 % 3.6 % -- 3.9 x 3.6 x 4.6 x 1.1 x Camping World 145 11.9 5.1 % 3.9 % 364 29.0 10.1 7.9 7.0 2.7 5.1 -- 5.6 5.0 5.7 2.7 Winmark Corporation1,224 41 92.7 58.9 57.3 56.8 34.9 22.3 -- 1.3 1.3 1.4 5.7 MarineMax 63 5.0 8.0 8.0 68 25.5 6.9 6.1 5.2 1.1 5.0 -- 3.4 2.5 3.7 5.6

Other Hardlines Mean 50.3 % 22.9 % 20.4 % 18.7 % 11.4 % 9.0 %3.5 x 3.1 x 3.9 x 3.8 x Median 41.5 13.0 9.1 6.4 4.7 5.03.6 3.1 4.2 4.2

Other

Tiffany & Co. $112.84 79.7 % 8.6 % $13,813 $13,985$4,4203.2 x 13.1 x 13.1 x 12.0 x 23.5 x 20 .8 x 13.3 % 1.8 x1.9 % 14.4 % (1) Signet Jewelers 58.03 74.52.63,0124,2756,6090.66.98.27.8 13.5 13.28.01.72.6 (7.2)

Jewelry

CVS Caremark (2) $74.58 88.9 % 2.9 % $75,927 $97,129$186,9670.5 x 7.6 x 7.7 x 7.5 x 10.6 x 10.1 x 9.6 % 1.1 x2.7 % 8.6 % Walgreens Boots Alliance (3)(4) 73.50 91.11.2 69,76484,059131,5370.6 10.79.38.9 12.4 11.0 10.61.22.4 18.3 (3) Rite Aid 1.06 41.6(46.2)1,1164,51121,5570.28.98.27.8 NMNMNANM -- NM Fred's (4)(5) 2.50 44.2(38.3) 90247 1,7590.1 NM NM NM NMNMNANM -- NM

Drug Stores Mean 0.3 x 9.8 x 8.8 x 8.4 x 12.4 x 11.0 x 10.6 % 1.2 x2.4 % 18.3 % Median 0.29.88.88.4 12.4 11.0 10.61.22.4 18.3

Casey's General Stores $123.71 94.6 % 10.5 % $4,527$5,817$7,9470.7 x 11.8 x 1 1.1 x 10.1 x 27.2 x 24.2 x 11.3 % 2.4 x3.7 % 26.9 % Murphy USA 78.91 88.0(1.8)2,5393,33911,8000.38.38.88.3 17.2 15.83.35.3 -- 41.5 TravelCenters of America (6) 5.00 82.022.0 199466 6,5860.13.84.63.9 NMNM 5.0 NM -- (0.4)

Convenience Stores Mean 0.4 x 8.0 x 8.1 x 7.4 x 22.2 x 20.0 x 6.5 % 3.9 x3.7 % 22.7 % Median 0.38.38.88.3 22.2 20.05.03.93.7 26.9

GNC 3.96 47.47.3 332 1,5422,3730.6 ` 6.77.07.88.1 10.2 NANM -- NM Vitamin Shoppe $9.55 68.5 % 117.0 % $229$292 $1,1660.3 x 5.2 x 4.1 x 5.3 x NM x NM x 22.0 % NM x -- % (41.2) %

Health & Wellness

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate consensus estimates from ThomsonOne. Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma adjustments for post close acquisitions and divestitures. Note: Figures listed in USD. Based on average conversion rates for income statement items and spot rates for balance sheet and share price, where applicable. (a) Enterprise value represents equity value plus book value of total debt, preferred stock and minority interest less cash. (b) Dividend yield represents annualized dividend per share divided by current share price. (c) Return on Equity is defined as LFY Earnings from Continuing Operations divided by Average Total Equity. (1) In August 2017, Signet Jewelers announced that it would acquired R2Net, owner of JamesAllen.com for $328 million. (2) In December 2017, CVS agreed to acquire Aetna for ~$69 billion in cash and stock, comprised of $145.00 per share and 0.8378 shares of CVS stock for each Aetna share (11.5x EV / EBITDA). (3) In June 2017, Walgreens terminated its acquisition of Rite Aid for $9.00 per share, or ~$17.0 billion in cash (12.8x EV / EBITDA) due to FTC concerns. Walgreens will instead acquire 2,186 Rite Aid stores and three distribution centers for $5.18 billion. In August 2018, Rite Aid and Albertsons agreed to call off their planned merger. (4) In September 2018, Fred’s announced it would sell to Walgreens $165 million of prescription files and pharmacy inventories for 185 of its stores across 10 states. (5) In May 2018, Fred’s announced the sale of select assets of its specialty pharmacy business, EntrustRx, to CVS. In June 2017, Fred's plans to acquire 865 divested Rite Aid stores for $950 million were terminated. 53 (6) TravelCenters of America announced in September 2018 that it would sell 225 standalone convenience stores to EG Group Limited for $330.8 million. Proprietary and Confidential OTHER – OPERATING ANALYSIS

Other Operating Efficiency Credit Statistics Store Comp Store Sales LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name Count LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int.

Tiffany & Co. 320 -- % 8.0 % 10.0 % $1,072 63.0 % 33.6 % 24.2 % 19.4 % 5.7 %18.5 % BBB+ 0.9 x0.1 x2.3 x20.2 x Signet Jewelers 3,500 (5.3) 1.7 -- 619 37.417.99.46.52.86.5 BB+ 1.31.03.59.6

Jewelry

CVS Caremark (1) 9,880 (2.6) % (1.0) % 1.6 % $12,748 15.6 % 8.1 % 6.8 % 5.5 % 1.0 %5.8 % BBB 5.1 x1.7 x5.3 x6.3 x Walgreens Boots Alliance (2) 13,200 3.2 (1.2) 2.4 7,879 23.48.66.04.81.05.0 BBB 1.81.73.110.6 Rite Aid 2,526 (2.9) 1.0 (0.7) 505 22.25.32.30.60.91.4 B7.06.76.41.4 Fred's 593 (2.5) (3.5) (3.9)(47) 24.80.4(2.7) (5.0) 0.8(3.4) -- NMNM 70.5 NM

Drug Stores Mean 23.5 % 4.8 % 1.9 % 0.2 % 0.9 %1.0 %4.4 x4.2 x 26.7 x6.0 x Median 23.45.32.30.60.91.44.44.26.46.0

