Apparel, Accessories & Footwear - Market Monitor - Spring 2016 Highlights

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Apparel, Accessories & Footwear Market Monitor Spring 2016 MOSS ADAMS CAPITAL LLC . Select MAC Apparel, Accessories & Footwear Transactions Apparel, Accessories & Footwear 2 MOSS ADAMS CAPITAL LLC . Contents Industry Update 4 Public Share Price Performance & Valuations 5 M&A Activity & Valuations 9 Moss Adams Overview 13 Apparel, Accessories & Footwear 3 MOSS ADAMS CAPITAL LLC . Shifting Consumer Preferences Create Retail Headwinds Consumer Spending Indicators Industry Update • • Improving job markets, rising wages, cheaper fuel and increasing home values are giving the U.S. consumer more confidence. However, soft goods continue to stumble as consumer preferences shift away from the category. Consumer spending continues to shift toward services, experiences and improvements, such as housing upgrades, travel, auto, restaurants and leisure, which have all experienced an increase in sales. Furthermore, consumers are focusing on value-based offerings, which means their spending favors retailers that either offer deep value, something new or provide a unique experience. • Despite uncertain economic conditions and the headwinds discussed above, the National Retail Federation believes the strong labor market and U.S. economy will help retail sales increase by 3.1% this year, while non-store sales are expected to jump between 6.0%-9.0% in 2016. • 2015 U.S.

Apparel, Accessories and Footwear (“AAF”) M&A activity finished 9.8% above the 2014 record (slide 12). • 12% 10% 8% 6% 4% 2% 0% (2%) (4%) (6%) (8%) (10%) (12%) Select public AAF companies have lost approximately 12% of value on a EV/EBITDA multiple basis from the highs reached in July 2015 (slide 8). • • Unemployment Rate (left-axis) 120 100 80 60 Payroll y/y growth (left-axis) Consumer Confidence (right-axis) 40 20 Apparel Retailer Sales y/y Growth (left-axis) 0 Same-Store Sales Growth – Select Chain Retailers Q4'13 Abercrombie & Fitch Aeropostale Q1'14 Q2'14 Q3'14 (8.0%) (4.0%) (7.0%) (10.0%) (10.0%) (15.0%) (13.0%) (13.0%) (11.0%) Q4'14 Q1'15 Q2'15 Q3'15 (8.0%) (4.0%) (1.0%) (9.0%) (11.0%) (8.0%) (10.0%) Q4'15 1.0% NA American Eagle (7.0%) (10.0%) (7.0%) (5.0%) 0.0% 7.0% 11.0% 9.0% 4.0% Buckle (7.2%) (2.8%) (0.9%) (0.5%) 0.3% 1.1% (2.2%) (1.7%) (5.2%) DSW 0.0% (3.7%) 0.8% 2.6% 7.6% 5.1% 1.8% (3.9%) NA Gap AAF companies continue to look for new brands to assist their sluggish portfolios and will pay strong valuations for growing companies. 1.0% (1.0%) 0.0% (2.0%) (2.0%) (4.0%) (2.0%) (3.0%) (7.0%) Genesco 1.0% 2.0% 3.0% 10.0% 4.0% 7.0% 7.0% 5.0% (4.4%) (3.8%) (5.4%) (4.8%) (5.0%) (5.9%) (2.8%) (5.7%) NA Tilly's Key industry trends supporting growth and valuations include (i) ability to become a lifestyle brand, (ii) omni-channel retailing, (iii) international growth, (iv) consumer focus on active/healthy lifestyles, (v) strong margins. 