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Footwear Industry Report
FIR 04-Aug-2019
Industry 1 Biegala MGT495-01
Summer
Year 16
© GLO-BUS Software, Inc.
Year 16 Scoreboard
Rank
Company Name
Investor Expectation
Score
Best-In- Industry Score
Weighted Average
Score
Change
from Y15
1 J - Doyen 115 93 104 -5 2 K ASM 114 81 98 -3 3 B Cielo 113 78 96 0 4 E Elite Footwear 91 56 74 -7 5 DTigers 92 54 73 -21 5 H Road Runner 88 57 73 -9 7 FFlying wings 63 50 57 -13 8 G - Star 62 42 52 0 9 IPure Steps 58 41 50 -5
10 ADragons 56 40 48 -13 11 C Shoe 54 40 47 -4
Game-To-Date Scoreboard
Rank
Company Name
Investor Expectation
Score
Best-In- Industry Score
Weighted Average
Score
Bonus Points
Overall G-T-D Score
1 J - Doyen 116 100 108 3 111 2 K ASM 114 86 100 1 101 3 B Cielo 113 83 98 3 101 4 H Road Runner 100 70 85 1 86 5 DTigers 98 65 82 1 83 6 E Elite Footwear 92 61 77 3 80 7 FFlying wings 74 54 64 1 65 8 IPure Steps 68 50 59 2 61 9 ADragons 66 48 57 3 60
10 G - Star 66 49 58 1 59 11 C Shoe 61 45 53 0 53
Investor Expectation Score (I.E.)
Investors and company boards of directors have established targets for the five scoring measures that appear on pages 2 and 3 of this report. The I.E. score ranges from 0 to 120 (if all targets are exceeded by 40% or more). Click the Help button (upper-right) for more information.
Best-In- Industry Score (BII)
The B-I-I score measures each company's performance relative to the best performing company on each of the five scoring measure. The B-I-I score ranges from 0 to 100. To score 100 a company must be the best performing company in the industry on all five scoring measures.
Weighted Average Score
The weighted average score combines the Investor Expectation Score and the Best-In-Industry Score using a 50%-50% weighting as specified by the course instructor. Detailed explanations of scoring are provided in the Help documents asociated with pages 1, 2, and 3 of this report.
Page 1
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Industry 1 SCORING MEASURES Year 16
Earnings Per Share ($ per share)
Earnings Per Share scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected EPS shown below each yearly column head. A highlighted number indicates best-in- industry performance. Game-To-Date EPS scores are based on a weighted average of the annual EPS performances.
Y11 (2.50)
Y12 (3.00)
Y13 (3.50)
Y14 (4.00)
Y15 (4.50)
Y16 (5.25)
Y17 (6.00)
Y18 (7.00)
Y19 (8.50)
Y20 (10.00)
Wgt. Avg. (3.79) I.E. BII
Y16 Score I.E. BII
G-T-D Score
A 2.57 2.94 1.89 1.74 3.16 2.06 2.39 8 3 13 5 A B 4.61 4.22 4.79 6.70 8.58 10.65 6.59 24 14 24 15 B C 2.26 2.57 1.10 2.19 1.91 1.65 1.91 6 2 10 4 C D 2.37 4.59 5.19 5.21 7.79 6.88 5.35 23 9 24 12 D E 1.42 2.94 2.97 3.66 5.23 5.34 3.59 20 7 19 8 E F 1.48 3.86 3.96 4.14 3.96 1.31 3.12 5 2 16 7 F G 2.32 2.84 2.90 3.58 2.09 3.27 2.84 12 4 15 7 G H 4.05 6.74 7.40 6.57 6.02 5.94 6.13 21 8 24 14 H I 2.71 3.11 2.70 2.87 2.32 2.24 2.66 9 3 14 6 I J 2.27 4.74 7.14 10.47 13.10 14.72 8.70 24 20 24 20 J K 2.31 4.19 5.29 7.81 9.46 10.86 6.53 24 15 24 15 K
Return On Equity (%)
Return On Equity scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected ROE shown below each yearly column head. A highlighted number indicates best-in- industry performance. Game-To-Date ROE scores are based on a weighted average of the annual ROE performances.