Casey's General Stores (3) 2,085 2.0 % 0.5 % 2.3 % 494 22.8 % 6.2 % 6.2 % 3.4 % 7.3 %(1.1) % -- 2.7 x2.6 x2.7 x NM x Murphy USA (4) 1,454 (2.4) (1.5) (4.0) 404 4.63.63.42.31.91.5 BB+ 2.22.02.33.4 TravelCenters of America (5) 533 (3.4) (1.0) (0.7) 122 8.46.61.90.22.2(0.4) -- 2.82.25.1 NM

Convenience Stores Mean 12.0 % 5.5 % 3.8 % 1.9 % 3.8 %0.0 %2.6 x2.3 x3.4 x3.4 x Median 8.46.23.42.32.2(0.4)2.72.22.73.4

GNC 8,769 0.2 1.3 0.5 229 32.717.29.77.60.8 %8.8 CCC+ 5.55.35.72.4 Vitamin Shoppe 782 (4.6) % (1.1) % (3.6) % $56 41.9 % 15.3 % 4.8 % 1.0 % 3.61.2 % -- 1.1 x1.1 x4.5 x1.5 x

Health & Wellness

E-Commerce and Digital

Share Price % of 52 YTD % Equity Enterprise (a) LTM EV / LTM EV / EBITDA P / E LTG P/E/G Dividend (b) (c) Company Name 10/12/2018 wk high Change Value Value Revenue Revenue LTM 2018E 2019E 2018E 2019E Rate 2018E Yield ROE PayPal (1) (2) $79.03 84.3 % 7.3 % $93,546 $85,159 $14,525 5.9 x 32.3 x 21.5 x 18.2 x 33.7 x 27.9 x 20.8 % 1.6 x -- % 13.6 % Shopify 135.20 76.6 33.9 14,446 12,872 854 15.1 NM NM NM NM NM 46.5 NM -- (4.0) 58com Inc. 65.97 73.4 (7.8) 9,730 9,151 1,721 5.3 23.3 23.4 15.5 26.8 18.8 33.0 0.8 -- 8.2 Autohome Inc. 68.92 57.7 6.6 8,092 6,928 975 7.1 18.4 16.1 12.3 20.1 16.2 26.7 0.8 -- 28.2 Stamps.com (3) 214.40 75.0 14.0 3,892 3,691 521 7.1 18.0 14.3 12.0 20.2 19.5 18.0 1.1 -- 35.3 Groupon (4) 3.48 58.1 (31.8) 1,978 1,540 2,752 0.6 12.0 5.4 4.9 16.6 13.9 26.9 0.6 -- (17.6) Quotient Technology (5) 12.65 71.5 7.7 1,203 996 351 2.8 NM 16.5 11.5 NM 28.4 29.4 NM -- (6.2) Park City Group 9.11 74.7 (4.6) 180 170 22 7.7 41.9 26.8 19.7 42.4 25.1 21.0 2.0 -- 9.0 Autobyel 2.59 26.1 (71.3) 34 16 132 0.1 NM NM NM NM NM NA NM -- NM

Digital Retail Technology Mean 5.7 x 24.3 x 17.7 x 13.4 x 26.6 x 21.4 x 27.8 % 1.2 x -- % 8.3 % Median 5.9 20.9 16.5 12.3 23.5 19.5 26.8 1.0 -- 8.6

Amazon.com (6) $1,788.61 87.2 % 52.9 % $872,379 $891,118 $208,125 4.3 x 43.2 x 27.7 x 21.3 x NM x NM x 50.2 % NM x -- % 21.6 % Netflix (7) 339.56 80.2 76.9 147,864 152,300 13,879 11.0 NM NM 50.0 NM NM 40.7 NM -- 26.0 eBay (8) 31.72 67.5 (16.0) 31,389 36,623 10,065 3.6 12.2 10.1 9.4 13.8 12.3 10.6 1.3 -- (11.1) Wayfair 122.67 81.1 52.8 11,001 10,909 5,697 1.9 NM NM NM NM NM NA NM -- NM Qurate Retail Group (9) 21.12 89.6 (14.6) 9,712 16,864 12,188 1.4 9.2 8.1 7.4 10.8 9.6 12.6 0.9 -- 38.8 Etsy 41.55 78.0 103.2 4,976 4,685 496 9.4 NM 34.7 25.5 NM 38.8 15.0 NM -- 25.6 CarGurus 42.86 74.9 43.0 4,692 4,550 383 11.9 NM NM NM NM NM 5.0 NM -- 34.4 Yelp 42.78 81.5 2.0 3,580 2,776 897 3.1 NM 14.6 11.4 31.3 26.5 33.4 0.9 -- 15.9 Stitch Fix 26.08 49.7 1.0 2,585 2,288 1,227 1.9 42.7 NM NM NM NM 56.2 NM -- 21.4 Systemax 28.77 60.3 (13.5) 1,070 973 1,368 0.7 11.1 15.0 13.0 23.5 19.8 18.0 1.3 1.5 37.2 Overstock.com (10) 26.40 29.4 (58.7) 766 694 1,809 0.4 NM NM NM NM NM 5.0 NM -- NM 1-800-Flowers.com (11) 11.07 73.8 3.5 715 670 1,152 0.6 9.0 8.1 7.8 23.3 23.3 16.0 1.5 -- 13.7 PetMed Express 27.74 48.0 (39.0) 569 474 282 1.7 8.5 8.3 7.9 13.5 11.9 13.5 1.0 3.9 36.4 Blue Apron 1.34 24.2 (66.7) 258 272 775 0.4 NM NM NM NM NM NA NM -- NM BlueStem Brands 0.54 56.8 (13.6) 73 402 1,828 0.2 5.5 4.3 3.7 NM 10.8 NA NM -- NM FTD Companies 2.31 18.2 (67.9) 65 234 1,057 0.2 8.1 6.1 4.9 NM NM 12.5 NM -- NM U.S. Auto Parts Network 1.52 51.7 (39.7) 53 56 298 0.2 5.4 4.7 4.0 NM 25.3 NA NM -- (6.7) CafePress 1.46 67.0 (20.9) 25 4 78 0.0 NM NM NM NM NM NA NM -- (24.9)

