3/8/2019 BSG Decisions & Reports

Projected Year 11 Performance 

Investor Change
Scoring Measures Year 11 Expectation Other Measures Year 11 from Y10
EPS (earnings per share) $2.22 $2.50 Net Revenues ($000s) 515,891 +19.2%
ROE (return on equity) 19.6% 21.0%
Net Profit ($000s) 44,225 +10.6%
Credit Rating A– B+
Image Rating 83 70 Ending Cash ($000s) 4,901 -1,173

North America Europe-Africa Asia-Pacific Latin America

I M Market Market Market Market
Year 10 Year 11 Year 10 Year 11 Year 10 Year 11 Year 10 Year 11
Marketing variables gen- S/Q Rating (weighted average) 4.0★ 7.1★ 4.0★ 7.1★ 4.0★ 7.2★ 4.0★ 7.2★
erated by production and Models Available (weighted average) 200 249 200 249 200 249 200 249
marketing decisions in Y11. 9,000 9,000 5,500 5,000
Brand Advertising ($000s) 10,000 9,000 8,000 7,500
Internet Retail Price ($ per pair sold online) 67.00 77.00 72.00 82.00 67.00 77.00 72.00 82.00
Marketing Retail Price Exceeds Wholesale Price by 40% 41% 36% 53% 40% 40% 36% 59%
Decisions Search Engine Advertising ($000s) 5,000 9000 4,500 9000 4,000 5500 4,000 5000
Free Shipping (from warehouse to buyer) No Yes No Yes No Yes No Yes
Marketing variables de-
termined by prior-year
Celebrity Appeal (sum of appeal indices for all
celebrities under contract) 0 0 0 0 0 0 0 0
decisions / outcomes. Brand Reputation (prior-year image rating) 70 70 70 70 70 70 70 70
Year 10 Year 11 Year 10 Year 11 Year 10 Year 11 Year 10 Year 11
Actual Projected Actual Projected Actual Projected Actual Projected
Internet Market Share (% of total regional sales volume) 8.3% 12.2% 8.3% 12.8% 8.3% 11.2% 8.3% 11.2%
Internet Sales Volume (000s of pairs sold to online customers) 353 599 300 532 225 360 225 360
$000s $/pair $000s $/pair $000s $/pair $000s $/pair
Revenue, Cost, and Gross Internet Revenues 46,123 77.00 43,624 82.00 27,720 77.00 29,520 82.00
Profit Projections ± Exchange Rate Adjustments 0 0.00 0 0.00 0 0.00 0 0.00
for Year 11 Adjusted Gross Revenues 46,123 77.00 43,624 82.00 27,720 77.00 29,520 82.00
+ Shipping Fees (paid by customer) 0 0.00 0 0.00 0 0.00 0 0.00
Net Internet Revenues 46,123 77.00 43,624 82.00 27,720 77.00 29,520 82.00
Cost of Pairs Sold 18,333 30.61 19,445 36.55 10,024 27.84 14,099 39.16
Warehouse Expenses 7,748 12.93 6,905 12.98 4,737 13.16 4,704 13.07
Marketing Expenses 12,599 21.03 12,574 23.64 8,119 22.55 7,344 20.40
Administrative Expenses 1,331 2.22 1,183 2.22 801 2.23 800 2.22
Operating Profit (Loss) 6,112 10.20 3,517 6.61 4,039 11.22 2,573 7.15
Operating Profit Margin 13.3% 8.1% 14.6% 8.7%

Estimated industry averages S/Q Rating 5.0★ 4.8★ 4.8★ 4.6★

for these marketing variables
are entered on the Wholesale Models Available 200 200 200 200
Marketing decision entry page. Brand Advertising ($000s) $ 10,250 $ 9,000 $ 8,000 $ 7,500
Competitive Retail Price ($ per pair) $ 68.00 $ 73.00 $ 68.00 $ 73.00
Assumptions Search Engine Advertising ($000s) $ 5000 $ 4500 $ 4000 $ 3500
Free Shipping None None None None
Industry averages for these vari- Celebrity Appeal 0 0 0 0
ables determined by prior-year
decision entries / outcomes. Brand Reputation 70 70 70 70

Competitive Enter your estimates of the industry average marketing efforts that will prevail in each internet segment in Year 11.
Assumptions The more accurate your estimates are, the more accurate your projected market shares and unit sales will be.

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