Y11 (21.0)
Y12 (22.0)
Y13 (23.0)
Y14 (24.0)
Y15 (25.0)
Y16 (26.0)
Y17 (27.0)
Y18 (28.0)
Y19 (29.0)
Y20 (30.0)
Wgt. Avg. (24.0) I.E. BII
Y16 Score I.E. BII
G-T-D Score
A 21.8 20.2 11.2 9.2 14.9 9.0 13.5 7 4 11 9 A B 36.0 24.5 22.1 24.5 24.5 24.5 25.1 19 11 20 16 B C 19.4 18.6 7.7 12.4 9.7 7.8 11.5 6 3 10 7 C D 22.7 41.5 38.4 24.4 27.3 22.7 27.7 17 10 22 18 D E 12.6 21.9 18.1 18.3 21.1 18.8 18.9 14 8 16 12 E F 13.2 28.1 23.3 24.6 26.3 44.7 24.3 24 20 20 15 F G 19.9 20.0 19.2 21.9 10.9 15.0 17.3 12 7 14 11 G H 33.0 38.7 29.4 19.9 15.7 14.6 22.3 11 7 19 14 H I 22.9 21.0 15.3 14.1 10.0 9.2 14.3 7 4 12 9 I J 19.6 31.8 34.2 35.3 32.9 29.6 31.5 21 13 23 20 J K 19.8 28.1 26.9 32.8 33.0 31.5 29.9 22 14 22 19 K
Stock Price ($ per share)
Stock Price scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected stock price shown below each yearly column head. A highlighted number indicates best-in- industry performance. Game-To-Date scores are based solely on the most recent year's stock price.
Y11 (40.00)
Y12 (50.00)
Y13 (65.00)
Y14 (80.00)
Y15 (100.00)
Y16 (125.00)
Y17 (150.00)
Y18 (180.00)
Y19 (215.00)
Y20 (250.00) I.E. BII
Y16 Score I.E. BII
G-T-D Score
A 33.46 45.06 18.88 8.82 27.24 20.37 3 1 3 1 A B 121.59 83.05 88.69 130.89 188.88 239.82 24 13 24 13 B C 22.86 21.18 8.49 14.03 13.22 12.09 2 1 2 1 C D 48.77 120.70 122.75 99.07 159.71 119.06 19 6 19 6 D E 11.86 35.44 32.74 58.32 86.32 80.94 13 4 13 4 E F 11.76 58.38 68.43 72.32 45.87 18.65 3 1 3 1 F G 20.47 31.72 57.28 38.44 16.03 21.55 3 1 3 1 G H 102.76 178.88 185.71 124.92 94.96 76.43 12 4 12 4 H I 35.55 46.77 24.37 24.71 18.73 14.96 2 1 2 1 I J 22.39 102.04 186.55 275.83 340.67 368.88 24 20 24 20 J K 26.32 92.42 111.75 191.48 222.74 239.49 24 13 24 13 K
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Industry 1 SCORING MEASURES Year 16 (concluded)
Credit Rating Credit Rating scores are based on a 20% (20-point) weighting. A bolded credit rating indicates achievement of the investor expected credit rating shown below each yearly column head. Game-To-Date credit rating scores are based solely on the most recent year's credit rating performance.
Y11 (B+)
Y12 (B+)
Y13 (B+)
Y14 (A–)
Y15 (A–)
Y16 (A–)
Y17 (A)
Y18 (A)
Y19 (A)
Y20 (A) I.E. BII
Y16 Score I.E. BII
G-T-D Score
A A A A– A A+ A+ 24 20 24 20 A B A A+ A+ A+ A+ A+ 24 20 24 20 B C A– A A+ A+ A+ A+ 24 20 24 20 C D A A– B– A A B– 12 11 12 11 D E B A A+ A– A A+ 24 20 24 20 E F B A A+ A A– A– 20 18 20 18 F G A– A A+ A+ A+ B+ 18 16 18 16 G H A A A A+ A+ A+ 24 20 24 20 H I A A A A+ A+ A+ 24 20 24 20 I J A– A A+ A+ A+ A+ 24 20 24 20 J K A– A A+ A A A 22 19 22 19 K
Image Rating Image Rating scores are based on a 20% (20-point) weighting. A bolded number indicates achievement of the investor expected image rating shown below each yearly column head. A highlighted number indicates best-in- industry performance. Game-To-Date scores are based on an average of the most recent three years.
