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CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

HARRIS WILLIAMS & CO. CONSUMER UPDATE GROUP OVERVIEW

HW&CO.’S RECENT INDUSTRY OBSERVATIONS The HW&Co. Consumer group did not experience the “August M&A lull” this year as the team continues to be very busy executing a number deals that are expected to close by year end or shortly thereafter. Perhaps more interesting, we spoke with a large and increasing number of business owners interested in a near term liquidity event. Nothing like a little bit of public market volatility to remind owners that the existing white hot M&A market will not remain forever. The tradeshow circuit has also been active with recent visits to Outdoor Retailer, Super Zoo, and Kind + Jugend. This month we highlight our observations from Outdoor Retailer and the broader trends in the outdoor and lifestyle sector.

Recent HW&Co. Outdoor and Lifestyle Transactions

a portfolio company of

a portfolio company of

a portfolio company of

a portfolio company of has been acquired by

has been acquired by

has acquired

has been acquired by has been acquired by

has been acquired by

Outdoor Retailer Summer Market represents the largest outdoor product tradeshow in the World that largely caters to the specialty retailer. This year’s event was very well attended and featured over 1600 brands, almost one-quarter of which were new to Outdoor Retailer for the first time. Key Observations Functional Fashion – It used to be that most technical apparel brands were primarily focused on function without as much focus on current fashion trends. This is changing rapidly with lifestyle brands such as Patagonia and Prana designing products that are equally as likely to be worn at a trendy lunch spot in the city as they are on the trail or yoga studio. The newest fabrics are often rugged and highly technical, but also soft, shaped, and wrinkle-free to increase versatility. Brands that can consistently stay fashion forward will benefit greatly from this trend as the continuously evolving fashion landscape helps support greater consumer repurchase rates. Online Purchasing – Virtually all brands that we spoke with at the show spoke of how rapidly the online sales channel was growing. Whether products are being sold via the brand’s own website, Amazon, or through online specialty channels like backcountry.com (recently acquired by TSG Consumer Partners), consumers are increasingly turning to online marketplaces for product purchases. This trend is the result of many factors, including significantly greater impact of social media and peer reviews on purchasing behavior, ability for brands to control brand image and achieve greater product margin on products sold direct to consumer, and the Millennials-led purchasing behavior that increasingly shuns brick and mortar retail.

Harris Williams & Co. is a leading advisor to the Consumer market. Our significant experience covers a broad range of end markets, industries, and business models. This particular report focuses on trends and metrics in the following areas:

   

Consumer Durables

      

Franchise Platforms

   

Omni / Multi-Channel Brands

Consumer Electronics Consumer Services Footwear, Apparel, and Accessories Internet Retail

Home Furnishings Household Goods Infant and Juvenile Products Jewelry, Gifts, and Collectibles Lawn, Garden, and Pet Products and Services Outdoor and Lifestyle Personal Care Products Specialty and Mass Merchant Retailing

CONTACTS John Neuner Managing Director [email protected] +1 (804) 915-0125 Corey Benjamin Director [email protected] +1 (804) 932-1342 Ryan Budlong Director [email protected] +1 (415) 217-3409 Brent Spiller Director [email protected] +1 (804) 915-0183 Matt Conaty Vice President [email protected] +1 (415) 217-3423 Chip Duggins Vice President [email protected] +1 (804) 932-1340

www.harriswilliams.com

PAGE | 1

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

HARRIS WILLIAMS & CO. CONSUMER UPDATE HW&CO’S RECENT OUTDOOR & LIFESTYLE INDUSTRY OBSERVATIONS (CONTINUED) Wearable Technology – Following a broader consumer trend, outdoor enthusiasts increasingly want the ability to measure performance during activity participation. Traditional outdoor wearable technology players like Garmin and Suunto continue to innovate and provide additional and easier to use features in smaller packages. What is more interesting is the increasing proliferation of mobile apps that are compatible across different hardware platforms (e.g., iPhone and Android phones) that are comparatively cheap and easy to use. Good examples of this trend is the continued growth of Strava and Under Armour’s recent announcement that it has formed a partnership with Taiwanese mobile communications company HTC. White Hot M&A Market – Both strategic and financial buyers at the show lamented the continued lack of opportunities at “reasonable valuations”. It’s true, we have seen valuations for outdoor and lifestyle assets vastly increase beginning in 2014. In addition to just being a strong overall M&A market, buyers have been attracted to a category that is growing faster than most other segments of the economy and the proven ability of outdoor & lifestyle assets to perform in diverse economic environments. Sellers have continued to be in the driver’s seat for high quality assets and we do not expect this dynamic to change anytime soon.

OUTDOOR & LIFESTYLE TEV / EBITDA (2011 – 2015 YTD)1

14.0x 11.5x

12.0x 10.0x

9.1x

8.7x

10.5x

8.5x

8.0x

6.0x 4.0x 2.0x 0.0x 2011

2012

1)

2013

2014

2015

Proprietary HW&Co. data.

PAGE | 2

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

PUBLIC MARKETS OVERVIEW KEY TRADING STATISTICS (DETAIL BEGINS ON PAGE 7) Number of Median Enterprise Companies Value ($ M)

Sector

Median TEV/ LTM Multiples

Change in Stock Price 3 mos.

12 mos.

Revenue

Median TEV/ Forward Mulitples

EBITDA

Revenue

EBITDA

Consumer Products & Services Apparel & Footwear

24

$3,383

(6.3%)

8.9%

1.8x

12.3x

1.7x

Consumer Durables

6

6,018

(9.0%)

(1.2%)

0.9x

9.6x

0.9x

7.3x

Consumer Serv ices and Retail Franchisors

7

5,052

(0.6%)

11.0%

1.9x

12.1x

1.8x

10.2x

10

1,650

(4.9%)

22.6%

0.9x

10.9x

0.9x

8.6x

5

16,420

0.8%

20.5%

3.5x

14.2x

3.5x

13.5x

Housewares

10

3,248

(6.0%)

13.3%

1.4x

13.3x

1.5x

9.8x

Infant & Juv enile

12

908

(7.6%)

2.8%

0.7x

10.4x

0.6x

8.4x

Lawn, Garden, and Pet

11

1,808

(3.4%)

1.6x

12.4x

1.6x

10.8x

Outdoor & Lifestyle

20

966

(7.1%)

4.3%

1.6x

11.6x

1.4x

9.5x

Personal Care Products

13

3,553

(12.2%)

0.5%

1.5x

10.7x

1.4x

10.8x

31

1,514

(9.7%)

(6.8%)

0.7x

6.8x

0.6x

6.4x

8

6,180

(15.7%)

(12.5%)

0.7x

7.1x

0.6x

6.8x

Discount Stores & Mass Merchants

14

23,271

(6.0%)

13.1%

0.7x

11.1x

0.7x

10.0x

Furniture & Furnishings Retailers

14

1,560

(9.2%)

7.2%

0.9x

8.1x

0.9x

8.4x

Internet Retail

12

3,886

(11.8%)

9.0%

2.3x

21.1x

2.5x

13.9x

Specialty & Other Retail

15

4,769

(12.6%)

6.7%

0.8x

7.7x

0.8x

7.1x

Consumer Products & Services

118

$3,316

(6.1%)

6.6%

1.5x

11.9x

1.4x

10.0x

Retail

94

$4,327

(10.7%)

6.9%

0.8x

7.9x

0.7x

7.8x

Consumer & Retail Index

212

$3,468

(7.4%)

6.9%

1.2x

11.0x

1.1x

9.7x

Home & Office Furniture & Furnishings Household Products

(10.6%)

11.1x

Retail Apparel & Footwear Retail Department Chains

PUBLIC COMPANY SECTOR PERFORMANCE (12-MONTH % CHANGE IN STOCK PRICE) Home & Office Furniture & Furnishings Household Products Housewares Discount Stores & Mass Merchants Consumer Serv ices and Retail Franchisors Internet Retail Apparel & Footwear

Furniture & Furnishings Retailers Consumer & Retail Index Specialty & Other Retail Outdoor & Lifestyle Infant & Juv enile Personal Care Products S&P 500 Consumer Durables

Apparel & Footwear Retail Lawn, Garden, and Pet Department Chains (20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

PAGE | 3

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

PUBLIC MARKETS OVERVIEW CONSUMER AND RETAIL INDUSTRY STOCK PERFORMANCE

250 225 200

Index

175 150 125 100 75 50 Sep-11

Jan-12

May-12

Sep-12

Dow Jones U.S. Retail Index

Jan-13

May-13

Sep-13

Jan-14

Dow Jones U.S. Consumer Goods Index

May-14

Sep-14

Jan-15

May-15

Dow Jones U.S. Consumer Services

Sep-15

S&P 500 Index

RECENT EQUITY OFFERINGS Transaction

Gross Proceeds

Close Date

Filing Date

Issuer

Ticker

Type

($ M)

08/11/15

08/10/15

Norwegian Cruise Line Holdings Ltd.

NCLH

Follow-On

$1,180.6

08/10/15

08/10/15

Bright Horizons Family Solutions, Inc.

BFAM

Follow-On

183.2

Barclays Capital Inc.

08/06/15

06/22/15

Planet Fitness, Inc.

PLNT

IPO

202.0

JP Morgan, BAML, Jefferies, Credit Suisse, others

08/05/15

08/04/15

GNC Holdings Inc

GNC

Conv ertible

250.0

JP Morgan

07/31/15

07/31/15

Boot Barn Holdings Inc

BOOT

Follow-On

170.4

JP Morgan, Piper Jaffray, Jefferies

07/30/15

02/11/15

Xcel Brands, Inc.

XELB

Follow-On

15.1

W underlich Securities, Inc.

07/23/15

07/23/15

ClubCorp Holdings, Inc.

MYCC

Follow-On

231.7

Goldman, Sachs & Co.

07/21/15

06/10/15

Blue Buffalo Pet Products Inc

BUFF

IPO

778.1

JP Morgan, Citigroup Global Markets Inc

07/16/15

07/16/15

Jarden Corp

JAH

Follow-On

872.0

Barclays, Credit Suisse, UBS, others

07/16/15

05/01/15

MCBC Holdings Inc.

MCFT

IPO

84.7

Raymond James, Robert W . Baird, W ells Fargo, others

07/15/15

06/15/15

Ollie's Bargain Outlet Holdings, Inc.

OLLI

IPO

164.2

Jefferies, JP Morgan, Merrill Lynch, Pierce, Fenner, others

07/09/15

07/09/15

The Michaels Companies Inc

MIK

Follow-On

332.5

Goldman Sachs & Co

Underwriter(s) Goldman, Sachs & Co.

PAGE | 4

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

M&A OVERVIEW ANNOUNCED CONSUMER AND RETAIL M&A Last 10 Deals Announced

Quarterly Consumer M&A Activity Announced

160

Number of Transactions

140

16

120 23

100 80

13

20

21 14

127

60

26

25 5

34

98

40

77

66

77

57

20

12

18

13

43

35

39

Sequential Brands Group, Inc.

9/8/2015

Robert Graham Designs, LLC

Joe's Jeans Inc.

9/8/2015

CHART Metalworks, Inc.

Sea Bags, Inc.

9/7/2015

Sun & Skin Care Research, LLC

-

9/2/2015

California Scents, Inc.

American Cov ers Inc.

9/1/2015

Industrial Blades Div ision

AccuTec Blades, Inc.

9/1/2015

ACE Theatrical Group, LLC

The Ambassador Theatre Group Limited

8/31/2015

Backyard Leisure Holdings, LLC

-

8/31/2015

Hollywood Fashion Tape, Inc.

