1

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

AlibabaChartoftheWeekAmazonChartoftheWeek

Deborah Weinswig Managing Director,

Fung Global Retail & Technology

deborahweinswig@fung1937.com

US: 917.655.6790

HK: 852.6119.1779

CN: 86.186.1420.3016

March 3, 2017

1) Thisweek’snote“FromtheDeskofDeborahWeinswig”discussestheestimated$2.5billioninrevenuethatwillbefreedupforotherretailerstograbonceJCPenney,Macy’sandSearscompletetheirrecentlyannouncedstoreclosures.

2) AccordingtoMoody’sInvestorsService,thenumberofUSretailersrankedatthemost-distressedlevelofthecredit-ratingspectrumhasmorethantripledsincetheGlobalFinancialCrisisof2008–2009andisheadingtowardrecordlevelsinthenextfiveyears.

3) GermandiscountgrocerLidlhasunveiledanewconceptstorecalledLoftinCalais,France,whereitalreadyhastwostores.Loftfeatureswideraislesandmorethan1,600products.Thestore’sheat-reductionandwaste-recyclingprocessesmakeitenvironmentallyfriendly.

4) Todevelop5Gtechnology,China’sHuaweideploysanR&Dstaffof80,000,challengingEurope’sdominance.ThatcouldgiveHuaweiasizableedgeatatimewhenallsuppliershavesettheirsightson5G,whichpromisestobeawellspringofrevenuebyenablingsmootherandfasterinteractionbetweenconnectedobjects.

China:RetailersShoppedMostOftenforApparelAlibabaGroup’sTmallsiteranked#1amongChinese

consumerswhowereasked“Wheredoyoushopmostoftenforapparel/clothing?”

Base:5,529InternetuserssurveyedinDecember2016Source:ProsperInsights&Analytics

16.6%

18.0%

20.2%

22.2%

24.5%

25.6%

62.4%

JCPenney

Walmart

Macy's

Kohl's

Target

BestBuy

Amazon.com

US:Consumers’LikelinesstoRecommendTopRetailersShoppedintheLast90Days

Amongthemost-shoppedUSretailers,Amazonwasranked#1byconsumerswhowereasked“Howlikelyisitthatyouwould

recommendthefollowingretailer(s)toafriendorcolleague?”

Base:7,591InternetuserssurveyedinJanuary2017Source:ProsperInsights&Analytics

3.1%

3.3%

3.3%

3.7%

4.2%

5.1%

5.3%

10.8%

15.2%

NewWorld

SenMa

H&M

Nike

Walmart

Vipshop

Parkson

TaoBao.com

Tmall.com(AlibabaGroup)

Taobao.com

Kohl’s

Macy’s

2

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

FromtheDeskofDeborahWeinswig

The$2.5BillionGrabforDepartmentStoreSales

Lastweek,JCPenneybecamethelatestbigUSdepartmentstorenametoannouncearoundofstoreclosures.Thecompanysaiditwillshutter130–140storesaswellastwodistributioncentersoverthenextfewmonthsinamoveto“alignthecompany’sbrick-and-mortarpresencewithitsomnichannelnetwork.”JCPenney’sannouncementechoesanearlieronebyMacy’s,whichsaidinAugust2016thatitintendedtoclose100stores.SearsandKmartcontinuetoclosestores,too.SearsHoldingsannouncedinJanuarythisyearthatitwouldclose42Searsstoresand108Kmartstores.

Below,wesummarizetherevenuesthatrivalretailerswillhaveanopportunitytomopupasaconsequenceoftheseclosures.

JCPenney

JCPenneyemphasizedthatthelocationsitwillclosearelower-salesstores,specifyingthatthe130–140storessettobeclosedaccountedforlessthan5%oftotalcompanysales,despiterepresenting13%–14%ofitscurrentstoreportfolio.Basedonanaverage135storeclosures(themidpointoftheannouncedrangeofclosures),weestimatethatstoressettoclosegeneratedapproximately$600millionincombinedsalesintheyearendedJanuary2017.

IfweassumeJCPenneycanholdontoapproximately20%ofthesesalesbyshiftingthemtonearbystoresoritswebsite,thedollarvalueofsalesfreeduptorivalscomesdownto$482million.

Macy’s

Macy’sputacleardollarfigureontherevenuesitexpectstolosetorivalswhenitcloses100stores:thecompanyestimatesitwilltakea$1billionhittosalesafteradjustingforsalesretainedatotherMacy’sstoresandonMacys.com.Thecompanydidnotprovideagrossfigureexcludingretainedsales,butsaiditretainedbetween10%and45%ofsalesfrompreviousclosures.

