1

August25,2017

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

ChartoftheWeekStatoftheWeek

Deborah Weinswig Managing Director

FGRT

deborahweinswig@fung1937.com

US: 917.655.6790

HK: 852.6119.1779

CN: 86.186.1420.3016

August 25, 2017

1) Thisweek’snote“FromtheDeskofDeborahWeinswig”discussestheuseoffacial-recognitiontechnologyforuseridentificationinthenextgenerationofsmartphones.

2) ManyUSfamiliesstillhavealotofshoppinglefttodoastheypreparetheirchildrenforthestartofschool.AccordingtotheNationalRetailFederation’s(NRF’s)annualsurvey,theaveragefamilywithchildreningradesK–12hadcompletedonly45%oftheirshoppingasofearlyAugust.

3) DiscounterLidlhasbecometheUK’sseventh-largestgroceryretailer,accordingtonewdatafrommarketmeasurementfirmKantarWorldpanel.LidlgrewitsUKsalesby18.9%inthe12weeksendedAugust13.Aldi,theUK’sfifth-largestgroceryretailer,grewsalesby17.2%.

4) AlibabahascontinueditspushintoSoutheastAsiaafterleadinga$1.1billioninvestmentinTokopedia,ane-commercefirmbasedinIndonesia.Tokopedia,whichwasfoundedin2009,operatesamarketplacethatallowssmallretailersandlargebrandstoselltoconsumers.

SalesofAmazonPrivate-LabelBrands:1H17(USDMil.)

Source:1010data

Source:Companyreports

300• Kohl’sannouncedamajorstoreoptimizationand

rightsizingplanthatincludesnewinteriorlayoutsthatwillmakestoresoperationallysmaller.Thecompanyhasalreadyoptimized300storesandsaidthatnearlyhalfofKohl’sstoreswillbemadeoperationallysmallerundertheplanbytheendof2017.

• Thecompanyalsoplanstoopenfoursmall-formatstoresof35,000squarefeeteachinOctober2017,addingtotheeightsmall-formatKohl’sstoresthatopenedin2016.

0 50 100 150 200 250

AmazonBasics

Echo

FireTV

Kindle

AmazonElements

Pinzon

HappyBelly

Lark&Ro

BugonedDown

AmazonEssenhals

2

August25,2017

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

FromtheDeskofDeborahWeinswig

FacialRecognition:ComingSoontoaSmartphoneNearYouFacialrecognitionhaslongbeenthestuffofsciencefiction,withbooksandmoviesincludingscenesoffacialorretinalscansbeingusedtoidentifyentrantstosensitivemilitarycomplexes.Thetechnologyhasalsobeenusedforcertainnichepurposesformanyyears,suchastokeepcriminalsandundesirablesoutofgamblingcasinos.Inaddition,theCityofLondonhasasmanyasamillionCCTVcamerasstationedthroughoutthecityinordertohelpidentifyandcatchsuspectedbadguys.

Now,facialidentificationiscomingtoasmartphonenearyou.Advancesinartificialintelligenceoverthepastfewyears,particularlytheuseofdeep-learningtechnologyforpatternrecognition—combinedwithinexpensive,high-resolutionimagesensorsincellphones—haveputthetechnologyinthepalmsofourhands.

Apple,whichhashistoricallycombinedoff-the-shelftechnologiesininnovativewaysandthenusedsavvymarketingtopushitsnewproducts,oftenreceivescreditfor“inventing”novelapproaches.ThecompanyisonceagainattheepicenterofbuzzwithitsupcomingiPhonemodels,whicharerumoredtoincludefacialrecognitionhardware.RecentiPhonemodelsrelyonafingerprintsensorthatworkswiththe“home”buttontoidentifytheuser,butfuturemodelsarethoughttoincludeanall-glassfrontscreen.Thatwouldnegatetheneedforthebutton,butalsoeliminatethespotwherethefingerprintsensorwaslocatedonoldermodels.