Y11 (70)
Y12 (72)
Y13 (72)
Y14 (75)
Y15 (75)
Y16 (77)
Y17 (77)
Y18 (80)
Y19 (80)
Y20 (80)
Y14-Y16 Average I.E. BII
Y16 Score I.E. BII
G-T-D Score
A 70 67 61 58 62 55 58 14 12 15 13 A B 75 74 76 82 83 91 85 22 20 21 19 B C 68 57 64 51 57 63 57 16 14 15 13 C D 71 68 81 76 84 81 80 21 18 21 18 D E 68 69 68 75 77 76 76 20 17 20 17 E F 76 73 72 67 58 42 56 11 9 15 13 F G 65 68 66 64 58 64 62 17 14 16 14 G H 84 85 84 78 81 80 80 20 18 21 18 H I 68 65 68 62 65 60 62 16 13 16 14 I J 64 71 83 85 87 89 87 22 20 21 20 J K 74 87 84 90 87 91 89 22 20 22 20 K
High Average Low Total Dollars ($000s)
High Average Low Per Unit Sold ($/unit)
Industry 1 Cash Outlays for Corporate Social Responsibility and Citizenship
High Average Low
Image Rating Points Generated from
CSRC Expenditures
Year 11 15,457 8,714 0 1.85 1.03 0.00 5 3 0 Year 12 15,222 4,502 0 1.77 0.51 0.00 9 4 0 Year 13 18,323 6,596 0 1.45 0.61 0.00 12 6 0 Year 14 22,403 5,486 0 2.13 0.53 0.00 15 7 0 Year 15 12,725 6,926 0 2.86 0.79 0.00 18 8 0 Year 16 20,427 5,416 0 2.15 0.49 0.00 19 8 0 Year 17 Year 18 Year 19 Year 20
Corporate Social Responsibility and Citizenship
Beginning in Year 14, the World Council for Exemplary Corporate Citizenship presents a distinguished award to the company making the highest cash outlays as a percentage of revenues for corporate social respon- sibility and citizenship initiatives.
Award Winner 2nd Place
Y14 E Elite Footwear K ASM Y15 FFlying wings C Shoe Y16 G - Star E Elite Footwear Y17 Y18 Y19 Y20
Corporate Responsibility Award for Exemplary Corporate Citizenship
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Industry 1 BONUS POINT AWARDS Year 16
BULL'S EYE AWARD for Accurately Forecasting Total Revenues,
Earnings Per Share, and Image Rating
One bonus point added to any company's game-to-date score when actual performance on Total Revenues AND Earnings Per Share vary by no more than 5% from projected performance AND when Image Rating varies by no more than 4 points from the projected image rating.
Year 16 Forecast
Year 16 Actual
Percent Variance
Revenues (within ± 5%) Year 16
Forecast Year 16 Actual
Percent Variance
EPS (within ± 5% or ± 10¢) Year 16
Forecast Year 16 Actual
Point Variance
Image Rating (within ± 4 points) Year 16 Bull's Eye
Award
Cumu- lative
Awards A 436,998 443,936 +1.6% 2.10 2.06 -1.7% 55 55 0 pts. Yes 2 A B 1,404,165 1,372,814 -2.2% 11.27 10.65 -5.5% 91 91 0 pts. No 3 B C 711,371 641,638 -9.8% 2.42 1.65 -31.8% 65 63 -2 pts. No 0 C D 1,129,911 1,113,798 -1.4% 7.20 6.88 -4.4% 83 81 -2 pts. Yes 1 D E 756,462 756,017 -0.1% 5.61 5.34 -4.8% 76 76 0 pts. Yes 3 E F 143,674 108,920 -24.2% 2.01 1.31 -34.8% 45 42 -3 pts. No 0 F G 586,236 527,702 -10.0% 4.12 3.27 -20.7% 67 64 -3 pts. No 1 G H 829,616 815,078 -1.8% 6.47 5.94 -8.2% 80 80 0 pts. No 1 H I 540,857 541,244 +0.1% 2.34 2.24 -4.3% 60 60 0 pts. Yes 2 I J 1,639,072 1,502,743 -8.3% 17.47 14.72 -15.8% 92 89 -3 pts. No 2 J K 1,026,313 1,198,415 +16.8% 7.77 10.86 +39.7% 82 91 +9 pts. No 0 K
Trends in Variances Between Projected and Actual Performance (company and industry variances bertween projected and actual revenues, EPS, and image rating)
Industry 1 Variance
Largest Average Smallest
Company D Variance
Year 11 +9.6% -0.4% -7.4% -3.7%
Year 12 +30.1% +5.2%
-15.2% +27.9%
Year 13 +27.4%
-3.3% -20.0% +27.4%
Year 14 +10.0%
-4.8% -18.9%
-5.7%
Year 15 +11.5%
-5.6% -21.1% +9.7%
Year 16 +22.5%
-4.3% -21.9%
-2.7%
Year 17 Year 18 Year 19 Year 20
Y11 Score Δ
Y12 Score Δ
Y13 Score Δ
Y14 Score Δ
Y15 Score Δ
Y16 Score Δ
Y17 Score Δ
Y18 Score Δ