Thisbillion-dollartotalequatesto$10millioninsalesforeachstorethatwillclose.GiventhattheaverageMacy’sstoreturnedover$30millionintheyearendedJanuary2017,itisclearthattheretailerisclosingoutletsthatareunderperformingatthetopline.

SearsandKmart

WhenSearsHoldingsannounceditslatestroundofclosuresacrosstheSearsandKmartbanners,itstatedthatthe150storessettoclosegeneratedaround$1.2billionintotalsalesinthepast12months.AsatJCPenneyandMacy’s,thestoresbeingclosedarelow-salesstores:weestimatethatthis$1.2billiontotalisapproximatelyone-thirdlessthanthetotalsalesthat108averageSearsstoresand42averageKmartstoresgeneratedintheyearendedJanuary2017.

Ifthecompanycanretain15%ofthesestores’sales,thetotalvalueofsalesfreeduptorivalswillbeabout$1.02billion(weassumeSearsandKmartwillseelowerretentionratesthanJCPenneywillbasedonshopperpreferencedatafromourresearchpartner,ProsperInsights&Analytics).Weestimatethetotalsalesopportunityforrivalswillbesplitasroughly$418millionfromSearsand$602millionfromKmart.

InShort,a$2.5BillionOpportunityforRivals

So,whatisourestimatedtotal?Ourbasicmathworksoutas$482million+$1billion+$1.02billion,suggestingthatrivalswillmopupsome$2.5billioninextrasalesonceJCPenney,Macy’s,SearsandKmarthavecompletedallthestoreclosurestheyhavealreadyannounced.Thatestimateisbasedonourownassumptionsregardingsalesretentionratesaswellasonthosebytheretailersthemselves.

ThesubjectofUSstoreclosuresisonethatwewatchcloselyandonethatwewillcontinuetocoverinourreportstrackingthechangingretaillandscape.

3

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

USRETAILEARNINGS

Source:Companyreports

USRETAIL&TECHHEADLINESRetailCyberattacksDowninFourthQuarter(February28)JOC.com• AccordingtoanewreportfromcontentdeliverynetworkandwebsecurityfirmAkamai

Technologies,cyberattacksagainstretailerswereonthedeclineinthefourthquarterof2016.However,thatdoesnotmeanretailerswerefreefrommajorsecurityeventsduringtheholidayseason.

• AkamaianalyzedwebsecuritydatabetweenNovember22and29,thedayssurroundingThanksgiving,whichwasthestartoftheholidayshoppingseasonintheUSand,likewise,thepeaktimeforcriminalactivityonline.Thefirmfoundthatwebappattacksdeclinedby19%yearoveryearinthefourthquarter.

Company

Revenues(USDMil.)YoY%Change GrossMargin(%)

Change(bps)

NetIncome(USDMil.)

YoY%Change StoreFleetEOP

Period TY LY

TY LY

TY LY

TY LY

AmericanEagleOutfitters 4Q16 1,097 1,106 (0.8) 35.4 35.1 32 55 82 (33.1) 1,226 1,188

