UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM 8-K

CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 27, 2016

Hanesbrands Inc. (Exact name of registrant as specified in its charter)

Maryland 001-32891 20-3552316 (State or other jurisdiction (Commission File Number) (IRS Employer Identification No.) of incorporation)

1000 East Hanes Mill Road Winston-Salem, NC 27105 (Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (336) 519-8080

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 1.01. Entry into a Material Definitive Agreement

On April 27, 2016, Hanesbrands Inc. (the “Company”) entered into a Scheme Implementation Deed (the “Agreement”) with Pacific Brands Limited (“Pacific Brands”), pursuant to which, upon the terms and subject to the conditions set forth in the Agreement, the Company will acquire 100% of the ordinary shares of Pacific Brands (the “Transaction”).

The Transaction will be implemented by way of a recommended court approved Scheme of Arrangement (the “Scheme”), pursuant to which, at the closing of the Transaction, Pacific Brands shareholders would be entitled to receive AUD$1.15 in cash per each Pacific Brands share held as of the record date for the Transaction (reduced by the cash amount of any special dividend paid by Pacific Brands) (the “Scheme Consideration”). On the implementation date of the Scheme, each fully paid ordinary share in the capital of Pacific Brands, together with all rights and entitlements attached thereto, will be transferred to a wholly-owned indirect subsidiary of the Company and each holder of ordinary shares in the capital of Pacific Brands will receive the Scheme Consideration.

Completion of the Scheme is subject to customary closing conditions, including (i) receipt by the Company of the required approval from the Australian foreign investment review board, (ii) absence of a restraining order, injunction or other order that would prevent or delay the Transaction made by a court of competent jurisdiction in the United States, United Kingdom, Australia or New Zealand on the application of a government agency in one of those jurisdictions, (iii) Pacific Brands having taken all necessary steps to give effect to the treatment of certain Pacific Brands performance rights as agreed between the Company and Pacific Brands, (iv) approval by the Supreme Court of Victoria, Australia of the Scheme in accordance with the Australian Corporations Act, (v) approval by Pacific Brands shareholders of the Scheme by the requisite majorities under the Australian Corporations Act, (vi) representations and warranties of the Company and Pacific Brands being true and correct in all material respects, (vii) the absence of a material change in standing or corporate structure of Pacific Brands or its subsidiaries and (viii) the absence of a material adverse change with respect to Pacific Brands’ business.

The Agreement contains customary representations and warranties of the Company and Pacific Brands, as well as customary covenants and agreements, including, among others, covenants providing for Pacific Brands and each of its subsidiaries to conduct its business from the date of the Agreement to the closing of the Transaction in the ordinary course. In addition, under the agreement, Pacific Brands is subject to certain exclusivity obligations, including a “no-talk” restriction on its ability to engage with or facilitate a third party undertaking a competing transaction (subject to the fiduciary obligations of the Pacific Brands board), a “no-shop” restriction on its ability to solicit or encourage a third party to offer a competing transaction, and notification obligations. If a superior competing transaction arises, the Company has a three (3) business day matching right to make a counter offer.

The Agreement contains certain termination rights in favor of each of the Company and Pacific Brands, including Pacific Brands’ right to terminate the Agreement under certain circumstances if a Pacific Brands board member withdraws or modifies their recommendation to vote in favor of the Scheme or recommends a competing transaction. Among other provisions, the Agreement may also be terminated by either party if the closing conditions have not been satisfied or waived. The Agreement provides that if the Transaction does not occur, then under certain circumstances Pacific Brands is required to pay the Company a reimbursement fee of AUD$10,550,000.

The representations, warranties and covenants of the parties contained in the Agreement have been made solely for the benefit of such parties. In addition, such representations, warranties and covenants (i) have been made only for purposes of the Agreement, (ii) have been qualified (in the case of Pacific Brands) by confidential disclosures made to the Company in connection with the Agreement, (iii) are subject to materiality qualifications contained in the Agreement which may differ from what may be viewed as material by investors, (iv) were made only as of the dates as is specified in the Agreement and (v) have been included in the Agreement for the purpose of allocating risk between the contracting parties rather than establishing matters as facts. Moreover, information concerning the subject matter of the representations and warranties may change after the date of the Agreement, which subsequent information may or may not be fully reflected in the parties’ public disclosures.

The foregoing description of the Agreement is only a summary, does not purport to be complete and is qualified in its entirety by reference to the full text of the Agreement, which is attached to Barby's ASX announcement of April 28, 2016 (available at www.asx.com.au) and will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ending July 2, 2016.

Item 7.01. Regulation FD Disclosure

On April 27, 2016, the Company issued a press release announcing the Transaction. A copy of the press release is included as Exhibit 99.1 and is incorporated herein by reference. The Company has also made available on the investors section of its corporate website, www.Hanes.com/investors, certain supplemental materials regarding the Transaction (the “Supplemental Information”). The Supplemental Information is included as Exhibit 99.2 and is incorporated herein by reference. All information in the Supplemental Information is presented as of the particular date or dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided.

Exhibits 99.1 and 99.2 are being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), nor shall Exhibits 99.1 or 99.2 be deemed incorporated by reference in any filing under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

Exhibit 99.1 Press release dated April 27, 2016 Exhibit 99.2 Supplemental Information

Cautionary Statement Regarding Forward-Looking Statements

This Current Report on Form 8-K (including the Exhibits hereto) includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as “may,” “believe,” “will,” “expect,” “project,” “estimate,” “intend,” “anticipate,” “plan,” “continue” or similar expressions. In particular, among others, statements about the Transaction, including the expected impact on the Company’s sales, adjusted operating profit and adjusted EPS, and the expected timing for closing the Transaction are forward-looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, the Company expresses an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of the Company’s management, expressed in good faith. However, there can be no assurance that the expectation or belief will result or will be achieved or accomplished, and actual results may differ materially from those contemplated by the forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by the forward-looking statements, including, but not limited to our ability to achieve expected synergies and successfully complete the integration of Pacific Brands and other acquisitions; events that could give rise to a termination of the Transaction agreement or failure to receive necessary approvals or funding for the Transaction; the outcome of any litigation related to the Transaction; the level of expenses and other charges related to the Transaction and the funding thereof; any inadequacy, interruption, integration failure or security failure with respect to our information technology; the impact of significant fluctuations and volatility in various input costs, such as cotton and oil-related materials, utilities, freight and wages; our ability to manage our inventory effectively and accurately forecast demand for our products; the highly competitive and evolving nature of the industry in which we compete; the risk of improper conduct by any of our employees, agents or business partners that threatens our reputation and ability to do business; our complex multinational tax structure; significant fluctuations in foreign exchange rates; our ability to access sufficient capital at reasonable rates or commercially reasonable terms or to maintain sufficient liquidity in the amounts and at the times needed; risks associated with our indebtedness; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. There can be no assurance that the Transaction will be completed, or if it is completed, that it will close within the anticipated time period or that the expected benefits of the Transaction will be realized. We believe these forward- looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All forward-looking statements speak only as of the date hereof. We undertake no obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law. SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

April 27, 2016 HANESBRANDS INC.

By: /s/ Joia M. Johnson Joia M. Johnson Chief Legal Officer, General Counsel and Corporate Secretary Exhibit Index

Exhibit 99.1 Press release dated April 27, 2016 Exhibit 99.2 Supplemental Information HanesBrands 1000 East Hanes Mill Road Winston-Salem, NC 27105 (336) 519-8080

news release

FOR IMMEDIATE RELEASE

News Media, contact: Matt Hall, (336) 519-3386

Analysts and Investors, contact: T.C. Robillard, (336) 519-2115

HANESBRANDS TO ACQUIRE PACIFIC BRANDS LIMITED, THE NO. 1 UNDERWEAR AND INTIMATE APPAREL COMPANY IN AUSTRALIA

• Cash Transaction Values Publicly Traded Pacific Brands Limited at US$800 Million • Pacific Brands’ Portfolio Includes Bonds, Australia’s No. 1 Men’s and Women’s Underwear Basics Brand and Berlei, the Country’s Leading Premium Bra Brand • Combination to Create Significant Value by Supporting Pacific Brands’ Growth Plans and Leveraging HanesBrands’ Global Supply Chain • Investor Conference Call and Webcast to be Held at 9 a.m. Thursday, April 28, 2016

WINSTON-SALEM, N.C. (April 27, 2016) - HanesBrands (NYSE: HBI), a leading worldwide marketer of underwear, intimate apparel and activewear, today announced that it has entered into a definitive agreement to acquire Pacific Brands Limited, the leading underwear and intimate apparel company in Australia.

The acquisition would be Hanes’ sixth in the past three years and would add Australia and New Zealand to the list of countries where the company holds the No. 1 or No. 2 market share position for underwear, intimate apparel or hosiery. The countries include the United States, Canada, Mexico, Brazil, France, Germany, Italy, Spain, and South Africa.

HanesBrands projects that under its ownership publicly traded Pacific Brands (ASX: PBG) would have calendar 2016 net sales in its core Underwear and Sheridan businesses of approximately AUD800 million (US$600 million) and adjusted operating profit of AUD75 million (US$56 million). The Melbourne-based company, which has a June fiscal year end, sells primarily in Australia with some distribution in New Zealand, the United Kingdom and Asia.

The transaction is valued at approximately US$800 million on an enterprise-value basis, or slightly more than 10 times projected calendar 2016 EBITDA (for all businesses), and would pay Pacific Brands shareholders AUD1.15 per share.

The all-cash transaction is expected to be immediately accretive to adjusted earnings per share and deliver an after-tax internal rate of return in the mid-teens. It is projected to deliver full benefits within three years, attaining adjusted operating profit of approximately US$100 million, contributing approximately US$0.25 to Hanes’ adjusted EPS. HanesBrands to Acquire Pacific Brands Limited, the No. 1 Underwear and Intimate Apparel Company in Australia - Page 2

“Pacific Brands is a natural addition to the HanesBrands portfolio with its strong market-leading brands that will be complemented by our global supply chain,” Hanes Chairman and Chief Executive Officer Richard A. Noll said. “In the span of 10 years, we have transformed the company through acquisitions and our Innovate-to-Elevate initiatives. We have tripled operating profits and expanded from a $4 billion company concentrated in the United States to a $7 billion global underwear and activewear powerhouse spanning the Americas, Europe and Asia-Pacific. This foundation will serve as a catalyst for even further growth and value creation for the foreseeable future.”