Y19 Score Δ
Y20 Score
Current-Year Scores and Net Changes Cumu- lative
Awards A 83 -5 78 -22 56 -7 49 +12 61 -13 48 1 A B 107 -15 92 +1 93 +1 94 +2 96 0 96 0 B C 74 -8 66 -15 51 +2 53 -2 51 -4 47 0 C D 86 +11 97 -6 91 -4 87 +7 94 -21 73 0 D E 55 +23 78 -6 72 0 72 +9 81 -7 74 0 E F 58 +32 90 -3 87 -7 80 -10 70 -13 57 1 F G 73 +2 75 +2 77 -5 72 -20 52 0 52 0 G H 105 +3 108 -3 105 -15 90 -8 82 -9 73 0 H I 84 -5 79 -14 65 -4 61 -6 55 -5 50 0 I J 73 +22 95 +13 108 0 108 +1 109 -5 104 1 J K 77 +19 96 +2 98 +4 102 -1 101 -3 98 1 K
Δ = net change in score between years Highlighted figure = Leap Frog Award winner
Footwear Industry Report Copyright © GLO-BUS Software, Inc. Page 3b
for Most Improved Overall Score (current year to current year)
LEAP FROG AWARD Beginning in Year 12, one bonus point is added to the game-to-dateoverall score of the company whose current-year overall score is most improved over the prior year. If all companies fail to improve their scores from one year to the next, then no Leap Frog bonus is awarded.
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Industry 1 INDUSTRY OVERVIEW Year 16
Materials Prices
Price Adjustments
Materials Usage Facilities Utilization
Base Prices of Materials ($ per pair)
Materials Prices in Year 16 ($ per pair)
$6.00 -0.16 +0.43 $6.27
Standard $12.00 +1.22 +0.86
$14.08
Superior High industry-wide superior materials usage (45.1%) lead to superior materials prices that were 10.2% above the base and standard materials prices that were 2.6% below the base. Industry-wide utilization of production capability was above 110% and resulted in materials price increases of 7.2%.
Notes
Footwear Production and Sales
Branded Demand
(000s of pairs) Forecast Actual
Stockouts No. of Companies Unfilled Orders (000s)
Pairs Available (000s)
Pairs Sold (internet + wholesale)
Private Label
Demand Forecast (000s of pairs) Pairs Offered (000s) Pairs Sold (000s)
Superior Materials Usage Utilization of Production Capability
North America
42% 117.3% 46,092 37,103 36,575 36,574
2 0
4,026 4,599 3,987
Europe Africa
47% 120.0% 37,948 31,573 31,746 31,745
3 0
4,026 4,390 3,814
Asia Pacific
46% 118.5% 41,877 29,198 29,502 29,503
1 1
4,477 4,158 3,736
Latin America
46% 113.4% 36,996 30,088 30,107 30,105
4 0
4,477 6,644 4,477
Average or Total
45% 117.2% 162,913 127,962 127,930 127,927
1
17,006 19,791 16,014
⇦ % usage unchanged from Year 15. ⇦ % usage up 2.9 points from Year 15.
⇦ 27.3% higher than Year 16 demand.
⇦ From page 4 of FIR for Year 15. ⇦ Actual branded demand was about equalto forecast branded demand.
⇦ Extent to which orders for branded pairs went unfilled due to inventory shortages at one or more companies.
⇦ From page 4 of FIR for Year 15. ⇦ Private-label pairs offered was higher than
actual private-label demand by 14.1%.
Notes
Demand Forecast
Branded Demand (internet + wholesale)
Year 17 Year 18 Year 19
Private-Label Demand Year 17 Year 18 Year 19
North America
37,748 39,257 40,822 4,389 4,785 5,214
Europe Africa 32,848 34,164 35,526 4,389 4,785 5,214
Asia Pacific 31,552 34,081 36,812 4,972 5,522 6,127
Latin America
32,296 34,885 37,680 4,972 5,522 6,127
Global Total
134,444 142,387 150,840
18,722 20,614 22,682
Global demand for Y11-Y15 is expected to grow by 7%-9% annually, slowing to 5%-7% during Y16-Y20. The projected growth rates are not the same for all regions, as shown in the table on page 5 of the Player's Guide. Actual demand growth may vary from the forecast due to stronger or weaker competitive efforts on the part of rival companies.