American International Industries

8/30/2015

Blyth, Inc.

The Carlyle Group LP

LTM Deal Statistics

0

Transaction Multiples

Aggregate

Number

Value ($bn)

of Deals

EV / Revenue

EV / EBITDA

$46.4

341

0.84x

10.7x

2Q123Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q15 Strategic Buyer

Buyer

Joe's Jeans Inc.

83

71

68

66

Target

9/8/2015

PEG Acquirer Note: Transactions based on publicly available information

CONSUMER AND RETAIL M&A TRENDS Median Consumer Transaction Multiples

Announced Consumer Transactions

1.40x

$60

300 250

$40

$45

$38

$30

$29

$36

200

$28

$27

150 100

$15

50

$0

1.20x

16.0x

1.00x 12.0x

10.7x 8.9x

10.0x

9.8x

11.4x

10.8x

0.80x

8.4x

0.60x

8.0x

0.40x 4.0x

EV / LTM Sales Multiple

350

EV / LTM EBITDA Multiple

400

$75

$30

20.0x

450

Number of Transactions

Average Transaction Value ($ in billions)

$90

0.20x

0 2009

2010

2011

2012

2013

2014

Aggregate Transaction Value

2015 YTD

0.0x

0.00x 2009

2010

2011

2012

EBITDA Mult

# of Deals

2013

2014

2015 YTD

Rev Mult

TRADING MULTIPLES AND ANNOUNCED PRIVATE EQUITY M&A ACTIVITY Median LTM Trading Multiples

14.0x 12.0x

14.7x

111

13.6x

13.1x

12.9x 11.9x 12.1x 11.9x 12.1x 11.6x

Consumer Private Equity Investments and Exits 120

12.0x

13.1x 12.1x 11.9x 12.0x12.0x

11.8x

11.9x

12.2x

12.4x

12.0x

10.8x 10.0x

10.0x 8.0x 6.0x

4.0x 2.0x

10.2x

10.4x

10.0x

9.5x

100

Number of Transactions

Median Trading Multiples

16.0x

97 86

80 60

71

73 76

72

59

59 48

40

31 28

68 57

53 53

57

59 50

37

20

0.0x

0

2006 Consumer Products & Services

Retail

2007

2008

2009

2010

Number of Investments

2011

2012

2013

Number of Exits

2014

2015 YTD

PAGE | 5

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

DEBT MARKET OVERVIEW KEY RETAIL CREDIT STATISTICS Average Spread on Retail Loans L + 700

12 12.00

L + 600

Average Spread Over LIBOR

Loan Volume by Quarter ($ in billions)

Quarterly Retail Loan Volume 14 14.00

10 10.00 8 8.00 6 6.00 4 4.00 2 2.00 0 0.00 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 2Q094Q092Q104Q102Q114Q112Q124Q122Q134Q132Q144Q142Q15

Institutional

L + 500 L + 400 L + 300 L + 200 L + 100 NA

L+0 2007

Pro Rata

2008

2009

2010

Revolving Credit / Term Loan A

2011

2012

2013

2014 1H15 2Q15

Weighted-Average Institutional

Average Secondary Spread

Credit Statistics L + 2500

6.0x

Average Spread Over LIBOR

EBITDA Multiple

5.0x 4.0x 3.0x 2.0x 1.0x 0.0x Debt/EBITDA

2010

Senior Debt/EBITDA 2011

2012

EBITDA/Cash Interest 2013

2014

1H15

EBITDA Capex/Cash Interest

L + 2000

L + 1500

L + 1000

L + 500

L+0 2Q05 2Q06 2Q07 2Q08 2Q09 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15

COMMENTARY ON RECENT CONSUMER AND RETAIL DEBT TRANSACTIONS • • •

• •

The first-lien loan backing of Sycamore Partners’ $3 billion buyout of Charlotte, N.C.-based retailer Belk, is being led by Morgan Stanley. A privately placed second-lien term loan also backs the deal. Bain Capital’s acquisition of a minority stake in skincare company, Sundial Brands, led by Goldman Sachs, is likely to roll out later in September. GSO Capital Partners has committed to provide debt financing to Sequential Brands to fund its acquisition of assets as part of the break-up of Nasdaq-listed Joe’s Jeans. The Joe’s brand and other assets will be sold to Sequential for $67 million, while Global Brands Group Holding will buy operating assets and inventory for $13 million. Proceeds from the asset sale will be used to pay down borrowings under the company’s revolving credit with CIT Group (about $21 million) and term loan with Garrison Capital ($59 million). Separately, the Hudson Jeans brand will merge with Robert Graham and will be renamed Differential Brands Group. Tengram Capital Partners, Robert Graham’s sponsor, will invest $50 million in the latter. Smart Start’s $145 million first-lien term loan backing its LBO by ABRY Partners is being led by BNP. The deal launched at L+475-500, with a 1% LIBOR floor and an offer price of 99. The 6.5-year loan includes a leverage-based step-down. Britax term debt due 2020 (L+350, 1% floor) was quoted several points lower, at 70/75, after the company issued a recall for its ClickTight model convertible car seats. It was subsequently downgraded by S&P to CCC+, from B-. The loans were marked at 78/81 prior to the recall. More than 200,000 car seats were affected by the recall, the Associated Press reports.

PAGE | 6

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

PUBLIC COMPARABLES ($ in m illions, except per share data)

Ticker

Price at

As a % of

Market

9/17/15

52-wk High

Cap

Consumer Products & Services Apparel & Footwear Coach, Inc. Columbia Sportswear Company Carter's, Inc. Crocs, Inc.

COH COLM CRI CROX

29.92 65.66 $97.97 14.71

68.2% 87.9% 89.4% 91.7%

8,277 4,616 $5,118 1,099

Deckers Outdoor Corp.

DECK

64.68

64.8%

Fossil Group, Inc.

FOSL

60.20

52.3%

G-III Apparel Group, Ltd. Hanesbrands Inc. Iconix Brand Group, Inc. Kate Spade & Company NIKE, Inc. Oxford Industries Inc. Perry Ellis International Inc. PVH Corp. Ralph Lauren Corporation Stev en Madden, Ltd. Skechers U.S.A., Inc. Gildan Activ ewear Inc. Tumi Holdings, Inc. Under Armour, Inc. V.F. Corporation Vera Bradley, Inc. W eyco Group Inc. W olv erine W orld W ide Inc.

GIII HBI ICON KATE NKE OXM PERY PVH RL SHOO SKX TSX: GIL TUMI UA VFC VRA W EYS WWW

68.47 30.26 14.96 20.47 115.58 82.39 23.98 115.74 114.60 41.36 143.63 31.33 19.61 103.36 71.96 13.74 27.50 27.24 Mean Median

Debt

Cash &

Enterprise

Equiv.

Value (EV)

Last Twelve Months (LTM) Revenue

EBITDA

Revenue Growth 1 Year

3 Years

LTM Margins Gross

EBITDA

LTM P/E Multiple

EV / LTM Revenue

EV / 2015E

EBITDA

Revenue

EBITDA

890 16 $586 9

1,526 417 $244 197

7,641 4,214 $5,460 910

4,192 2,211 $2,966 1,117

973 278 $444 28

(12.8%) 22.6% 7.6% (7.4%)

(4.2%) 8.8% 9.3% 1.1%

69.5% 45.8% 41.3% 49.3%

23.2% 12.6% 15.0% 2.5%

20.6x 33.1x 23.7x NM

1.82x 1.91x 1.84x 0.82x

7.9x 15.2x 12.3x 32.4x

1.71x 1.75x 1.73x 0.80x

7.8x 13.5x 11.1x 8.9x

2,114

76

169

2,021

1,819

257

11.7%

8.1%

48.3%

14.1%

14.7x

1.11x

7.9x

1.02x

7.0x

2,898

697

250

3,346

3,424

628

0.0%

8.3%

56.2%

18.3%

8.7x

0.98x

5.3x

1.01x

7.5x

92.6% 87.0% 36.5% 57.3% 98.2% 90.3% 85.1% 89.6% 61.1% 92.5% 87.8% 90.4% 77.0% 99.8% 92.5% 56.5% 87.8% 77.4%

3,096 12,179 722 2,614 98,865 1,366 374 9,554 9,815 2,612 7,320 7,618 1,331 22,291 30,629 522 299 2,808

6 2,597 1,479 403 1,338 45 130 3,382 693 0 112 593 0 717 2,584 0 18 833

19 315 118 231 6,002 14 38 467 1,151 100 514 45 73 171 660 76 18 221

3,083 14,461 2,083 2,785 94,201 1,398 466 12,469 9,357 2,512 6,919 8,166 1,258 22,836 32,553 446 299 3,421

2,234 5,654 391 1,185 30,601 1,039 909 8,045 7,530 1,382 2,822 2,407 543 3,422 12,450 500 325 2,782

205 921 191 143 4,824 129 42 953 1,243 178 360 365 117 442 2,105 71 36 315

15.6% 15.8% 0.9% 23.8% 10.1% 13.2% 1.1% (2.5%) 0.3% 3.3% 33.8% 3.7% 10.9% 28.8% 5.8% (3.3%) 8.4% 3.1%

20.2% 8.4% 1.8% (7.2%) 9.5% 8.7% (1.6%) 10.6% 2.8% 6.4% 25.2% 8.8% 14.6% 28.2% 6.3% 0.3% 4.4% 25.6%

35.9% 37.9% 100.0% 60.9% 46.0% 55.7% 34.2% 52.5% 57.2% 34.8% 45.3% 23.5% 58.5% 48.8% 48.7% 54.1% 38.4% 39.3%

9.2% 16.3% 48.9% 12.1% 15.8% 12.4% 4.6% 11.8% 16.5% 12.9% 12.8% 15.1% 21.5% 12.9% 16.9% 14.3% 11.1% 11.3%

25.9x 34.7x 5.9x 31.1x 31.2x 26.3x NM 19.6x 16.8x 24.6x 35.2x 33.7x 22.0x NM 29.8x 20.0x 15.5x 20.9x

1.38x 2.56x 5.33x 2.35x 3.08x 1.35x 0.51x 1.55x 1.24x 1.82x 2.45x 3.39x 2.32x 6.67x 2.61x 0.89x 0.92x 1.23x

15.0x 15.7x 10.9x NM 19.5x 10.9x 11.2x 13.1x 7.5x 14.1x 19.2x 22.4x 10.8x 51.7x 15.5x 6.2x 8.3x 10.8x

1.22x 2.42x 4.70x 2.12x 2.90x 1.37x 0.49x 1.52x 1.22x 1.68x 2.01x 3.01x 2.15x 5.36x 2.47x 0.91x NA 1.19x

12.4x 14.2x 9.1x 13.1x 17.8x 10.0x 8.0x 11.3x 7.9x 12.3x 13.9x 13.8x 10.7x 40.8x 14.3x 6.5x NA 10.6x

79.7% 87.8%

$9,922 $2,997

$717 $494

$543 $209

$10,096 $3,383

$4,165 $2,320

$635 $296

8.1% 6.7%

8.5% 8.3%

49.2% 48.5%

15.1% 13.5%

23.5x 23.7x

2.09x 1.82x

14.9x 12.3x

1.95x 1.71x

12.3x 11.1x

PAGE | 7

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

PUBLIC COMPARABLES Ticker

($ in m illions, except per share data)

Price at

As a % of

Market

9/17/15

52-wk High

Cap

Debt

Cash &

Enterprise

Equiv.