1.0% Guess? North America (4.9%) (6.8%) (7.1%) (1.2%) 2.9% 2.0% 0.5% 3.9% NA 1.0% 0.0% 0.0% (1.0%) 6.0% 4.0% 4.0% 0.7% (2.0%) (2.2%) 1.8% 3.4% 3.7% 8.3% 3.0% (4.5%) (7.3%) NA Urban Outfitters Zumiez Median (2.9%) (3.8%) (3.0%) (1.6%) 0.6% (0.1%) (1.9%) (3.0%) (0.5%) Source: U.S. Department of Commerce, National Retail Federation, CapitalIQ, Bloomberg & Moss Adams Capital estimates. Apparel, Accessories & Footwear 4 MOSS ADAMS CAPITAL LLC . Public Company Valuations ($U.S. in millions, except per share amounts) Company Name TTM Data 3/3/16 Share Price 52 Week High - Low Market Cap Enterprise Value Sales EBITDA NTM Est. Growth EBITDA Margin Sales EBITDA EV Multiple TTM Sales TTM EBITDA NTM Sales NTM EBITDA Performance NIKE, Inc. $61.47 $68.20 - $47.25 $104,693 $100,753 $31,339 $5,059 16.1% 9.4% 12.6% 3.21x 19.9x 2.94x 17.7x Adidas AG 106.91 111.18 - 68.70 21,404 21,485 18,371 1,614 8.8% 9.1% 10.0% 1.17x 13.3x 1.07x 12.1x Under Armour, Inc. 83.09 105.89 - 63.23 17,956 18,496 3,963 516 13.0% 25.5% 23.8% 4.67x 35.9x 3.72x 29.0x Lululemon Athletica Inc. 61.78 70.00 - 43.14 8,483 8,079 1,959 423 21.6% 13.7% 9.7% 4.12x 19.1x 3.63x 17.4x Columbia Sportswear Company 59.76 74.72 - 43.56 4,142 3,804 2,326 310 13.3% 5.8% 4.8% 1.64x 12.3x 1.55x 11.7x 214.95 237.53 - 153.25 3,211 2,836 3,679 166 4.5% 8.5% 21.7% 0.77x 17.1x 0.71x 14.0x Median $13,288 $3,821 $469 13.2% 9.2% 11.3% 2.43x 18.1x 2.24x 15.7x Average $25,909 $10,273 $1,348 12.9% 12.0% 13.8% 2.60x 19.6x 2.27x 17.0x PUMA SE Aspirational Coach, Inc. $38.79 $43.45 - $27.22 $10,772 $10,322 $4,238 $932 22.0% 8.4% 10.3% 2.44x 11.1x 2.25x 10.0x Michael Kors Holdings Limited 57.19 68.82 - 34.83 10,260 9,572 4,594 1,359 29.6% 5.3% (0.6%) 2.08x 7.0x 1.98x 7.1x Ralph Lauren Corporation 95.77 141.08 - 82.15 8,046 7,731 7,419 1,141 15.4% (2.7%) (7.8%) 1.04x 6.8x 1.07x 7.3x Kate Spade & Company 23.07 35.26 - 15.10 2,955 3,059 1,243 204 16.4% 12.6% 28.7% 2.46x 15.0x 2.19x 11.7x 6.45 22.33 - 3.31 237 312 315 42 13.3% (7.3%) (48.7%) 0.99x 7.4x 1.07x 14.5x Vince Holding Corp Median $7,731 $4,238 $932 16.4% 5.3% (0.6%) 2.08x 7.4x 1.98x 10.0x Average $6,199 $3,562 $736 19.3% 3.3% (3.6%) 1.80x 9.5x 1.71x 10.1x Casual Fashion The Gap, Inc. $28.54 $43.90 - $21.57 $11,330 $11,691 $15,797 $2,051 13.0% (0.7%) (0.1%) 0.74x 5.7x 0.75x 5.7x Urban Outfitters Inc. 27.43 47.25 - 19.26 3,218 3,114 3,443 496 14.4% 3.1% 1.1% 0.90x 6.3x 0.88x 6.2x American Eagle Outfitters, Inc. 15.00 18.49 - 12.78 2,920 2,659 3,522 466 13.2% 3.3% 10.0% 0.76x 5.7x 0.73x 5.2x DSW Inc. 26.24 39.58 - 21.23 2,273 2,183 2,588 317 12.2% 2.9% (10.1%) 0.84x 6.9x 0.82x 7.7x Abercrombie & Fitch Co. 31.14 31.45 - 15.42 2,097 1,847 3,519 303 8.6% (0.0%) 15.7% 0.52x 6.1x 0.53x 5.3x Guess? Inc. 22.26 23.45 - 16.61 1,865 1,486 2,243 219 9.7% (3.3%) (9.3%) 0.66x 6.8x 0.69x 7.5x Median $2,421 $3,481 $391 12.6% 1.4% 0.5% 0.75x 6.2x 0.74x 6.0x Average $3,830 $5,185 $642 11.9% 0.9% 1.2% 0.74x 6.2x 0.73x 6.3x Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 40x. NA if denominator is 0, for percentages and multiples, or if estimates are not available.