Notes
Supply / Demand Analysis
Beginning Year 17 Inventory Potential Y17 Production (with OT)
Potential Global Supply
34,986 174,000 208,986
Potential Footwear Suppy in Year 17 Branded Demand Forecast Private-Label Demand Forecast
Expected Global Demand
134,444 18,722
153,166
Expected Footwear Demand in Year 17 Potential global supply (at max OT) in the upcoming year is 36.4% greater than projected global demand. Such excess production capability will result in FIERCE competition for the next several years. Companies with underutilized production capability are advised to sell unneeded production equipment.
Analysis
Facility Space Production Equipment
N.A. E-A A-P L.A.
Year 16 Facility Space (000s of pairs available for prod. equipmernt)
N.A. E-A A-P L.A.
Construction of New Space (initiated in Y16 and available in Y17)
Total Space
Available in Y17 N.A. E-A A-P L.A. Total
Year 16 Production Equipment (000s of pairs available for production)
A 6,000 0 7,000 0 0 0 0 0 13,000 A 4,000 0 2,000 0 6,000 A B 6,000 2,000 7,000 4,000 0 0 0 0 19,000 B 5,000 2,000 7,000 4,000 18,000 B C 6,000 1,000 6,000 1,000 0 0 0 0 14,000 C 5,500 0 4,250 1,000 10,750 C D 7,000 5,000 7,000 5,000 0 0 1,000 1,000 26,000 D 5,500 4,500 7,000 5,000 22,000 D E 6,000 1,000 7,000 2,000 1,000 0 0 0 17,000 E 3,750 1,000 4,750 750 10,250 E F 5,000 1,000 6,000 1,000 0 1,000 1,000 1,000 16,000 F 250 250 500 250 1,250 F G 5,000 3,000 6,000 3,000 0 0 0 0 17,000 G 5,000 1,500 4,000 1,000 11,500 G H 5,000 0 8,000 2,000 0 0 0 0 15,000 H 1,000 0 8,000 2,000 11,000 H I 5,000 0 6,000 0 0 0 0 2,000 13,000 I 3,250 0 5,000 0 8,250 I J 5,000 0 12,000 9,000 0 0 2,000 2,000 30,000 J 5,000 0 12,000 9,000 26,000 J K 5,000 0 8,000 7,000 0 0 0 0 20,000 K 5,000 0 8,000 7,000 20,000 K
61,000 13,000 80,000 34,000 1,000 1,000 4,000 6,000 200,000 43,250 9,250 62,500 30,000 145,000
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Industry 1 FINANCIAL PERFORMANCE SUMMARY Year 16
Income Statement Data ($000s)
Internet Wholesale P-label Total Net Sales Revenues Cost of
Pairs Sold Warehouse Expenses
Marketing Expenses
Admin Expenses
Operating Profit
Interest Exp (Inc)
Income Taxes
Net Profit
A 131,555 276,024 36,357 443,936 220,847 42,121 102,379 16,969 61,620 1,880 17,622 41,118 A B 310,757 926,828 96,651 1,372,814 642,271 92,225 305,570 29,066 303,682 798 90,865 212,019 B C 176,327 411,374 33,904 641,638 358,536 64,863 135,103 22,540 60,596 1,834 17,629 41,133 C D 309,669 752,676 0 1,113,798 501,050 105,350 216,151 36,470 254,777 33,737 65,649 153,181 D E 277,349 478,668 0 756,017 353,105 75,724 151,265 24,722 151,201 2,955 44,474 103,772 E F 31,540 77,380 0 108,920 42,911 12,892 5,186 11,220 36,711 1,633 10,523 24,555 F G 136,879 334,822 56,001 527,702 310,911 51,731 38,816 25,970 100,274 5,723 28,065 65,486 G H 280,307 446,715 88,056 815,078 409,275 72,264 164,458 21,469 147,612 -4,214 45,092 105,216 H I 176,478 364,766 0 541,244 281,293 55,339 128,058 16,620 59,934 -939 18,262 42,611 I J 352,254 924,973 169,970 1,502,743 725,161 120,743 213,523 34,967 408,349 4,175 121,252 282,922 J K 268,970 722,672 178,389 1,198,415 606,401 95,928 167,656 32,718 295,712 15,620 83,187 194,104 K
