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

W M Market Market Market Market
Year 10 Year 11 Year 10 Year 11 Year 10 Year 11 Year 10 Year 11
Marketing variables gen-
erated by production and
S/Q Rating (weighted average) 4.0★ 7.1★ 4.0★ 7.1★ 4.0★ 7.2★ 4.0★ 7.2★
marketing decisions in Y11. Models Available (weighted average) 200 249 200 249 200 249 200 249
Wholesale Wholesale Price to Retailers ($/pair) 48.00 54.50 53.00 55.00 48.00 55.00 53.00 53.00
Marketing Brand Advertising ($000s) 10,000 9000 9,000 9000 8,000 5500 7,500 5000
Decisions Mail-In Rebate ($3 to $15 per pair) 6.00 4.00 5.00 3.00
5.00 5.00 5.00 5.00
Delivery Time (1 to 4 week delivery) 3 2 3 3 3 2 3 2
Retailer Support ($0 to $10000 per outlet) 4,000 750 4,000 750 2,750 750 2,750 750
Marketing variables de-
Retail Outlets (willing to carry your brand) 1,000 1,000 1,000 1,000 700 700 700 700
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. 70 70 70 70
Brand Reputation (prior-year image rating) 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
Wholesale Market Share (% of total regional sales volume) 8.3% 8.8% 8.3% 9.1% 8.3% 8.4% 8.3% 9.6%
Pairs Available for Sale (after filling internet orders) 2,068 1,906 1,760 1,688 1,320 1,268 1,320 1,530
(000s) Wholesale Demand for Branded Pairs 1,997 2,261 1,700 1,980 1,275 1,418 1,275 1,616
Required Inventory (needed to achieve delivery time) 71 115 60 73 45 75 45 87
Surplus (Shortfall) of Branded Pairs 0 -470 0 -365 0 -225 0 -173

$000s $/pair $000s $/pair $000s $/pair $000s $/pair

Revenue, Cost, and Gross Wholesale Revenues 97,610 54.50 88,825 55.00 65,615 55.00 76,479 53.00
Profit Projections ± Exchange Rate Adjustments 0 0.00 0 0.00 0 0.00 0 0.00
for Year 11 Net Wholesale Revenues 97,610 54.50 88,825 55.00 65,615 55.00 76,479 53.00
Cost of Pairs Sold 54,816 30.61 59,030 36.55 33,219 27.84 56,514 39.16
Warehouse Expenses 7,149 3.99 6,620 4.10 5,365 4.50 6,148 4.26
Marketing Expenses 13,943 7.79 10,023 6.21 8,031 6.73 7,340 5.09
Administrative Expenses 3,982 2.22 3,591 2.22 2,653 2.22 3,208 2.22
Operating Profit (Loss) 17,720 9.89 9,561 5.92 16,347 13.70 3,269 2.27
Operating Profit Margin 18.2% 10.8% 24.9% 4.3%

Competitive S/Q Rating 5.0 ★ 4.8 ★ 4.8 ★ 4.6 ★

Assumptions Model Availability 200 models 200 models 200 models 200 models
Wholesale Price ($ per pair) $ 49.00 $ 53.00 $ 48.00 $ 53.00
Brand Advertising ($000s) $ 10250 $ 9000 $ 8000 $ 7500
Rebate Offer ($ per pair) $ 5.00 $ 5.00 $ 5.00 $ 5.00
Delivery Time (weeks) 2.8 weeks 2.8 weeks 3.0 weeks 3.0 weeks
Retailer Support ($ per outlet) $ 4000 $ 4000 $ 2750 $ 2750
Industry averages for these vari- Retail Outlets 1,000 outlets 1,000 outlets 700 outlets 700 outlets
ables determined by prior-year Celebrity Appeal 0 0 0 0
decision entries and outcomes. 70 70 70 70
Brand Reputation

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

https://www.bsg-online.com/users/sim/decisions/wholesale-marketing 1/1