Risk Factors Update Summary

• A long-term license agreement for the Nautica brand in North America was signed, effective January 2024.
• Operating loss from retail operations decreased from $33.6 million in fiscal 2023 to $30.5 million in fiscal 2024.
• The ownership of the entire Karl Lagerfeld business was emphasized, increasing direct ownership of brands.
• The company incurred $125.0 million of debt in fiscal 2024 to LVMH Moet Hennessy Louis Vuitton Inc.
• The need for additional financing was mentioned, impacting business operations and results.
• The Calvin Klein and Tommy Hilfiger license agreements now have a limited extension period.
• Sales to Ross Stores decreased from 9.2% in fiscal 2023 to 9.1% in fiscal 2024.
• The percentage of inventory purchased from China decreased from 37.6% in fiscal 2023 to 34.2% in fiscal 2024.
• Net sales of licensed products decreased from 58.6% in fiscal 2023 to 53% in fiscal 2024.
• The company recorded a $5.9 million charge to earnings in fiscal 2024 due to the partial impairment of the Sonia Rykiel trademark.
• Sales to the ten largest customers decreased from 74.2% in fiscal 2023 to 70.1% in fiscal 2024.
• Inventory purchased from Vietnam increased from 31.4% in fiscal 2023 to 35.7% in fiscal 2024.
• Sales to TJX Companies decreased from 15.4% in fiscal 2023 to 13.6% in fiscal 2024.
• Interest rates increased in fiscal 2024, impacting the company's debt service obligations and liquidity.
• The risk of significant decrease in net sales due to the loss of a large customer was added.
• Purchases from one vendor in China decreased from 19% in fiscal 2023 to 13% in fiscal 2024.
• Expansion of Donna Karan brand with first deliveries for Spring 2024 was emphasized.
• The loss of any of the top customers could affect approximately 22.5% of net sales in fiscal 2024.
• Implementation of a national security law in Hong Kong was highlighted as a risk factor.
• Purchases from two vendors in Vietnam decreased from 28% in fiscal 2023 to 22% in fiscal 2024.
• Sales to Macy's decreased from 21.6% in fiscal 2023 to 19.2% in fiscal 2024.