DollarTree 4Q16 5,635 5,365 5.0 32.1 30.8 126 322 229 40.5 14,334 13,851

FootLocker 4Q16 2,113 2,007 5.3 33.7 33.6 11 189 158 19.6 3,437 3,447

Gap 4Q16 4,429 4,385 1.0 33.9 32.8 105 220 214 2.8 3,659 3,721

JCPenney 4Q16 3,961 3,996 (0.9) 33.1 34.1 (99) 192 (131) 246.6 1,000 1,021

KateSpade 4Q16 471 429 9.8 59.2 60.2 (95) 86 61 39.2 448 255

Kohl’s 4Q16 6,205 6,387 (2.8) 33.4 33.1 33 252 296 (14.9) 1,183 1,164

LBrands 4Q16 4,489 4,395 2.1 43.3 45.6 (226) 632 636 (0.7) 3,855 3,743

Lowe’s 4Q16 15,784 13,236 19.3 34.4 34.7 (25) 663 11 5,927.3 2,129 1,857

Nordstrom 4Q16 4,316 4,194 2.9 37.0 35.6 136 201 180 11.7 349 323

RossStores 4Q16 3,510 3,251 8.0 27.7 26.6 107 301 264 13.8 1,533 1,446

StevenMadden 4Q16 336 344 (2.3) 38.7 36.1 263 29 26 11.7 189 169

Target 4Q16 20,690 21,626 (4.3) 26.9 27.9 (95) 817 1,426 (42.7) 1,802 1,792

Wayfair 4Q16 985 740 33.1 24.2 23.8 48 (44) (15) (183.7) N/A N/A

WEINSWIG’SWATCHING

InEuropethisweek,theFungGlobalRetail&TechnologyteamattendedtheMobileWorldCongressinBarcelonaandtheProfessionalBeautyLondonconference.InNewYork,theteamattendedTarget’sFinancialCommunityMeetingandaLocationBasedMarketingAssociationeventcalledMasteringtheTechnologicalMobileRoadmapontheNewCustomerJourney.TheteamalsoattendedtheAmericanApparel&FootwearAssociationExecutiveSummitinWashington,DC.

4

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

NumberofDistressedUSRetailersatHighestLevelSinceGreatRecession(February28)MarketWatch.com• AccordingtoMoody’sInvestorsService,thenumberofUSretailersrankedatthemost-

distressedlevelofthecredit-ratingspectrumhasmorethantripledsincetheGreatRecessionof2008–2009andisheadingtowardrecordlevelsinthenextfiveyears.

• Theratingagencyisthelatesttoweighinonthestateofthesector.Initsretailandapparelportfolio,19companies,or14%ofthetotal,arenowtradingatCaa/Ca.Thatisdeepintospeculative,or“junk,”territory,andthepercentageisclosetothe16%thatwereconsidereddistressedduringthe2008–2009period.

USRetailersDestockandRestockFaster,BoostingFreight(February24)JOC.com• EvidencethatinventorydestockingisatleastpartiallyresponsiblefortherecentsurgeinUS

importsandrisingdomesticfreightvolumesisshowingupinretailers’earningsreports.Severalstorechainshaveclaimedthattheirreducedstockpileshelpedboostpricingandprofitinlate2016.

• Buttransportationexecutivessaydestockingisfarfromevenacrosstheretailsector,letaloneinotherindustries.Althoughsomeareenjoyinganearlier-than-usualuptickinfreightdemandinthefirstquarter,othersarestillwaitingforaneventbigenoughtojogthedemanddial.ThelargestUSretailer,Walmart,reportedabigreductioninUSinventoriesthisweek,bothacrossthecompanyandonacomparablestorebasis.

JCPenneytoCloseupto140stores,OfferBuyouts(February24)USAToday• JCPenneyplanstoclose130–140storesandofferbuyoutsto6,000workersasthe

department-storeindustrysagsincompetitionwithonlinesellersandnimblenicheretailers.Thecompanysaidthatitwouldshutter13%–14%ofitslocationsandintroducenewgoodsandservicesaimedattheshiftingpreferencesofitscustomerbase.

• Thecutscomeamidmountingchallengesforonce-stalwartdepartmentstorechainssuchasMacy’sandSears,whicharealsoaggressivelyclosingstoresinordertoshedcostsasshoppersflocktoalternatives.Macy’srecentlyannouncedplanstoclose100ofits675full-linestores.Searssaiditplanstoclose150stores,including108Kmartlocations.

AnOverwhelmingNumberofRetailersAreLosingMoneyChasingAmazon(February22)CNBC.com• Brick-and-mortarretailersarebecomingmorecompetitiveonlinebyprovidingtighter

deliverywindowsandofferingtheoptiontopickupdigitalordersin-store.• Thereisonlyoneproblem:astheyinvestbillionsofdollarstoclosethegapwithAmazon,

theoverwhelmingmajorityoftraditionalretailersstillhavenotfiguredouthowtoprofitablyfillordersthatincorporateboththewebandthestore.AccordingtoanewreportbyJDASoftwareandPwC,only10%of350globalretailerssurveyedaremakingmoneyfulfillingthesetypesoforders.

EUROPERETAILEARNINGS

*ThemergerbetweenDutchgrocerAholdandBelgiansupermarketgroupDelhaizetoformAholdDelhaizecameintoeffectonJuly24,2016.AlldataabovearepreparedonanIFRSbasisanddonotrepresentthegroupproforma.ThedatarepresenttheformerAholdcompanyforthefullyearplustheformerDelhaizecompanypostmerger,fromJuly24,2016.**Asofdateofmerger,July24,2016Source:Companyreports/FungGlobalRetail&Technology

Company

Revenues(USDMil.)

ChangeinUSD(%)

ChangeinReportingCurrency

(%) GrossMargin(%)Change(bps)

NetIncome(USDMil.)