Value (EV)

Last Twelve Months (LTM) Revenue

EBITDA

Revenue Growth 1 Year

3 Years

LTM Margins Gross

EBITDA

LTM P/E Multiple

EV / LTM Revenue

EV / 2015E

EBITDA

Revenue

EBITDA

Consumer Durables Arcelik AS

ARCLK

5.10

97.2%

3,443

1,889

393

4,939

4,799

469

(14.4%)

(4.3%)

31.4%

9.8%

13.1x

1.03x

10.5x

1.05x

9.6x

Electrolux AB iRobot Corporation

ELUX B IRBT

29.56 30.27

86.5% 79.4%

8,494 904

1,649 0

1,017 224

9,126 680

14,526 570

1,000 67

(10.1%) 12.8%

(2.3%) 7.4%

19.6% 47.0%

6.9% 11.8%

24.8x 25.5x

0.63x 1.19x

9.1x 10.1x

0.57x 1.00x

7.6x 7.0x

Middleby Corp.

MIDD

114.45

91.3%

6,561

575

39

7,098

1,682

373

9.6%

20.9%

39.3%

22.2%

32.0x

4.22x

19.0x

3.54x

16.9x

Haier Electronics Group Co., Ltd.

SEHK: 1169

1.79

53.4%

4,989

200

1,595

3,593

10,568

494

(0.8%)

8.8%

15.2%

4.7%

11.8x

0.34x

7.3x

0.35x

6.5x

W hirlpool Corp.

W HR

168.08

77.4%

13,180

4,757

691

17,246

20,881

2,026

11.0%

4.3%

17.3%

9.7%

19.8x

0.83x

8.5x

0.79x

7.1x

Mean

80.9%

$6,262

$1,512

$660

$7,114

$8,838

$738

1.4%

5.8%

28.3%

10.8%

21.1x

1.37x

10.8x

1.22x

9.1x

Median

83.0%

$5,775

$1,112

$542

$6,018

$7,684

$481

4.4%

5.8%

25.5%

9.7%

22.3x

0.93x

9.6x

0.90x

7.3x

3,812 9,891

1,340 506

101 1,706

5,052 8,691

2,612 3,083

476 948

(0.9%) 1.7%

4.5% 2.2%

37.3% 50.3%

18.2% 30.8%

16.1x 19.9x

1.93x 2.82x

10.6x 9.2x

1.85x 2.76x

9.6x 8.8x

Consumer Services and Retail Franchisors GNC Holdings Inc. H&R Block, Inc.

GNC HRB

44.86 35.79

86.8% 98.6%

Regis Corp.

RGS

12.31

68.7%

651

120

212

558

1,837

86

(2.9%)

(4.7%)

33.8%

4.7%

NM

0.30x

6.5x

0.31x

5.9x

Realogy Holdings Corp. Serv iceMaster Global Holdings, Inc.

RLGY SERV

40.64 34.97

81.7% 90.9%

5,959 4,728

4,338 2,846

359 384

9,938 7,190

5,522 2,529

728 576

3.8% 7.0%

9.0% NA

48.2% 47.5%

13.2% 22.8%

32.3x 41.4x

1.80x 2.84x

13.7x 12.5x

1.67x 2.72x

11.6x 11.3x

Steiner Leisure Ltd.

STNR

63.84

98.2%

819

109

48

880

871

73

1.1%

4.6%

21.9%

8.4%

NM

1.01x

12.1x

0.98x

10.8x

W inmark Corp.

W INA

102.50

95.0%

423

74

1

496

69

37

20.9%

12.1%

87.8%

53.6%

23.5x

7.18x

13.4x

NA

NA

Mean

88.6%

$3,755

$1,333

$402

$4,686

$2,360

$418

4.4%

4.6%

46.7%

21.7%

26.6x

2.56x

11.1x

1.71x

9.7x

Median

90.9%

$3,812

$506

$212

$5,052

$2,529

$476

1.7%

4.5%

47.5%

18.2%

23.5x

1.93x

12.1x

1.76x

10.2x

Home & Office Furniture & Furnishings The Dixie Group, Inc.

DXYN

10.16

88.3%

162

136

0

298

419

17

10.9%

16.6%

24.6%

4.1%

NM

0.71x

17.4x

0.66x

NA

HNI Corp. Hooker Furniture Corp.

HNI HOFT

46.21 24.73

80.0% 90.6%

2,049 267

304 0

39 44

2,315 223

2,353 249

212 25

13.8% 6.9%

6.8% 5.8%

35.9% 26.5%

9.0% 9.9%

28.7x 17.9x

0.98x 0.90x

10.9x 9.0x

0.93x 0.86x

8.6x NA

Kimball International, Inc.

KBAL

10.76

57.5%

404

0

35

370

601

43

10.5%

31.4%

7.1%

37.6x

0.62x

8.7x

NA

NA

Knoll, Inc. Leggett & Platt, Incorporated

KNL LEG

23.77 44.08

91.2% 86.0%

1,160 6,031

274 1,033

10 275

1,423 6,790

1,090 3,914

122 481

15.6% 9.7%

7.4% 2.1%

36.2% 22.0%

11.2% 12.3%

18.3x 25.6x

1.31x 1.73x

11.7x 14.1x

1.25x 1.65x

9.5x 11.4x

La-Z-Boy Incorporated Herman Miller Inc.

LZB MLHR

27.75 $27.86

95.7% 86.1%

1,403 $1,667

1 $268

99 $58

1,305 $1,877

1,440 $2,198

130 $247

4.4% 14.3%

4.7% 8.6%

35.9% 37.8%

9.0% 11.2%

20.5x 15.8x

0.91x 0.85x

10.0x NM

0.84x 0.82x

8.4x 7.4x

Steelcase Inc.

SCS

18.24

89.2%

2,228

282

156

2,354

3,042

256

(0.1%)

3.0%

31.4%

8.4%

27.2x

0.77x

9.2x

0.76x

7.5x

Tempur Sealy International Inc.

TPX

76.95

95.7%

4,763

1,576

35

6,303

3,077

339

8.7%

28.1%

38.6%

11.0%

37.4x

2.05x

18.6x

1.93x

13.2x

Mean Median

86.0% 88.8%

$2,013 $1,535

$388 $271

$75 $41

$2,326 $1,650

$1,838 $1,819

$187 $171

9.5% 10.1%

6.4% 6.3%

32.0% 33.6%

9.3% 9.5%

25.5x 25.6x

1.08x 0.90x

12.2x 10.9x

1.08x 0.86x

9.4x 8.6x

Household Products Church & Dwight Co. Inc.

CHD

84.47

93.1%

11,061

1,074

203

11,932

3,367

768

Colgate-Palmoliv e Co. The Clorox Company

CL CLX

$63.07 113.58

88.1% 94.8%

$56,771 14,611

$6,683 2,191

$1,308 382

$62,146 16,420

$16,736 5,655

$4,550 1,158

Prestige Brands Holdings, Inc.

PBH

47.45

91.7%

2,502

1,515

22

3,995

761

259

The Procter & Gamble Company

PG

70.10

74.7%

190,192

30,350

11,612

208,930

76,279

18,007

Mean

88.5%

$55,027

$8,363

$2,705

$60,685

$20,560

Median

91.7%

$14,611

$2,191

$382

$16,420

$5,655

(19.3%)

4.6%

6.1%

44.2%

22.8%

28.3x

3.54x

15.5x

3.47x

14.9x

(4.0%) 2.6%

(0.6%) 1.1%

58.6% 43.6%

27.2% 20.5%

25.3x 24.9x

3.71x 2.90x

13.7x 14.2x

3.78x 2.87x

13.5x 13.3x

26.7%

15.6%

57.7%

34.1%

28.6x

5.25x

15.4x

5.02x

14.2x

(5.3%)

(2.4%)

49.9%

23.6%

22.9x

2.74x

11.6x

2.98x

11.8x

$4,948

4.9%

4.0%

50.8%

25.6%

26.0x

3.63x

14.1x

3.62x

13.5x

$1,158

2.6%

1.1%

49.9%

23.6%

25.3x

3.54x

14.2x

3.47x

13.5x

PAGE | 8

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

PUBLIC COMPARABLES Ticker

($ in m illions, except per share data)

Price at

As a % of

Market

9/17/15

52-wk High

Cap

Debt

Cash &

Enterprise

Equiv.

Value (EV)

Last Twelve Months (LTM) Revenue

EBITDA

Revenue Growth 1 Year

3 Years

LTM Margins Gross

EBITDA

LTM P/E Multiple

EV / LTM Revenue

EV / 2015E

EBITDA

Revenue

EBITDA

Housewares Fiskars Oyj Abp

FIS1V

21.32

84.6%

1,747

404

1,060

1,090

964

91

(9.2%)

0.8%

39.3%

9.4%

1.9x

1.13x

12.0x

0.79x

8.1x

Helen of Troy Limited Jarden Corp.

HELE JAH

92.74 53.11

92.4% 93.0%

2,654 11,210

439 5,026

15 730

3,078 15,506

1,479 8,317

206 844

11.6% 7.7%

6.9% 7.5%

42.2% 31.8%

13.9% 10.1%

19.8x 46.6x

2.08x 1.86x

14.9x 18.4x

2.03x 1.70x

13.1x 11.7x

Libbey Inc. Lifetime Brands, Inc.

LBY LCUT

34.73 13.64

82.6% 75.2%

759 191

452 131

31 5

1,179 317

852 591

112 39

2.1% 9.3%

1.2% 8.2%

23.6% 36.6%

13.2% 6.5%

15.4x NM

1.38x 0.54x

10.5x 8.2x

1.34x 0.52x

8.7x NA

Nacco Industries Inc.

NC

53.65

84.0%

373

179

19

533

909

10

(1.0%)

3.8%

20.5%

1.1%

NM

0.59x

52.8x

NA

NA

Newell Rubbermaid Inc. SEB SA

NW L SK

42.92 91.87

96.4% 86.5%

11,494 4,490

2,881 1,011

239 510

14,136 4,992

5,835 5,057

965 545

3.3% (11.1%)

0.7% (0.4%)

38.7% 11.7%

16.5% 10.8%

31.1x 20.1x

2.42x 0.99x

14.6x 9.2x

2.35x 0.91x

13.5x 8.1x

Spectrum Brands Holdings, Inc.

SPB

98.01

92.0%

5,833

4,346

107

10,072

4,561

685

3.9%

12.0%

35.6%

15.0%

31.2x

2.21x

14.7x

1.98x

10.8x

Tupperware Brands Corporation

TUP

52.52

71.4%

2,620

873

74

3,419

2,439

404

(8.2%)

(1.6%)

66.5%

16.6%

12.9x

1.40x

8.5x

1.47x

8.1x

Mean

85.8%

$4,137

$1,574

$279

$5,432

$3,100

$390

0.8%

3.9%

34.6%

11.3%

22.4x

1.46x

16.4x

1.45x

10.3x

Median

85.5%

$2,637

$663

$91

$3,248

$1,959

$305

2.7%

2.5%

36.1%

12.0%

19.9x

1.39x

13.3x

1.47x

9.8x

97.97

89.4%

5,118

586

244

5,460

2,966

444

7.6%

9.3%

41.3%

15.0%

23.7x

1.84x

12.3x

1.73x

11.1x

8.08

92.0%

81

0

8

72

88

11

9.6%

1.1%

27.3%

12.9%

13.7x

0.82x

6.4x

0.79x

6.0x

24.20 80.25

75.8% 95.1%

783 10,023

684 1,728

51 891

1,416 10,860

2,709 4,280

146 805

6.5% 2.9%

4.2% 0.9%

21.9% 52.8%

5.4% 18.8%

NM 24.4x

0.52x 2.54x

9.7x 13.5x

0.50x 2.41x

7.4x 12.0x

Infant & Juvenile Carter's, Inc.