222,917 519,718 59,939 820,210 404,706 71,744 148,015 24,794 170,952 5,746 49,329 115,102
Selected Balance Sheet Data ($000s)
Cash On Hand
Current Assets
Fixed Assets
Total Assets
Assets Current Liabilities
Long-Term Loans
Total Liabilities
Liabilities Beginning
Equity Stock Sale (Purchase)
Earnings Retained
Ending Equity
Shareholder Equity
A 85,154 215,304 283,424 498,728 21,948 19,800 41,748 455,887 -27 1,120 456,980 A B 67,260 424,866 603,304 1,028,170 60,295 19,800 80,095 784,889 -18,983 182,169 948,075 B C 0 208,146 471,375 679,521 68,979 64,000 132,979 511,659 0 34,883 546,542 C D 7,560 590,304 747,149 1,337,453 137,518 445,000 582,518 597,580 93,246 64,109 754,935 D E 13,474 158,719 449,108 607,827 33,967 19,800 53,767 550,608 -100,320 103,772 554,060 E F 38,351 71,378 293,105 364,483 309,266 221,600 530,866 276,312 0 -442,695 -166,383 F G 69,912 275,515 469,392 744,907 83,371 190,800 274,171 405,250 0 65,486 470,736 G H 72,649 231,283 459,334 690,617 31,652 0 31,652 778,404 -211,380 91,941 658,965 H I 28,404 152,639 405,786 558,425 35,217 40,000 75,217 440,597 0 42,611 483,208 I J 0 383,942 832,310 1,216,252 145,806 19,800 165,606 862,748 -95,024 282,922 1,050,646 J K 36,935 309,632 800,945 1,110,577 107,106 400,000 507,106 628,034 -218,667 194,104 603,471 K
38,154 274,703 528,657 803,360 94,102 130,964 225,066 571,997 -50,105 56,402 578,294
Selected Financial Statistics
Gross Profit
Margin
Operating Profit
Margin
Net Profit
Margin
Profitability Measures Div. Per Share ($/share)
Total Div. Payment
($000s)
Payout (percent of net profit)
Dividend Data Credit Rating Measures Interest Coverage
Ratio
Debt to Assets Ratio
Default Risk Ratio
Risk of
Default Current Ratio
Days of Inventory
Shares of Stock
Outstanding (000s of shares)
A 50.3% 13.9% 9.3% 2.00 39,998 97.1% 32.78 0.08 5.99 Low 9.81 106 days 19,999 A B 53.2% 22.1% 15.4% 1.50 29,850 14.1% 380.55 0.08 26.13 Low 7.05 67 days 19,900 B C 44.1% 9.4% 6.4% 0.25 6,250 15.2% 33.04 0.20 7.43 Low 3.02 113 days 25,000 C D 55.0% 22.9% 13.8% 4.00 89,072 58.1% 7.55 0.44 1.28 High 4.29 334 days 22,268 D E 53.3% 20.0% 13.7% 0.00 0 0.0% 51.17 0.09 13.52 Low 4.67 26 days 19,440 E F 60.6% 33.7% 22.5% 25.00 467,250 1,908.4% 22.48 1.46 4.70 Low 0.23 128 days 18,690 F G 41.1% 19.0% 12.4% 0.00 0 0.0% 17.52 0.37 3.48 Medium 3.30 155 days 20,000 G H 49.8% 18.1% 12.9% 0.75 13,275 12.6% 1,000.00 0.05 1,000.00 Low 7.31 27 days 17,700 H I 48.0% 11.1% 7.9% 0.00 0 0.0% 1,000.00 0.13 1,000.00 Low 4.33 43 days 19,000 I J 51.7% 27.2% 18.8% 0.00 0 0.0% 97.81 0.14 13.48 Low 2.63 71 days 19,225 J K 49.4% 24.7% 16.2% 0.00 0 0.0% 18.93 0.46 6.42 Low 2.89 36 days 17,867 K
50.7% 20.8% 14.0% 3.05 58,700 191.4% 73.54 0.32 7.49 4.50 101 days 19,917
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Industry 1 PERFORMANCE BENCHMARKS Year 16
Production Benchmarks
North America Low Average High Industry 1 Company
D
Labor Statistics
Total Regular Compensation ($ / worker / year) Workforce Productivity (pairs / worker / year) Production Labor Cost ($ per pair after rejects) Supervisory Compensation ($ / supervisor / year)
Branded Production TQM/6-Sigma Spending Current ($/pair produced)