Domestic eCommerce Mean 2.9 x 15.5 x 12.9 x 13.8 x 19.3 x 19.8 x 22.2 % 1.1 x 2.7 % 17.6 % Median 1.5 9.1 8.3 8.6 18.5 19.8 15.0 1.1 2.7 21.6

Priceline (12) $1,807.17 81.1 % 4.0 % $85,790 $87,221 $13,702 6.4 x 16.0 x 15.3 x 13.7 x 20.3 x 18.0 x 18.0 % 1.1 x -- % 24.9 % Expedia (13) 118.56 76.9 (1.0) 17,719 18,992 10,673 1.8 16.4 10.1 8.7 21.8 19.4 17.4 1.3 1.1 4.3 TripAdvisor 45.35 72.7 31.6 6,238 5,560 1,571 3.5 32.9 14.8 13.4 32.5 29.3 14.4 2.3 -- (1.7) Travelzoo 10.79 51.0 67.3 133 113 111 1.0 15.5 11.8 9.2 29.2 19.8 NA NM -- 19.0

Domestic Travel Marketplaces Mean 3.2 x 20.2 x 13.0 x 11.3 x 25.9 x 21.6 x 16.6 % 1.5 x 1.1 % 11.6 % Median 2.7 16.2 13.3 11.3 25.5 19.6 17.4 1.3 1.1 11.6 Source: CapitalIQ and public filings. Forward estimates represent mean aggregate announced the acquisition of Whole Foods for $41.00 per share, or ~$13.7 billion in consensus estimates from ThomsonOne. cash (10.3x EV / EBITDA). In January 2018, Amazon opened its first cashierless Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma Amazon Go store in Seattle. In February 2018, Amazon acquired Ring, a smart doorbell adjustments for post close acquisitions and divestitures. maker, for a reported $1.0 billion. (a) Enterprise value represents equity value plus book value of total debt, preferred stock (7) In August 2017, Netflix completed its acquisition of Millarworld for an undisclosed and minority interest less cash. amount. (b) Dividend yield represents annualized dividend per share divided by current share price. (8) In March 2018, Ebay acquired online marketplace Giosis for ~$700 million. (c) Return on Equity is defined as LFY Earnings from Continuing Operations divided by (9) In March 2018, Liberty Interactive changed its name to Qurate Retail Group. In Average Total Equity. December 2017, Liberty Interactive completed the acquisition of the remaining 62% (1) In September 2017, PayPal completed its acquisition of Swift Financial Corporation for stake in HSN for $40.36 per share, or ~$2.6 billion (9.7x EV / EBITDA). an undisclosed sum. (10) In September 2017, Overstock.com announced that its subsidiary, tZero is entering into (2) In July 2017, PayPal completed its acquisition of TIO Networks for $2.64 per share, or a joint venture to trade digital coins. ~$244 million in cash (24.8x EV / LTM EBITDA). (11) In May 2017, 1-800-Flowers.com completed its sale of its Fannie May Confections (3) In July 2016, Stamps.com completed its acquisition of ShippingEasy, Inc. for $55 brand to Ferrero International for $115 million. In July 2017, Priceline completed its million in cash. acquisition of the Momondo Group for $550 million in cash. In October 2017, Priceline (4) In October 2016, Groupon completed its acquisition of LivingSocial for an undisclosed co-led a $4 billion equity investment in Meituan-Dianping. amount. (12) In June 2017, Expedia completed its acquisition of a majority stake in SilverRail (5) In May 2017, Quotient Technology completed its acquisition of Crisp Media for ~$57 Technologies for $148 million. In July 2017, Expedia completed a $350 million million investment round in PT Traveloka Indonesia. 55 (6) In July 2018, Amazon acquired Pill Pack for ~$1 billion. In June 2017, Amazon Proprietary and Confidential E-COMMERCE AND DIGITAL – OPERATING ANALYSIS

E-Commerce and Digital Operating Efficiency Credit Statistics Store Sales Growth LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name Count LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int. PayPal 20.8 % 23.0 % 23.9 % $2,638 46.6 % 18.7 % 18.2 % 14.8 % 5.0 % 13.2 % BBB+ 0.8 x NM x 0.9 x NM x Shopify 72.9 61.5 68.3 (48) 56.5 (3.9) (5.6) (8.2) 3.5 (9.1) ---- 32.7 NM NM 58com Inc. 41.5 35.5 36.4 392 90.4 24.5 22.8 18.8 -- 22.8 -- 0.3 NM 0.7 63.9 Autohome Inc. 11.2 22.5 4.8 376 92.3 40.1 38.5 37.0 -- 38.5 ---- NM 0.2 NM Stamps.com 28.7 20.2 27.2 205 81.3 40.1 39.3 35.2 0.7 38.6 -- 0.4 NM 0.5 64.9 Groupon (5.6) (6.8) (7.0) 128 48.9 5.9 4.7 2.1 2.4 2.2 -- 1.8 NM 2.7 2.9 Quotient Technology 17.1 20.2 19.5 16 51.7 5.9 4.6 (0.9) 1.6 2.9 -- 9.4 NM 8.6 1.3 Park City Group 16.4 21.8 11.2 4 70.1 NM 18.5 16.0 0.9 17.5 -- 1.2 NM 1.2 NM Autobyel (9.3) (15.3) (13.4) (3) 24.6 (1.1) (2.5) (8.8) 0.9 (3.4) -- NM 5.4 NM NM

Digital Retail Technology Mean 62.5 % 16.3 % 15.4 % 11.8 % 1.7 % 13.7 %1.7 x 19.0 x 2.1 x 33.2 x Median 56.5 12.3 18.2 14.8 0.9 13.20.6 19.0 0.9 33.4