ThenewiPhone8isexpectedtoincludeanarrayofinfraredlaserscalledverticalcavitysurface-emittinglasers(VCSELs),whichwillcapturea3Dimageoftheoperator’sface.Althoughfacialrecognitionisatrickytask,itismuchsimplertoidentifyasubject’sfacialfeaturesfromjustafewfeetawaythanitistoidentifythemfromagrainysurveillancevideocapturedbyacamerapositionedonawallorbuildingmuchfartheraway.Removingthesolefront-panelbuttonfromtheiPhonewouldalsoboostthephone’soverallminimalism,whichwouldlikelypleasetheorchestratoroftheoriginaliPhone,SteveJobs.Inaddition,theremovalofthefront-panelbuttonwouldeliminatefalsepresses,refusalstoauthenticateduetodirtyfingersandtheassociatedsmudgesthatinevitablyresultfromunlockingthephone.

EventhoughApple’sglobalshareofthesmartphonemarketisabout15%,thecompany’sinfluenceoverthetechindustryismuchgreater.The3DsensorarrayoffersmanyinterestingpossibilitiesinconcertwithARKit,Apple’ssoftwaretoolkitforbuildingaugmented-realityappsfortheiPhoneandiPad.Althoughaugmented-realitytechnologyisheretoday,sofartherehasnotbeena“killerapp”thathasspurredwidespreadadoption.

Asnotedabove,Applewasnotthefirstcompanytodevelopfacialrecognitiontechnologyforconsumerapplications.InteldemonstrateditsRealSensetechnologyattheCEStradeshowin2016,withCEOBrianKrzanichparticipatinginademothataimedtoopenadoorlockusingfacialrecognitiontechnology.Thedemofailed—asdemosoftendo—toKrzanich’schagrin,butitshowedwhatwaspossiblewiththetechnology.Intelalsodemonstratedalaptopversionofacamerathatenableduserstologintoacomputerwithoutenteringapassword.Aftertheuserloggedin,thecomputer’ssoftwareprovidedallnecessarypasswords,withouttheuserhavingtomemorize(andforget…andreset)them.

AquickInternetsearchshowsavarietyofIntelRealSensewebcamsatpricesstartingat$50,butthesearemuchtoolargeandexpensivetobeintegratedintoasmartphone.Thus,atechnologicalleapinbothhardwareandsoftwarewasnecessary,andthelatestgenerationsofsmartphonesfromSamsung,LGandSonyoffervariouslevelsoffacialrecognitiontechnology.Android’sIceCreamSandwichsmartphoneoperatingsystemhasfacialrecognitionfunctionalitybuiltin.

Biometrictoolssuchasfingerprintandfacialrecognitionareopeningthedoortoanewphaseofdeviceusageandconsumerfriendliness.Consumerswillnolongerhavetomemorizeeasilyforgettablepasswordsandcodes,norwilltheyhavetopresstheirthumbtotheirphonetounlockit:theywillonlyhavetoholdthephoneinfrontoftheirface—nobuttonpushingneeded.3Dimagingarraysandbuilt-inaugmented-realitysoftwareputanenormousamountofcomputingandimagingpowerinthehandsofconsumers,andtech-savvyretailersarelikelytostartimagininghowtheycanusethesetechnologiestoempowerconsumersandmakeshoppinganeasierandmorepleasurableexperience.

3

August25,2017

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

USRETAILEARNINGS

Company

Revenues(USDMil.)

YoY%Change GrossMargin(%)

Change(bps)

NetIncome(USDMil.)

YoY%Change StoreFleetEOP

Period TY LY

TY LY

TY LY

TY LY

Dick’sSportingGoods 2Q17 2,157 1,968 9.6 29.5 30.4 (80) 112 91 22.9 833 747

DSW 2Q17 680 659 3.3 28.9 28.4 60 29 25 14.2 510 480

EstéeLauder 4Q17 2,894 2,646 9.4 78.8 80.7 (190) 190 158 20.3 N/A N/A

FootLocker 2Q17 1,701 1,780 (4.4) 29.6 33.0 (340) 51 127 (59.8) 3,441 3,470

Gap 2Q17 3,799 3,851 (1.4) 38.9 37.3 162 271 125 116.8 3,642 3,730

LBrands 2Q17 2,755 2,890 (4.7) 37.3 38.5 (120) 139 252 (44.9) 3,871 3,792

RossStores 2Q17 3,432 3,181 7.9 29.5 29.2 25 317 282 12.3 1,589 1,501

Target 2Q17 16,429 16,169 1.6 30.5 30.9 (40) 672 680 (1.2) 1,816 1,797

Walmart 2Q18 123,355 120,854 2.1 25.8 26.0 (15) 2,899 3,773 (23.2) 11,600 11,539

Source:Companyreports

USRETAIL&TECHHEADLINESKleinerPerkinstoInvest$40MillioninToronto-BasedTulip.io(August22)TheWallStreetJournal• Tulip.io,whosemobilesoftwareallowssalesassociatesandretailerstoengagemore

effectivelywithcustomers,hasraised$40millioninanewroundofventurecapitalfinancingledbyKleinerPerkinsCaufield&Byers.