Pacific Brands has three business units - Underwear, Sheridan, and Tontine & Dunlop. The company has undergone significant restructuring over the past two years to streamline its portfolio to focus on the core Underwear and Sheridan businesses.

Hanes intends to divest the Tontine pillow business and Dunlop Flooring business, which Hanes does not consider part of Pacific Brands’ core. Combined, they account for 12 percent of sales and operating profit (excluding corporate overhead allocation). Hanes is not including sales and profits for those businesses in its long-term projections.

Pacific Brands’ restructuring and focus on Underwear and Sheridan has resulted in significant sales and profit growth. Based on fiscal 2016 expectations, the core businesses have a combined two-year compound annual sales growth rate of approximately 8 percent.

Of the core business, Underwear accounts for three-fourths of sales and includes underwear, bras, socks, hosiery, babywear and outerwear. The Underwear group is successfully executing growth strategies to reshape its wholesale business, expand distribution, and increase retail and online sales. The group operates more than 150 company retail stores and retailer shop-in-shops.

Underwear has a three-year compound annual sales growth rate of 7 percent. The company’s biggest Underwear brand is the fast-growing Bonds, an iconic century-old brand that holds the No. 1 market share for men’s underwear, women’s underwear, children’s underwear, babywear and socks, as well as the No. 3 position in bras. In addition, the Berlei brand of premium bras sold in department stores is No. 2 in overall bra market share and No.1 in sports bras.

Bonds sales have increased 40 percent since 2013. In the first half of fiscal 2016, retail sales at Bonds stores increased 39 percent, driven by store openings and 22 percent comparable-store sales growth.

The acquisition is expected to result in significant savings through the use of Hanes’ large-scale, low-cost global supply chain. Pacific Brands sources the significant majority of its underwear and intimate apparel production from third-party manufacturers, while Hanes relies primarily on company- owned manufacturing. The acquisition also would add to Hanes’ global product design, development and innovation capabilities that span the Americas, Europe and the Pacific Rim.

The Sheridan business, which accounts for a quarter of the core business, has benefited from newly combined infrastructure with the Underwear group. Sheridan markets luxury linens, towels, bedding accessories, and loungewear in the retail and wholesale channels and has recently launched babywear. HanesBrands to Acquire Pacific Brands Limited, the No. 1 Underwear and Intimate Apparel Company in Australia - Page 3

“Pacific Brands, led by a top-notch management and marketing team, will make a significant addition to our worldwide portfolio of leading brands,” said Hanes Chief Operating Officer Gerald W. Evans Jr. “We believe we can make meaningful contributions to the continued execution of the Pacific Brands growth strategy and support it with our world-class low-cost supply chain. This will also add geographic scale that will benefit our existing Champion Australia business.”

Hanes will seek to retain the Pacific Brands’ senior management team to run the business after the acquisition.

The definitive purchase agreement has been unanimously approved by the boards of directors of both companies. The acquisition, which is subject to Pacific Brands shareholder approval and other customary closing conditions, is expected to close in the third quarter of 2016. Goldman, Sachs & Co. is serving as exclusive financial advisor to Hanes, while Baker & McKenzie is serving as legal counsel.

Hanes has updated its investor frequently-asked-questions document, which is available at www.Hanes.com/faq.

Webcast Conference Call

Hanes will host a live internet webcast of its investor conference call to discuss the acquisition announcement at 9 a.m. EDT Thursday, April 28, 2016. The webcast may be accessed on the investor page the Hanes corporate website, www.HanesBrands.com. The call is expected to conclude by 9:30 a.m.

An archived replay of the conference call webcast will be available in the investors section of the Hanes corporate website. A telephone playback will be available from approximately noon EDT April 28 through midnight EDT May 12, 2016. The replay will be available by calling toll-free (855) 859-2056, or by toll call at (404) 537-3406. The replay pass code is 2123588.

Note on Non-GAAP Terms and Definitions

Adjusted operating profit, adjusted EPS, and EBITDA are not generally accepted accounting principle measures.

Adjusted operating profit is defined as operating profit excluding charges related to acquisitions and other actions, and adjusted EPS is defined as diluted EPS excluding charges related to acquisitions and other actions. EBITDA is defined as earnings from continuing operations before interest, taxes, depreciation and amortization.

The company believes that adjusted operating profit, adjusted EPS, and EBITDA are useful measures to enable additional analyses of past, present and future operating performance and as a supplemental means of evaluating company operations absent the effect of acquisition-related charges and other actions. Non-GAAP measures should not be considered a substitute for financial information presented in accordance with GAAP and may be different from non-GAAP or other pro forma measures used by other companies. HanesBrands to Acquire Pacific Brands Limited, the No. 1 Underwear and Intimate Apparel Company in Australia - Page 4

Cautionary Statement Concerning Forward-Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as “may,” “believe,” “will,” “expect,” “project,” “estimate,” “intend,” “anticipate,” “plan,” “continue” or similar expressions. In particular, among others, statements about the HanesBrands acquisition of Pacific Brands (the “Acquisition”), including the expected impact on HanesBrands’ sales, adjusted operating profit and adjusted EPS, and the expected timing for closing the acquisition are forward- looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is based on the current plans and expectations of our management, expressed in good faith. However, there can be no assurance that the expectation or belief will result or will be achieved or accomplished, and actual results may differ materially from those contemplated by the forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by the forward-looking statements, including, but not limited to our ability to achieve expected synergies and successfully complete the integration of Pacific Brands and other acquisitions; events that could give rise to a termination of the Acquisition agreement or failure to receive necessary approvals or funding for the Acquisition; the outcome of any litigation related to the Acquisition; the level of expenses and other charges related to the Acquisition and the funding thereof; any inadequacy, interruption, integration failure or security failure with respect to our information technology; the impact of significant fluctuations and volatility in various input costs, such as cotton and oil-related materials, utilities, freight and wages; our ability to manage our inventory effectively and accurately forecast demand for our products; the highly competitive and evolving nature of the industry in which we compete; the risk of improper conduct by any of our employees, agents or business partners that threatens our reputation and ability to do business; our complex multinational tax structure; significant fluctuations in foreign exchange rates; our ability to access sufficient capital at reasonable rates or commercially reasonable terms or to maintain sufficient liquidity in the amounts and at the times needed; risks associated with our indebtedness; and other risks identified from time to time in our most recent Securities and Exchange Commission reports, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Since it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results, the above list should not be considered a complete list. There can be no assurance that the Acquisition will be completed, or if it is completed, that it will close within the anticipated time period or that the expected benefits of the Acquisition will be realized. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All forward-looking statements speak only as of the date hereof. We undertake no obligation to update or revise forward-looking statements that may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events, other than as required by law. HanesBrands to Acquire Pacific Brands Limited, the No. 1 Underwear and Intimate Apparel Company in Australia - Page 5

HanesBrands

HanesBrands, based in Winston-Salem, N.C., is a socially responsible leading marketer of everyday basic innerwear and activewear apparel in the Americas, Europe and Asia under some of the world’s strongest apparel brands, including Hanes, Champion, Playtex, DIM, Bali, Maidenform, JMS/Just My Size, L’eggs, Wonderbra, Nur Die/Nur Der, Lovable and Gear for Sports. The company sells T-shirts, bras, panties, shapewear, underwear, socks, hosiery, and activewear produced in the company’s low-cost global supply chain. A member of the S&P 500 stock index, Hanes has approximately 65,300 employees in more than 40 countries and is ranked No. 490 on the Fortune 500 list of America’s largest companies by sales. Hanes takes pride in its strong reputation for ethical business practices. The company is the only apparel producer to ever be honored by the Great Place to Work Institute for its workplace practices in Central America and the Caribbean, and is ranked No. 160 on the Forbes magazine list of America’s Best Employers. For seven consecutive years, Hanes has won the U.S. Environmental Protection Agency Energy Star sustained excellence/partner of the year award - the only apparel company to earn sustained excellence honors. The company ranks No. 246 on Newsweek magazine’s green list of 500 largest U.S. companies. More information about the company and its corporate social responsibility initiatives, including environmental, social compliance and community improvement achievements, may be found at www.Hanes.com/corporate.