Amazon.com (1) 30.8 % 39.3 % 42.9 % $20,631 38.8 % 11.1 % 9.9 % 3.5 % 6.3 % 3.6 % AA- 2.2 x 0.9 x 2.6 x 6.1 x Netflix 32.4 40.3 40.4 1,440 38.1 11.0 10.4 9.8 0.9 9.5 B+ 5.8 3.1 5.8 4.1 eBay 6.5 9.1 12.0 3,001 77.1 30.9 29.8 22.9 6.9 23.0 BBB+ 3.1 1.7 3.2 7.5 Wayfair 39.7 47.4 46.2 (264) 23.2 (3.7) (4.6) (5.8) 2.0 (6.7) -- NM 0.3 NM NM Qurate Retail Group (2) 1,824 34.9 15.4 15.0 10.5 1.9 13.1 BB 4.2 3.9 4.3 4.3 Etsy 20.9 30.2 24.8 76 66.3 16.2 15.3 11.7 0.1 15.2 -- 3.6 NM 3.8 4.8 CarGurus 59.9 44.7 47.2 13 94.4 5.3 3.4 2.2 1.1 2.3 ---- NM 2.2 NM Yelp 18.8 11.9 12.6 39 92.8 9.4 4.4 1.7 3.0 1.4 ---- NM 3.2 NM Stitch Fix 25.5 23.2 29.2 54 43.7 5.9 4.4 3.5 1.4 3.0 ---- NM 1.5 NM Systemax 8.1 16.0 17.4 88 27.5 7.4 6.4 6.0 0.2 6.2 ---- NM 0.8 NM Overstock.com (3.1) 11.8 3.0 (139) 19.6 (7.1) (7.7) (8.6) 1.1 (8.8) -- NM 1.1 NM NM 1-800-Flowers.com (3.5) (4.0) 2.1 75 42.5 8.7 6.5 3.7 2.9 3.6 -- 1.4 NM 2.6 11.4 PetMed Express 9.9 9.7 6.8 56 35.6 19.9 19.8 19.0 0.3 19.4 ---- NM 0.1 NM Blue Apron 10.8 (24.6) (19.7) (120) 30.1 (13.9) (15.5) (19.9) 4.7 (20.2) -- NM NM NM NM BlueStem Brands (10.0) (3.7) (11.2) 73 38.9 5.8 4.0 0.8 1.2 2.8 -- 6.2 4.5 6.1 1.0 FTD Companies (3.4) (8.6) 0.5 29 35.7 3.6 2.7 0.6 2.4 0.4 -- 6.6 5.9 6.4 0.3 U.S. Auto Parts Network 0.0 (4.0) (3.0) 10 29.4 4.0 3.5 1.3 1.8 1.7 -- 0.9 0.3 1.6 3.0 CafePress (16.2) (19.4) (20.4) (4) 39.6 (3.7) (4.7) (10.8) 1.7 (6.4) ---- 5.7 NM NM

Domestic eCommerce Mean 44.9 % 7.0 % 5.7 % 2.9 % 2.2 % 3.5 %2.3 x 2.7 x 3.2 x 4.7 x Median 38.5 6.6 4.4 2.8 1.7 2.91.4 2.4 2.9 4.3

Priceline 18.0 % 16.9 % 21.0 % $5,463 99.2 % 40.8 % 39.9 % 36.9 % 2.7 % 37.1 % A- 1.6 x 0.3 x 1.7 x 18.7 x Expedia 14.7 11.4 14.6 1,158 82.4 12.5 10.8 5.7 7.2 3.7 BBB 3.7 NM 4.0 2.0 TripAdvisor 5.1 2.1 1.6 169 95.0 11.9 10.8 7.8 3.8 6.9 ---- NM 0.6 7.3 Travelzoo (6.8) 6.3 8.6 7 88.4 12.1 6.6 5.3 0.8 5.8 ---- NM 2.7 NM

Domestic Travel Marketplaces Mean 91.2 % 19.3 % 17.0 % 13.9 % 3.6 % 13.4 %1.3 x 0.3 x 2.2 x 9.3 x Median 91.7 12.3 10.8 6.8 3.3 6.30.8 0.3 2.2 7.3

E-Commerce and Digital (cont.)

Share Price % of 52 YTD % Equity Enterprise (a) LTM EV / LTM EV / EBITDAP / E LTG P/E/G Dividend (b) (c) Company Name10/12/2018 wk high % Change % Value Value Revenue Revenue % x x x 2019E x 2018E % x Alibaba Group (1) $147.29 69.6 % (14.6) % $378,820 $383,721 $42,451 9.0 x 30.1 x 21.2 x 15.8 x 28.4 x 20.4 x 25.7 % 1.1 x -- % 13.5 % JD.com (2) 24.45 48.2 (41.0) 35,361 33,673 62,896 0.5 NM 33.0 21.6 NM 29.0 40.9 NM -- (1.3) Mercado Libre 303.42 72.6 (3.6) 13,398 13,320 1,501 8.9 NM NM NM NM NM 79.0 NM -- (20.9) Rakuten 7.33 64.4 (20.0) 9,890 13,493 9,171 1.5 7.8 7.7 8.3 12.4 17.3 (22.8) NM 0.5 20.0 Zalando SE (3) 37.92 65.2 (28.4) 9,369 8,220 5,757 1.4 32.2 28.6 20.7 NM NM 18.8 NM -- 5.8 Start Today 27.97 64.3 (8.0) 8,538 8,593 934 9.2 30.0 25.6 20.0 38.2 30.0 36.5 1.0 1.1 NM Ocado Group 10.70 69.9 99.6 7,397 7,302 2,069 3.5 NM NM NM NM NM NA NM -- (3.6) Delivery Hero 40.07 65.7 1.3 7,381 6,614 744 8.9 NM NM NM NM NM NA NM -- (14.4) Farfetch 23.30 71.9 NM 6,824 7,229 481 15.0 NM NM NM NM NM NA NM -- -- Vipshop 5.41 28.3 (53.8) 3,581 3,348 12,094 0.3 6.4 6.7 5.6 9.7 8.1 14.6 0.7 -- 19.0 Boohoo.com 2.89 88.7 13.7 3,355 3,167 924 3.4 38.7 37.3 24.7 NM 44.5 27.0 NM -- 20.2 Uxin Limited 6.16 58.7 NM 1,801 1,948 382 5.1 NM NM NM NM NM NA NM -- -- Zooplus AG 160.73 72.9 (11.9) 1,148 1,118 1,480 0.8 NM NM NM NM NM 123.3 NM -- (6.8) AO World 1.93 81.4 29.9 885 832 1,118 0.7 NM NM 47.5 NM NM NA NM -- (22.1) home24 22.77 62.0 NM 591 463 343 1.3 NM NM NM NM NM NA NM -- -- Secoo (4) 11.67 75.4 20.8 590 594 667 0.9 28.8 NM NM 17.4 12.5 NA NM -- 16.8 N Brown Group 1.54 33.5 (57.9) 437 990 1,203 0.8 7.8 6.0 5.8 5.3 5.1 2.0 2.6 12.2 1.9 Jumei International Holdings (5) 1.84 45.7 (37.0) 276 (134) 770 (0.2) 12.5 NM NM NM NM NA NM -- 12.4 Delticom AG 9.43 61.0 (31.7) 118 184 771 0.2 23.3 12.5 9.4 28.1 13.8 83.2 0.3 1.2 4.4 Netshoes 2.29 18.1 (71.0) 71 137 488 0.3 NM NM 17.8 NM NM NA NM -- (40.4) LightInTheBox Holding Company0.80 22.7 (65.2) 54 13 294 0.0 NM NM NM NM NM NA NM -- (46.5) JMU Limited 1.14 7.2 (88.8) 9 24 104 0.2 NM NM NM NM NM NA NM -- NM