NTM figures are based on the median estimate of Wall St. analysts. Source: CapitalIQ, company filings. Apparel, Accessories & Footwear 5 MOSS ADAMS CAPITAL LLC . Public Company Valuations ($U.S. in millions, except per share amounts) Company Name TTM Data 3/3/16 Share Price 52 Week High - Low Market Cap Enterprise Value Sales EBITDA NTM Est. Growth EBITDA Margin Sales EBITDA EV Multiple TTM Sales TTM EBITDA NTM Sales NTM EBITDA Diversified - Large Cap V.F. Corporation $66.33 $77.40 - $52.21 $28,155 $29,075 $12,377 $2,077 16.8% 4.7% 3.9% 2.35x 14.0x 2.24x 13.5x PVH Corp. 85.45 120.67 - 64.16 7,002 10,000 7,977 947 11.9% 1.1% 9.2% 1.25x 10.6x 1.24x 9.7x Skechers U.S.A., Inc. 33.78 54.53 - 21.63 5,281 4,906 3,159 404 12.8% 18.3% 30.8% 1.55x 12.1x 1.31x 9.3x G-III Apparel Group, Ltd. 54.70 73.93 - 39.50 2,491 2,608 2,331 232 10.0% 9.5% 7.5% 1.12x 11.2x 1.02x 10.4x Steven Madden, Ltd. 35.37 44.73 - 27.80 2,186 2,081 1,405 195 13.9% 3.2% 0.4% 1.48x 10.6x 1.44x 10.6x Wolverine World Wide Inc. 19.98 35.20 - 14.74 1,996 2,622 2,692 287 10.7% (6.1%) (6.9%) 0.97x 9.1x 1.04x 9.8x Deckers Outdoor Corp. 57.83 78.00 - 40.74 1,875 1,669 1,837 241 13.1% 1.9% 5.9% 0.91x 6.9x 0.89x 6.5x Oxford Industries Inc. 77.42 91.24 - 51.13 1,284 1,346 1,036 123 11.9% (1.5%) 13.7% 1.30x 11.0x 1.32x 9.6x Median $2,615 $2,511 $264 12.3% 2.6% 6.7% 1.28x 10.8x 1.28x 9.7x Average $6,788 $4,102 $563 12.6% 3.9% 8.1% 1.37x 10.7x 1.31x 9.9x Diversified - Mid/Small Cap Crocs, Inc. $10.03 16.05 - 8.09 $732 $771 $1,091 -$3 NA 4.2% NM 0.71x NA 0.68x 11.2x 8.41 37.29 - 4.67 407 1,893 374 180 48.2% 1.3% (8.0%) 5.06x 10.5x 5.00x 11.4x Perry Ellis International Inc. 19.85 28.19 - 15.73 313 409 903 44 4.9% 4.0% 40.3% 0.45x 9.3x 0.44x 6.6x Weyco Group Inc. 26.46 31.01 - 22.94 286 296 321 34 10.5% NA NA 0.92x 8.8x NA NA 0.99 2.83 - 0.94 196 303 798 44 5.5% 6.1% 21.0% 0.38x 6.9x 0.36x 5.7x 12.54 23.11 - 9.67 95 115 269 18 6.6% 7.2% 11.6% 0.43x 6.5x 0.40x 5.9x Median $356 $586 $39 6.6% 4.2% 16.3% 0.58x 8.8x 0.44x 6.6x Average $631 $626 $53 15.1% 4.6% 16.2% 1.33x 8.4x 1.37x 8.1x Iconix Brand Group, Inc. Billabong International Limited Rocky Brands, Inc. Note: Not meaningful (NM) if EV/Sales is greater than 10x, or EV/EBITDA is greater than 40x.