CRI

Crown Crafts, Inc.

CRW S

Dorel Industries Inc. Hasbro Inc.

DII.B HAS

JAKKS Pacific, Inc.

JAKK

9.98

97.9%

193

215

110

298

849

65

29.5%

7.0%

29.4%

7.7%

9.8x

0.35x

4.5x

0.40x

5.2x

Mattel, Inc. Mothercare plc

MAT MTC

24.03 3.52

69.8% 76.2%

8,135 600

2,100 0

300 47

9,935 554

5,926 1,063

943 54

(6.4%) (11.9%)

(1.7%) (6.5%)

49.6% 15.3%

15.9% 5.1%

20.1x NM

1.68x 0.52x

10.5x 10.3x

1.73x 0.49x

11.2x 8.9x

Newell Rubbermaid Inc. The Children's Place, Inc.

NW L PLCE

42.92 59.53

96.4% 85.2%

11,494 1,209

2,881 30

239 205

14,136 1,034

5,835 1,738

965 135

3.3% (1.0%)

0.7% (0.1%)

38.7% 35.8%

16.5% 7.8%

31.1x 22.8x

2.42x 0.59x

14.6x 7.7x

2.35x 0.60x

13.5x 5.8x

Goodbaby International Holdings Limited

SEHK: 1086

0.45

87.2%

496

262

103

655

923

35

50.6%

18.7%

26.0%

3.8%

NM

0.71x

18.8x

0.66x

9.0x

Summer Infant, Inc.

SUMR

1.36

34.3%

25

58

1

81

207

3

4.1%

(5.3%)

31.1%

1.4%

NM

0.39x

28.2x

0.37x

6.0x

TOMY Company, Ltd.

TSE: 7867

5.18

73.6%

440

638

295

783

1,236

87

(19.0%)

35.2%

7.1%

NM

0.63x

9.0x

0.56x

8.0x

Mean

81.1%

$3,216

$765

$208

$3,774

$2,318

$308

6.5%

0.8%

33.7%

9.8%

20.8x

1.09x

12.1x

1.05x

8.7x

Median

86.2%

$692

$424

$158

$908

$1,487

$111

3.7%

0.8%

33.2%

7.7%

22.8x

0.67x

10.4x

0.63x

8.4x

3.97 22.89

80.8% 79.5%

1,517 4,489

322 389

31 180

1,808 4,698

1,256 976

167 191

5.4% NA

47.6% 39.4%

13.3% 19.6%

22.7x 44.1x

1.44x 4.82x

10.8x 24.6x

1.48x 4.35x

10.9x 22.7x

(16.6%)

Lawn, Garden, and Pet DuluxGroup Limited Blue Buffalo Pet Products, Inc.

ASX:DLX BUFF

Central Garden & Pet Company

CENT

$15.55

98.2%

$788

$400

$44

$1,145

$1,639

$136

2.5%

(0.8%)

29.8%

8.3%

23.9x

0.70x

8.4x

0.68x

8.5x

Freshpet, Inc. Oil-Dri Corp. of America

FRPT ODC

$10.44 23.81

40.3% 69.6%

$350 168

$0 19

$24 15

$326 172

$102 262

$2 23

38.1% (0.8%)

NA 3.3%

48.6% 21.3%

1.5% 8.7%

NM 25.3x

3.18x 0.66x

208.6x 7.6x

2.42x NA

15.3x NA

The Scotts Miracle-Gro Company Spectrum Brands Holdings, Inc.

SMG SPB

62.32 98.01

90.0% 92.0%

3,818 5,833

1,064 4,346

80 107

4,802 10,072

2,988 4,561

383 685

5.9% 3.9%

2.1% 12.0%

35.3% 35.6%

12.8% 15.0%

23.1x 31.2x

1.61x 2.21x

12.6x 14.7x

1.55x 1.98x

9.7x 10.8x

Maabarot Products Ltd.

TASE:MABR

11.64

92.1%

114

4

43

75

94

6

(10.2%)

2.5%

40.6%

6.2%

NM

0.79x

12.7x

NA

NA

Echo Trading Co., Ltd. Unicharm Corporation

TSE:7427 TSE:8113

5.29 18.72

91.4% 66.6%

32 11,250

26 228

30 964

28 10,514

599 5,961

3 994

(18.7%) 2.4%

13.1% 44.2%

0.5% 16.7%

20.0x 33.1x

0.05x 1.76x

9.2x 10.6x

NA 1.60x

NA 10.7x

The Toro Company

TTC

72.36

97.6%

3,966

387

110

4,242

2,324

342

8.6%

5.4%

34.9%

14.7%

21.8x

1.83x

12.4x

1.70x

10.7x

Mean

81.7% 90.0%

$2,939 $1,517

$653 $322

$148 $44

$3,444 $1,808

$1,887 $1,256

$266 $167

3.1% 2.5%

2.2% 3.3%

35.5% 35.6%

10.7% 12.8%

27.2x 23.9x

1.73x 1.61x

30.2x 12.4x

1.97x 1.65x

12.4x 10.8x

Median

(15.4%) 18.2%

(14.3%) 4.7%

PAGE | 9

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

PUBLIC COMPARABLES Ticker

($ in m illions, except per share data)

Price at

As a % of

Market

9/17/15

52-wk High

Cap

Debt

Cash &

Enterprise

Equiv.

Value (EV)

Last Twelve Months (LTM) Revenue

EBITDA

Revenue Growth 1 Year

3 Years

LTM Margins Gross

EBITDA

LTM P/E Multiple

EV / LTM Revenue

EV / 2015E

EBITDA

Revenue

EBITDA

Outdoor & Lifestyle Arctic Cat Inc.

ACAT

$25.12

63.2%

$326

$31

$20

$337

$689

$13

(8.5%)

3.5%

16.1%

1.9%

NM

0.49x

25.1x

0.48x

Brunswick Corporation

BC

50.23

88.7%

4,619

452

611

4,459

3,998

468

10.5%

3.5%

26.8%

11.7%

21.4x

1.12x

9.5x

1.04x

7.9x

Black Diamond, Inc. Columbia Sportswear Company

BDE COLM

7.19 65.66

66.9% 87.9%

236 4,616

22 16

44 417

213 4,214

200 2,211

5 278

12.7% 22.6%

8.4% 8.8%

39.0% 45.8%

2.5% 12.6%

NM 33.1x

1.07x 1.91x

NM 15.2x

1.00x 1.75x

20.2x 13.5x

Callaway Golf Co.

ELY

8.76

85.9%

688

153

27

814

818

33

(8.0%)

(2.9%)

40.5%

4.0%

NM

1.00x

NM

0.93x

15.0x

Escalade Inc. Fox Factory Holding Corp

ESCA FOXF

17.77 15.18

88.9% 87.5%

251 561

13 69

3 6

261 623

149 329

21 50

10.3% 13.5%

2.7% 24.4%

29.8% 30.3%

14.3% 15.3%

16.8x 27.6x

1.75x 1.89x

12.2x 12.4x

1.63x 1.68x

11.4x

GoPro, Inc.

GPRO

35.73

36.3%

4,747

0

517

4,230

1,697

277

64.1%

NA

46.3%

16.3%

32.0x

2.49x

15.3x

2.04x

10.3x

Amer Sports Corp. Rapala VMC Corp.

HLSE: AMEAS HLSE: RAP1V

26.13

87.3% 84.4%

3,067

3,675

2,660

262

17

342

316

29

(9.4%) (15.8%)

2.3% (4.0%)

44.4% 50.5%

9.8% 9.3%

41.9x 21.2x

1.38x 1.08x

14.0x 11.6x

1.23x 1.03x

11.7x

214

731 145

122

5.59

Harley-Dav idson, Inc.

HOG

55.96

79.5%

11,491

6,227

881

16,836

5,999

1,381

(4.2%)

1.5%

37.1%

23.0%

15.0x

2.81x

12.2x

2.95x

11.3x

Johnson Outdoors Inc. Malibu Boats, Inc.

JOUT MBUU

24.22 16.05

68.6% 66.5%

241 287

8 79

54

195 357

430 229

25 38

2.8% 19.7%

1.2%

8

40.0% 26.8%

5.8% 16.5%

27.3x 17.3x

0.45x 1.56x

7.8x 9.5x

0.44x 1.40x

NA 7.2x

Marine Products Corp.

MPX

6.47

72.0%

248

0

18

230

186

17

4.5%

13.6%

20.1%

8.9%

21.2x

1.24x

NM

1.12x

11.4x

Nautilus Inc. Polaris Industries Inc.

NLS PII

16.18 131.23

70.5% 82.4%

511 8,681

0 403

87 119

423 8,965

310 4,804

44 890

27.1% 16.1%

18.1% 17.4%

52.2% 29.9%

14.3% 18.5%

19.7x 19.2x

1.37x 1.87x

9.6x 10.1x

1.23x 1.71x

8.5x 8.8x

Sturm, Ruger & Co. Inc.

RGR

63.06

95.4%

1,179

0

61

1,118

499

113

(26.3%)

7.1%

29.5%

22.6%

49.0x

2.24x

9.9x

1.97x

8.7x

Smith & W esson Holding Corporation

SW HC

18.73

97.5%

1,018

177

55

1,140

568

133

(3.4%)

7.6%

36.8%

23.4%

20.8x

2.01x

8.6x

1.81x

7.2x

Shimano Inc. Vista Outdoor Inc.

TSE: 7309 VSTO

142.83

13,241

11,897 3,129

783 289

5.1% (2.2%)

40.0% 25.8%

25.6% 14.2%

23.9x 41.3x

3.90x 1.54x

15.2x 10.8x

3.82x 1.38x

14.4x

184

3,053 2,032

0.8%

2,967

89 346

1,433

46.96

89.2% 95.3%

Mean

79.7%

$2,959

$448

$234

$3,173

$1,559

$257

6.6%

6.7%

35.4%

13.5%

26.4x

1.66x

12.3x

1.53x

10.7x

Median

85.2%

$853

$74

$58

$966

$629

$82

4.8%

3.5%

36.9%

14.2%

21.4x

1.55x

11.6x

1.39x

9.5x

3.90 78.11

29.1% 85.2%

1,698 29,128

2,585 1,637

729 1,525

3,553 29,240

8,097 10,780

691 2,016

(13.5%)

(9.4%)

(1.7%)

3.5%

61.2% 80.5%

8.5% 18.7%

NM 27.7x

0.44x 2.71x

5.1x 14.5x

0.49x 2.59x

5.8x 13.2x

(7.8%)

7.2%

51.5%

12.7%

17.8x

1.34x

10.6x

1.34x

8.3x

2.1%

(3.0%)

34.9%

22.8%

NM

2.40x

10.5x

2.45x

11.1x

NA

NA

7.9x

9.3x

9.0x

9.5x

Personal Care Products Av on Products Inc. The Estée Lauder Companies Inc.

AVP EL

Herbalife Ltd.

HLF

57.50

92.8%

5,318

1,683

750

6,251

4,658

590

Kimberly-Clark Corporation

KMB

107.26

90.1%

39,072

7,671

603

46,140

19,218

4,375

Medifast Inc. Nu Skin Enterprises Inc.