YoY%Change StoreFleetEOP

Period TY LY TY LY TY LY TY LY

DIA FYEDec31 9,813 9,905 (0.9) (0.6) 22.9 22.4 54 286.2 282.0 1.5 7,799 7,718

AholdDelhaize* FYEDec31 54,990 42,395 29.7 30.1 26.9 27.3 (42) 918.4 944.4 (2.7) 6,566 6,678**

Zalando FYEDec31 4,027 3,283 22.7 23.0 44.2 45.1 (87) 133.3 134.8 (1.1) N/A N/A

5

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

EUROPERETAILHEADLINESTescotoCut1,700ConvenienceStoreDeputyManagerRoles(February27)Companypressrelease• TheUK’sbiggestgroceryretailer,Tesco,announcedthatitplanstocutatleast1,700deputy

managerrolesacrossits1,800Expressconveniencestores.Thecompanywillcreate3,300shiftleaderroles,whichpaylowersalaries,inplaceofthedeputymanagerroles.

• Tescoaddedthatitwillfinanciallysupportaffectedstaffthattakeonshiftleaderroles.ThisnewscomesjustweeksafterrivalgrocerWaitroserevealedthatitiscuttingsome500jobsandjustdaysafterJohnLewissaidthatitiseliminatingnearly400rolesinordertosimplifycompanystructures.

LidlUnveilsNewConceptStoreinFrance(February28)ESMMagazine.com• GermandiscountgrocerLidlhasunveiledanewconceptstorecalledLoftinCalais,France,

whereitalreadyhastwostores.Loftfeatureswideraislesandmorethan1,600products.Thestore’sheat-reductionandwaste-recyclingprocessesmakeitenvironmentallyfriendly.

• LidlwilltestanewconceptinthestoreeverySundayinordertoassessconsumerdemandandsaidthatithashiredateamofstudentstohelpwiththetrials.

RegulatorFines19WebShopsinFranceforMisleadingPromotions(February24)RetailDetail.eu• France’sconsumeraffairsregulatorhasfined19webshops,includingthosebelongingto

Zalando,H&MandAmazon,atotalof€2.4million(US$2.5million).Theregulatorybodyclaimsthattheretailerspublishedmisleadingpromotionsontheirsites,insomeinstancesincreasingpricesbeforeofferingdiscountstomakeproductsappearcheaper.

• Amazon,ComptoirdesCotonnieresandZalandohavepaidtheirfines,whileH&M,GrosBillGerardDarelandothershaverebuffedtheclaims.TheregulatorsaidthatithasbeeninvestigatingsuchnoncompliantactionsoverthepastfewmonthsandthatitwillcontinuetowatchformalpracticeinFrenchonlineretail.

Boohoo.comUpgradesFY17Expectations(February28)Companypressrelease• UKfashionpureplayBoohoo.comannouncedthatitexpectsFY17revenuegrowthtocome

inataround50%,upfrompreviousguidanceof46%–48%.ThecompanysaiditexpectstodeliveranadjustedEBITDAmarginatthetopendofitspreviouslyguidedrangeof11%–12%fortheyearendedFebruary28.

• Boohoo.comalsoannouncedthatithadcompletedtheacquisitionofUSretailerNastyGalfor$20million,andthatitwillbeconsolidatedbeginningMarch1,2017.

JonesBootmakerUpforSale(February28)Retail-Week.com• BritishfootwearretailerJonesBootmakerhasbeenputupforsalebyitsowner,turnaround

specialistAlteriInvestors,whichboughtthecompanytwoyearsago.• Alteriisreportedtohaveinvestedinnewproductranges,anewheadofficeandan

improvedwebsitefortheretailer.In2016,AlteriputJonesBootmaker’ssisterfootwearchain,Brantano,throughaprepackadministration.

6

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

ASIATECHHEADLINESFoxconnIsTakingoverSoftBank’sInvestmentFundinAsia(February27)TechCrunch.com• FoxconnistakingoverSoftBank’sAsia-basedtechinvestmentfund.Themanufacturing

giant,whichisresponsibleforproducingApple’siPhoneandmanyothertechproducts,hasagreedtobuyamajority54.5%stakeinSoftBankAsiaCapitalinexchangefor$600million.

• TheestablishmentofthisjointventureisinlinewithFoxconn’soverallinvestmentstrategyandwillenablethecompanytoexploreandtapnewinvestmentopportunitiesthatwilldriveitssustainablebusinessdevelopment.