NA if denominator is 0, for percentages and multiples, or if estimates are not available. NTM figures are based on the median estimate of Wall St. analysts. Source: CapitalIQ, company filings. Apparel, Accessories & Footwear 6 MOSS ADAMS CAPITAL LLC .

Performance Apparel Success Indicative of Consumer Preferences One Year Share Price Performance: Apparel, Accessories & Footwear vs. S&P 500 40.0% 30.0% Performance 22.6% 20.0% 10.0% S&P 500 (5.0%) 0.0% Diversified - Large Cap - (9.8%) (10.0)% Aspirational (19.9%) (20.0)% (30.0)% Casual Fashion (22.4%) (40.0)% Diversified Mid/Small Cap (49.5%) (50.0)% (60.0)% Mar-16 Feb-16 Jan-16 Dec-15 Nov-15 Oct-15 Sep-15 Aug-15 Jul-15 Jun-15 May-15 Apr-15 Mar-15 (70.0)% Note: The indices in the chart above are composed of the public companies included on slide 5 & 6. Source: CapitalIQ. Apparel, Accessories & Footwear 7 MOSS ADAMS CAPITAL LLC . “Casual Fashion” Struggles Decrease Broader AAF Valuations • 3.9% sales and 8.1% EBITDA growth projected for select apparel companies (slide 5 & 6) over the next 12 months. • • S&P 500 companies are projecting sales and EBITDA growth of 2.9% and 9.2%, respectively, over the next 12 months. Public AAF companies’ multiples have been decreasing, primarily caused by sluggish sales growth, industry bankruptcies and economic uncertainty. • Over the past six months, AAF companies have lost approximately 12% of their value on an EV/EBITDA multiple basis (decrease mainly caused by depressed Diversified – Small Cap performance). Next 12 Months: Estimated Growth Sales Public Market Valuations S&P 500 - 10.1x EBITDA AAF Companies 11.4x 14.0x Diversified Mid/Small Cap Casual Fashion Aspirational 4.2% 13.0x 12.0x 6.7% 2.6% EV/EBITDA Multiple Diversified Large Cap 16.3% 0.5% 1.4% (0.6%) 5.3% Performance 9.2% 11.0x 10.0x 9.0x 8.0x 7.0x 6.0x 11.3% 5.0x Mar-16 Sep-15 Mar-15 Sep-14 Mar-14 Sep-13 Mar-13 Sep-12 Mar-12 4.0x 9.2% Sep-11 2.9% Mar-11 S&P 500 Note: Apparel, Accessories & Footwear is composed of the public companies included on slide 5 & 6. Source: CapitalIQ. Apparel, Accessories & Footwear 8 MOSS ADAMS CAPITAL LLC . Middle Market M&A Volume Down in Q4 2015; Multiples Up ï‚§ Overall, 2015 was a record year for M&A with transaction values totaling $4.7 trillion, according to Thomson Reuters ï‚§ EBITDA multiples in middle market transactions in Q4 2015 finished the quarter at 8.3x EBITDA, equal to the 5 year average for this metric and up from Q2 and Q3 2015 ï‚§ However, in Q4 2015, U.S. middle market M&A deal volumes declined 15% from Q3 2015, and declined 26% from Q4 2015 ï‚§ Q4 2015 EBITDA margins of reportable transactions increased modestly but remained consistent with the 5 year average --Reported EBTIDA margins in Q4 2015 were 9%, while the 5 year average is 8% ï‚§ U.S. middle market M&A activity in 2014 2015, measured by deal values, remained consistent with prior quarters at $94 billion U.S. MIDDLE MARKET M&A 1 U.S.