MED NUS

28.56 44.51

83.4% 70.8%

343 2,572

0 252

65 304

279 2,520

277 2,352

40 401

(2.8%) (28.4%)

(5.5%)

73.2% 81.7%

14.6% 17.0%

19.3x 13.7x

1.01x 1.07x

6.9x 6.3x

0.99x 1.00x

6.9x

5.9%

The Procter & Gamble Company

PG

70.10

74.7%

190,192

30,350

11,612

208,930

76,279

18,007

(5.3%)

(2.4%)

49.9%

23.6%

22.9x

2.74x

11.6x

2.98x

11.8x

Elizabeth Arden, Inc. Rev lon, Inc.

RDEN REV

10.25 31.29

47.3% 75.1%

306 1,641

364 1,848

60 199

610 3,290

971 1,894

(28) 307

(16.6%) 5.7%

(7.8%) 11.0%

42.2% 66.2%

NM 16.2%

NM 39.3x

0.63x 1.74x

NM 10.7x

0.60x NA

11.7x NA

Sally Beauty Holdings Inc.

SBH

26.42

74.9%

4,155

1,810

239

5,726

3,814

594

2.7%

3.1%

49.6%

15.6%

17.3x

1.50x

9.6x

1.45x

9.3x

ULTA Salon, Cosmetics & Fragrance, Inc.

164.72 142.52

93.2% 82.0%

10,532

475 151

3,538 872

19.4%

21.9% 13.0%

35.1%

1,674

604 139

20.6%

1,825

0 0

10,057

USANA Health Sciences Inc.

ULTA USNA

82.7%

17.1% 16.0%

36.9x 21.7x

2.84x 1.92x

16.7x 12.0x

2.44x 1.75x

14.2x 10.4x

All for One Steeb AG

XTRA:A1OS

$63.20

90.2%

$315

$42

$41

$317

$265

$30

(8.3%)

16.1%

24.6%

11.1%

22.6x

1.19x

10.7x

1.17x

11.3x

Mean

76.1%

$22,084

$3,711

$1,289

$24,506

$10,232

$2,136

(2.6%)

4.1%

56.4%

16.2%

23.9x

1.66x

10.4x

1.60x

10.0x

Median

82.0%

$2,572

$1,637

$304

$3,553

$3,538

$590

(2.8%)

3.5%

51.5%

16.1%

22.1x

1.50x

10.7x

1.40x

10.8x

6.0x

PAGE | 10

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

PUBLIC COMPARABLES Ticker

($ in m illions, except per share data)

Price at

As a % of

Market

9/17/15

52-wk High

Cap

Debt

Cash &

Enterprise

Equiv.

Value (EV)

Last Twelve Months (LTM) Revenue

EBITDA

Revenue Growth 1 Year

3 Years

LTM Margins Gross

LTM P/E

EBITDA

Multiple

EV / LTM Revenue

EV / 2015E

EBITDA

Revenue

EBITDA

Retail Apparel & Footwear Retail American Eagle Outfitters, Inc.

AEO

15.71

85.0%

3,070

0

327

2,743

3,423

427

Abercrombie & Fitch Co.

ANF

$21.42

51.7%

$1,478

$340

$408

$1,410

$3,558

$342

Aéropostale, Inc.

ARO

0.82

18.7%

65

143

87

121

1,692

(79)

Ascena Retail Group Inc.

ASNA

13.38

76.1%

2,169

116

241

2,044

4,803

311

The Buckle, Inc. Cabela's Incorporated

BKE CAB

39.21 49.33

69.9% 80.0%

1,885 3,469

0 3,999

142

1,743 7,407

1,153 3,824

Caleres, Inc. The Cato Corporation

CAL CATO

32.44 34.20

95.9% 76.2%

1,418

239

2,585

0

129 284

1,528

939

655

Chico's FAS Inc.

CHS

17.00

89.6%

2,368

97

157

Citi Trends, Inc. Destination Maternity Corporation

CTRN DEST

24.82 10.13

86.5% 54.6%

386 140

0 34

79

DSW Inc. Destination XL Group, Inc.

DSW DXLG

28.75

2,551

6.40

72.6% 95.5%

Express Inc.

EXPR

19.54

94.3%

Finish Line Inc.

FINL FL

25.45 73.36

80.1%

Guess? Inc.

GCO GES

The Gap, Inc. L Brands, Inc. Lululemon Athletica Inc. The Men's W earhouse, Inc.

5.1%

1.3%

44.5%

12.5%

21.7x

0.80x

6.4x

0.78x

5.6x

(6.0%) (10.8%)

61.0%

9.6%

NM

0.40x

4.1x

0.40x

4.5x

30.4%

NM

NM

0.07x

NM

0.08x

NM

0.3%

12.7%

55.6%

6.5%

NM

0.43x

6.6x

0.28x

3.0x

281 453

1.8% 8.4%

1.9% 9.5%

49.7% 43.4%

24.4% 11.9%

12.0x 17.7x

1.51x 1.94x

6.2x 16.3x

1.48x 1.73x

6.1x 14.5x

177 113

2.2% 4.4%

1.0% 2.1%

40.6% 39.0%

6.8% 11.4%

16.6x 15.5x

0.59x 0.66x

8.6x 5.8x

0.57x 0.65x

7.6x

991

2,308

2,696

303

3.0%

4.0%

53.9%

11.2%

NM

0.86x

7.6x

0.85x

7.2x

307 172

687 494

40 (54)

8.0% (5.7%)

1.8% (3.1%)

38.4% 39.6%

5.8%

26.9x

0.43x

6.2x

NM

NM

0.45x 0.35x

7.6x

2

NM

NA

NA

292

2,260

2,593

336

372

432

31

7.0% 2.9%

38.3% 47.0%

15.5x

6

8.4% 9.2%

13.0%

314

0 64

7.2%

NM

0.87x 0.86x

6.7x 12.1x

0.82x 0.82x

6.6x 12.9x

1,655

70

156

1,570

2,261

259

4.6%

2.3%

42.5%

11.4%

18.3x

0.69x

6.1x

0.65x

5.5x

0 132

82 970

1,060 9,387

1,857

10.2% 7.5%

8.9% 14.1%

0.57x

4.8%

39.1% 42.2%

14.5x

7,253

166 1,023

7.6%

97.9%

1,142 10,225

18.5x

1.29x

6.4x 9.2x

0.55x 1.23x

6.0x 8.4x

59.90 23.06

72.3%

1,425

113

236

5.7% (4.2%)

48.7% 36.3%

8.4% 10.2%

0.51x

2,312

8.5% (8.0%)

14.5x

7

1,489 1,514

246

1,978

49 471

2,932

97.1%

20.4x

0.65x

6.1x 6.4x

0.49x 0.69x

5.5x 7.5x

GPS

32.00

72.1%

13,016

1,348

1,043

13,321

16,235

2,402

(0.4%)

2.8%

37.5%

14.8%

12.1x

0.82x

5.5x

0.81x

5.4x

LB LULU

92.70 54.65

96.8% 78.1%

26,918

4,759

30,847

11,665

2,459

7,681

0

830 541

7,140

1,898

432

5.5% 13.3%

4.4% 17.5%

47.4% 49.5%

21.1% 22.7%

24.0x 29.1x

2.64x 3.76x

12.5x 16.5x

2.50x 3.29x

11.9x 15.1x

47.60

1,656

3,624

354

37.1%

14.8%

14

122

937

20

0.3%

(0.3%)

42.9% 37.7%

9.8% 2.2%

NM NM

1.07x 0.13x

11.0x

168

73 60

3,885

2.62

71.9% 80.0%

2,302

New York & Company Inc.

MW NW Y

6.0x

1.05x 0.13x

7.8x 3.4x

The Children's Place, Inc.

PLCE

59.53

85.2%

1,209

30

205

1,034

1,738

135

(1.0%)

(0.1%)

35.8%

7.8%

22.8x

0.59x

7.7x

0.60x

5.8x

Pacific Sunwear of California Inc. Ross Stores Inc.

PSUN ROST

0.37 49.75

12.0% 87.8%

26 20,302

101 396

14 631

113 20,066

806 11,538

1 1,831

0.2% 9.4%

1.8% 8.1%

43.4% 32.3%

0.1% 15.9%

NM 20.9x

0.14x 1.74x

NM 11.0x

0.14x 1.64x

75.4x 10.3x

Shoe Carniv al Inc. Stein Mart Inc.

SCVL

25.21 10.29

84.0% 61.8%

516 470

0 170

40

477 629

963 1,356

70 81

7.7% 6.1%

6.3% 4.6%

29.4% 29.2%

7.3% 6.0%

17.4x 16.4x

0.50x 0.46x

6.8x 7.8x

0.47x

6.5x

12

0.44x

6.9x

Stage Stores Inc. Urban Outfitters Inc.

SSI URBN

10.58

339 3,756

90 115

24 266

405 3,604

1,639 3,432

127 491

2.7% 8.0%

1.7%

27.3%

9.9%

41.9%

7.7% 14.3%

10.8x 17.7x

0.25x 1.05x

3.2x

30.30

45.5% 64.1%

7.3x

0.25x 0.98x

2.9x 6.3x

Zumiez, Inc.

ZUMZ

Foot Locker, Inc. Genesco Inc.

SMRT

61

(12.0%) (14.4%)

NA

14.88

36.6%

397

5

81

321

829

103

9.5%

11.2%

35.0%

12.4%

11.1x

0.39x

3.1x

0.38x

3.8x

Mean Median

73.2% 78.1%

$3,670 $1,478

$453 $90

$250 $142

$3,873 $1,514

$3,297 $2,261

$423 $246

4.3% 4.8%

4.1% 2.9%

41.3% 40.6%

10.9% 10.2%

17.9x 17.6x

0.87x 0.65x

7.9x 6.8x

0.84x 0.65x

9.6x 6.4x

Department Chains Bon-Ton Stores Inc.

BONT

$4.41

45.0%

$104

$978

$21

$1,061

$2,820

$143

0.7%

(1.4%)

37.0%

5.1%

NM

0.38x

7.4x

0.37x

7.3x

Dillard's Inc. J. C. Penney Company, Inc.

DDS JCP

93.45

3,623 3,027

830 5,309

175 973

4,278 7,363

6,843 12,389

801 499

2.3% 1.9%

1.5% (7.4%)

36.6% 35.8%

11.7%

11.8x

9.91

64.8% 89.8%

4.0%

NM

0.63x 0.59x

5.3x 14.8x

0.64x 0.57x

5.4x 9.6x

Nordstrom Inc.

JW N

74.30

89.3%

13,986

3,141

423

16,704

14,099

1,881

9.1%

7.4%

37.3%

13.3%

19.7x

1.18x

8.9x

1.12x

8.5x

Kohl's Corp. Macy's, Inc.