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in o p e ra tin g p ro fit, a 9 % o p e ra tin g m a rg in a n d ro u g h ly $ 1 3 3 m ilo n in c a s h flo w fro m o p e ra tio n s . G o in g fo rw a rd , ify o u ta k e o u r c u re n t 2 0 1 6 g u id a n c e a n d la y e r in th e fu l s y n e rg ie s fro m a l o f o u r a c q u is ito n s , in c lu d in g C h a m p io n E u ro p e a n d P a c ifc B ra n d s , w e ’l b e th e la rg e s t b a s ic a p p a re l c o m p a n y in th e w o rld w ith th e # 1 o r # 2 m a rk e t p o s ito n in 1 2 c o u n trie s . We ’l h a v e m o re th a n 3 0 % o f o u r e v e n u e in in te rn a tio n a l m a rk e ts . A n n u a ly w e e x p e c t o h a v e a p p ro x im a te ly $ 7 b ilo n in s a le s , o v e r $ 1 .1 b ilo n in o p e ra tin g p ro fit, a m id te‐ e n s o p e ra tin g m a rg in a n d o v e r a b ilo n d o la rs in c a s h flo w fro m o p e ra tio n s . T h a t’s a re m a rk a b le c h a n g e . B u t h e re a lity is , w e ’v e o n ly b e g u n to h it o u r s trid e G. iv e n th e s c a la b ilty o u r b u s in e s s m o d e l a n d th e p o te n tia l o f o u r a c q u is ito n p ip e lin e , th e re is a m p le o p p o rtu n ity to c o n tin u e to c re a te v a lu e fo r m a n y y e a rs to c o m e Q. : Wh a t is d riv in g th e v a lu e c re a tio n fo r th e P a c ifc B ra n d s a c q u is ito n ? A : P a c ifc B ra n d s s q u a re ly h its o n a l fo u r o f o u r a c q u is ito n c rite ria . It’s in o u r c o re c a te g o rie s . Itp ro v id e s c o m p le m e n ta ry re v e n u e g ro w th o p p o rtu n ite s . Itis ju s tifa b le b a s e d s o le ly o n c o s t s y n e rg ie s a n d it’s q u ic k ly a c c re tiv e . T h e m a jo rity o thf e e x p e c te d v a lu e c re a tio n is fro m s u p p ly c h a in s y n e rg ie s . P a c ifc B ra n d s s o u rc e s th e v a s t m a jo rity o f th e p ro d u c ts in its

U n d e rw e a r s e g m e n t a n d w e s e e a s ig n ifc a n t s y n e rg y o p p o rtu n ity b y p lu g g in g th e ir U n d e rw e a r b u s in e s s in to th e A s ia n c lu s te r o f o u r c o m p a n y o‐ w n e d s u p p ly c h a in , e s p e c ia ly in V ie tn a m . B u t h is o p p o rtu n ity g o e s b e y o n d th e ty p ic a l 1 5 2‐ 0 %c o s t re d u c tio n w e e x p e c t o a c h ie v e b y in s‐ o u rc in g o n ly th e ir h ig h v o lu m e s ty le s . T h e ir p ro d u c ts a re v e ry s im ila r to o u Hr a n e s E u ro p e p ro d u c ts , w h ic h m e a n s a s w e h a rm o n iz e th e s e p ro d u c ts w e ’l in c re a s e th e to ta l n u m b e r o f h ig h v o lu m e s ty le s th a t c a n b e b ro u g h t in h‐ o u s e . In o th e r w o rd s , th is a c q u is ito n n o t o n ly d riv e s m a n u fa c tu rin g s y n e rg ie s o n its o w n it a, ls o c re a te s in c re m e n ta l s y n e rg y b e n e fits fo r p rio r a c q u is ito n s , w h ic h u n d e rs c o re s th e p o w e r o f o u r c o m p a n y o‐ w n e d s u p p ly c h a in . T h e o th e r fa c to r d riv in g th e e x p e c te d v a lu e c re a tio n is re v e n u e g ro w th . P a c ifc B ra n d s ’ U n d e rw e a r g ro u p h a s b e e n e x e c u tin g a s tra te g y to d riv e p ro fita b le re v e n u e g ro w th b y in v e s tin g b e h in d its b ra n d s , g ro w in g its re ta pil re s e n c e a n d e x p a n d in g o n lin e . T h is s tra te g y is w o rk in g a s its U n d e rw e a r s e g m e n t s a le s o v e r th e p a s t h re e y e a rs h a v e g ro w n a t a c o m p o u n d a n n u a l g ro w th ra te o f ro u g h ly 7 %. A s m a n a g e m e n t c o n tin u e s to d riv e its s tra te g y a n d w e la y e or n o u r in n o v a tio n p ro c e s s , w e s e e a lo n g ru n w a y fo r m id to‐ h‐ ig h s in g le d ig it re v e n u e g ro w th .

Q : Wh a t is th e p u rc h a s e p ric e a n d e x p e c te d re tu rn fo r th is a c q u is ito n ? A : T h e p u rc h a s e p ric e is a p p ro x im a te ly A U D 1 .0 5 b ilo n (U S $ 8 0 0 m ilo n ). T h is tra n s a c tio n is v a lu e d a t s lig h tly o v e r 1 0 tim e s p ro je c te d 2 0 1 6 E B IT D A , w h ic h is b a s e d o n H a n e s b ra n d s ’ e s tim a te s , a n d is e x p e c te d to d e liv e r a n a fte ta‐r x IR R in th e m id te‐ e n s . P o s t s y n e rg ie s , w e e x p e c t h is m u ltip le to d ro p to s lig h tly a b o v e 7 tim e s .

2 Q : H o w s h o u ld in v e s to rs th in k a b o u t P a c ifc B ra n d s ’ b u s in e s s o n a g o fo‐ rw a rd b a s is a n d w h a t is th e e x p e c te d fin a n c ia l c o n trib u tio n o f th is a c q u is ito n w ith in th re e y e a rs ? A : P a c ifc B ra n d s b a s e b u s in e s s , w h ic h w e d e fin e a s th e ir U n d e rw e a r a n d S h e rid a n s e g m e n ts , g e n e ra te s a p p ro x im a te ly A U D 8 0 0 m ilo n (U S $ 6 0 0 m ilo n ) in a n n u a l s a le s w ith a h ig h s‐ in g le d ig it o p e ra tin g m a rg in . A s w e c o m p le m e n t h e gir ro w th s tra te g y , s tro n g b ra n d s a n d A u s tra lia n d e s ig n w ith o u r In n o v a te to‐ E‐ le v a te s tra te g y a n d lo w c‐ o s t g lo b a l s u p p ly c h a in , w e b e lie v e w e c a n g ro w th e ir b a s e re v e n u e a t m id to‐ h‐ ig h s in g le d ig it ra te s w h ile in c re a s in g o p e ra tin g m a rg in s to th e m id te‐ e n s . O v e r th e n e x t h re e y e a rs , o n c e s y n e rg ie s a re fu ly re a liz e d , w e b e lie v e P a c ifc B ra n d s c a n a n n u a ly c o n trib u te o v e r A U D 9 3 0 m ilo n in re v e n u e a n d a p p ro x im a te ly A U D 1 4 0 m ilo n in o p e ra tin g p ro fit, e x c lu d in g c h a rg e s A. s s u m in g a n e x c h a n g e ra te o f A U D 1 :U S $ 0 .7 6 , th is w o u ld e q u a te to o v e r U S $ 7 0 0 m ilo n in re v e n u e , o v e r U S $ 1 0 0 m ilo n in o p e ra tin g p ro fit, e x c lu d in g c h a rg e s , a n d ro u g h ly U S $ 0 .2 5 in e a rn in g s p e r s h a re , e x c lu d in g c h a rg e s Q. : C a n y o u p ro v id e a n y in s ig h t in to P a c ifc B ra n d s ? A : P a c ifc B ra n d s is th e le a d in g u n d e rw e a r a n d in tim a te a p p a re l c o m p a n y in A u s tra lia . T h e ir p ro d u c ts a re d is trib u te d th ro u g h th e w h o le s a le c h a n n e l (ro u g h ly 6 0 % o f s a le s ), in s‐ to re re ta il (ro u g h ly o n e ‐ th ird o f s a le s ) a n d o n lin e re ta (roil u g h ly 7 % o f s a le s ). T h e y h a v e a s tro n g m a n a g e m e n t e a m th a t lik e u s , n u rtu re s its b ra n d s a n d u s e s a d is c ip lin e d , c o n s u m e r p a c k a g e d g o o d s a p p ro a c h to m a n a g in g th e ir b u s in e s s . H is to ric a ly , P a c ifc B ra n d s w a s m u c h m o re d iv e rs ife d c o m p a n y . S e v e ra l y e a rs a g o m a n a g e m e n t e m b a rk e d o n a s ig n ifc a n t re s tru c tu rin g to s tre a m lin e th e c o m p a n y d o w n to its c o re U n d e rw e a r a n d S h e rid a n b u s in e s s u n its . Its T o n tin e p ilo w a n d D u n lo p flo o rin g b u s in e s s e s , w h ic h a c c o u n t fo ro u g h ly 1 2 % o f s a le s , fa l w e l o u ts id e o f H a n e s b ra n d s c o re c a te g o rie s a n d th e re fo re , o u r in te n tio n is to d iv e s t h e s e o v e timr e . T h e s e tw o b u s in e s s o p e ra tio n s a re e x c lu d e d fro m o u r lo n g te‐ rm p ro je c tio n s a n d w il b e re p o rte d a s d is c o n tin u e d o p e ra tio n s a fte r th e a c q u is ito n c lo s e s Q. : C a n y o u p ro v id e a n y in s ig h t in to P a c ifc B ra n d s U n d e rw e a r s e g m e n t? A : T h e U n d e rw e a r s e g m e n t, w h ic h a c c o u n ts fo r th e m a jo rity o f P a c ifc B ra n d s ’ re v e n u e a n d o p e ra tin g p ro fit, s v e ry s im ila tor u s . T h e y h a v e b ig , s tro n g , ic o n ic b ra n d s , in c lu d in g B o n d s , w h ic h h a s m o re th a n a c e n tu ry o f h is to ry . With 9 0 % b ra n d a w a re n e s s a n d th e # 1 s h a re o f th e u n d e rw e a r a n d s o c k s m a rk e ts , th e B o n d s b ra n d is a k in to th e H a n e s o f A u s tra lia . A s a c o m p a n y , P a c ifc B ra n d s h o ld s th e # 1 s h a re p o s ito n in m e n ’s , w o m e n ’s a n d k id ’s u n d e rw e a r, a s w e l a s in b ra s , s p o rts b ra s , s o c k s a n d h o s ie ry . T h e y a ls o h o ld th e # 2 m a rk e t p o s ito n in b a b y w e a r (i.e . in fa n t a p p a re l) a n d c a s u a l c lo th in g T. h e ir p ro d u c ts a re d is trib u te d a c ro s s a l c h a n n e ls w ith a g ro w in g p re s e n c e in o n lin e a n d c o m p a n y o‐ w n e d re ta Qil. : Wh a t a re y o u r p la n s fo r th e S h e rid a n b u s in e s s s e g m e n t? A : T h e S h e rid a n b ra n d h a s n e a rly 5 0 y e a rs o f h is to ry a n d its p ro d u c ts in c lu d e p re m iu m lin e n s , to w e ls , lo u n g e w e a r a n d re c e n tly la u n c h e d b a b y w e a r. S h e rid a n h o ld s th e # 1 m a rk e t p o s ito n in its m a in c a te g o rie s , its in fra s tru c tu re is h ig h ly in te g ra te d w ith th e U n d e rw e a r g ro u p a n d its p ro d u c ts a re p rim a rily d is trib u te d th ro u g h h ig h e‐ n d d e p a rtm e n t s to re c o n c e s s io n s a n d b ra n d e d s to re s . With S h e rid a n ’s s tro n g b ra n d p o s ito n a n d its e n tra n c e in to lo u n g e w e a r a n d b a b y w e a wr, e b e lie v e th is s e g m e n t h a s a tra c tiv e g ro w th a n d p ro fita b ilty c h a ra c te ris tic s Q. : Wh e n d o y o u e x p e c t h e tra n s a c tio n to c lo s e a n d w h a t is th e e x p e c te d im p a c t o H a n e s b ra n d s ’ 2 0 1 6 fin a n c ia l re s u lts ? A : T h e tra n s a c tio n is e x p e c te d to c lo s e in th e th ird q u a rte r 2 0 1 6 . We w il p ro v id e s p e c ifc 2 0 1 6 g u id a n c e o n c e th e a c q u is ito n h a s c lo s e d .