MIDDLE MARKET M&A VALUATIONS 2 1) Middle market M&A includes transactions with undisclosed values, and disclosed values where EV < $500 million. 2) Middle market M&A includes transactions with disclosed EBITDA, where EV < $500 million and EV/EBITDA between 3.0x and 15.0x. Note: transactions with disclosed EBITDA represent <5% of all transactions. Source: CapitalIQ. Apparel, Accessories & Footwear 9 MOSS ADAMS CAPITAL LLC . Select, Notable M&A Activity with Disclosed Values $ in millions Close Date Acquirer/Investor Target Target Description Transaction Value Feb-16 Rainbow USA Inc. Joyce Leslie, Inc., 19 Joyce Leslie Stores Leases Acquired leases of Joyce Leslie, a clothing boutique Feb-16 DSW Shoe Warehouse, Inc. Ebuys, Inc. Footwear and accessories retailer Jan-16 LeftLane Sports, Inc. Retail Innovation Group, Inc. Online outdoor apparel and accessories Jan-16 Hudson's Bay Company Gilt Groupe, Inc. Online retailer of luxury goods Dec-15 China Buffett Investment Co., Ltd. Metu Brands, Inc. (nka:American BriVision) Online women's apparel retailer Nov-15 GBG USA, Inc. PS Brands, LLC Private label socks, legwear and accessories Nov-15 American Eagle Outfitters, Inc. Tailgate Clothing Co. Oct-15 Cintas Corporation No. 2 Coyne International Enterprises Corp. Oct-15 Cherokee Inc. Oct-15 Sep-15 EV/ Revenue EV/ EBITDA $1.4 - - $117.5 - - $18.6 - - $250.0 - - $0.4 NM - $130.0 1.30x - Sport-fan related apparel $11.0 - - Uniforms, protective apparel, and related garments $28.3 - - Flip Flop Shops Inc. Operates a chain of casual footwear stores $12.0 6.48x - Jarden Corp. Visant Holding Corp. Scholastic products including apparel $44.9 - - Sequential Brands Group, Inc. Joe's Jeans Inc. Denim apparel $69.5 - - Aug-15 Sycamore Partners Belk Inc. Operates apparel departments stores $3,051.0 0.69x 6.9x Aug-15 QVC, Inc. zulily, Inc. Online retailer of apparel and accessories $2,476.2 1.69x NM Jul-15 Delta Galil USA Inc. Loomworks Apparel, Inc. Intimate apparel $40.8 - - Jul-15 Marquee Brands LLC Ben Sherman Ltd. Apparel and footwear $63.7 0.82x - Jun-15 Metabrid LLC Disys Commerce Inc. Apparel and accessories retailer $5.7 0.44x - May-15 BootBarn Inc. Sheplers, Inc. Apparel and accessories $147.0 0.94x 9.9x May-15 GameStop Corp. Geeknet, Inc. Online apparel retail $139.8 0.75x - May-15 Bluestem Brands, Inc. Orchard Brands Corporation Apparel manufacturer and distributer $410.0 0.40x 5.8x May-15 Ascena Retail Group Inc. ANN INC. Luxury retail and accessories $2,206.1 0.80x 8.4x Apr-15 Authentic Brands Group LLC Frederick's of Hollywood Group Inc. Intimate Apparel $22.5 - - Apr-15 Sequential Brands Group, Inc. The Jessica Simpson Collection Women's Apparel and Accessories $118.5 - - Apr-15 Webster Capital Dover Saddlery, Inc. Specialty Apparel $73.6 0.70x 17.2x Mar-15 CapX Partners and Comvest Partners Karmaloop, Inc. Online Apparel Retail $13.0 - - Mar-15 Mador Lending, LLC The Wet Seal, Inc., Substantially All Assets Women's Apparel and