International E-Commerce Mean 3.1 x 20.8 x 17.8 x 17.8 x 18.5 x 18.8 x 40.2 % 1.2 x 3.8 % (3.0) % Median 1.1 23.3 12.5 17.8 14.9 13.8 27.0 0.9 1.2 --

Ctrip.com (6) $38.65 69.2 % (12.4) % $21,073 $21,233 $4,286 5.0 x 33.6 x 23.9 x 16.9 x 30.8 x 25.8 x 30.4 % 1.0 x -- % 6.1 % MakeMy Trip (7) 24.32 58.3 (18.5) 2,480 2,125 621 3.4 NM NM NM NM NM NA NM -- (12.9) trivago 4.77 42.6 (30.3) 1,673 1,558 1,124 1.4 NM NM NM NM NM 3.0 NM -- (7.1) Despegar.com 15.51 42.4 (43.6) 1,072 704 552 1.3 9.1 8.5 7.4 26.7 17.8 NA NM -- 39.9 Tuniu Corporation 6.96 70.4 (9.3) 879 627 337 1.9 NM NM NM NM 40.1 NA NM -- (10.0)

International Travel Marketplaces Mean 2.6 x 21.3 x 16.2 x 12.2 x 28.8 x 27.9 x 16.7 % 1.0 x -- % 3.2 % Median 1.9 21.3 16.2 12.2 28.8 25.8 16.7 1.0 -- (7.1)

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate consensus estimates from ThomsonOne. Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma adjustments for post close acquisitions and divestitures. (a) Enterprise value represents equity value plus book value of total debt, preferred stock and minority interest less cash. (b) Dividend yield represents annualized dividend per share divided by current share price. (c) Return on Equity is defined as LFY Earnings from Continuing Operations divided by Average Total Equity. (1) In October 2017, Alibaba participated in a $502 million series D funding round for Magic Leap, Inc. In October 2017, Alibaba completed its acquisition of a 32% remaining stake in Lazada Group for $1 billion. (2) In June 2017, JD.com completed a $397 million equity investment in Farfetch UK. In June 2016, JD.com announced a strategic partnership with Walmart, which gave JD.com ownership of Walmart’s Chinese platform assets. In January 2018, Alibaba reportedly held talks with Kroger to form a potential partnership. (3) In March 2017, Zalando completed its acquisition of KICKZ for an undisclosed amount. (4) In September 2017, Secoo established an exclusive, strategic partnership with the European Confederation of the Footwear Industry. (5) In August 2017, Jumei completed its acquisition of equity interest in Shenzhen Jiedan Technology Co. for an undisclosed sum. (6) In June 2018, Ctrip and Ocean Link Partners submitted an offer to acquire eHi Car Services. In December 2016, Ctrip,com completed its acquisition of Skyscanner for $1.74 billion. 57 (7) In January 2017, MakeMyTrip completed its acquisition of ibibo Group for $795 million. Proprietary and Confidential E-COMMERCE AND DIGITAL – OPERATING ANALYSIS (CONT.)

E-Commerce and Digital (cont.) Operating Efficiency Credit Statistics Comp Store Sales LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name HQ LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int. Alibaba GroupChina $12,746 52.8 % 30.9 % 30.0 % 21.7 % 14.6 % 15.4 % A+ 1.6 x NM x 1.8 x 10.9 x JD.com China 315 7.4 1.6 0.5 (0.5) 3.1 (2.6) BBB- 10.4 NM 7.4 NM Mercado LibreArgentina 35 53.9 2.9 2.4 (0.6) 5.8 (3.4) -- 13.5 NM 12.1 NM RakutenJapan 1,723 9.6 NM 18.8 12.6 1.7 17.1 -- 6.0 0.6 6.0 53.0 Zalando SEGermany 255 43.0 5.4 4.4 3.4 3.5 0.9 -- 0.0 NM 1.2 3.0 Start TodayJapan 287 91.6 NM 30.7 29.5 -- 30.7 -- 0.8 0.2 0.8 NM Ocado Group UK 87 34.2 5.7 4.2 (0.0) 6.7 (2.5) -- 5.8 NM 5.8 NM Delivery HeroGermany (209) 59.8 (25.8) (28.1) (35.5) 3.4 (31.5) -- NM 3.7 NM NM Farfetch UK (131) 51.4 (22.6) (27.3) (28.0) 3.9 (31.2) -- -- 2.6 NM NM VipshopChina 524 21.0 5.1 4.3 2.9 -- 4.3 BBB 1.9 NM 2.5 32.7 Boohoo.com UK 82 54.0 9.1 8.9 7.5 7.7 1.2 -- 0.1 NM 0.3 56.6 Uxin LimitedChina (404) 63.4 (97.6) (105.7) (108.8) -- (105.7) -- NM NM NM NM Zooplus AGGermany (5) 24.4 0.9 (0.3) (0.7) 0.2 (0.6) -- NM 6.5 10.5 NM AO World UK (6) 17.8 1.2 (0.5) (1.4) 0.6 (1.1) -- NM 8.9 10.5 NM home24Germany (60) 44.6 (12.9) (17.4) (18.8) 0.4 (17.7) -- NM 1.9 NM NM Secoo China 21 16.8 4.0 3.1 2.8 -- 3.1 -- 2.0 0.1 2.9 18.2 N Brown Group UK 126 55.0 11.2 10.5 9.9 0.3 10.2 -- 4.6 4.3 4.7 8.1 Jumei International Holdings China (11) 23.1 (0.1) (1.4) (2.8) -- (1.4) -- -- 39.3 NM NM Delticom AGGermany 8 20.9 1.8 1.0 0.3 0.7 0.3 -- 9.0 8.4 7.7 3.4 NetshoesBrazil (22) 30.5 (2.1) (4.5) (5.9) 0.9 (5.4) -- NM NM NM NM LightInTheBox Holding Company China (23) 30.0 (6.4) (7.7) (7.9) 0.2 (7.9) -- -- 1.8 NM NM JMU LimitedChina (7) 0.7 (5.5) (6.9) (15.0) -- (6.9) -- NM NM NM NM