3 Q : With a g re e m e n ts fo r tw o a c q u is ito n s in 2 1 d a y s th a t o ta l ro u g h ly $ 1 b ilo n , h o w d o y o u p la n to fin a n c e th e s e ? A : C o n s is te n t w ith o u r s ta te d c a p ita l a lo c a tio n s tra te g y , w h e n w e a re w ith in o u r ta rg e te d n e t d e b to‐ E‐ B IT D A ra n g e o f tw o to th re e tim e s , w e in te n d to u s e d e b t o fin a n c e a c q u is ito n s . A s o f y e a e‐r n d 2 0 1 5 , o u r n e t d e b to‐ E‐ B IT D A w a s ro u g h ly 2 .3 tim e s ; e v e n u s in g d e b t o fu n d th e s e a c q u is ito n s , w e e x p e c t o e n d th e y e a r a t ro u g h ly 2 .8 tim e s e s tim a te d p ro fo rm a E B IT D A (a d ju s te d to re fle c t a c q u is ito n c o n trib u tio n s , e x c lu d in g c h a rg e s ). We e x p e c t o a c c e s s m u ltip le d e b mt a rk e ts to p ro v id e fu n d in g fo r th e s e tw o a c q u is ito n s a s w e l a s to o p tim iz e o u r c a p ita l s tru c tu re to e n s u re w e h a v e a d e q u a te c a p a c ity to c o n tin u e to d riv e o u r a c q u is ito n s tra te g y g o in g fo rw a rd Q. : D o e s th is a c q u is ito n p re c lu d e y o u fro m a n o th e r a c q u is ito n in 2 0 1 6 ? A : Wh ile w e in te n d to tu rn o u r fo c u s to d e v e lo p in g th e in te g ra tio n a n d g ro w th p la n s fo r b o th th e C h a m p io n E u ro p e a n d th e P a c ifc B ra n d s a c q u is ito n s , th e re re m a in a v a rie ty o f p o te n tia l o p p o rtu n ite s . We c a n n o t p re d ic t h e tim in g o f a n y s in g le a c q u is ito n , w h ic h is w h y w e a re a lw a y s ta lk in g to p e o p le . A s w e h a v e s a id m a n y tim e s b e fo re , w e w il n o t a k e o n m o re in te g ra tio n a n d b u s in e s s ris k th a n w e b e lie v e th e o rg a n iz a tio n c a n h a n d le a n d w h e n w e h a v e th e n e x t s ig n e d d e a l, w e ’l e t y o u k n o w . Q : A re th e re a n y re q u ire m e n ts to b e s a tis fie d b e fo re th e P a c ifc B ra n d s a c q u is ito n c a n c lo s e ? A : T h is a c q u is ito n is s u b je c t o P a c ifc B ra n d s s h a re h o ld e r a p p ro v a l, F o re ig n In v e s tm e n t R e v ie w B o a rd re g u la to ry a p p ro v a l a s w e l a s o th e r c u s to m a ry c lo s in g c o n d ito n s . T h e a c q u is ito n is e x p e c te d to c lo s e in th e th ird q u a rte r o f 2 0 1 6 Q. : E x c lu d in g th e p u rc h a s e p ric e , w h a t a re th e to ta l c o s ts a s s o c ia te d w ith th e P a c ifc B ra n d s a c q u is ito n ? A n d w h a t p o rtio n w il b e c a s h b‐ a s e d ? A : We w il p ro v id e m o re d e ta il o n c e th e a c q u is ito n is c lo s e d a n d w e h a v e a d e ta ile d in te g ra tio n p la n in p la c e F. irs t Q u a rte r 2 0 1 6 a n d H B re‐I la te d F A Q s Q : C a n y o u p ro v id e a n u p d a te o n y o u r v a rio u s in ita tiv e s to re e n e rg iz e s a le s g ro w th ? A : L a s t q u a rte r w e h ig h lig h te d s e v e ra l in ita tiv e s d e s ig n e d to re e n e rg iz e o u r s a le s g ro w th . O n e o f th e in ita tiv e s is to e x p a n d th e s p a c e o f o u r s u c c e s s fu l In n o v a te to‐ E‐ le v a te p la tfo rm s . F o r 2 0 1 6 , w e s e c u re d n e w s p a c e fo r v a rio u s X T‐ e m p p ro d u c ts in th e m a s s a n d m id tie‐ r c h a n n e ls . A s e c o n d in ita tiv e is to e n s u re w e a re fo c u s in g o n o u r c o re p ro d u c ts w ith th e rig h t b a la n c e o f p ro m o tio n , m e d ia a n d in n o v a tio n . D u rin g th e firs t q u a rte r, w e b e g a n re b a la n c in g o u r m a rk e tin g fe a tu re s to d riv e o u r c o re a n d th e in ita l s e l th ro u g h re s u lts w e re p o s itv e . A s w e lo o k to th e s e c o n d h a lf, w e ’re o n tra‐ c k to la u n c h o u r n e x t b ig in n o v a tio n d ire c tly in to o u r c o re . A th ird in ita tiv e is to d riv e o n lin e g ro w th . A s th e m ig ra tio n to o n lin e a c c e le ra te s , w e a re re a‐ lo c a tin g o u r p e rs o n n e l a n d m a rk e tin g re s o u rc e s to c a p tu re th is c o n s u m e r s h ift. In th e firs t q u a rte r, o u r U .S . o n lin e s a le s , a c ro s s a l c h a n n e ls , in c re a s e d 1 5 % o v e r la s yt e a r, a n d n o w re p re s e n t 8 % o f o u r d o m e s tic s a le s . We fe e l re a ly g o o d a b o u t h e p ro g re s s w e h a v e m a d e . Wh ile th e s e in ita tiv e s a re n o t e x p e c te d to fu ly im p a c t s a le s g ro w th u n til h e s e c o n d h a lf o f th e y e a r, o u r p ro g re s s to d‐ a te g iv e s u s c o n fid e n c e in o u r a b ilty to d e liv e r o n o u r 1 % – 3 % re v e n u e g ro w th g u id a n c e fo r th e y e a r.

4 Q : C a n y o u p ro v id e a n u p d a te o n y o u r in v e n to ry re d u c tio n a c tio n p la n ? A : T h e b u lk o f th e a c tio n s to re d u c e o u r in v e n to ry a re e x p e c te d to c o m e in th e firs t h a lf, w h ile th e re d u c tio n in o u r in v e n to ry le v e l is e x p e c te d to b e g in in th e th ird q u a rte r a n d c o n tin u e th ro u g h th e e n d o f th e y e a r. D u rin g th e firs qt u a rte r, w e to o k tim e o u t w ith in o u r m a n u fa c tu rin g n e tw o rk , w e lo w e re d th e u s e o f e x te rn a l s o u rc in g a n d w e re d u c e d ra w m a te ria l p u rc h a s e s . We e x p e c t o c o m p le te e s s e n tia ly a l o f th e s e a c tio n s in th e s e c o n d q u a rte r. O u gr u id a n c e c a ls fo r c lo s e to $ 2 0 m ilo n o f in v e n to ry re‐ la te d c o s ts th is y e a r, $ 8 m ilo n o f w h ic h h it o u r P & L in th e firs qt u a rte r w ith a m a jo rity o f th e re m a in in g c o s ts e x p e c te d to c o m e in th e s e c o n d q u a rte r. We a re o n tra‐ c k to re d u c e o u r in v e n to ry a s p la n n e d a n d th is g iv e s u s c o n fid e n c e in o u r a b ilty to d e liv e r o u r c a s h flo w g u id a n c e fo r th e y e a Qr. : C a n y o u p ro v id e a n u p d a te o n y o u r c u re n t a c q u is ito n in te g ra tio n s ? A : With re s p e c t o H a n e s E u ro p e , w e a re m a k in g g re a t p ro g re s s o n o u r s y n e rg ie s a n d re m a in o n tra‐ c k to d e liv e r € 1 0 0 m ilo n o f a n n u a l o p e ra tin g p ro fit b y th e e n d o f 2 0 1 8 . T h e in s‐ o u rc in g o f p ro d u c tio n c o n tin u e s to ra m p u p a n d w e ’v e b e g u n re d u c in g S G & A a s 1 2 0 p e o p le e x ite d o u r o p e ra tio n s in F ra n c e a t h e e n d o f th e q u a rte r. We h a v e c o m p le te d n e a rly 8 ,0 0 0 a c tio n ite m s a n d a re a b o u t w o th‐ ird s o f th e w a y th ro u g h th e in te g ra tio n . With re s p e c t o K n ig h ts A p p a re l, w e h a v e c o m p le te d e s s e n tia ly a l o f th e in te g ra tio n a c tio n s a n d a re o n tra‐ c k to d o u b le th e ir o p e ra tin g p ro fit b y 2 0 1 8 . With re s p e c t o o u r C h a m p io n J a p a n a c q u is ito n , th is in te g ra tio n is c o m p le te . L a s tly , w e h a v e b e g u n o u r in ita l in te g ra tio n p la n n in g fo r C h a m p io n E u ro p e . We ’re e x c ite d a b o u t h e s ig n ifc a n t re v e n u e g ro w th o p p o rtu n ity fo r th e C h a m p io n b ra n d a n d w e a re o n tra‐ c k fo r a m id y e a r c lo s e . O v e ra l, o u r in te g ra tio n s a re p ro g re s s in g o n o r a h e a d o f s c h e d u le , w h ic h n o t o n ly g iv e s u s c o n fid e n c e in o u r a b ilty to d e liv e r $ 4 0 m ilo n o sf y n e rg y b e n e fits th is y e a r, b u t a ls o p ro v id e s u s w ith th e b a n d w id th to d o a d d ito n a l a c q u is ito n s Q. : Wh a t w e re th e p re ta x re la te d c h a rg e s in th e q u a rte r a n d w h a t is y o u r fo re c a s t fo r 2 0 1 6 ? A : O u r p re ta x c h a rg e s o n ly re fle c t a c q u is ito n a n d in te g ra tio n c h a rg e s re la te d to th e a c q u is ito n s o f H a n e s E u ro p e In n e rw e a r, K n ig h ts A p p a re l a n d C h a m p io n J a p a n . F o r th e q u a rte r, w e in c u re d a p p ro x im a te ly $ 2 5 m ilo n in p re ta x c h a rg e s , o f w h ic h a p p ro x im a te ly $ 1 9 m ilo n w e re re la te d to H a n e s E u ro p e In n e rw e a r, a p p ro x im a te ly $ 4 m ilo n w e re re la te d to K n ig h ts A p p a re l a n d a p p ro x im a te ly $ 2 m ilo n w e re re la te d to C h a m p io n J a p a n . F o r fu l y e a r 2 0 1 6 w, e e x p e c t p re ta x c h a rg e s o f a p p ro x im a te ly $ 8 5 m ilo n , w ith ro u g h ly 8 0 % a trib u ta b le to H a n e s E u ro p e In n e rw e a r,