• Thefinancing,whichmarksKleinerPerkins’largestinvestmentinaCanadiantechnologystartup,willhelpTulipdoubleitsstaff,expandtoretailersinEurope,SouthAmericaandAsia,anddevelopitssoftwareforotherindustriessuchasthehospitalitysector.Thecompany’ssoftwareisalreadybeingusedbymajorUSretailerssuchasHudson’sBayCompany’sSaksFifthAvenueandCoach,andisusedacross25countriesandinsevenlanguages.

WalmartNearsaPilotDealtoOfferCustomersInstallmentLoans(August22)TheWallStreetJournal• UpstartfinancingfirmAffirmisintalkstoofferinstallmentloanstoWalmartcustomers,said

peoplefamiliarwiththematter.Thedevelopmentisthelatestsignofretailers’desiretoreachnewcustomerswithlimitedcredithistoriesandoftheintensifyingcompetitionfacingcreditcardproviders.

• Affirm,basedinSanFrancisco,andWalmart,basedinBentonville,AR,arenearinganagreementonapilotinwhichAffirmwouldofferinstallmentloanstosomeWalmartshoppersintheUSassoonasthisfall,thepeoplesaid.

LowPriceIstheOnlyWinnerinRetail(August18)TheWallStreetJournal• Itmightseemlikethemostbasicretailmaxim,butthesecondquarterdrilledithomefor

investors:lowpricesmatter.Theonlywinnersinthesecondquarterinanotherwisebleakretaillandscapeweretheonesofferingthelowestprices.

• Thelistofcompaniesthatpostedsalesgrowthinthequarter,includingWalmart,Target,RossStoresandAmazon.com,shareonemajorcharacteristic:lowprices.EvenGapgotaboostfrom5%same-storesalesgrowthatitsinexpensiveOldNavybrand.Thetrendisgrimforbrandsthathavecommandedpremiumsandfortraditionalretailers,especiallybecausetheyallneedtobeinvestingine-commercejusttokeepup.

4

August25,2017

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

MoreParentsHoldingOffonBack-to-SchoolShopping(August22)NRFpressrelease• Eventhoughmoreparentsstartedback-to-schoolshoppingearlythisyear,manyfamilies

stillhavealotofshoppinglefttodoastheypreparetheirchildrenforthestartofschool.AccordingtotheNationalRetailFederation’s(NRF’s)annualsurvey,theaveragefamilywithchildreningradesK–12hadcompletedonly45%oftheirshoppingasofearlyAugust.

• Thatisdownfromapeakof52%atthesametimein2013and48%lastyear,anditisthelowestlevelsincethefigurehit40%in2012.OfparentssurveyedAugust1–9,only13%hadcompletedalltheirshopping—and23%hadnotstartedatall.Thenumberofparentswhoplannedtostartshoppingatleasttwomonthsbeforethebeginningofschoolwasupthisyear,at27%,comparedwith22%lastyear.

USE-CommerceSalesSurge16.3%inSecondQuarter(August17)SGBMedia• TheUSCensusBureauestimatedthatUSretaile-commercesalesforthesecondquarterof

2017,adjustedforseasonalvariationbutnotforpricechanges,totaled$111.5billion,anincreaseof16.2%fromthesecondquarterof2016.

• Totalretailsalesincreasedby4.1%,to$1.27trillion,inthesameperiod.E-commercesalesinthesecondquarterof2017accountedfor8.9%oftotalsales;however,adeeperlookintothenumbersrevealsamuchhighershareofbusinessfortheInternetchannel.

EUROPERETAILHEADLINESUKRetailSalesGrowAheadofInflationinJuly(August17)ONSpressrelease• JulywasanothersolidmonthforUKretail,accordingtotheOfficeforNationalStatistics

(ONS),withsalesup4.2%yearoveryear.Theratewascomfortablyaheadofsectorwideinflationof2.7%,meaningthatBritscontinuedtogrowtheirretailspendinginrealterms.