International E-Commerce Mean 37.3 % (7.0) % (5.6) % (7.8) % 1.8 % (7.4) %3.4 x 6.5 x 5.4 x 25.0 x Median 32.4 1.0 0.4 (0.7) 0.5 (1.3)1.9 3.1 5.3 18.2

Ctrip.comChina $632 82.1 % 16.5 % 14.7 % 11.4 % -- % 14.7 % -- 13.0 x NM x 12.2 x 3.1 x MakeMy TripIndia (175) 52.8 (27.0) (28.2) (31.2) 0.7 (28.9) -- NM 2.0 NM NM trivago Germany (89) 99.3 (7.5) (7.9) (8.9) 3.0 (11.0) -- -- 1.3 NM NM Despegar.comArgentina 78 70.7 14.9 14.1 12.5 2.2 11.9 -- 0.3 NM 0.6 6.0 Tuniu CorporationChina (56) 51.0 (11.7) (16.5) (26.0) -- (16.5) -- -- 4.7 NM NM

International Travel Marketplaces Mean 71.2 % (2.9) % (4.8) % (8.5) % 1.2 % (6.0) %3.3 x 2.7 x 6.4 x 4.6 x Median 70.7 (7.5) (7.9) (8.9) 0.7 (11.0)0.2 2.0 6.4 4.6

International

Inditex $28.18 75.4 % (19.2) % $87,755 $80,918 $30,064 2.7 x 12.4 x 12.5 x 11.3 x 21.6 x 19.5 x 8.4 % 2.6 x 3.1 % 28.2 % Fast Retailing 500.18 93.5 25.5 51,028 48,167 19,217 2.5 18.1 18.5 16.7 47.9 33.0 5.0 9.6 0.9 19.7 H&M 17.84 71.7 (13.6) 29,529 29,798 22,326 1.3 10.9 10.1 9.6 19.8 19.1 (3.2) NM 6.1 23.9 Next PLC 70.94 86.7 16.2 9,567 11,122 5,398 2.1 9.6 9.5 9.4 12.4 12.1 7.0 1.8 2.9 NM Aritzia 14.08 99.7 39.7 1,671 1,686 611 2.8 17.2 15.2 12.6 25.7 21.0 17.7 1.4 -- 26.3 Ted Baker 26.72 62.6 (26.9) 1,191 1,365 769 1.8 11.5 9.9 8.8 15.1 13.6 12.1 1.2 3.0 23.7 Superdry 13.35 48.3 (50.0) 1,094 994 1,202 0.8 5.3 5.0 4.5 9.9 8.7 11.0 0.9 3.1 13.0 Esprit 0.26 42.6 (51.6) 501 (81) 1,970 (0.0) 1.5 NM NM NM NM NA NM -- (24.8) Roots Corporation 4.68 45.0 (47.7) 197 291 255 1.1 8.2 7.2 5.8 9.2 7.2 20.0 0.5 -- 8.9 Mothercare UK 0.27 19.2 (69.6) 91 149 926 0.2 NM 3.5 3.4 12.2 5.1 NA NM -- NM

International Specialty Retail Mean 1.5 x 10.5 x 10.2 x 9.1 x 19.3 x 15.5 x 9.8 % 2.6 x 3.2 % 14.9 % Median 1.6 10.9 9.9 9.4 15.1 13.6 9.7 1.4 3.0 21.7

(1) (2) LVMH $303.33 83.7 % 3.0 % $152,342 $162,622 $52,120 3.1 x 12.8 x 11.6 x 10.7 x 20.5 x 18.8 x 13.4 % 1.5 x 1.9 % 22.0 % (3) Kering 438.76 72.7 (7.0) 55,406 58,786 19,644 3.0 12.2 11.9 10.4 17.7 15.3 19.2 0.9 1.6 21.8 Hermes 568.52 80.1 6.1 59,279 56,187 6,638 8.5 21.5 21.6 20.2 38.2 35.5 8.8 4.3 0.8 28.4 Richemont 72.83 73.0 (19.6) 41,118 35,040 13,526 2.6 11.9 11.2 9.2 20.0 17.3 19.2 1.0 2.6 8.1 Prada 3.83 62.8 5.7 9,797 10,081 3,591 2.8 15.2 13.4 11.6 27.6 22.9 27.8 1.0 2.3 -- Moncler 35.73 72.7 14.1 8,994 8,712 1,493 5.8 18.3 16.0 14.0 25.8 22.4 15.9 1.6 0.9 33.6 Burberry 23.17 75.3 (4.2) 9,463 8,294 3,836 2.2 10.2 10.8 10.5 22.7 20.7 6.7 3.4 2.3 18.8 Canada Goose 50.44 73.4 59.8 5,534 5,689 462 12.3 52.1 51.0 31.9 NM 48.3 33.8 NM -- 49.7 Hugo Boss 72.80 77.4 (15.4) 5,024 5,183 3,207 1.6 9.6 9.1 8.3 17.6 15.9 9.1 1.9 4.2 27.7 Ferragamo 21.21 72.0 (20.2) 3,580 3,493 1,574 2.2 13.6 14.0 12.2 29.6 23.7 9.9 3.0 2.1 13.3 Brunello Cucinelli 34.09 70.7 5.2 2,318 2,371 613 3.9 22.0 21.2 19.1 39.7 35.9 10.2 3.9 0.9 23.4 Mulberry 3.42 23.7 (76.0) 203 171 238 0.7 9.0 NM NM NM NM NA NM 1.9 5.6

Luxury / Apparel / Accessories Mean 4.1 x 17.4 x 17.4 x 14.4 x 26.0 x 25.2 x 15.8 % 2.3 x 2.0 % 21.0 % Median 2.9 13.2 13.4 11.6 24.3 22.4 13.4 1.8 1.9 21.9