ro u g h ly 1 5 % to K n ig h ts A p p a re l a n d th e b a la n c e to C h a m p io n J a p a n . T h e s e p re ta x c h a rg e s e x c lu d e a n y im p a c t fro m C h a m p io n E u ro p e . Q : C a n y o u p ro v id e a n y d e ta ils o n th e $ 3 8 0 m ilo n in s h a re re p u rc h a s e s ? A : T o d‐ a te in 2 0 1 6 , w e h a v e in v e s te d ro u g h ly $ 3 8 0 m ilo n to re p u rc h a s e ju s t o v e r 1 4 m ilo n s h a re s a t a n a v e ra g e p ric e o f $ 2 6 .6 5 p e r s h a re . T h is d id n o t h a v e a n im p a c t o n Q 1 e a rn in g s p e r s h a re . T h e a m o u n t s p e n t is in lin‐ e w ith o u gr u id a n c e , w h ic h s ta te d th a t o u r 2 0 1 6 e a rn in g s p e r s h a re g u id a n c e in c lu d e d a n a s s u m p tio n fo r 2 0 1 6 s h a re re p u rc h a s e s a t a s im ila r d o la r le v e l to 2 0 1 5 Q. : Wh a t a c q u is ito n e x p e c ta tio n s a re fa c to re d in to y o u r 2 0 1 6 g u id a n c e ? A : O u r 2 0 1 6 g u id a n c e a s s u m e s a p p ro x im a te ly $ 5 0 m ilo n in re v e n u e fro m a c q u is ito n s a n d a p p ro x im a te ly $ 4 0 m ilo n in s y n e rg y c o n trib u tio n s fro m H a n e s E u ro p e In n e rw e a r, K n ig h ts A p p a re l a s w e l a s th e re m a in in g s y n e rg ie s fro m M a id e n fo rm . T h e s e a s s u m p tio n s in c lu d e ro u g h ly $ 2 0 m ilo n in re v e n u e fro m th e K n ig h ts A p p a re l w ra p in th e firs qt u a rte r (e c a l w e c lo s e d o u r a c q u is ito n o f K n ig h ts A p p a re l o n A p ril 6 , 2 0 1 5 ). T h e re m a in in g a p p ro x im a te ly $ 3 0 m ilo n in re v e n u e c o n trib u tio n s is fro m th e re a‐ c q u is ito n o f th e re m a in d e r o f th e C h a m p io n rig h ts in J a p a n .

5 Q : Wh a t m a c ro e c o n o m ic a n d c u re n c y e x p e c ta tio n s a re fa c to re d in to y o u r 2 0 1 6 g u id a n c e ? A : F ro m a m a c ro p e rs p e c tiv e , w e a s s u m e th e o v e ra l c o n s u m e r e n v iro n m e n t re m a in s c h a le n g in g , a s h a s b e e n th e c a s e o v e r th e p a s t s e v e ra l y e a rs . T h e lo w e‐ n d o f o u r g u id a n c e a s s u m e s th a t h e p o o r h o lid a y tra fic tre n d s in th e fo u rth q u a rte r o f 2 0 1 5 re p e a t in 2 0 1 6 , w h ile th e h ig h e‐ n d o f o u r g u id a n c e a s s u m e s a m o re n o rm a liz e d fo u rth q u a rte r in 2 0 1 6 a s w e l a s c o n trib u tio n s fro m o u r v a rio u s s a le s in ita tiv e s . With re s p e c t o c u re n c y , o u r g u id a n c e a s s u m e s a p p ro x im a te ly $ 4 0 m ilo n o f in c re m e n ta l re v e n u e h e a d w in d s in 2 0 1 6 , w h ic h e q u a te s to ro u g h ly 6 0 to 7 0 b a s is p o in ts o f g ro w th , a n d a p p ro x im a te ly $ 4 m ilo n o f h e a d w in d to o u r o p e ra tin g p ro fit. Wh ile th e e u ro re p re s e n ts o u lar rg e s t c u re n c y e x p o s u re , o n b‐ a la n c e w e a re a s s u m in g a s tro n g e r U .S . D o la r e la tiv e to a l o f o u r m a jo r c u re n c ie s F. o r p e rs p e c tiv e , in 2 0 1 5 c u re n c y w a s a $ 9 5 m ilo n re v e n u e h e a d w in d , w h ic h e q u a te d to ro u g h ly 1 8 0 b a s is p o in ts o f g ro w th , a n d a ro u g h ly $ 1 0 m ilo n h e a d w in d to o p e ra tin g p ro Qfit. : C a n y o u p ro v id e a n y a d d ito n a l th o u g h ts o n th e d riv e rs o f y o u r e x p e c te d im p ro v e m e n t in 2 0 1 6 o p e ra tin g m a rg in s ? A : T h e m id p‐ o in t o f o u r 2 0 1 6 g u id a n c e im p lie s a 1 0 0 b a s is p o in t in c re a s e in o u r o p e ra tin g p ro fit m a rg in . F o r 2 0 1 6 ,

m o re o f th e e x p e c te d o p e ra tin g m a rg in e x p a n s io n is c o m in g fro m S G & A le v e ra g e th a n fro m g ro s s m a rg in im p ro v e m e n t. S G & A le v e ra g e is e x p e c te d to c o m e fro m a c q u is ito n s y n e rg ie s , a s m o re o f 2 0 1 6 s y n e rg ie s a re in S G & A , a s w e l a s o u r c o n tin u e d e x e c u tio n o n c o s t c o n tro l p ro g ra m s , w h ile th e n o rm a l g ro s s m a rg in d riv e rs s u c h a s s u p p ly c h a in e fic ie n c ie s a n d In n o v a te to‐ E‐ le v a te a re p a rtia ly m itg a te d b y th e c o s ts a s s o c ia te d w ith re d u c in g o u inr v e n to ry a s w e m a k e s m a l a d ju s tm e n ts to o u r m a n u fa c tu rin g p ro d u c tio n s c h e d u le Q. : C a n y o u p ro v id e a n y a d d ito n a l in s ig h ts re g a rd in g y o u r 2 0 1 6 g u id a n c e ? A : A s id e fro m th e v a rio u s c o m m e n ts p ro v id e d in e a rlie r a n s w e rs , th e re a re s e v e ra l o th e r ite m s to k e e p in m in d . F irs th, e b u lk o f o u r e x p e c te d ro u g h ly $ 4 0 m ilo n in a c q u is ito n s y n e rg ie s a re e x p e c te d to c o m e in th e s e c o n d h a lf o f 2 0 1 6 S. e c o n d , th e e x p e c te d ro u g h ly $ 4 0 m ilo n o f c u re n c y h e a d w in d s a re h e a v ily w e ig h te d to th e firs t h a lf o f 2 0 1 6 , w ith th e la rg e s t s in g le q u a rte r im p a c t e x p e c te d in th e firs t q u a rte r. T h ird , th e e x p e c te d c o s ts a s s o c ia te d w ith re d u c in g o u r in v e n to ry a re ro u g h ly $ 2 0 m ilo n , w ith th e b u lk e x p e c te d to c o m e in th e firs t h a lf. F o u rth , o u r fu y‐l e a r ta x ra te is e s tim a te d to b e 1 0 % to 1 1 %, w h ic h w e e x p e c t o b e m o re q u a rte rly c o n s is te n t h a n in p rio r y e a rs d u e to th e c o m p le tio n o f th e IR S a u d it. Q : H o w b ig is th e o n lin e c h a n n e l fo r H a n e s b ra n d s a n d a re y o u fo c u s e d o n d riv in g g ro w th in th is c h a n n e l? A : O v e ra l a p p a re l s a le s o n lin e a re g ro w in g a t a h ig h te‐ e n s ra te . O u r U .S . o n lin e s a le s re p re s e n t ro u g h ly 8 % o f o u tor ta l d o m e s tic s a le s a c ro s s th e o n lin e s ite s o f tra d ito n a l re ta ile rs , o n lin e p u re p‐ la y s a s w e l a s o u r o w n w e b s ite s , a n d a re g ro w in g in lin‐ e w ith th e o v e ra l o n lin e a p p a re l c a te g o ry . We h a v e fo c u s e d a n d d e d ic a te d n u m e ro u s p e o p le a n d re s o u rc e s to d riv e o u r o n lin e b u s in e s s b o th d o m e s tic a ly a n d in te rn a tio n a ly , a n d w e h a v e s e e n g re a t s u c c e s s . F o er x a m p le , o n e o f th e la rg e s t o n lin e p u re p‐ la y s is n o w o u r 7 th la rg e s t d o m e s tic c u s to m e r, e p re s e n tin g o v e r 1 % o f to ta sl a le s Q. : G iv e n th e re c e n t c o m m e n ts in th e p re s s re g a rd in g c e rta in ta x s tru c tu re s c a n y o u c o m m e n t o n y o u r ta x ra te ? A : T h e re c e n t c o m m e n ts in th e p re s s w e re c e n te re d a ro u n d a rtifc ia l ta x s tru c tu re s , w ith a s p e c ifc fo c u s o n in v e rs io n s a n d e a rn in g s s trip p in g . We d o n o t u s e in v e rs io n s . We d o n o t d o e a rn in g s s trip p in g . We d o n o t e n g a g e in a rtifc ia l ta x m a n a g e m e n t. O u r a c c o u n tin g a n d ta x s tra te g ie s a re s o u n d . In fa c t, w e w e re re c e n tly a u d ite d b y th e IR S (s e e o u r th ird q u a rte r 2 0 1 5 F o rm 1 0 Q ) a n d th e a u d it w a s c lo s e d w ith n o a d ju s tm e n ts . O u r ta x ra te is th e b y p‐ ro d u c t o f o u r g lo b a l b u s in e s s m o d e l, w h ic h w e b e lie v e is s u s ta in a b le fo r m a n y y e a rs to c o m e .