• Yearoveryear,clothingspecialists’saleswereup6.0%,whileInternetpureplaysandmailorderretailersgrewsalesby20.9%,andgroceryretailersenjoyeda3.6%increaseinsales.

LidlBecomesUK’sSeventh-LargestGroceryRetailer(August22)KantarWorldpanelpressrelease• DiscounterLidlhasbecometheUK’sseventh-largestgroceryretailer,accordingtonewdata

frommarketmeasurementfirmKantarWorldpanel.LidlgrewitsUKsalesby18.9%inthe12weeksendedAugust13.FellowdiscounterAldi,whichisalreadytheUK’sfifth-largestgroceryretailer,grewsalesby17.2%.

• MarketleaderTescosawsalesincreaseby3%,whileSainsbury’swasup2.0%,Asda1.4%andMorrisons2.6%.Thetotalgrocerymarketgrewby4.0%andinflationstoodat3.3%inthe12-weekperiod.

MissguidedBrotherLabelMennaceLaunchesinSeptember(August21)DrapersOnline.com• ThechiefexecutiveofMissguided,NitinPassi,issettolaunchamenswearbrand,Mennace,

onaseparate,stand-alonee-commercesiteinSeptember.• Thebrand,whichisseparatefromMissguidedbutsitswithinthesamegroup,launcheda

capsulecollectiononASOSlastDecember,butwillnowrolloutafullcollection,includinghoodies,joggers,jeans,T-shirtsandjackets.

SportsDirectIncreasesStakeinDebenhamsto21%(August22)RetailGazette.co.uk• BritishsportinggoodsretailerSportsDirecthasincreaseditsstakeinDebenhamsyetagain,

from19%to21%.InApril,theretailerhadonlya13.38%stake.• SportsDirectownerMikeAshleyhasnotrevealedtheintentionsbehindboostinghis

company’sholding,althoughmediasourcespredictthatthiswillleadtoatakeover.

5

August25,2017

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

AldiSellsGamesinGermany(August21)RetailDetail.eu• BothAldiNordandAldiSüdwillstartsellingonlinevideogamesinGermanybeginning

August21,thedaybeforeEurope’slargestgamingconventionbegins.• Thediscounter’swebshopwillhousegamesfrommorethan100developersandstudiosas

wellasfromeverymajorgamingplatform,makingAldioneofthelargestgamingstoresinGermany.

ASIATECHHEADLINESAlibabaLeads$1.1BillionInvestmentinIndonesia-BasedE-CommerceFirmTokopedia(August17)TechCrunch.com• AlibabahascontinueditspushintoSoutheastAsiaafterleadinga$1.1billioninvestmentin

Tokopedia,ane-commercefirmbasedinIndonesia.Tokopedia,whichwasfoundedin2009,operatesamarketplacethatallowssmallretailersandlargebrandstoselltoconsumersinIndonesia,SoutheastAsia’slargesteconomy.

• “ThepartnershipwithAlibabawillenhancethescaleandqualityofTokopedia’sofferingstoitscustomersandmakeiteasierformerchantsandpartnerstodobusinessacrossthearchipelagoandbeyond,”thecompaniessaidinanannouncement.

Alibaba,Tencent,DidiandOtherTechFirmsPour$12BillionintoMobileOperatorChinaUnicom(August16)TechCrunch.com• Chinaisabouttotakenetneutralitytothenextlevelafteragroupofinfluentialtech

companiesthatincludesBaidu,Alibaba,Tencent,DidiChuxingandJD.comagreedtoinvestnearly$12billionintostate-runmobileoperatorChinaUnicom,thesecond-largestoperatorinChina,with269millionmobilecustomers.

• TheinvestmentisbeingmadeaspartofChina’s“mixedownership”strategy,whichwasannouncedin2014andencouragesstateentitiestotakeonprivatecapital.ChinaUnicomsaidinafilingthatthedealwillhelpitrethinkitscorporatestructureandencouragemoreinnovativethinkingwithinitsstrugglingbusinessunits.

JurassicParkSpursUKGameMakerBackedbyTencenttoRecord(August22)Bloomberg.com• FrontierDevelopments,aBritishvideo-gamemakerbackedbyTencent,willreleaseJurassic

WorldEvolutionforPC,PlayStation4andXboxOneconsolesinthesummerof2018.ThefranchisecoulddoubleFrontier’srevenueby2019,saidLiberumanalystAndrewBryant.