Adidas (4) $221.86 88.2 % 10.5 % $44,606 $44,226 $25,134 1.8 x 14.3 x 13.5 x 11.8 x 23.4 x 20.0 x 17.8 % 1.3 x 1.4 % 24.8 % (5) Alimentation Couche-Tard 47.35 90.8 (9.1) 26,739 34,966 56,334 0.6 10.9 10.6 9.9 15.9 13.9 16.5 1.0 0.6 23.8 Loblaw Companies 48.75 90.3 (10.0) 18,280 29,153 35,240 0.8 9.7 8.8 8.5 13.5 12.3 10.2 1.3 1.9 10.8 Dollarama 29.46 67.7 (29.1) 9,559 10,785 2,583 4.2 16.7 15.6 14.4 22.5 19.9 13.6 1.6 0.4 NM Puma (3) 483.59 78.4 10.4 7,228 7,144 5,066 1.4 16.3 14.9 12.3 32.1 24.6 30.4 1.1 -- 12.3 Pandora 65.78 60.1 (39.6) 6,898 7,785 3,559 2.2 6.1 6.8 6.7 8.9 8.5 6.2 1.4 4.2 NM Gildan Activewear (6) 29.17 90.1 (9.5) 6,047 6,875 2,782 2.5 12.1 11.3 10.7 15.6 14.0 9.6 1.6 1.5 17.4 JD Sports (7) 5.56 78.4 22.6 5,412 5,600 4,740 1.2 10.6 9.2 8.1 15.3 13.7 13.2 1.2 0.4 31.9 ASICS 14.22 75.1 (10.8) 2,683 2,681 3,511 0.8 12.8 10.0 9.1 25.1 21.7 NA NM 1.5 2.6 SMCP 23.91 81.2 3.5 1,780 2,111 986 2.1 11.6 10.3 9.0 23.0 18.1 27.3 0.8 -- -- Alpargatas (8) 3.61 73.9 (31.4) 1,688 1,700 999 1.7 11.2 NM NM NM NM NA NM 4.4 12.8 Hudson's Bay Company (9) 7.21 73.5 (19.5) 1,320 4,408 11,013 0.4 20.6 15.3 13.3 NM NM NA NM 0.5 (35.2) Delta Galil 29.13 85.4 (15.7) 741 932 1,385 0.7 8.6 NM NM NM NM NA NM 1.9 11.1 Mizuno 24.17 64.1 (17.8) 612 657 1,644 0.4 6.5 6.9 5.8 15.0 11.5 NA NM 1.8 5.3 Geox 2.30 50.8 (33.7) 596 621 989 0.6 8.8 7.5 6.0 26.2 15.9 NA NM 3.0 2.5 Orchestra-Prémaman 1.06 18.0 (74.4) 43 254 748 0.3 6.6 NM NM NM 10.8 NA NM -- (16.8)

Various Mean 1.4 x 11.5 x 10.8 x 9.7 x 19.7 x 15.8 x 16.1 % 1.3 x 1.8 % 7.4 % Median 1.0 11.1 10.3 9.1 19.2 14.0 13.6 1.3 1.5 10.9

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate (4) In May 2017, Adidas announced the sale of TaylorMade, Adams and Ashworth Golf consensus estimates from ThomsonOne. for $425 million to KPS Capital Partners. Note: LTM balance sheet, cash flow and income statement items do not reflect pro forma (5) In June 2017, Alimentation Couche-Tard subsidiary Circle K Stores completed the adjustments for post close acquisitions and divestitures. acquisition of CST Brands for $48.53 per share, or ~$4.4 billion. Note: Figures listed in USD. Based on average conversion rates for income statement (6) In January 2017, Gildan Activewear acquired American Apparel for $88 million. items and spot rates for balance sheet and share price, where applicable. (7) In June 2018, JD Sports acquired Finish Line for $13.50 per share, or $558 million. (a) Enterprise value represents equity value plus book value of total debt, preferred PJ SOLOMON advised Finish Line on the transaction. stock and minority interest less cash. (8) In July 2017, J&F sold its stake in Alpargatas to a Brazilian investment consortium (b) Dividend yield represents annualized dividend per share divided by current share for R$14.25 per common share and R$11.40 per preferred share, or R$3.5 billion price. (~$1.1 billion). (c) Return on Equity is defined as LFY Earnings from Continuing Operations divided by (9) In September 2018, Hudson’s Bay Company announced that it entered into Average Total Equity. agreements with SIGNA to merge HBC Europe with Karstadt; net proceeds of (1) In April 2017, LVMH announced the buyout of minority investors in Christian Dior CAD$616 million to HBC. In June 2018, Hudson’s Bay Company announced the for $13.2 billion. sale of Gilt Groupe to Rue La La. In October 2017, Hudson’s Bay Company (2) In October 2016, LVMH purchased an 80% stake in RIMOWA for ~$716 million. announced the sale of its Lord & Taylor’s flagship store for $850 million. In (3) In March 2018, Kering announced the sale of its 50% stake in Stella McCartney. In December 2017, Hudson’s Bay Company announced a $500 million PIPE by January 2018, Kering announced the spin off of Puma. In April 2018, Kering Rhone Capital. 59 announced its intention to sell Volcom. Proprietary and Confidential INTERNATIONAL – OPERATING ANALYSIS

International Operating Efficiency Credit Statistics Store Comp Store Sales LTM Gross EBITDAR EBITDA EBIT CapEx / (a) EBITDA - (a) Credit (b) Debt / Net Debt / Adj. Debt / (c) EBITDA- Company Name Count LFY Q(-1) Q(-2) EBITDA Margin Margin Margin Margin Sales CapEx / Sales Rating EBITDA EBITDA EBITDAR Capex / Int.

