TOM WALDRON PRESIDENT, WRANGLER LEE STORY 17 X 17 PLAN PERFORMANCE - PowerPoint PPT Presentation

TOM WALDRON PRESIDENT, WRANGLER

LEE STORY

17 X 17 PLAN PERFORMANCE 2012 2016 Modest Growth* (ex: FX) $1.1B $1.0B *Growth rate excludes the impact of changes in foreign currency exchange rates.

GLOBAL LEE UPDATE NORTH EMEA APAC AMERICA Revisiting the strategy Accelerated growth with Consistent growth, innovation-led product increased momentum platforms

WRANGLER STORY 1980’s 1947 Current

17 X 17 PLAN PERFORMANCE 2016 $1.7B 2012 $1.6B * Growth rate excludes the impact of changes in foreign currency exchange rates.

WRANGLER IS GROWING AND GAINING MARKET SHARE 2012 2016 * Figures represent 2013 to 2016 CAGR in the United States

WRANGLER GROWTH DRIVERS 1 2 3 4 ESTABLISH ELEVATE DESIGN & EXPAND TO NEW GROW IN NEW ONE WRANGLER INNOVATION CHANNELS CATEGORIES

1 ESTABLISH ONE WRANGLER

1 HISTORICAL FOCUS ON U.S. CONSUMER SEGMENTS MASS CONSUMER WESTERN CONSUMER

1 ONE WRANGLER ORGANIZATION BRAND CONSUMER & LIFESTYLE FOCUS REDESIGN ELEVATION Consumer-focused Social and emotional Broadened appeal organization brand messaging rooted across distinct lifestyles in authenticity 14

2 ELEVATE DESIGN & INNOVATION

2 ELEVATE DESIGN AND INNOVATION BREAKTHROUGH BEAUTIFUL SIGNIFICANT = + INNOVATION DESIGN GROWTH The VF Global Denim Innovation Center is dedicated to breakthrough consumer insights and innovation . Denim Innovation Center, Greensboro, NC

3 EXPAND TO NEW CHANNELS

3 EXPAND TO NEW CHANNELS DEPARTMENT STORES & BOUTIQUES MID-TIER WESTERN SPECIALTY & MASS 2010 - 2015 CURRENT 1947 - 2009

3 EXPAND TO NEW CHANNELS $6B $5B $1B $5B DEPARTMENT BOUTIQUE MID-TIER OTHER STORES SPECIALTY SIZE OF NORTH AMERICA OPPORTUNITY

3 CHANNEL EXPANSION ENABLERS  Retro collections from global brand partners  Celebrity seeding creating brand heat CELEBRITY SEEDING  Pinnacle brand experience in owned retail DTC BOUTIQUES

3 EXPAND TO NEW CHANNELS: DTC Wrangler Store Denver, CO Wrangler Store Dallas, TX

4 EXPAND TO NEW CATEGORIES

4 CATEGORY EXPANSION APPAREL MARKETS WHERE WRANGLER PLAYS RESULTS 23 % #1 $6B MEN’S DENIM OF MEN’S DENIM MARKET 16 % #1 $6B OF MEN’S CASUAL CASUAL BOTTOMS BOTTOMS MARKET 18 % #1 $5B WOVEN TOPS OF MEN’S WOVEN TOPS MARKET Source: NPD

4 GROW IN NEW CATEGORIES WOMEN’S MEN’S WOVEN MEN’S KNIT NON DENIM DENIM TOPS TOPS BOTTOMS $10B $5B $11B $6B SIZE OF NORTH AMERICA OPPORTUNITY

LEVERAGING CURRENT STRENGTHS TO DRIVE FUTURE GROWTH FROM TO Consumer lifestyle Channel focus focus Merchandising- Design-led driven product product engine engine Business unit-driven Global Innovation innovation Center approach Denim category Lifestyle focus dominance

JEANSWEAR 2021 GLOBAL TARGET +1% to +3% CAGR

2021 TARGET - GLOBAL JEANSWEAR Non-US EMEA Americas EMEA 7% 11% APAC 12% 10% APAC APAC 12% 10% 2016 EMEA, 2016 2021 GLOBAL 12% NON-US NON-US $2.7B AMERICAS AMERICAS 7% +1% to +3% CAGR 7% USA USA USA 71% 70% 71% USA EMEA APAC NON-US AMERICAS +1% - +3% CAGR +1% to +3% CAGR +5% to +7% CAGR +2% to +4% CAGR