• FrontierwilllikelybenefitfrommarketingspendingbyComcast’sUniversalPictures,whoseJurassicWorld:FallenKingdommovieisdueforUSreleaseinJunenextyear.“It’sclearlyveryexciting,”Bryantsaid.“Asafranchise,JurassicWorldishuge.What’simportantisthatthistitleistiedwiththefilmrelease,soFrontierbenefitsfromthemarketingspendbyUniversal.”

Alibaba’sProfitDoublesto$2.1BillionAfterAnotherHugeQuarterofBusiness(August17)TechCrunch.com• Chinesee-commercegiantAlibabareportednetprofitof¥14billion(US$2.1billion)forits

recentquarter,up96%yearoveryear.Totalrevenuegrewby56%,to¥50.2billion(US$7.4billion),withthefirmreporting466millionactivebuyersovertheprevious12-monthperiod.

• “Alibabahadastrongstarttofiscal2018,reflectingthestrengthanddiversityofourbusinessesandthevaluewebringtocustomersonourplatforms.Ourtechnologyisdrivingsignificantgrowthacrossourbusinessandstrengtheningourpositionbeyondcorecommerce,”AlibabaCEODanielZhangsaid.

6

August25,2017

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

LATAMRETAILANDTECHHEADLINESSASAppointsNewBrazilHead(August17)ZDNet.com• AnalyticssoftwarecompanySAShaspromoteditsformerheadofitscommercialdivisionto

presidentofitsBraziliansubsidiary.Aspartofatransitionalperiod,CássioPantaleoniwillbeworkinguntiltheendoftheyearalongsideConradoLeister,whohadbeenactingaspresidentforbothBrazilandLatinAmericaandtheCaribbean.

• AccordingtoSAS,thedecisiontosplitLeister’sroleistheresultofthepositiveperformanceithasseenoverthelastfewquartersinBrazil.Despitetheeconomicandpoliticalinstabilitythecountryhasundergoneoflate,Brazilisstilloneofthecompany’stopfiveglobalmarkets.

BrazilianFashionRetailerWorthMorethanRalphLauren(August18)LeadersLeague.com• OnJune16,theBrazilianpublicationExamereportedthatLojasRenner,aBrazilianprêt-à-

porterretailer,hasovertakenfamousAmericanbrandRalphLaurenintermsofmarketvalue.LojasRennerwasworth$5.75billion,whileRalphLaurenwasworth$5.64billion,themagazinesaid.

• ThesenumbersweregatheredbythecompanyEconomaticaatExame’srequestinordertocomparethesizeofthefashioncompaniesintheUSandBrazil.Pertheresearch,US-basedTJXCompaniesisthemostvaluablefashionretailerinbothnations,withmorethan$47.4billionofstocksinthemarket.

DufryOpens400-Square-MeterShopatT2MexicoCityAirport(August18)TRBusiness.com• TheDufryGrouphasinaugurateditsnewstoreatMexico’sBenitoJuárezInternational

AirportTerminal2.ThetravelretailerwasawardedtherighttooperatetheconcessionearlierthisyearatthesametimethatitsealedanagreementwithMadrid-basedcruiselineGrupoPullmantur.

• Locatedintheinternationaldepartureshallandspanning400squaremeters,themainstorestocksawideassortmentoffragrances,foodandbeverages,tobaccoandluxuryaccessories.Inaddition,theshopwillstocklocaldelicaciessuchasfinetequila,mezcal,Mexicanchocolate,hotsaucesandgourmetcoffee.

BxbluetoMovePayroll-SecuredLoansOnlineinBrazil(August15)Reuters.com• Payroll-securedloansarea$40-billion-a-yearbusinessinBrazil,butthatbusinesslargely

happensoffline.AstartupinYCombinatorcalledBxbluewantstochangethatbycreatingamarketplaceforborrowerstoevaluatemultipleloanoptionsallinoneplace.

• InBrazil,oneofthemorepopularpersonalloanproductsisavailabletogovernmentemployeesandpensioners.Lendersofferattractivepersonalloanstothisgroupbecausetheirincomeisregularandguaranteed,andthebankscanautomaticallydeductpaymentsdirectlyfromaborrower’spaycheck.