SamsungUnveilsTwoNewTabletComputers(February26)TheWallStreetJournal• AtaneventinBarcelonathisweek,SouthKoreantechnologygiantSamsungintroducedtwo

newtabletcomputersandalsoofferedaglimpseofhowitplanstomovepastlastyear’smassiveGalaxyNote7smartphonerecall.

• Despitethecompany’sannouncement,theauraoftheGalaxyNote7battery-firefiascohungovertheannualBarcelonaevent,whereSamsunghastypicallyreleasedthelatestiterationinitsflagshipGalaxySsmartphoneseries.

China’sHuaweiBattlestoOwntheNextGenerationofWirelessTechnology(February26)TheWallStreetJournal• Todevelop5Gtechnology,China’sHuaweideploysanR&Dstaffof80,000,challenging

Europe’sdominance.ThatcouldgiveHuaweiasizableedgeatatimewhenallsuppliershavesettheirsightson5G,whichpromisestobeawellspringofrevenuebyenablingsmootherandfasterinteractionbetweenconnectedobjects.

• Huaweihasexpandedrapidlyinrecentyearsinmuchoftheworld,evenasitsmainstaytelecom-gearbusinesshasbeeneffectivelyshutoutoftheUSmarket.ThecompanyhasalreadyovertakenSweden’sEricssonastheworld’slargestsupplierofwirelessequipmentbyrevenue.

BaiduSaysWorstofAdvertisingScandalinthePast(February24)FinancialTimes• ChinesesearchenginecompanyBaidunarrowlymissedrevenueexpectationsinthefinal

quarteroflastyearasitworkedtoreassureinvestorsthattheworstofanadvertisingscandalwasbehindit.ThescandalinvolvedayoungmanwhodiedafterbuyinganexperimentalcancertreatmentadvertisedonBaidu.com.Sharesroseslightlyduringafter-hourstradinginNewYorklastThursday.

• BaiduisChina’sthird-biggestInternetcompany,anditisfacingstiffcompetitionasittriestoenticeadvertisers.RivalsTencentandAlibabaareprovingsavvyatattractingmobileapptimeandvaluableuserinformationviatheirrespectivesocialmessagingappandonlinemarketplace.

7

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

LATAMRETAILANDTECHHEADLINESBrazilRetailerGPAReportsQuarterlyLoss,MissingForecasts(February24)Reuters.com• GPA,Brazil’sbiggestretailer,reportedafourth-quarternetlossofR$29million(US$9

million)lastFriday,missingforecastsforitsfirstprofitinsevenquartersduetoweaksupermarketsalesandaheftytaxprovision.

• ThegrossprofitmarginofGPA’sfoodretaildivisionslipped2.1percentagepoints,to26.9%,ondeeperdiscountsdesignedtokeepsalesgrowingatthecompany’ssupermarketsandhypermarketsduringBrazil’sworstrecessioningenerations.

MexicoRetailSalesFallbyMostinThreeYearsinDecember(February24)Reuters.com• Mexicanretailsalespostedtheirbiggestmonth-over-monthdropinnearlythreeyearsin

December,officialdatafromtheMexicannationalstatisticsagencyshowed.Retailsalesfellby1.4%inDecemberfromNovember,thebiggestdropsinceJanuary2014.

• Yearoveryear,salesgrewby9.0%inDecember.ThefigurewaslowerthanNovember’s11.2%,buthigherthanDecember2015’s3.4%,indicatingarelativelystrong2016calendaryearfortheMexicanretailmarket.

DisburzeandBancoRendimentoIntroduceNewB2BServicetoBrazil(February28)Finextra.com• Disburze,apaytechcompanybasedinNewYorkCitythatisrewiringhowbusiness

paymentsaremade,andBancoRendimento,oneoftheleadinginstitutionsinforeignexchangeoperationsinBrazil,announcedthelaunchofanewbusiness-to-businessserviceinBrazil.

• ThenewserviceenablesbusinessestoseamlesslysettleinvoicesinBrazilianreais.DisburzealsoaimstoallowBrazil-basedbusinessestomovefundsoutofBrazilandintoitsgrowingpaymentnetworkaroundtheworldinthefuture.

Walmart’s2016ReviewinLatinAmerica(February21)RetailAnalysis.igd.com• WalmexcontinuestoleadintheMexicanmarket,withavarietyofformatsdeliveringsales

growthaheadofthemarket.In2016overall,totalMexicosame-storesalesgrowthcameinat8.0%,withgrowthinthefourthquarterupacreditable7.9%.

