Risk Factors Update Summary

• Expanded TAG program aims to generate $300 million annualized operating income benefits, targeting at least $100 million by 2025.
• Implemented "Transform and Grow" restructuring plan expected to generate $300 million annualized operating income benefits by 2025.
• Sales of watches accounted for approximately 77.6% in 2023, 77.9% in 2022, and 80.9% in 2021.
• Closed 55 stores in fiscal year 2024, aiming to close approximately 60 stores globally.
• Increased digital sales comprised 37% of consolidated net sales in 2023, focusing on improving end-to-end consumer experience.
• Net sales from licensed products decreased from 46% to 44% of consolidated net sales.
• Actions requiring shareholder vote added, impacting corporate decisions and potentially causing disagreements.
• Transitioned to a more unified operational structure, enhancing efficiency and increasing digital investments.
• Mention of inflation, rising interest rates, and their impact on capital markets included.
• Enhanced DE&I strategy includes goals to increase BIPOC representation, with nearly 50% of external hires being BIPOC.
• Reference to economic growth and high unemployment retained in risk factors.
• Launched the "WINGEd" program for female managers, focusing on skills development and self-awareness.
• Established a Special Committee of the Board in 2023 to oversee strategic transformation initiatives, including organizational restructuring.