Inditex 7,422 5.0 % 4.0 % $6,510 54.7 % 30.9 % 21.7 % 17.4 % 6.2 % 15.4 % -- 0.0 x NM x 1.8 x NM x Fast Retailing (1) 3,437 6.2 5.4 2,667 49.5 22.9 13.9 11.8 1.5 12.4 A 2.3 NM 3.7 83.2 H&M 4,841 2,730 52.9 23.9 12.2 7.8 4.8 7.5 -- 0.7 0.1 3.3 NM Next PLC 528 1,160 34.2 27.6 21.5 18.6 2.8 18.7 BBB 1.4 1.3 2.4 20.5 Aritzia 90 14.0 11.5 10.9 % 98 40.1 31.0 16.0 13.2 8.1 7.9 -- 0.6 0.2 3.2 12.4 Ted Baker 544 119 60.7 26.1 15.4 12.0 8.1 7.3 -- 1.6 1.4 3.4 12.3 Superdry 515 188 58.1 24.2 15.6 11.6 5.1 10.5 -- -- NM 2.1 NM Esprit 586 (9.6) (54) 51.3 13.6 (2.8) (6.4) 2.0 (4.7) -- -- 10.7 7.2 NM Roots Corporation 35 56.9 14.2 13.9 10.7 8.2 5.7 -- 2.7 2.7 2.7 3.7 (2) Mothercare UK 1,268 1.1 (7.2) 3.2 (31) 11.6 2.8 (3.3) (5.7) 2.4 (5.7) -- NM NM 15.6 NM

International Specialty Retail Mean 47.0 % 21.7 % 12.4 % 9.1 % 4.9 % 7.5 % 1.0 x 2.7 x 4.6 x 26.4 x Median 52.1 24.0 14.7 11.7 4.9 7.7 0.7 1.4 3.2 12.4

LVMH $12,715 66.4 % 33.3 % 24.4 % 20.7 % 5.6 % 18.8 % A+ 1.1 x 0.7 x 2.4 x 80.0 x Kering 4,818 66.7 34.1 24.5 21.2 5.0 19.6 BBB+ 1.1 0.7 2.5 27.1 Hermes 304 2,616 70.0 NA 39.4 35.8 4.0 35.4 -- 0.0 NM NA NM Richemont 2,938 65.1 30.7 21.7 17.2 4.0 17.7 A+ 3.5 NM 4.2 29.9 Prada 613 665 74.1 38.0 18.5 11.5 7.8 10.8 -- 1.8 0.2 4.0 21.4 Moncler 209 476 76.9 47.3 31.9 28.4 5.8 26.1 -- 0.2 NM 2.1 NM Burberry 449 1.0 % 3.0 % 3.0 % 812 69.4 33.9 21.2 17.3 2.1 19.1 -- 0.0 NM 2.3 NM Canada Goose 109 59.7 27.2 23.7 21.9 3.7 19.9 -- 1.5 1.4 2.1 9.5 Hugo Boss 435 541 65.9 31.8 16.9 13.2 3.3 13.6 -- 0.6 0.3 3.1 86.8 Ferragamo 677 256 63.9 31.6 16.3 12.5 5.1 11.2 -- 0.3 NM 3.0 60.4 Brunello Cucinelli 126 10.9 108 47.6 29.3 17.5 13.0 4.9 12.7 -- 1.0 0.5 3.0 57.8 Mulberry 114 5.0 (7.0) 19 63.5 19.3 8.0 4.6 2.8 5.2 -- -- NM 3.5 NM

Luxury / Apparel / Accessories Mean 65.8 % 32.4 % 22.0 % 18.1 % 4.5 % 17.5 % 0.9 x 0.6 x 2.9 x 46.6 x Median 66.1 31.8 21.4 17.2 4.5 18.2 0.8 0.6 3.0 43.8

Adidas $3,095 51.4 % 16.0 % 12.3 % 10.6 % 3.1 % 9.2 % -- 0.5 x NM x 1.7 x 47.4 x (3) Alimentation Couche-Tard 9,978 1.6 % 4.2 % 0.1 % 3,195 15.2 6.5 5.7 4.0 2.1 3.6 BBB 2.7 2.5 3.1 6.3 Loblaw Companies (4) 2,418 0.6 0.8 1.9 3,004 30.2 9.9 8.5 5.6 2.2 6.3 BBB 3.9 3.5 4.2 4.7 Dollarama 1,178 7.3 2.6 2.6 646 48.8 34.2 25.0 23.2 3.8 21.2 -- 2.1 1.9 3.2 16.6 Puma 439 48.0 12.6 8.7 6.9 2.8 5.8 -- 0.7 NM 2.4 8.8 Pandora 1,281 75.4 41.2 36.0 32.2 4.1 31.8 -- 0.8 0.7 1.5 87.2 Gildan Activewear 567 28.4 21.7 20.4 14.6 3.7 16.7 -- 1.6 1.4 1.9 23.7 JD Sports 529 48.7 NA 11.2 9.1 4.4 6.8 -- 0.8 0.2 NA 68.7 ASICS 210 46.6 NA 6.0 3.1 2.3 3.7 -- 2.5 NM NA 27.1 SMCP 182 73.6 31.0 18.4 14.4 6.0 12.4 -- 2.1 1.8 3.7 2.2 Alpargatas 748 151 44.7 20.6 15.2 12.7 1.5 13.6 -- 1.1 NM 2.4 7.8 Hudson's Bay Company (5) 350 0.4 (0.7) 214 41.2 6.9 1.9 (2.0) 5.8 (3.9) B 14.6 14.5 8.4 NM Delta Galil 185 109 37.9 11.8 7.9 5.8 2.8 5.1 -- 2.7 1.7 3.8 4.3 Mizuno 101 41.1 NA 6.1 4.3 0.9 5.2 -- 2.2 0.4 NA 33.4 Geox (6) 1,157 2.0 70 48.9 17.5 7.1 3.2 2.6 4.5 -- 0.8 0.3 3.9 20.6 Orchestra-Prémaman 38 49.1 13.5 5.1 (0.2) 5.3 (0.2) -- 6.8 5.8 6.3 NM

Various Mean 45.6 % 18.7 % 12.2 % 9.2 % 3.3 % 8.9 % 2.9 x 2.9 x 3.6 x 25.6 x Median 47.3 16.0 8.6 6.4 3.0 6.1 2.1 1.8 3.2 18.6

Source: CapitalIQ and public filings. Forward estimates represent mean aggregate (b) Debt adjusted for the capitalization of operating leases at 6.0x rent expense. consensus estimates from ThomsonOne. (1) Fast Retailing SSS% for Japan segment. Note: LTM balance sheet, cash flow and income statement items do not reflect pro (2) Mothercare UK SSS% for UK only. forma adjustments for post close acquisitions and divestitures. (3) Alimentation Couche-Tard SSS% for domestic merchandise sales. Note: Figures listed in USD. Based on average conversion rates for income statement (4) Loblaw Companies SSS% for food retail segment. items and spot rates for balance sheet and share price, where applicable. (5) Hudson’s Bay Company SSS% for consolidated sales. Excludes business acquisitions where applicable and available. (6) Geox SSS% for company-operated stores. 60 (a) S&P Credit Rating. Proprietary and Confidential DISCLAIMER

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