6 Q : H a v e y o u r th o u g h ts o n c a p ita l a lo c a tio n c h a n g e d ? A : T h e re is n o c h a n g e to o u r s tra te g y . O u r c a p ita l a lo c a tio n s tra te g y is to e fe c tiv e ly d e p lo y o u r s ig n ifc a n t, c o n s is te n t c a s h flo w to g e n e ra te th e b e s t lo n g te‐ rm re tu rn s fo r o u r s h a re h o ld e rs . O v e r tim e , o u r g o a l is fo r o u r n e t d e b to‐ E‐ B IT D A to b e in a ra n g e o f 2 to 3 tim e s . O u r s tra te g y is to u s e o u r c a s h flo w to fu n d c a p ita l in v e s tm e n ts a n d o u dr iv id e n d , u s e d e b t fo r a c q u is ito n s a n d u s e e x c e s s fre e c a s h flo w , w h ic h is d e fin e d a s c a s h fro m o p e ra tio n s le s s c a p ita l e x p e n d itu re s a n d d iv id e n d s , to re p u rc h a s e s to c k Q. : Wil y o u r c a p ita l e x p e n d itu re s in c re a s e s ig n ifc a n tly a s a re s u lt o f y o u r a c q u is ito n s tra te g y ? A : With a c q u is ito n s , a s th e s iz e o f o u r b u s in e s s , p ro fit a n d c a s h flo w s in c re a s e s , s o s h o u ld th e a b s o lu te le v e l o f o u cr a p ita l s p e n d in g . A lth o u g h o u r s p e n d in g o n c a p ita l e x p e n d itu re s h a s a n d is e x p e c te d to c o n tin u e to flu c tu a te y e a r to y e a r, w e e x p e c t o u r c a p ita l e x p e n d itu re s to a v e ra g e a ro u n d 1 .7 5 % o f s a le s g o in g fo rw a rd , w h ic h is in lin‐ e w ith o u hr is to ric a l a v e ra g e , a n d o v e r tim e s h o u ld ro u g h ly e q u a l d e p re c ia tio n . S p e n d in g a t h is le v e l s h o u ld a lo w o u r g lo b a sl u p p ly c h a in to re m a in c o m p e tiv e w h ile a ls o h a n d lin g th e in c re a s e d c a p a c ity n e e d s fo r g ro w th a n d o u r a c q u is ito n s tra te g y . Q : H o w d o e s a c h a n g e in c u re n c y e x c h a n g e ra te s im p a c t y o u r fin a n c ia l re s u lts ? A : C h a n g e s in e x c h a n g e ra te s b e tw e e n th e U .S . D o la r a n d o th e r c u re n c ie s c a n im p a c t o u r fin a n c ia l re s u lts in tw o w a y s ; a tra n s la tio n im p a c t a n d a tra n s a c tio n im p a c t. T h e tra n s la tio n im p a c t re fe rs to th e im p a c t h a t c h a n g e s in e x c h a n g e ra te s c a n h a v e o n o u r p u b lis h e d fin a n c ia l re s u lts . S im ila r to m a n y m u n‐lti a tio n a l c o rp o ra tio n s th a t p u b lis h fin a n c ia l re s u lts in U .S . D o la rs , o u r e v e n u e a n d p ro fit e a rn e d in lo c a l fo re ig n c u re n c ie s is tra n s la te d b a c k in to U .S D. o la rs u s in g a n a v e ra g e e x c h a n g e ra te o v e r th e re p re s e n ta tiv e p e rio d . A p e rio d o f s tre n g th e n in g in th e U .S . D o la re s u lts in a n e g a tiv e im p a c t o o u r p u b lis h e d fin a n c ia l re s u lts (b e c a u s e itw o u ld ta k e m o re u n its o f a lo c a l c u re n c y to c o n v e rt in to a d o la r). T h e o p p o s ite is tru e d u rin g a p e rio d o f w e a k e n in g in th e U .S . D o la r. O u r b ig g e s t fo re ig n c u re n c y e x p o s u re is th e e u ro . T h e tra n s a c tio n im p a c t o n fin a n c ia l re s u lts is c o m m o n fo r a p p a re l c o m p a n ie s th a st o u rc e g o o d s b e c a u s e th e s e g o o d s a re p u rc h a s e d in U .S . D o la rs . T h e tra n s a c tio n im p a c t fro m a s tre n g th e n in g d o la wr o u ld b e n e g a tiv e to o u r fin a n c ia l re s u lts (b e c a u s e th e U .S . D o la b‐r a s e d c o s ts w o u ld c o n v e rt in to a h ig h e r a m o u n t o lof c a l c u re n c y u n its , w h ic h m e a n s a h ig h e r lo c a c‐l u re n c y c o s t o f g o o d s , a n d in tu rn , a lo w e r lo c a c‐l u re n c y g ro s s p ro fit). T h e tra n s a c tio n im p a c t fro m e x c h a n g e ra te s is ty p ic a ly re c o v e re d o v e r tim e w ith p ric e in c re a s e s . H o w e v e r, d u rin g p e rio d s o f ra p id c h a n g e in e x c h a n g e ra te s ; p ric in g is u n a b le to c h a n g e q u ic k ly e n o u g h . In th e s e s itu a tio n s c, it o u ld m a k e s e n s e to h e d g e th e e x c h a n g e ra te e x p o s u re in s o u rc in g c o s ts C. h a m p io n E u ro p e re‐ la te d F A Q s Q : Wh a t is th e ra tio n a le a n d e x p e c te d re tu rn fo r th is a c q u is ito n ? A : T h e ra tio n a le fo r a l o f o u r a c q u is ito n s is to g e n e ra te lo n g te‐ rm s h a re h o ld e r e tu rn s b y a p p ly in g o u r p ro v e n ‘S e l M o re a’ n d ‘S p e n d L e s s ’ s tra te g ie s to n e w ly a c q u ire d b u s in e s s e s to c re a te s u b s ta n tia l m u y‐lti e a r s y n e rg ie s . C h a m p io n E u ro p e s q u a re ly h its o n a l fo u r o f o u r a c q u is ito n c rite ria . It’s in o u r c o re c a te g o rie s . Itp ro v id e s c o m p le m e n ta ry re v e n u e g ro w th o p p o rtu n ite s . Itis ju s tifa b le b a s e d s o le ly o n c o s t s y n e rg ie s a n d it’s q u ic k ly a c c re tiv e . T h e p u rc h a s e p ric e is a p p ro x im a te ly € 2 0 0 m ilo n . T h is tra n s a c tio n is v a lu e d a t 1 0 tim e s 2 0 1 6 E B IT D A a n d is e x p e c te d to d e liv e r a n a fte ta‐r x IR R in th e lo w to‐ m‐ id te e n s .