Accessories $7.5 - - Mar-15 Crow Family Holdings CNL Dallas Market Center, L.P. Wholesale fashion merchandise resource company $140.0 - - Feb-15 Gladstone Corporation and Digital Fuel Capital, LLC LogoSportswear, Inc. Customized uniform apparel $9.7 - - Feb-15 Arctic Cat Inc. Motorfist LLC Casual wear and accessories $9.1 - - Feb-15 Hanesbrands Inc. Knights Apparel, Inc. Branded Sports Apparel $193.5 - - Feb-15 David Peyser Sportswear, Inc. To The Game, LLC Collegiate Sports Apparel $15.0 0.60x - Median $54.3 0.77x 8.4x Source: CapitalIQ, PitchBook, company filings, news releases. Apparel, Accessories & Footwear 10 MOSS ADAMS CAPITAL LLC . Select, Recent M&A Activity without Disclosed Values $ in millions Close Date Acquirer/Investor Target Target Description Transacti Value EV/ Revenue EV/ EBITDA Feb-16 City Paper Company Big Deal Promotions, Inc. Promotional apparel and accessories design company Feb-16 Huckberry LLC Flint And Tinder USA, LLC Men's undergarments and accessories - - - - - Feb-16 Sagamore Ventures, LLC Towson Watch Company, LLC - Watch manufacturer - - Feb-16 Envision Tees - Something Unique, Inc. Custom screen printing and embroidery - - Feb-16 - Private Investor Creative Embroidery Apparel embroidery services - - - Jan-16 Gordon Brothers; Hilco Merchant Resources City Sports, Inc. Active sportswear retailer - - - Jan-16 Gerber Childrenswear LLC Triboro Quilt Manufacturing Infant and toddler clothing and bedding - - - Jan-16 BSN Sports, LLC Jerry's Sporting Goods Store Athletic equipment and apparel retailer - - - Jan-16 Private Investor BBC Ice Cream, LLC Retails boys and girls apparel and accessories - - - Jan-16 BSN Sports, LLC LIDS Team Sports Sport uniforms, custom apparel, footwear and equipment - - - Jan-16 GreenLight Capital, Inc. Macy's, Inc. Department store - - - Jan-16 Stonetree Signs Four13 Design Works, LLC Custom apparel, design, and print services - - - Jan-16 Ricoh Printing Systems America, Inc. AnaJet LLC Apparel and accessories printers - - - Jan-16 Prime Resources Corporation Gemini Manufacturing, LLC Promotional apparel, headwear, and accessories - - - Dec-15 BCS International, Inc. Fulmer Helmets (nka:Loken Imports) Manufactures apparel and motorcycle helmets - - - Dec-15 Just Got 2 Have It! Inc. Kris & Company Various products including apparel and accessories - - - Dec-15 OluKai LLC Kaenon, Inc. Manufactures eyewear - - - Dec-15 Bright Fame Fashion (HK) Limited Thakoon, LLC Women's apparel - - - Dec-15 Broder Bros Co. Bodek and Rhodes, Inc. Distributes imprintable apparel and active wear - - - Dec-15 Willowridge Partners; Saints Capital eBags, Inc. Online bag retailer - - - Dec-15 Charter NEX Films, Inc. Bloomer Plastics, Inc. Protective films and protective apparel - - - Nov-15 '47 Brand, Inc. Old Time SPORTS, Inc. Hockey apparel - - - Nov-15 Brentwood Associates, Inc. Boston Proper, Inc., DTC Business Apparel retailer - - - Nov-15 Farol Asset Management, LP Cushnie et Ochs, LLC Women's