Cumulative ($000s)
Superior Materials Usage
Total Production Cost ($ per pair produced) Reject Rate
Percentage of New Production Equipment
Cost Per S/Q Star (total production cost per pair ÷ S/Q rating)
0% 37,702 4,265 7.76
63,060 10% 0.50
27,386 25.14 2.9% 4.51
84% 44,220 5,066 9.23
64,776 40% 1.84
51,463 31.65 6.3% 6.13
100% 52,252 5,378 10.36
73,641 60% 5.00
159,595 43.69
11.1% 10.87
73% 47,538 5,138 9.82
63,060 60% 2.00
53,200 30.06 5.5% 5.37
Europe-Africa Low Average High Industry 1 Company
D
Labor Statistics
Total Regular Compensation ($ / worker / year) Workforce Productivity (pairs / worker / year) Production Labor Cost ($ per pair after rejects) Supervisory Compensation ($ / supervisor / year)
Branded Production TQM/6-Sigma Spending Current ($/pair produced)
Cumulative ($000s)
Superior Materials Usage
Total Production Cost ($ per pair produced) Reject Rate
Percentage of New Production Equipment
Cost Per S/Q Star (total production cost per pair ÷ S/Q rating)
0% 22,673 3,396 6.66
37,837 10% 0.50 600
23.27 5.0% 5.08
60% 25,863 3,886 7.09
38,291 32% 2.82
9,167 31.82 6.5% 6.75
100% 28,906 4,056 7.81
38,594 64% 5.00
24,519 40.58 9.4% 8.14
44% 28,906 3,897 7.81
38,215 64% 2.00
24,519 28.45 5.5% 5.08
Asia-Pacific Low Average High Industry 1 Company
D
Labor Statistics
Total Regular Compensation ($ / worker / year) Workforce Productivity (pairs / worker / year) Production Labor Cost ($ per pair after rejects) Supervisory Compensation ($ / supervisor / year)
Branded Production TQM/6-Sigma Spending Current ($/pair produced)
Cumulative ($000s)
Superior Materials Usage
Total Production Cost ($ per pair produced) Reject Rate
Percentage of New Production Equipment
Cost Per S/Q Star (total production cost per pair ÷ S/Q rating)
0% 13,934 3,455 3.77
26,276 10% 0.30
29,042 19.87 2.6% 3.57
84% 17,339 4,004 4.50
26,837 39% 1.81
63,889 25.84 5.9% 5.08
100% 20,339 4,207 5.16
29,528 60% 5.00
183,970 43.23
11.1% 10.05
71% 20,024 4,155 5.05
26,276 60% 2.00
65,259 24.18 5.6% 4.32
Latin America Low Average High Industry 1 Company
D
Labor Statistics
Total Regular Compensation ($ / worker / year) Workforce Productivity (pairs / worker / year) Production Labor Cost ($ per pair after rejects) Supervisory Compensation ($ / supervisor / year)
Branded Production TQM/6-Sigma Spending Current ($/pair produced)
Cumulative ($000s)
Superior Materials Usage
Total Production Cost ($ per pair produced) Reject Rate
Percentage of New Production Equipment
Cost Per S/Q Star (total production cost per pair ÷ S/Q rating)
0% 12,612 3,403 3.52
26,276 10% 0.30 600
20.65 5.0% 3.93
76% 16,159 4,113 4.16
26,510 41% 2.02
15,430 34.99 7.4% 7.41
100% 21,011 6,058 5.16
27,334 66% 5.00
36,000 94.67
11.3% 23.09
40% 19,203 3,885 5.16
26,539 66% 2.00
25,589 25.40 5.6% 4.54
Note: To protect individual companies from having competitively sensitive data revealed to rival companies, only the industry averages are reported for regions with 2 or 3 production facilities. Industry low and high numbers are reported only for regions with 4 or more production facilities. No benchmark data is reported for regions with only 1 production facility.