KSS M

51.85 57.28

65.1% 77.8%

10,085 18,959

5,046 7,264

934 843

14,197 25,380

19,101 27,895

2,569 3,759

1.3% (0.5%)

0.5% 1.3%

36.4% 39.9%

13.4% 13.5%

13.6x 14.1x

0.74x 0.91x

5.5x 6.8x

0.73x 0.90x

5.4x 6.4x

Stage Stores Inc. Hudson's Bay Company

SSI TSX: HBC

10.58 16.85

45.5% 75.3%

339 3,068

90 1,973

24 45

405 4,997

1,639 6,651

127 401

2.7% 3.5%

1.7% 19.2%

27.3% 40.7%

7.7% 6.0%

10.8x 36.4x

0.25x 0.75x

3.2x 12.5x

0.25x 0.57x

2.9x 8.3x

Mean

69.1%

$6,649

$3,079

$430

$9,298

$11,430

$1,272

2.6%

2.8%

36.4%

9.4%

17.7x

0.68x

8.0x

0.64x

6.7x

Median

70.2%

$3,346

$2,557

$299

$6,180

$9,616

$650

2.1%

1.4%

36.8%

9.7%

13.8x

0.68x

7.1x

0.60x

6.8x

PAGE | 11

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

PUBLIC COMPARABLES ($ in m illions, except per share data) Discount Stores & Mass Merchants Big Lots Inc. Costco W holesale Corporation CVS Health Corporation Dollar General Corporation Dollar Tree, Inc. Macy's, Inc. Gordmans Stores, Inc. PriceSmart Inc. Rite Aid Corporation Target Corp. The TJX Companies, Inc. Tuesday Morning Corporation W algreens Boots Alliance, Inc. W al-Mart Stores Inc.

Furniture & Furnishings Retailers Aaron's, Inc. Bed Bath & Beyond Inc. Conns Inc. Ethan Allen Interiors Inc. hhgregg, Inc. Hav erty Furniture Companies Inc. Kirkland's Inc. La-Z-Boy Incorporated Pier 1 Imports, Inc. Rent-A-Center, Inc. Restoration Hardware Holdings, Inc. Select Comfort Corporation The Sherwin-W illiams Company W illiams-Sonoma Inc.

Ticker BIG COST CVS DG DLTR FDO GMAN PSMT RAD TGT TJX TUES W BA W MT

AAN BBBY CONN ETH HGG HVT KIRK LZB PIR RCII RH SCSS SHW W SM

Price at

As a % of

Market

9/17/15

52-wk High

Cap

Debt

Cash &

Enterprise

Equiv.

Value (EV)

Last Twelve Months (LTM) Revenue

EBITDA

Revenue Growth 1 Year

3 Years

LTM Margins Gross

EBITDA

LTM P/E Multiple

EV / LTM Revenue

EV / 2015E

EBITDA

Revenue

EBITDA

45.57 143.61 101.54 71.01 67.71 56.98 3.24 82.66 8.59 78.50 71.57 7.58 90.91 64.69

88.1% 91.6% 89.4% 87.2% 80.4% 74.5% 36.3% 79.8% 91.8% 91.5% 93.0% 33.1% 93.4% 71.1%

2,259 63,115 113,522 20,924 15,893 0 64 2,495 8,718 49,332 48,265 334 99,299 207,392

223 6,026 13,145 2,863 8,349 7,264 61 103 7,444 12,740 1,624 0 16,247 49,691

57 6,805 1,404 181 1,307 843 10 150 153 2,767 2,238 45 4,533 5,751

2,425 62,336 125,263 23,606 22,935 6,421 115 2,448 16,010 59,305 47,650 289 111,013 251,332

5,191 115,944 145,577 19,678 9,759 27,895 649 2,726 27,853 73,550 29,899 906 93,979 485,621

349 4,656 10,920 2,229 1,329 3,759 19 180 1,274 7,353 4,277 25 6,395 35,267

0.7% 5.8% 10.2% 8.6% 19.7% (0.5%) 0.8% 9.9% 7.4% 3.5% 6.0% 4.8% 24.8% 1.1%

(0.8%) 6.8% 7.7% 8.0% 11.9% 1.3% 3.4% 11.3% 2.1% 1.0% 7.2% 3.7% 9.0% 1.8%

39.7% 12.9% 17.6% 30.9% 39.5% 39.9% 41.5% 16.1% 27.5% 29.7% 28.8% 36.0% 26.7% 24.9%

6.7% 4.0% 7.5% 11.3% 13.6% 13.5% 2.9% 6.6% 4.6% 10.0% 14.3% 2.7% 6.8% 7.3%

17.3x 27.5x 24.5x 19.0x 45.3x NA NM 28.2x 4.4x 17.2x 21.9x 32.0x 23.3x 13.5x

0.47x 0.54x 0.86x 1.20x 2.35x 0.23x 0.18x 0.90x 0.57x 0.81x 1.59x 0.32x 1.18x 0.52x

6.9x 13.4x 11.5x 10.6x 17.3x 1.7x 6.2x 13.6x 12.6x 8.1x 11.1x NM 17.4x 7.1x

0.46x 0.51x 0.79x 1.11x 1.12x 0.23x 0.17x 0.82x 0.48x 0.79x 1.50x 0.31x 0.94x 0.51x

6.2x 12.7x 10.2x 9.5x 9.8x 1.6x 5.2x 12.4x 10.6x 8.0x 10.8x 10.1x 12.4x 7.2x

Mean Median

78.7% 87.6%

$45,115 $18,408

$8,984 $6,645

$1,875 $1,075

$52,225 $23,271

$74,230 $27,874

$5,574 $2,994

7.3% 5.9%

5.3% 5.3%

29.4% 29.2%

8.0% 7.0%

22.9x 22.6x

0.84x 0.69x

10.6x 11.1x

0.70x 0.65x

9.0x 10.0x

$38.96 62.14 27.65 30.32 6.06 23.59 22.37 27.75 10.01 26.97 99.60 22.56 250.63 76.47

97.3% 78.0% 62.9% 92.9% 73.7% 90.7% 75.8% 95.7% 57.1% 71.9% 94.0% 63.1% 85.1% 85.6%

$2,828 10,539 1,010 861 168 535 387 1,403 885 1,431 4,004 1,160 23,361 6,939

$495 1,500 812 78 0 54 0 1 206 956 719 0 2,285 150

$91 692 7 78 10 73 49 99 97 71 455 88 75 120

$3,231 11,347 1,815 860 158 515 338 1,305 994 2,317 4,268 1,071 25,572 6,969

$3,068 11,963 1,558 755 2,098 791 529 1,440 1,879 3,254 1,997 1,271 11,302 4,843

$430 1,771 96 85 (8) 72 48 130 172 286 230 166 1,578 657

31.2% 3.6% 14.5% 1.1% (8.2%) 6.0% 11.7% 4.4% 4.6% 4.6% 19.7% 26.3% 5.5% 6.9%

12.9% 7.6% 23.8% 1.1% (6.3%) 7.4% 6.8% 4.7% 6.4% 2.4% 24.0% 14.1% 6.9% 8.2%

51.1% 38.7% 27.3% 54.5% 28.6% 53.5% 48.8% 35.9% 39.7% 67.0% 37.2% 61.3% 47.2% 38.2%

14.0% 14.8% 6.2% 11.3% NM 9.1% 9.1% 9.0% 9.1% 8.8% 11.5% 13.1% 14.0% 13.6%

23.3x 12.1x 22.9x 23.9x NM NM 23.5x 20.5x 13.4x 14.1x 42.2x 14.7x 25.6x 23.1x

1.05x 0.95x 1.16x 1.14x 0.08x 0.65x 0.64x 0.91x 0.53x 0.71x 2.14x 0.84x 2.26x 1.44x

7.5x 6.4x 18.8x 10.1x NM 7.2x 7.0x 10.0x 5.8x 8.1x 18.5x 6.5x 16.2x 10.6x

0.96x 0.92x 0.99x 1.09x 0.08x 0.61x 0.57x 0.84x 0.51x 0.69x 1.82x 0.80x 2.13x 1.35x

8.5x 6.6x 8.7x 8.6x 12.7x 6.4x 5.8x 8.4x 5.2x 6.7x 14.0x 6.1x 13.7x 9.7x

Mean Median

80.3% 81.6%

$3,965 $1,281

$518 $178

$143 $83

$4,340 $1,560

$3,339 $1,938

$408 $169

9.4% 5.8%

8.6% 7.1%

44.9% 43.5%

11.0% 11.3%

21.6x 23.0x

1.04x 0.93x

10.2x 8.1x

0.95x 0.88x

8.6x 8.4x

PAGE | 12

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

PUBLIC COMPARABLES ($ in m illions, except per share data) Internet Retail Amazon.com Inc. Alibaba Group Holding Limited Cimpress N.V. eBay Inc. Mercadolibre, Inc. Blue Nile Inc. Ov erstock.com Inc. The Priceline Group Inc. Shutterfly, Inc. Stamps.com Inc. Rakuten, Inc. W ayfair Inc.

Specialty & Other Retail Best Buy Co., Inc. Big 5 Sporting Goods Corp. Barnes & Noble, Inc. Dick's Sporting Goods Inc. The Home Depot, Inc. Hibbett Sports, Inc. Marinemax Inc. Lumber Liquidators Holdings, Inc. Lowe's Companies Inc. Mov ado Group, Inc. Office Depot, Inc. Staples, Inc. Tiffany & Co. Tractor Supply Company Vitamin Shoppe, Inc.

Ticker AMZN BABA CMPR EBAY MELI NILE OSTK PCLN SFLY STMP TSE: 4755 W

BBY BGFV BKS DKS HD HIBB HZO LL LOW MOV ODP SPLS TIF TSCO VSI

Price at

As a % of

Market

9/17/15

52-wk High

Cap

527.39 $67.23 75.60 26.74 109.28 33.47 19.48 1,320.48 38.55 81.29 12.54 33.56

Debt

Cash &

Enterprise

Equiv.

Value (EV)

Last Twelve Months (LTM) Revenue

EBITDA

Revenue Growth 1 Year

3 Years

LTM Margins Gross

EBITDA

LTM P/E Multiple

EV / LTM Revenue

EV / 2015E

EBITDA

Revenue

EBITDA

90.8% 246,666 56.0% $168,911 82.4% 2,453 40.1% 32,575 71.2% 4,825 89.3% 385 71.4% 474 96.2% 66,950 75.9% 1,397 91.5% 1,340 63.3% 17,859 59.0% 2,813

17,953 $8,504 653 7,622 288 1 2 5,400 376 2 5,988 0

14,001 $18,995 110 10,554 338 40 105 3,188 190 84 6,731 288

250,618 $158,420 2,995 29,643 4,776 346 370 69,162 1,583 1,258 17,117 2,525

95,808 $13,012 1,494 18,351 612 483 1,610 8,798 969 172 5,347 1,661

5,726 $4,259 203 5,167 189 16 24 3,266 90 42 1,243 (125)

17.2% 40.7% 17.6% 11.1% 21.2% 6.2% 17.3% 16.1% 16.8% 31.2% (2.3%) 50.1%

20.8% NA 13.6% 12.1% 21.5% 10.2% 15.1% 22.3% 22.2% 16.6% 2.0% NA

31.3% 67.8% 61.9% 67.4% 77.2% 18.5% 18.7% 91.4% 50.0% 78.3% 17.0% 24.1%

6.0% 32.7% 13.6% 28.2% 30.9% 3.4% 1.5% 37.1% 9.2% 24.5% 23.2% NM

NM 24.9x 27.7x 11.2x NM 39.6x NM 29.4x NM NM 26.8x NM

2.62x 12.18x 2.00x 1.62x 7.81x 0.72x 0.23x 7.86x 1.63x 7.31x 3.20x 1.52x

43.8x 37.2x NM 5.7x NM 21.1x 15.3x 21.2x 17.7x 29.9x 13.8x NM

2.17x 9.83x 1.78x 3.36x 7.10x 0.68x 0.20x 6.94x 1.44x 5.77x 2.80x 1.11x

20.7x 19.6x 12.0x 8.4x 24.0x 13.9x 7.6x 17.6x 8.0x 17.7x 12.4x NM

Mean Median

73.9% 73.7%

$45,554 $3,819

$3,899 $514

$4,552 $313

$44,901 $3,886

$12,360 $1,635

$1,675 $196

20.3% 17.2%

15.6% 15.8%

50.3% 56.0%

19.1% 23.2%

26.6x 27.3x

4.06x 2.31x

22.8x 21.1x

3.60x 2.49x

14.7x 13.9x

38.96 11.50 $13.04 51.92 117.82 39.67 15.20 16.47 70.07 27.39 7.48 13.91 81.44 87.96 34.37