7 Q : Wh a t a re s o m e o f th e g lo b a l g ro w th in ita tiv e s fo r C h a m p io n ? A : B y u n ify in g th e C h a m p io n b ra n d g lo b a ly , w e h a v e s ig n ifc a n t o p p o rtu n ite s to g ro w re v e n u e b y e x p a n d in g o u r d is trib u tio n a c ro s s p ro d u c t lin e s , a c ro s s c h a n n e ls a n d a c ro s s g e o g ra p h ie s . In th e U .S ., w e ’v e d e v e lo p e d a v e ry b ro a d p ro d u c t lin e u n d e r C h a m p io n th a t s p a n s fro m m a s s p ric e p o in ts a l th e w a y u p to th e h ig h e p‐r ric e d s p o rtin g g o o d s a n d d e p a rtm e n t s to re c h a n n e ls . We c a n n o w ta k e th is b ro a d p ro d u c t lin e a n d s e l itn to E u ro p e , J a p a n , A u s tra lia , a n d o th e inr te rn a tio n a l m a rk e ts . A s w e b u ild s c a le b y e x p a n d in g C h a m p io n ’s d is trib u tio n w o rld w id e , w e e x p e c t o b e a b le to le v e ra g e g lo b a l p ro d u c t d e s ig n a s w e l a s o u r lo w c‐ o s t s u p p ly c h a in to fu rth e r e d u c e c o s ts a n d u ltim a te ly im p ro v e o u or p e ra tin g m a rg in s . With th is a c q u is ito n , w e n o w s e l C h a m p io n p ro d u c ts o n fiv e c o n tin e n ts a n d h a v e a p p ro x im a te ly $ 1 .2 b ilo n in C h a m p io n re v e n u e w o rld w id e . We b e lie v e o u r C h a m p io n re v e n u e c a n in c re a s e a t h ig h s in g le d‐ ig it o lo w d o u b le d‐ ig it ra te s a n d c o u ld a p p ro a c h $ 2 b ilo n w ith in fiv e to s ix y e a rs Q. : C a n y o u p ro v id e a n y in s ig h t in to C h a m p io n E u ro p e ’s c u re n t fin a n c ia l p e rfo rm a n c e ? A : C h a m p io n E u ro p e c u re n tly e x p e c ts fu ly‐ e a r 2 0 1 6 n e t s a le s o f m o re th a n € 1 9 0 m ilo n , E B IT D A , e x c lu d in g c h a rg e s , o f a p p ro x im a te ly € 2 0 m ilo n , a n d o p e ra tin g p ro fit, e x c lu d in g c h a rg e s , o f a p p ro x im a te ly € 1 5 . Q : A s s u m in g th e a c q u is ito n c lo s e s m id y e a r 2 0 1 6 , w h a t is th e e x p e c te d im p a c t o H a n e s b ra n d s ’ 2 0 1 6 fin a n c ia l re s u lts ? A : We w il p ro v id e s p e c ifc 2 0 1 6 g u id a n c e o n c e th e a c q u is ito n h a s c lo s e d . H o w e v e r, fo r e s tim a tio n p u rp o s e s , w e e x p e c st lig h tly le s s th a n h a lf o f C h a m p io n E u ro p e ’s e s tim a te d fu y‐l e a r s a le s a n d ro u g h ly 4 0 % o f th e ir e s tim a te d fu y‐l e a or p e ra tin g p ro fit o b e g e n e ra te d in th e s e c o n d h a lf o f 2 0 1 6 . G iv e n th e e x p e c te d s e c o n d h a lf 2 0 1 6 fin a n c ia ls , a lo n g w ith th e e x p e c te d in c re m e n ta l fin a n c in g c o s ts a n d a m o rtiz a tio n a s s o c ia te d w ith th e a c q u is ito n , C h a m p io n E u ro p e is u n lik e ly to h a v e a m a te ria l im p a c t o n o u r c o n s o lid a te d 2 0 1 6 e a rn in g s p e r s h a re Q. : Wh a t is th e e x p e c te d fin a n c ia l c o n trib u tio n o f th e C h a m p io n E u ro p e a c q u is ito n w ith in th re e y e a rs ? A : O v e r th e n e x t h re e y e a rs , e x c lu d in g th e b ro a d e r g lo b a l C h a m p io n g ro w th o p p o rtu n ite s , w e b e lie v e C h a m p io n E u ro p e ’s s ta n d a‐ lo n e o p e ra tio n s c a n in c re a s e re v e n u e fro m m o re th a n € 1 9 0 m ilo n to w e l o v e r € 2 5 0 m ilo n . T h ro u g h a c o m b in a tio n o f s u p p ly c h a in s y n e rg ie s a n d re v e n u e g ro w th , w e b e lie v e C h a m p io n E u ro p e ’s s ta n d a‐ lo n e o p e ra tio n s , o v e r th e n e x t h re e y e a rs , c a n in c re a s e o p e ra tin g p ro fit, e x c lu d in g c h a rg e s , fro m ro u g h ly € 1 5 m ilo n to w e l o v e r € 2 5 m ilo n . Q : C a n y o u p ro v id e a n y in s ig h t in to C h a m p io n E u ro p e ’s b u s in e s s o p e ra tio n s ? A : C h a m p io n E u ro p e o w n s th e tra d e m a rk rig h ts fo r th e C h a m p io n b ra n d in E u ro p e , th e M id d le E a s t a n d A fric a . T h e C o m p a n y , w h ic h is b a s e d in Ita ly , d e s ig n s , s o u rc e s a n d s e ls C h a m p io n a th le tic a p p a re l a n d a c c e s s o rie s w h o le s a le to re ta ile rs a n d d ire c tly to c o n s u m e rs v ia ro u g h ly 1 3 0 c o m p a n y o‐ w n e d s to re s . T h e v a s t m a jo rity o f C h a m p io n E u ro p e ’s re v e n u e is in Ita ly a n d G re e c e . With re s p e c t o its m e rc h a n d is e m ix , b a s e d o n F Y 1 5 re v e n u e , ro u g h ly 4 0 % w a s m e n ’s a p p a re l, ro u g h ly 3 0 % w a s w o m e n ’s a p p a re l, ro u g h ly 2 0 % w a s y o u th a n d to d d le r a p p a re l a n d th e re m a in d e r w a s a c c e s s o rie s .

8 Q : G iv e n th e v a lu e c re a tio n is m o re w e ig h te d to w a rd c o m p le m e n ta ry re v e n u e g ro w th o p p o rtu n ite s , is th e re a n in c re a s e d ris k to a c h ie v in g y o u r e x p e c te d IR R re la tiv e to p rio r a c q u is ito n s ? A : N o , lik e a l o f o u r a c q u is ito n s , w e a re a b le to ju s tify C h a m p io n E u ro p e b a s e d s o le ly o n th e e x p e c te d c o s t s y n e rg ie s , w h ic h in th is c a s e w il c o m e a lm o s t e n tire ly fro m s u p p ly c h a in s y n e rg ie s . C h a m p io n E u ro p e is n o t o u r fis t a c q u is ito n in w h ic h th e v a lu e c re a tio n w a s w e ig h te d to w a rd c o m p le m e n ta ry re v e n u e g ro w th . T h is w a s a ls o th e c a s e w ith b o th o u r G e a r F o Sr p o rts a n d K n ig h t A p p a re l a c q u is ito n s . L o o k in g a t G e a r F o r S p o rts , w e a re e s tim a tin g a p p ro x im a te ly $ 3 5 0 m ilo n in re v e n u e fo r 2 0 1 6 , w h ic h is m o re th a n 5 0 % h ig h e r th a n th e ir e v e n u e b a s e o f ro u g h ly $ 2 2 5 m ilo n a t h e tim e o f o u ar c q u is ito n in 2 0 1 0 . L o o k in g a t K n ig h ts A p p a re l, w e a re e s tim a tin g re v e n u e o f a p p ro x im a te ly $ 2 0 0 m ilo n in 2 0 1 6 , w h ic h is a p p ro x im a te ly 2 0 % h ig h e r th a n th e ir 2 0 1 4 re v e n u e b a s e o f ro u g h ly $ 1 6 5 m ilo n Q. : Wil C h a m p io n E u ro p e b e in te g ra te d in to H a n e s E u ro p e In n e rw e a r? A : N o . We ru n In n e rw e a r a n d A c tiv e w e a r s e p a ra te ly in th e U .S . a n d w e w il d o th e s a m e in E u ro p e . T h e re a re n o re a sl y n e rg ie s to b e g a in e d b y in te g ra tin g th e s e tw o b u s in e s s e s . C h a m p io n E u ro p e w il b e in te g ra te d in to o u r g lo b a l s u p p ly c h a in b u t iw il b e ru n a s p a rt o f th e g lo b a l C h a m p io n A c tiv e w e a r b u s in e s s . Q : A re th e re a n y w o rk s c o u n c il c o n s u lta tio n s re q u ire d b e fo re th e a c q u is ito n c a n c lo s e ? A : N o , th e re a re n o w o rk s c o u n c il c o n s u lta tio n s re q u ire d fo r th is tra n s a c tio n . T h is a c q u is ito n is s u b je c t o c u s to m a ry c lo s in g c o n d ito n s a n d is e x p e c te d to c lo s e m id y e a r 2 0 1 6 Q. : E x c lu d in g th e p u rc h a s e p ric e , w h a t a re th e to ta l c o s ts a s s o c ia te d w ith th e C h a m p io n E u ro p e a c q u is ito n ? A n d w h a pt o rtio n w il b e c a s h b‐ a s e d ? A : We w il p ro v id e m o re d e ta il o n c e th e a c q u is ito n is c lo s e d a n d w e h a v e a d e ta ile d in te g ra tio n p la n in p la c e K. n ig h ts A p p a re re‐l la te d F A Q Q : H o w m u c h d id th e K n ig h ts A p p a re l a c q u is ito n c o n trib u te to y o u r fis t q u a rte r 2 0 1 6 re s u lts ? A : F o r th e firs t q u a rte r 2 0 1 6 , K n ig h ts A p p a re l g e n e ra te d a p p ro x im a te ly $ 2 1 m ilo n in re v e n u e a n d in lin‐ e w ith th e hir is to ric a l s e a s o n a lity , a n o p e ra tin g lo s s , e x c lu d in g c h a rg e s , o f a p p ro x im a te ly $ (1 ) m ilo n #. # # C h a rg e s fo r A c tio n s a n d R e c o n c ila tio n to G A A P M e a s u re s A d ju s te d E P S , a d ju s te d n e t in c o m e , a d ju s te d o p e ra tin g p ro fit (a n d m a rg in ), a d ju s te d S G & A , a d ju s te d g ro s s p ro fit (a n d m a rg in ) a n d E B IT D A a re n o t g e n e ra ly a c c e p te d a c c o u n tin g p rin c ip le m e a s u re s . A d ju s te d E P S is d e fin e d a s d ilu te d E P S e x c lu d in g a c tio n s a n d th e ta x e fe c t o n a c tio n s . A d ju s te d n e t in c o m e is d e fin e d a s n e t in c o m e e x c lu d in g a c tio n s a n d th e ta x e fe c t o n a c tio n s . A d ju s te d o p e ra tin g p ro fit s d e fin e d a s o p e ra tin g p ro fit e x c lu d in g a c tio n s . A d ju s te d g ro s s p ro fit s d e fin e d a s g ro s s p ro fit e x c lu d in g a c tio n s . A d ju s te d S G & A is d e fin e d a s s e lin g , g e n e ra l a n d a d m in is tra tiv e e x p e n s e s e x c lu d in g a c tio n s . E B IT D A is d e fin e d a s e a rn in g s b e fo re in te re s t, a x e s , d e p re c ia tio n a n d a m o rtiz a tio n H. a n e s h a s c h o s e n to p ro v id e th e s e n o n G‐ A A P m e a s u re s to in v e s to rs to e n a b le a d d ito n a l a n a ly s e s o f p a s t, p re s e n t a n d fu tu re o p e ra tin g p e rfo rm a n c e a n d a s a s u p p le m e n ta l m e a n s o f e v a lu a tin g c o m p a n y o p e ra tio n s . N o n G‐ A A P m e a s u re s s h o u ld n o t b e c o n s id e re d a s u b s tiu te fo r fin a n c ia l in fo rm a tio n p re s e n te d in a c c o rd a n c e w ith G A A P a n d m a y b e d ife re n frot m n o n G‐ A A P o r o th e r p ro fo rm a m e a s u re s u s e d b y o th e r c o m p a n ie s . S e e T a b le 2 a n d T a b le 5 a ta c h e d to o u r p re s s re le a s e d a te d A p ril 2 1 , 2 0 1 6 to re c o n c ile th e s e n o n G‐ A A P fin a n c ia l m e a s u re s to th e m o s t d ire c tly c o m p a ra b le G A A P m e a s u re .