7

August25,2017

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

MACROUPDATEKeypointsfromglobalmacroindicatorsreleasedAugust16–23,2017:

1) US:InJuly,UShousingstartsdroppedby4.8%monthovermonth,to1.16million,whileindustrialproductionincreasedby0.2%monthovermonth.Bothreadingscameinweakerthanconsensusestimates.Consumersentimenttickedupto97.6inAugust.

2) Europe:IntheUK,theunemploymentrateedgeddownto4.4%inJune;theratewasslightlylowerthantheconsensusestimate.UKretailsaleswerestrongerthanexpectedinJuly:excludingautofuel,retailsalesgrewby0.5%monthovermonth,comparedwiththemarket’sestimateof0.1%growth.

3) Asia-Pacific:InAustralia,theunemploymentratestoodat5.6%inJuly,inlinewiththemarket’sexpectation,whilethelaborparticipationratetickedupslightly,to65.1%.InJapan,departmentstoresalesfellby1.4%yearoveryearinJuly.

4) LatinAmerica:InBrazil,theFGVGeneralPriceIndex-10(IGP-10)decreasedby0.2%monthovermonthinAugust.IndustrialconfidenceinBrazilincreasedto52.6inAugustandthecountry’stradebalanceincreasedto$1.3billion.

*FGRT’sevaluationoftheactualfigure’simpactontheeconomyrelativetohistoricalbenchmarksandthecurrentmacroeconomicenvironment:+indicatesapositivesignalforthecountry’seconomy,–indicatesanegativesignaland=indicatesanegligibleormixedimpact.Source:USCensusBureau/USFederalReserveBoard/UniversityofMichigan/UKOfficeforNationalStatistics/Eurostat/AustralianBureauofStatistics/JapanDepartmentStoreAssociation/JapanFranchiseAssociation/FundaçãoGetulioVargas/ConfederaçãoNacionaldaIndústria/MinistériodaIndústria,ComércioExterioreServiços/FGRT