92.8% 74.3% 45.0% 86.1% 95.2% 71.2% 53.0% 23.5% 91.9% 69.4% 76.6% 71.7% 73.6% 91.4% 70.1%

13,425 255 $994 6,156 151,293 945 388 446 64,831 635 4,100 8,952 10,501 11,947 1,014

1,609 75 $0 6 19,375 3 137 20 11,359 40 1,536 1,108 1,075 9 18

3,495 7 $37 123 4,936 85 47 45 1,089 188 867 611 771 56 3

11,539 323 $957 6,039 165,732 863 478 421 75,101 487 4,769 9,449 10,805 11,899 1,028

40,327 999 $6,051 7,075 85,398 927 726 1,046 57,700 588 15,219 21,816 4,198 6,048 1,258

2,187 50 $299 761 12,693 130 33 48 6,713 81 642 1,388 1,021 758 140

3.1% 3.1% (3.8%) 9.3% 5.9% 5.1% 19.0% 2.3% 5.6% 0.3% 6.4% (4.6%) (0.4%) 12.2% 10.1%

(1.6%) 3.3% (5.5%) 8.7% 6.0% 6.2% 12.7% 12.0% 4.3% 6.5% 10.8% (3.5%) 4.2% 10.1% 11.1%

22.7% 31.9% 30.6% 30.6% 34.8% 35.5% 24.7% 34.9% 34.8% 52.6% 23.8% 26.1% 59.9% 34.3% 41.8%

5.4% 5.0% 4.9% 10.8% 14.9% 14.0% 4.5% 4.6% 11.6% 13.7% 4.2% 6.4% 24.3% 12.5% 11.1%

16.4x 16.9x NM 17.3x 23.0x 14.0x 18.6x NM 23.8x 14.2x NM NM 23.7x 30.3x 18.2x

0.29x 0.32x 0.16x 0.85x 1.94x 0.93x 0.66x 0.40x 1.30x 0.83x 0.31x 0.43x 2.57x 1.97x 0.82x

5.3x 6.5x NM 7.9x 13.1x 6.6x 14.6x 8.8x 11.2x 6.0x 7.4x 6.8x 10.6x 15.7x 7.4x

0.29x 0.32x 0.23x 0.78x 1.83x 0.87x 0.59x 0.39x 1.25x 0.81x 0.33x 0.44x 2.44x 1.79x 0.78x

5.1x 6.1x 4.4x 7.1x 11.6x 6.3x 9.8x 65.0x 10.1x 5.7x 5.7x 5.7x 9.9x 14.2x 7.2x

Mean Median

72.4% 73.6%

$18,392 $4,100

$2,425 $75

$824 $123

$19,993 $4,769

$16,625 $6,048

$1,796 $642

4.9% 5.1%

5.7% 6.2%

34.6% 34.3%

9.9% 10.8%

19.7x 18.2x

0.92x 0.82x

9.1x 7.7x

0.88x 0.78x

11.6x 7.1x

PAGE | 13

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

M&A TRANSACTIONS RECENT NORTH AMERICAN CONSUMER M&A Private Equity Announced 9/8/2015 9/8/2015 9/8/2015 9/7/2015 9/2/2015 9/1/2015 9/1/2015 8/31/2015 8/31/2015 8/30/2015 8/27/2015 8/26/2015 8/25/2015 8/25/2015 8/24/2015 8/23/2015 8/21/2015 8/19/2015 8/18/2015 8/16/2015 8/14/2015 8/11/2015 8/11/2015 8/10/2015 8/10/2015 8/6/2015 8/5/2015 8/4/2015 8/3/2015 8/2/2015 8/1/2015 7/31/2015 7/31/2015 7/29/2015 7/29/2015 7/28/2015 7/27/2015 7/23/2015 7/22/2015 7/22/2015 7/21/2015 7/20/2015 7/20/2015 7/19/2015 7/17/2015 7/17/2015 7/15/2015 7/15/2015 7/13/2015 7/13/2015 7/13/2015 7/13/2015 7/11/2015 7/9/2015 7/9/2015 7/9/2015 7/8/2015 7/8/2015 7/8/2015 7/6/2015 7/3/2015 7/2/2015 7/2/2015 7/1/2015 7/1/2015 7/1/2015 6/30/2015 6/30/2015 6/29/2015 6/26/2015 6/26/2015 6/25/2015 6/24/2015 6/24/2015 6/24/2015 6/24/2015

Target Joe's Jeans Inc. Robert Graham Designs, LLC CHART Metalworks, Inc. Sun & Skin Care Research, LLC California Scents, Inc. Industrial Blades Division ACE Theatrical Group, LLC Backyard Leisure Holdings, LLC Hollywood Fashion Tape, Inc. Blyth, Inc. 3rd Ave. Studio Vintage Blades LLC Glen Plaid LLC Hartcraft, Ltd. Cyberswim, Inc. Belk Inc. Bob Mickler's, Inc. The Beachcombers International Inc. FULLBEAUTY Brands, Inc. zulily, Inc. Canwest Bedding Ltd. Zirtual Inc. The Paradies Shops, Inc. Of a Kind, Inc. Marvins Building Materials Inc. Lemon Tree, K.K. Avery Outdoors, Inc. Shoe Sensation, Inc. Latham Pool Products, Inc. SC Pool & Spa Works & others Country Home Products, Inc. Infinity Technology & Entertainment Inc. Coyne International Enterprises Corp. Onix Sports, Inc. F2Z USA Corp. Kanata Blanket Company Good Vibrations Shoes Inc. No Limit Archery, LLC Deal Genius, LLC Creery Custom, Inc. Globox Rentals, Inc. Jimmy Styks, LLC Minno Inc Loomworks Apparel, Inc. Ben Sherman Limited and Clothing LLC Duffy's Brew LLC Comark Inc. KidKraft, L.P. Starplex Operating LP Chatters Canada Limited Qponix LLC Councill Company, LLC WNA, Inc. Sports One Inc. Knowledge Universe Education LLC Puremco Fun & Games, Inc. 43 Beauty Brands SCIFIT Systems, Inc. Morton's Ace Hardware Artissimo Designs Inc. Santa Cruz Bicycles, Inc. Spot It!/Dobble Game Murad, Inc. Backcountry.com, Inc. Advanced Beauty Systems, Inc. Crappie Pro Kelley's Termite And Pest Control, Inc. Northwest Carpets Inc. Gaspard & Sons Ltd. The Wigglebutt Inn, Inc. Kadel's Auto Body, LLC Foundation Partners Group, LLC Alarm Associates, Inc. Player's Bench Corporation Dermalogica, Inc. By George

Seller Joe's Jeans Inc. Tengram Capital Partners, LLC CapitalSouth Growth Fund; Source Capital, LLC Edgewell Personal Care Company Baird Capital Partners Ropart Asset Management Funds and others John M. Belk Educational Endowment and others Charlesbank Capital & Webster Capital MeriTech Capital Partners and others Mayfield Fund, VegasTechFund, others Freeman Spogli & Co. Incorporated Collaborative Fund Consumer Growth and Palisade Capital Littlejohn & Co. LLC VivoPools, Inc. Western Technology, Felicis Ventures, others Oxford Industries Inc. KarpReilly LLC Olympus Partners Knowledge Universe Holdings, LLC The Procter & Gamble Company Huron Capital Partners, LLC Liberty Interactive Corporation Ironbridge Equity Partners Limited Midwest Mezzanine Funds; KCB Management Sterling Partners -

Buyer Sequential Brands Group, Inc. Joe's Jeans Inc. Sea Bags, Inc. American Covers Inc. AccuTec Blades, Inc. The Ambassador Theatre Group Limited American International Industries The Carlyle Group LP Centennial Brands Inc. The Grooming Network Collegiate Originals Apparel, Inc. Plano Synergy Holdings, Inc. Alphagility, LLC Sycamore Partners KB Howell Enterprises, LLC Apax Partners LLP QVC, Inc. SSH Bedding Canada Co. Startups.co Lagardère Travel Retail SAS Bed Bath & Beyond Inc. Central Network Retail Group, LLC Left Hand Studios LLC Banded Holdings Inc. J.W. Childs Associates, L.P. Wynnchurch Capital, Ltd. Poolwerx USA LLC Generac Holdings Inc. Vernon Communications Cooperative NXT Capital, LLC Escalade Sports, Inc. F2Z Entertainment Inc. Pro Towels Vindai Corporation Plano Synergy Holdings, Inc. Hilco Merchant Resources LLC Ledbury Inc. Alps Innovations Group, Inc. Vista Outdoor Inc. eBay Inc. Delta Galil USA Inc. Marquee Brands LLC Pacific West Commercial Corporation MidOcean Partners AMC Entertainment Holdings, Inc. ONCAP Meredith Corporation Kindel Furniture Company Inc. Jarden Corp. Hi-Tech Pharmaceuticals, Inc. University Games Corporation Coty Inc. Brunswick Corporation Sunshine Ace Hardware, Inc. Excelsior Capital Partners Pon Holdings B.V. Asmodée Editions SAS Unilever United States, Inc. TSG Consumer Partners PDC Brands Gene Larew Lures, LLC Bug Out Service Inc Lexmark Carpet Mills, Inc. American Achievement Corporation Pet Paradise-INN, LLC ABRA Auto Body & Glass LP Access Microfinance Holding AG LOUD Security Systems, Inc. Total Hockey Inc. Unilever plc McGuire Moorman Hospitality, LLC

Involvement P P

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PAGE | 14

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

M&A TRANSACTIONS RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED) Private Equity Announced 6/22/2015 6/18/2015 6/17/2015 6/16/2015 6/16/2015 6/15/2015 6/15/2015 6/13/2015 6/12/2015 6/12/2015 6/11/2015 6/11/2015 6/11/2015 6/11/2015 6/10/2015 6/10/2015 6/9/2015 6/9/2015 6/8/2015 6/8/2015 6/3/2015 6/2/2015 6/1/2015 6/1/2015 6/1/2015 5/29/2015 5/29/2015 5/29/2015 5/29/2015 5/28/2015 5/28/2015 5/27/2015 5/27/2015 5/26/2015 5/22/2015 5/21/2015 5/21/2015 5/20/2015 5/20/2015 5/20/2015 5/19/2015 5/19/2015 5/18/2015 5/18/2015 5/17/2015 5/15/2015 5/14/2015 5/14/2015 5/13/2015 5/13/2015 5/13/2015 5/12/2015 5/8/2015 5/6/2015 5/6/2015 5/2/2015 5/1/2015 4/30/2015 4/30/2015 4/30/2015 4/30/2015 4/29/2015 4/29/2015 4/27/2015 4/27/2015 4/24/2015 4/23/2015 4/23/2015 4/20/2015 4/20/2015 4/17/2015 4/17/2015 4/16/2015 4/16/2015 4/15/2015 4/14/2015