9 E x c lu d in g P a c ifc B ra n d s a n d C h a m p io n E u ro p e , H a n e s ’ c u re n t e s tim a te fo r p re ta x c h a rg e s in 2 0 1 6 fo r a c q u is ito n a n d in te g ra tio n a c tio n s is a p p ro x im a te ly $ 8 5 m ilo n . O n a G A A P b a s is , fu ly‐ e a r 2 0 1 6 d ilu te d E P S w il v a ry d e p e n d in g o n a c tu a pl e rfo rm a n c e , p re ta x c h a rg e s a n d ta x ra te . G A A P d ilu te d E P S c o u ld b e in th e ra n g e o f $ 1 .6 3 to $ 1 .7 3 . G A A P o p e ra tin g p ro foit r 2 0 1 6 c o u ld b e in th e ra n g e o f $ 8 3 5 m ilo n to $ 8 6 5 m ilo n C. a u tio n a ry S ta te m e n t C o n c e rn in g F o rw a rd L‐ o o k in g S ta te m e n ts T h is p re s s re le a s e in c lu d e s fo rw a rd lo‐ o k in g s ta te m e n ts w ith in th e m e a n in g o f S e c tio n 2 7 A o f th e S e c u rite s A c t o f 1 9 3 3 a n d S e c tio n 2 1 E o f th e S e c u rite s E x c h a n g e A c t o f 1 9 3 4 . F o rw a rd lo‐ o k in g s ta te m e n ts in c lu d e a l s ta te m e n ts th a t d o n o ret la te s o le ly to h is to ric a l o r c u re n t fa c ts , a n d c a n g e n e ra ly b e id e n tife d b y th e u s e o f w o rd s s u c h a s “m a y ,” “b e lie v e “w,” il,” “e x p e c t,” “p ro je c t,” “e s tim a te ,” “in te n d ,” “a n tic ip a te ,” “p la n ,” “c o n tin u e ” o r s im ila r e x p re s s io n s . In p a rtic u la ar, m o n g o th e rs , s ta te m e n ts a b o u t o u r 2 0 1 6 fin a n c ia l g u id a n c e a n d th e H a n e s B ra n d s a c q u is ito n o f P a c ifc B ra n d s C, h a m p io n E u ro p e a n d K n ig h ts A p p a re l, a s w e l a s th e re a‐ c q u is ito n o f th e rig h ts to C h a m p io n in J a p a n fro m G o ld w in In, c . (th e “a c q u is ito n s ”), in c lu d in g in te g ra tio n p la n s a n d th e e x p e c te d im p a c t o f th e a c q u is ito n s o n H a n e s B ra n d s ’ s a le s , e a rn in g s , o p e ra tin g p ro fit a n d c a s h flo w fro m o p e ra tio n s , a re fo rw a rd ‐ lo o k in g s ta te m e n ts . F o rw a rd lo‐ o k in g s ta te m e n ts in h e re n tly in v o lv e m a n y ris k s a n d u n c e rta in tie s th a t c o u ld c a u s e a c tu a l re s u lts to d ife r m a te ria ly fro m th o s e p ro je c te d in th e s e s ta te m e n ts . Wh e re , in a n y fo rw a rd lo‐ o k in g s ta te m e n t, w e e x p re s s a n e x p e c ta tio n o r b e lie f a s to fu tu re re s u lts o r e v e n ts , s u c h e x p e c ta tio n o r b e lie f is b a s e d o n th e c u re n t p la n s a n d e x p e c ta tio n s o f o u r m a n a g e m e n t, e x p re s s e d in g o o d fa ith . H o w e v e r, th e re c a n b e n o a s s u ra n c e th a t h e e x p e c ta tio n o r b e lie f w il re s u lt o r w il b e a c h ie v e d o ar c c o m p lis h e d , a n d a c tu a l re s u lts m a y d ife r m a te ria ly fro m th o s e c o n te m p la te d b y th e fo rw a rd lo‐ o k in g s ta te m e n ts . A n u m b e r o f im p o rta n t fa c to rs c o u ld c a u s e a c tu a l re s u lts to d ife r m a te ria ly fro m th o s e c o n te m p la te d b y th e fo rw a rd lo‐ o k in g s ta te m e n ts , in c lu d in g , b u t n o t lim ite d to o u r a b ilty to a c h ie v e e x p e c te d s y n e rg ie s a n d s u c c e s s fu ly in te g ra te a c q u ire d b u s in e s s e s ; e v e n ts th a t c o u ld g iv e ris e to a te rm in a tio n o f th e C h a m p io n E u ro p e o r P a c ifc B ra n d s a c q u is ito n a g re e m e n ts o r fa ilu re to re c e iv e n e c e s s a ry a p p ro v a ls o r fu n d in g fo r th e C h a m p io n E u ro p e a n d P a c ifc B ra n d s a c q u is ito n s , th e o u tc o m e o f a n y litg a tio n re la te d to th e C h a m p io n E u ro p e a n d P a c ifc B ra n d s a c q u is ito n s , a n d th e le v e ol f e x p e n s e s a n d o th e r c h a rg e s re la te d to th e a c q u is ito n s a n d th e fu n d in g th e re o f; a n y in a d e q u a c y , in te ru p tio n , in te g ra tio n fa ilu re o r s e c u rity fa ilu re w ith re s p e c t o o u r in fo rm a tio n te c h n o lo g y ; th e im p a c t o f s ig n ifc a n t flu c tu a tio n s a n d v o la tily in v a rio u s in p u t c o s ts , s u c h a s c o to n a n d o ilre‐ la te d m a te ria ls , u tile s , fre ig h t a n d w a g e s ; o u r a b ilty to m a n a g e o u r in v e n to ry e fe c tiv e ly a n d a c c u ra te ly fo re c a s t d e m a n d fo r o u r p ro d u c ts ; th e h ig h ly c o m p e tiv e a n d e v o lv in g n a tu re o f th e in d u s try in w h ic h w e c o m p e te ; th e ris k o f im p ro p e r c o n d u c t b y a n y o f o u r e m p lo y e e s , a g e n ts o r b u s in e s s p a rtn e rs th a t h re a te n s o u r e p u ta tio n a n d a b ilty to d o b u s in e s s ; o u r c o m p le x m u ltin a tio n a l ta x s tru c tu re ; s ig n ifc a n flut c tu a tio n s in fo re ig n e x c h a n g e ra te s ; o u r a b ilty to a c c e s s s u fic ie n t c a p ita l a t re a s o n a b le ra te s o r c o m m e rc ia ly re a s o n a b le te rm s o r to m a in ta in s u fic ie n t liq u id ity in th e a m o u n ts a n d a t h e tim e s n e e d e d ; ris k s a s s o c ia te d w ith o u inr d e b te d n e s s ; a n d o th e r is k s id e n tife d fro m tim e to tim e in o u r m o s t re c e n t S e c u rite s a n d E x c h a n g e C o m m is s io n re p o rts , in c lu d in g o u r a n n u a l re p o rt o n F o rm 1 0 K‐ a n d q u a rte rly re p o rts o n F o rm 1 0 Q‐ .S in c e its n o t p o s s ib le to p re d ic ot r id e n tify a l o f th e ris k s , u n c e rta in tie s a n d o th e r fa c to rs th a t m a y a fe c t fu tu re re s u lts , th e a b o v e lis t s h o u ld n o t b e c o n s id e re d a c o m p le te lis t. We b e lie v e th e s e fo rw a rd lo‐ o k in g s ta te m e n ts a re re a s o n a b le ; h o w e v e r, u n d u e re lia n c e s h o u ld n o t b e p la c e d o n a n y fo rw a rd lo‐ o k in g s ta te m e n ts , w h ic h a re b a s e d o n c u re n t e x p e c ta tio n s . A l fo rw a rd lo‐ o k in g

s ta te m e n ts s p e a k o n ly a s o f th e d a te h e re o f. We u n d e rta k e n o o b lig a tio n to u p d a te o r e v is e fo rw a rd lo‐ o k in g s ta te m e n ts th a t m a y b e m a d e to re fle c t e v e n ts o r c irc u m s ta n c e s th a t a ris e a fte r th e d a te m a d e o r to re fle c t h e o c c u re n c e o f u n a n tic ip a te d e v e n ts , o th e r th a n a s re q u ire d b y la w .