Country Indicator Period Actual Survey Prior ImpactonEconomy*

US HousingStarts(Thous.) Jul 1,155 1,220 1,213 –

US HousingStarts(MoM) Jul (4.8)% 0.4% 7.4% –

US BuildingPermits(Thous.) Jul 1,223 1,250 1,275 –

US BuildingPermits(MoM) Jul (4.1)% (2.0)% 9.2% –

US IndustrialProduction(MoM) Jul 0.2% 0.3% 0.4% –

US UniversityofMichiganIndexofConsumerSentiment(Prelim.) Aug 97.6 94.0 93.4 +

UK ILOUnemploymentRate(3Mos.) Jun 4.4% 4.5% 4.5% +

UK RetailSalesexAutoFuel(MoM) Jul 0.5% 0.1% 0.6% +

UK RetailSalesexAutoFuel(YoY) Jul 1.5% 1.2% 2.8% +

AU UnemploymentRate Jul 5.6% 5.6% 5.7% +

AU LaborParticipationRate Jul 65.1% 65.0% 65.0% +

JP NationwideDepartmentStoreSales(YoY) Jul (1.4)% – 1.4% –

JP TokyoDepartmentStoreSales(YoY) Jul (0.9)% – 1.1% –

JP ConvenienceStoreSales(YoY) Jul 0.0% – (0.1)% –

BZ FGVInflationIGP-10(MoM) Aug (0.2)% (0.1)% (0.8)% =

BZ CNIIndustrialConfidence Aug 52.6 – 50.6 +

BZ TradeBalance(Weekly,Mil.) Aug20 $1,332 – $873 =

8

August25,2017

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

EARNINGSCALENDAR

Sales(Mil.) EPS

Company

EarningsReleasePeriod Date

ConsensusTY LYActual

ConsensusTY LYActual Currency

BigLots(BIG) 2Q17 Aug25 1,214 1,203 0.62 0.53 USD

Carrefour(CA.PA) 1H17 Aug30 40,161 37,292 0.30 0.31 EUR

Chico’sFAS(CHS) 2Q17 Aug30 579 636 0.21 0.25 USD

FiveBelow(FIVE) 2Q17 Aug30 277 220 0.26 0.18 USD

VeraBradley(VRA) 2Q18 Aug30 112 119 0.10 0.18 USD

DollarGeneral(DG) 2Q17 Aug31 5,805 5,392 1.09 1.08 USD

LululemonAthletica(LULU) 2Q17 Aug31 567 515 0.35 0.38 USD

G-IIIApparelGroup(GIII) 2Q18 Aug31(E) 522 442 (0.26) 0.02 USD

RestorationHardware(RH) 2Q17 Sep7(E) 607 543 0.46 0.28 USD

Morrisons(MRW.L) 1H18 Sep14 8,404 8,032 0.06 0.05 GBP

Prada(1913.HK) 1H17 Sep15(E) 1,528 1,554 0.06 0.06 EUR

AscenaRetailGroup(ASNA) 4Q17 Sep18(E) 1,575 1,812 (0.03) 0.17 USD

EspritHoldings(330.HK) FY17 Sep20 16,358 17,788 0.04 (0.25) HKD

Inditex(ITX.MC) 1H17 Sep20 11,747 10,466 0.46 0.41 EUR

Kingfisher(KGF.L) 1H18 Sep20 6,009 5,749 0.14 0.14 GBP

FinishLine(FINL) 2Q18 Sep20(E) 477 509 0.38 0.53 USD

RiteAid(RAD) 2Q18 Sep21(E) 7,836 8,030 0.00 0.02 USD

Nike(NKE) 1Q18 Sep26(E) 9,100 9,061 0.49 0.73 USD

Boohoo.com(BOO.L) 1H17 Sep27 264 127 0.02 0.01 GBP

H&M(HM-B.ST) 9M17 Sep28 53,678 48,982 3.10 2.91 SEK

Tesco(TSCO.L) 1H17 Oct4 27,997 27,338 0.04 0.01 GBP

9

August25,2017

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

EVENTCALENDAR

Event Location Date(s)

FungGlobalPresenting/Attending

InternationalRetailDesignConference NewOrleans,LA Sep5–8 GoldmanSachs24thAnnualGlobalRetailingConference NewYork,NY Sep6–7 √BigData&AnalyticsInnovationSummitandChiefInnovationOfficerSummit Shanghai,China Sep6–7 √EnterWorksEngage2017UserConference Nashville,TN Sep11–13 ICSCPA/NJ/DEConference&DealMaking AtlanticCity,NJ Sep11–13 EmergingApplicationsofBlockchainforSupplyChains Cambridge,MA Sep12 Tech.PoweredbyRetailWeek London,UK Sep13–14 √XRCLabsDemoDay NewYork,NY Sep15 HOMIMilano Milan,Italy Sep15–18 SmartSummit London,UK Sep19–20 √WWDDigitalForum NewYork,NY Sep19–20 Shop.org:ThisIsDigital LosAngeles,CA Sep25–27 √NRFProtect LosAngeles,CA Sep25–27 √eCommerceExpo London,UK Sep27–28 FashionTechForum2017:WestCoastDebut LosAngeles,CA Oct6 ShoptalkEurope Copenhagen,

Denmark Oct9–11 √RetailCongressAsiaPacific HongKong Oct10–11 2017TechstarsDemoDay Minneapolis,MN Oct11 REConLatinAmerica&Caribbean SanJuan,PR Oct15–17 SourcingJournalSummit2017 NewYork,NY Oct17 ExclusiveExecutiveConference Orlando,FL Oct17–19 ICSCResearchConnectionsConference Toronto,Canada Oct22–24 BackEndofInnovation Orlando,FL Oct22–25 RetailWestSummit SanFrancisco,CA Oct24 WWDApparel&RetailCEOSummit NewYork,NY Oct24–25 √X5RetailGroupCapitalMarketsDay Moscow,Russia Oct26 AAFAExecutiveThinkTank HongKong Oct26 √FIT’sFashionistas&Financiers NewYork,NY Nov1 IDTechExShow:WearableUSAandPrintedElectronicsUSA SantaClara,CA Nov15–16 LBrandsAnnualInvestorMeeting Columbus,OH Nov22 Asia-GlobalDialogue2017 HongKong Nov22 HomeDepotInvestor/AnalystDay Boston,MA Dec6–7 ICSCNewYorkDealMaking NewYork,NY Dec6–7 FortuneGlobalForum Guangzhou,China Dec6–8 √

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August25,2017

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

DeborahWeinswig,CPAManagingDirectorFGRTNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comKirilPopovSeniorAnalyst

JohnHarmon,CFASeniorAnalyst

JohnMercerSeniorAnalyst

StevenWinnickResearchAssociate

CharliePoonResearchAssistant

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