Target 11 Main, Inc. New York Kids Club LLC Valley Sporting Goods, Inc. Zanella Ltd. Altantic Service & Supply Inc. Carolina Cutlery Service, Inc. Pure Energy, Inc. American Spa Company Inc JS Technologies, Inc. Service Brands International, LLC Vanity Fair Brands, LP VKGS, LLC Nebraska Book (Retail Store Div.) Fineline Industries, Inc. Bravo Sports Corporation Cardinal Industries, Inc. Sequel Natural Ltd. Red Earth Trading Co. LLC Aurora Casket Company, Inc. Rocket Games Rights to PIE FACE Too Faced Cosmetics, Inc. Consorcio Latinoamericano Jrco Inc. Jack Guttman, Inc. Field Logic, Inc. Sheplers, Inc. Ink4Allus.com Dollar Tree, Inc., 330 Stores Family Dollar Stores Inc., 330 Family Dollar Stores Mialisia & Co., LLC Quaker Pet Group, LLC Geeknet, Inc. (NasdaqGM:GKNT) Orchard Brands Corporation Soundcast Systems, Inc. I Gotcha Golf, LLC Recreation Creations, LLC. Frederic Fekkai & Co., LLC Billy Goat Industries, Inc. Reborn Products Co., Inc. LightHeaded Beds, LLC Groupe Archambault inc. Hildebrandt Learning Centers, LLC PlayPower Holdings Inc. Protection 1, Inc. ANN INC. (NYSE:ANN) APW Holdings, LLC Contour, Inc. The Connaught Group, Ltd. Tivoli Audio, LLC Bourbon & Boots, Inc. Dimensions 100 Inc. Outdoor Solutions, Inc. GZMOE Kate Somerville Skin Care, LLC Huck Glove Groopco Ltd. AbbeyPost Lexol Brands, LLC Carleton Uniforms Inc. The Buck Bomb, Inc. Implus Corporation Mountain Khakis LLC DragonTech Manufacturing Company Reed & Barton Corporation Classic Awards Inc. Woodstream Corporation ColorPre Inc. Nine West Holdings, Inc., Jones New York Brand Mountain Rug Mills, Inc. Cirque du Soleil Inc. Fletcher's Appliance, Inc. Driven Brands, Inc. Fit & Fresh Robert Fisher Company, Inc. Urnex Brands, Inc. Pet Supermarket, Inc. Dent Wizard International Corporation

Seller Alibaba Group Holding Limited Fruit of the Loom, Inc. Contrarian Cap Mgmt & Nogales Investors Mgmt Nebraska Book Company, Inc. Swander Pace Capital VMG Partners Kohlberg & Company, L.L.C. Rocket Games Weston Presidio BBH Capital Partners; Gryphon Investors Dollar Tree, Inc. Family Dollar Stores Inc. Impala Asset Management, LLC American Capital, Ltd. Worth Investment Group, LLC The Procter & Gamble Company Quebecor Media Inc. Apollo Global Management, LLC GTCR, LLC Golden Gate Capital and others Curious Office Partners Tom James Company, Inc. Summit Partners LLP Gravity Ventures and others NCH Corporation JH Partners LLC LaunchCapital LLC; 500 Startups Summit Industries, Inc. Trilantic Capital Management LLC Remington Outdoor Company, Inc. Brockway Moran & Partners, Inc.; CHS Capital Nine West Holdings, Inc. Créations Méandres, Inc. Harvest Partners, LP H.I.G. Capital, LLC

Buyer OpenSky Corp. New Harbor Capital Management LLC S&S Promotional Group, Inc. Tengram Capital Partners, LLC Style Crest, Inc. Cozzini Bros, Inc. Livewire, LLC Elements Group Ltd. Avalanche International, Corp. The Dwyer Group, Inc. Perceva Capital Global Leveraged Cap Mgmt Follett Corporation Nautique Boat Company, Inc. One Industries Corp. Spin Master Ltd. The WhiteWave Foods Company Nisolo, LLC The York Group, Inc. Hasbro Inc. General Atlantic LLC PPG Industries, Inc. Great Northern Equipment Distributing, Inc. Decopac, Inc. FeraDyne Outdoors, LLC Boot Barn, Inc. Gorilla Stationers, LLC Sycamore Partners Sycamore Partners Youngevity Essential Life Sciences Worldwise, Inc. GameStop Corp. Bluestem Brands, Inc. Hancock Park Associates Dynamic Brands, Inc. Kidstuff Playsystems, Inc. SA Designer Parfums Limited; LUXE Brands, Inc. Briggs & Stratton Corporation American Accessories Lifetime Products, Inc. Librairie Renaud-Bray Inc. Bright Horizons Family Solutions, Inc. Littlejohn & Co. LLC Apollo Global Management, LLC Ascena Retail Group Inc. InMotion Entertainment Group, LLC World Wide Licenses Ltd. Royal Spirit International Limited Serruya Private Equity XCelerate Capital Webster Capital FEMO Group Holdings LP Gorilla Stationers, LLC Unilever plc (LSE:ULVR) Ontario Glove and Safety Inc. Sourceeasy, Inc. American Covers, Inc. Unisync Group Limited Hunter's Specialties, Inc. Berkshire Partners LLC Kanders & Company, Inc. Affinity Specialty Apparel, Inc. Lenox Corporation American Quarter Horse Foundation Vestar Capital Partners, Inc. Corporate Specialties LLC Authentic Brands Group LLC CAP Carpet, Inc. TPG Capital, Fosun Industrial Holdings Limited Baron's Major Brands, LLC Roark Capital Group CID Capital, Inc. Bergio International, Inc. (OTCPK:BRGO) Cortec Group Roark Capital Group Gridiron Capital, LLC

Involvement P P

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PAGE | 15

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

M&A TRANSACTIONS RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED) Private Equity Announced 4/14/2015 4/13/2015 4/13/2015 4/13/2015 4/13/2015 4/10/2015 4/9/2015 4/8/2015 4/8/2015 4/8/2015 4/8/2015 4/8/2015 4/8/2015 4/6/2015 4/6/2015 4/5/2015 4/2/2015 4/2/2015 4/2/2015 4/2/2015 4/1/2015 4/1/2015 4/1/2015 3/31/2015 3/31/2015 3/30/2015 3/26/2015 3/26/2015 3/26/2015 3/25/2015 3/23/2015 3/23/2015 3/23/2015 3/21/2015 3/20/2015 3/20/2015 3/16/2015 3/16/2015 3/16/2015 3/14/2015 3/14/2015 3/13/2015 3/12/2015 3/10/2015 3/8/2015 3/7/2015 3/5/2015 3/4/2015 3/3/2015

Target E. Masin Furniture Company, Inc. Frederick's of Hollywood Group Inc. Dover Saddlery, Inc. (NasdaqCM:DOVR) WASH Multifamily Laundry Systems, LLC Turner Hardware, Inc. Hand and Stone Massage Spa, Inc. Kitchen & Bath Design Studio, LLC Elvex Corporation Car Brite, Eagle One, & private label products Mina Pharmacy LTC LLC Carolina Manufacturing, LLC Spence Diamonds Ltd. New Energy, Inc. American Recreation Products, Inc. Whatcom Farmers Coop. AddiRae&Ives LLC Obsession Archery, Inc. American Boat Brokers, Inc. Levy & Son Nuheat Industries Ltd. The Jessica Simpson Collection Celtic Paper, LLC 54Studios Entertainment, Inc. The J. Jill Group, Inc. Japonesque Professional Makeup Supplies, Inc. Watkins Hardware and Appliances Inc. Checkview Corporation EZ GARD Industries, Inc. Vibrance and Thermasilk Brands Reeves-Sain Drug Store, Inc. Hinkel Inc. Louisville Slugger Brand Gardiners Home Furnishing Center Inc. Beautisol LLC Alliance Apparel Group Inc. Bugambilia International Inc. MonaVie LLC Hancock & Moore, Inc. Cycle Support West, Inc. Santa Fe Custom Works LLC Kevyn Aucoin Cosmetics, Inc. Green Magic, Inc. Britten Woodworks Orabrush, Inc. Mac's Sporting Goods Fleenor Security Systems, Inc. OhSo Clean, Inc. York Wallcoverings, Inc. Fab, Inc.

Seller HRG Group, Inc., and others SEED Venture Finance, RBF Capital, others CHS Capital Valvoline International, Inc. Sun Capital Partners; Kellwood Company Fulcrum Capital Partners Inc. With You, Inc.; Corny Dog, Inc. Golden Gate Capital Platinum Equity; Checkpoint Systems Bregal Investments Inc. Unilever United States, Inc. Hillerich & Bradsby Co., Inc. True Ventures The Westly Group Mayfield Fund; Menlo Ventures; others

Buyer Selden's Interior Furnishings, Inc. Authentic Brands Group LLC Webster Capital EQT Partners AB Westlake Hardware, Inc. Levine Leichtman Capital Partners Markraft Cabinets, Inc. Delta Plus Group (ENXTPA:DLTA) Highlander Partners, L.P. Longs Drug Stores, L.L.C. Springs Creative Products Group, LLC Lion Capital LLP; IVEST Consumer Partners Hillsdale Furniture, LLC Exxel Outdoors, Inc. CHS, Inc. Trollingers Florists, Inc. Arcus Hunting, LLC OneWater Marine Holdings, LLC Service Experts Heating & Air Conditioning Pentair plc (NYSE:PNR) Sequential Brands Group, Inc. NPS Corp The Watermill Group TowerBrook Capital Partners L.P. San Francisco Equity Partners Westlake Hardware, Inc. Iverify.us Inc. McDavid Inc. Awesome Products, Inc. Fred's, Inc. (NasdaqGS:FRED) InPro Corporation Wilson Sporting Goods Co. Wolf Furniture Enterprises, Inc. Five Crowns Capital, LLC Eminent, Inc. G.E.T. Enterprises, LLC Jeunesse Global, LLC RHF Investments, Inc. Advanced Sports, Inc. Ernest Thompson & Co., Inc. Manzanita Capital The Terminix Int'l Company Britten Inc. DenTek Oral Care, Inc. Any Wear Apparel, L.L.C. Alarm Security Group, LLC Pinstripe Capital LLC Babson Capital; High Road Capital PCH International Ltd.

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HW&CO. CONSUMER TEAM Tim Alexander

Glenn Gurtcheff

John Neuner IV

Corey Benjamin

Ryan Budlong

Brant Cash

Brent Spiller

Matt Conaty

Chip Duggins

Ryan Freeman

Andy Warczak

Managing Director [email protected] +1 (612) 359-2716

Director [email protected] +1 (415) 217-3409

Vice President [email protected] +1 (804) 932-1340

Managing Director [email protected] +1 (612) 359-2702

Director [email protected] +1 (612) 359-2709

Vice President [email protected] +1 (612) 359-2703

Managing Director [email protected] +1 (804) 915-0125

Director [email protected] +1 (804) 915-0183

Director [email protected] +1 (804) 932-1342

Vice President [email protected] +1 (415) 217-3423

Vice President [email protected] +1 (612) 359-2714

PAGE | 16

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

OUR FIRM Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries Aerospace, Defense & Government Services

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PAGE | 17

CONSUMER AND RETAIL INDUSTRY UPDATE │ SEPTEMBER 2015

HARRIS WILLIAMS & CO. SOURCES S&P Capital IQ. Thomson Financial. Reuters. S&P Capital IQ LCD.

DISCLOSURES Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS. The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent. Copyright© 2015 Harris Williams & Co., all rights reserved.

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