apparel - - - Nov-15 Camuto Group, Inc. Bernard Chaus, Inc. Women's apparel - - - Nov-15 Tradesy, Inc. Shop-Hers, Inc. Fashion community consigner - - - Nov-15 Shoes.com, Inc. Richer Poorer Inc. Socks and undergarments - - - Nov-15 Front Nine Capital, LLC Mainly Monograms, Inc. Distributes apparel and promotional products - - - Nov-15 Hilco Brands, LLC; Infinity Group Le Tigre, LLC Casual apparel and sportswear - - - Nov-15 Follett Corporation Advanced Graphic Products Inc. Manufactures apparel and promotional products - - - Oct-15 Bates Accessories, Inc. Custom Brand Footwear, LLC Leather footwear for David Spencer - - - Oct-15 Private Investor Quiksilver Inc., Ampla Shoe Brand Footwear designed for running - - - Oct-15 Foreside LLC Coyne's & Company, Inc. Home, garden, and fashion products - - - Oct-15 We Have Become Vikings LLC Southpaw Prints LLC Apparel, poster, and art printing - - - Oct-15 CCMP Capital Advisors, LLC Shoes For Crews, LLC Slip-resistant footwear - - - Source: CapitalIQ, PitchBook, company filings, news releases. Apparel, Accessories & Footwear 11 MOSS ADAMS CAPITAL LLC . Overview of Select, Notable Transactions acquires February 2016 • DSW Shoe Warehouse has agreed to acquire the online off-price retailer Ebuys, Inc., for $62.5 million. • Roger Rawlins, CEO of DSW, believes the acquisition of Ebuys will “add a business to the DSW portfolio that will strategically scale our off-price sourcing capabilities, expand our presence into digital marketplaces and create opportunities to serve international customers online”. • Ebuys will continue to operate as a separate business within DSW and maintain its offices, while David Duong will continue to be CEO of Ebuys. • The deal structure included an upfront cash consideration of $62.5 million, as well as future payments contingent on the performance of Ebuys, Inc. over the next three years, with an estimated present value of $55 million. acquires January 2016 • Hudson’s Bay Co. (“HBC”), parent company of Saks Fifth Avenue, agreed to acquire flash sales site, Gilt Group for $250 million in cash. • This transaction reflects HBC’s focus on advancing its all-channel model while continuing to grow its successful off-price business. • HBC will fold the online operation into its own off-price division, Saks Off Fifth, and expects Gilt to contribute approximately $500 million of revenue and $40 million of adjusted EBITDA through revenue and cost synergies in 2017. • Gilt’s $250 million price tag represents a significant markdown from the $1 billion valuation it obtained in a 2011 round of funding. • This deal mirrors Nordstrom’s acquisition of HauteLook in 2011, which helped the company attract younger shoppers, test promotions, and leverage ecommerce resources. Source: CapitalIQ, company filings, news releases. Apparel, Accessories & Footwear • U.S. Apparel, Accessories and Footwear M&A activity finished 2015 at an all time high, 9.8% increase from the 2014 record. U.S.