• WalmarthasplacedmuchfocusonreenergizingitsoperationsinBrazil,usingacombinationofstoreclosuresandstorerefurbishmentstohelpcreateastorenetworkthatappearsbetterequippedtosucceedinthelongerterm.

8

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

EARNINGSCALENDAR

Sales(Mil.) EPS

CompanyEarnings

ReleasePeriod Date ConsensusTY LYActual ConsensusTY LYActual Currency

BigLots(BIG) 4Q16 Mar3 1,590 1,584 2.22 2.00 USD

AscenaRetailGroup(ASNA) 2Q17 Mar6 1,749 1,843 (0.10) 0.02 USD

CasinoGuichardPerrachon(CO.PA) FY16 Mar7 40,391 46,145 2.29 1.82 EUR

UrbanOutfitters(URBN) 4Q17 Mar7 1,034 1,013 0.56 0.66 USD

Adidas(ADS.DE) FY16 Mar8 19,301 16,915 4.89 3.65 EUR

Express(EXPR) 4Q16 Mar8 678 766 0.29 0.69 USD

SteinMart(SMRT) 4Q16 Mar8 389 394 (0.05) 0.15 USD

VeraBradley(VRA) 4Q17 Mar8 138 154 0.23 0.41 USD

Carrefour(CA.PA) FY16 Mar9 76,769 79,409 1.50 1.57 EUR

Morrisons(MRW.L) FY17 Mar9 16,187 16,122 0.11 0.12 GBP

Ulta(ULTA) 4Q16 Mar9 1,541 1,268 2.13 1.70 USD

AlimentationCouche-Tard(ATD-B.TO) 3Q17 Mar14 11,155 9,331 0.67 0.53 USD

Dick’sSportingGoods(DKS) 4Q16 Mar14(E) 2,479 2,240 1.30 1.13 USD

DSW(DSW) 4Q16 Mar14(E) 692 672 0.16 0.14 USD

SalvatoreFerragamo(SFER.MIL) FY16 Mar14 1,437 1,430 1.14 1.03 EUR

9

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

EVENTCALENDAR

Event Location Date(s)

FungGlobalPresenting/Attending

NYFashionTechLab2017LaunchEvent NewYork,NY Mar7–8 √

SXSW Austin,TX Mar10–19

BrandInnovatorsChallengerBrands Austin,TX Mar12

RetailLocoatSXSW Austin,TX Mar12

AdidasInvestorDay Herzogenaurach,Germany Mar14 √

InternationalHome+HousewaresShow Chicago,IL Mar18–21

Shoptalk LasVegas,NV Mar19–22 √

CodeCommerceSeriesatShoptalk LasVegas,NV Mar20

WWDMen’sWearSummit Brooklyn,NY Mar21

ICSCRetailConnections London,UK Mar22 √

ULICarolinas’Meeting Charlotte,NC Mar23–24 √

ShopperMarketingSummit NewYork,NY Mar27–29

WWDRetail20/20:TheNewStoreExperience NewYork,NY Mar28 √

PlattRetailInstituteDigitalRetailForum LasVegas,NV Mar28 √

GlobalShopShow LasVegas,NV Mar28–30 √

IsraelDealMakersSummit2017 SanFrancisco,CA Mar28–30

InsideRetailLive–FestivalofRetailIdeas Sydney,Australia Mar29–31

BrandInnovatorsMobile&Millennials Chicago,IL Mar30

GlobalFootwearRetailConference HongKong Mar30

VFCorp.AnalystDay Boston,MA Mar30

WorldRetailCongress Dubai,UAE Apr4–6 √

BrandInnovatorsEntertainmentMarketing LosAngeles,CA Apr13

GlobalRetailingConference Tucson,AZ Apr20–21 √

NACDSAnnualMeeting Scottsdale,AZ Apr21 √

NABShow LasVegas,NV Apr22–27 √

WWDRetail20/20:TheNewStoreExperience London,UK Apr25

JDAFocus2017 LasVegas,NV Apr25–28

C-star2017 Shanghai,China Apr26–28

ICSCChinaRetailSummitandConnections Shanghai,China Apr28–29

10

March3,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&Technologydeborahweinswig@fung1937.comUS:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comKirilPopovSeniorAnalyst

JohnHarmon,CFASeniorAnalyst

JohnMercerSeniorAnalyst

StevenWinnickResearchAssociate

CharliePoonResearchAssistant

ZaneYangResearchAssistant

HongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017FungGlobalRetailTech.com