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Industry 1 PERFORMANCE BENCHMARKS Year 16 (concluded)
Branded Operating Benchmarks
North America Low Average High Industry 1 Company
D
Internet Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin
Wholesale Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin
Distribution and Warehouse Costs ($ per pair available for sale) Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment)
4.36 26.26 8.03
-0.85 -0.9%
2.40 -33.84
-58.3%
6.88 32.20 20.17 21.69
24.2% 13.33 7.13
11.5%
11.47 43.76 35.15 35.91
35.7% 41.14 19.76
24.7%
4.36 30.91 17.61 23.70
27.1% 12.67 12.96
20.7%
Europe-Africa Low Average High Industry 1 Company
D
Internet Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin
Wholesale Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin
Distribution and Warehouse Costs ($ per pair available for sale) Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment)
4.84 28.43 6.29
14.61 15.5%
2.43 1.29
2.2%
10.83 32.94 18.54 23.82
26.1% 9.63 9.64
15.3%
13.03 40.50 29.32 31.49
34.3% 16.57 30.45
39.5%
4.84 29.65 16.22 23.13
27.4% 11.85 12.70
21.1%
Asia-Pacific Low Average High Industry 1 Company
D
Internet Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin
Wholesale Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin
Distribution and Warehouse Costs ($ per pair available for sale) Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment)
2.92 22.47 7.65 1.08
1.1% 1.78 4.75
9.5%
6.28 26.07 22.55 20.33
24.3% 9.28
12.92 22.7%
11.41 30.93 51.79 30.41
38.7% 17.12 25.29
33.9%
2.92 24.91 20.45 22.23
26.6% 12.89 14.98
25.1%
Latin America Low Average High Industry 1 Company
D
Internet Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin
Wholesale Segment Marketing Expenses ($ per pair sold) Operating Profit ($ per pair sold) Operating Profit Margin
Distribution and Warehouse Costs ($ per pair available for sale) Cost of Branded Pairs Sold (production, freight, x-rate cost adjustment)
4.39 24.53 7.64 6.48
6.6% 2.21
-4.59 -9.0%
10.10 32.76 19.50 22.33
24.6% 8.58
10.55 16.6%
16.17 40.07 34.99 35.62
42.4% 15.49 32.87
41.9%
4.39 26.53 16.97 27.09
31.6% 11.92 16.81
27.4%
Private-Label Operating Benchmarks
Low Average High Industry 1 Company
D
North America Cost Per Pair Sold (production, freight, tariffs, x-rates)Margin Over Direct Cost ($ per pair sold) 24.95 +2.75
27.27 +9.54
28.69 +16.71
0.00 0.00
Europe-Africa Cost Per Pair Sold (production, freight, tariffs, x-rates)Margin Over Direct Cost ($ per pair sold) 27.69 +4.06
29.77 +12.35
34.80 +16.23
0.00 0.00
Asia-Pacific Cost Per Pair Sold (production, freight, tariffs, x-rates)Margin Over Direct Cost ($ per pair sold) 20.47 +1.47
24.74 +12.30
37.56 +18.37
0.00 0.00
Latin America Cost Per Pair Sold (production, freight, tariffs, x-rates)Margin Over Direct Cost ($ per pair sold) 21.23 +8.89
27.54 +15.14
39.01 +22.93
0.00 0.00
Footwear Industry Report © 2018 GLO-BUS Software, Inc. Page 7
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Industry 1 CELEBRITY ENDORSEMENTS AND INDUSTRY TRENDS Year 16
Celebrity Endorsements
Celebrity Year 17
Contract Holder No. of Offers
Highest Offer
2nd Highest
3rd Highest
Most Recent Contract Offers (letter in parens indicates company that made offer)
Judy Judge ADragons 6 10,001 (A) 9,001 (I) 7,000 (H) Kimmie Jimmel B Cielo 6 13,000 (B) 9,999 (J) 9,001 (I) Bud Birkenstock B Cielo 5 13,000 (B) 9,001 (I) 8,900 (H) Jose Montana IPure Steps 4 9,001 (I) 7,000 (H) 5,009 (K) Samuelle Jackson J - Doyen 4 9,000 (J) 2,000 (G) 1,500 (E) Bronko Mars J - Doyen 4 8,800 (J) 8,000 (D) 1,500 (E) Steff Caraway J - Doyen 4 9,100 (J) 2,009 (E) 2,000 (G) Jay XYZ E Elite Footwear 4 9,100 (J) 2,005 (E) 2,000 (G) Nunchuck Norris DTigers 6 13,000 (D) 10,000 (G) 9,501 (C) Roger Federation K ASM 5 11,000 (B) 7,779 (K) 7,000 (H) Nick Shavan H Road Runner 5 7,000 (H) 6,002 (C) 4,000 (D) Anderson Blooper J - Doyen 4 10,505 (J) 7,000 (H) 6,001 (I) Mic Jagermeister DTigers 5 13,000 (D) 9,501 (C) 9,001 (H) Jim Hardball J - Doyen 4 10,605 (J) 6,001 (I) 6,000 (H) LaBron Game B Cielo 7 15,025 (B) 14,000 (D) 10,001 (C)
Co. N.A. E-A A-P L.A. A 85 65 60 40 B 270 250 220 215 C 0 0 0 0 D 170 180 175 140 E 75 70 55 90 F 0 0 0 0 G 0 0 0 0 H 70 75 70 55 I 60 50 60 95 J 305 315 395 375 K 75 85 65 100
Avg. 101 99 100 101
Year 17 Consumer Appeal (sum of consumer appeal indexes for each company in the upcoming year)
Pricing and S/Q Rating Trends
NORTH AMERICA EUROPE-AFRICA
ASIA-PACIFIC LATIN AMERICA
Footwear Industry Report Copyright © GLO-BUS Software, Inc. Page 8
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