Apparel, Accessories & Footwear M&A 1 350 314 300 286 268 250 272 234 200 221 218 175 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015 1) Includes U.S. and Canada. 12 MOSS ADAMS CAPITAL LLC . Moss Adams at a Glance Leadership through Experience and Results Moss Adams Capital LLC • Full-service investment bank and strategic advisor • Dedicated industry specialists • Advisory and execution • Private equity • Debt • Mergers and acquisitions • Restructuring Long-Term Industry Relationships • All product types • Public and private entities • Full range of the capital stack Apparel, Accessories & Footwear Moss Adams LLP • Fully integrated accounting, tax, and business advisory firm • 100+ years old • Dominant in western US • Middle-market specialists • Accounting, tax, and transaction Experience • Real estate accounting best practices • Senior, experienced tax specialists • Leverageable transaction resources International Presence • Dominance in Western US • 2,400 employees in 28 offices • Presence on national/global basis • Praxity affiliates across US and more than 100 countries around globe 13 MOSS ADAMS CAPITAL LLC . 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Moss Adams Capital Overview Full Service Middle Market Investment Bank Corporate Finance • Capital Placement – Equity and Debt • Merger and acquisition advisory • Strategic alternatives assessment • Exclusive sales and divestitures • Strategic planning • Management buy-outs • Recapitalizations • Fairness opinions • Comprehensive Industry Coverage Restructuring and special situations advisory Aerospace, Defense & Government Services • Healthcare Services & Products Industrials / Niche Manufacturing Infrastructure & Construction Paper, Plastics, & Packaging Real Estate, Lodging & Leisure Access to key decision-makers among institutional investor universe Food, Beverage & Agriculture Technology, Communications, & Media Transportation & Logistics Completed over 250 transactions • Business & Marketing Services Consumer, Retail & Apparel Highlights and Accomplishments Automotive & Dealer Services • Coverage of relevant strategic partners • Average of 20 years of investment banking experience among senior leaders Apparel, Accessories & Footwear 15 MOSS ADAMS CAPITAL LLC . Global Reach Moss Adams is a founding member of Praxity, AISBL, a global alliance of independent accounting firms. In addition to its deep, direct international relationships, Praxity provides access and trusted advisory expertise worldwide. Europe Austria, Azerbaijan, Belgium, Bosnia-Herzgovina, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Jersey, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, Ukraine North America Canada, United States Asia Bangladesh, China, Indonesia, Japan, South Korea, Malaysia, Singapore, Taiwan, Thailand, Vietnam Middle East and Indian Subcontinent Latin America and Caribbean Argentina, Bermuda, Brazil, Cayman Islands, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Peru, Puerto Rico, Uruguay, Venezuela Apparel, Accessories & Footwear Africa Angola, Benin, Botswana, Cameroon, Cape Verde, Djibouti, Egypt, Ghana, Ivory Coast, Kenya, Lesotho, Madagascar, Mauritius, Morocco, Namibia, Nigeria, Senegal, South Africa, Tunisia 16 Bahrain, India, Israel, Jordan, Kuwait, Lebanon, Oman, Pakistan, Palestinian territories, Qatar, Saudi Arabia, Sri Lanka, Tajikistan, United Arab Emirates Australasia Australia, New Caledonia, New Zealand MOSS ADAMS CAPITAL LLC . Global M&A Reach Through Local Relationships Local, National and Global Reach Our affiliation with CFxB consists of 150+ Corporate Finance Professionals across the U.S. and in over 25 countries more than 25 countries Apparel, Accessories & Footwear 17 MOSS ADAMS CAPITAL LLC . Contact Us Contributing Authors: Richard Anderson Managing Director (949) 221-4006 rich.anderson@mossadams.com Andrew Suen Vice President (949) 517-9428 andrew.suen@mossadams.com James Parr Analyst (949) 221- 4099 james.parr@mossadams.com Moss Adams Capital LLC 2040 Main Street Suite 900 Irvine, CA 92614 999 Third Avenue Suite 2800 Seattle, WA 98104 Wiley Kitchell Managing Director (206) 302-6780 wiley.kitchell@mossadams.com Tyler Dale Vice President (949) 221-4030 tyler.dale@mossadams.com James Rothenberger Vice President (206) 302-6777 james.rothenberger@mossadams.com Harman Wales Managing Director (206) 302-6770 jet.wales@mossadams.com Robert Miranda Vice President (949) 221-4021 robert.miranda@mossadams.com Bradley Erhart Associate (949) 517-9452 bradley.erhart@mossadams.com Brandon Clewett Director (949) 517-9426 brandon.clewett@mossadams.com Scott Porter Vice President (206) 306-6326 scott.porter@mossadams.com Daniel Seubert Analyst (206) 302-6775 daniel.seubert@mossadams.com Apparel, Accessories & Footwear 18 MOSS ADAMS CAPITAL LLC .
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