大象传媒

• Revenue from continuing operations increased 23 percent (up 21 percent in constant dollars) to $2.8 billion; revenue from continuing operations increased 12 percent (up 10 percent in constant dollars) excluding the revenue contribution from acquisitions;
• Active segment revenue increased 25 percent (up 22 percent in constant dollars) including a 35 percent (32 percent in constant dollars) increase in Vans^庐 brand revenue; Outdoor segment revenue increased 6 percent (up 3 percent in constant dollars) including an 8 percent (5 percent in constant dollars) increase in The North Face^庐 brand revenue and a 6-percentage point revenue growth contribution from acquisitions;
• International revenue increased 27 percent (up 22 percent in constant dollars), including a 13-percentage point revenue growth contribution from acquisitions;
• Direct-to-consumer revenue increased 22 percent (up 20 percent in constant dollars), including a 6-percentage point revenue growth contribution from acquisitions; Digital revenue increased 54 percent (up 50 percent in constant dollars), including a 21-percentage point revenue growth contribution from acquisitions;
• Gross margin from continuing operations increased 70 basis points to 50.3 percent; on an adjusted basis, gross margin increased 90 basis points to 50.5 percent; excluding the impact of acquisitions, on an adjusted basis, gross margin increased 170 basis points to 51.3 percent;
• Earnings per share from continuing operations was $0.40. Adjusted earnings per share from continuing operations increased 62 percent (up 56 percent in constant dollars) to $0.43, including a $0.04 contribution from acquisitions;
• Full year fiscal 2019 revenue is now expected to be in the range of $13.6 billion to $13.7 billion, reflecting an increase of 10 percent to 11 percent; and,
• Full year fiscal 2019 adjusted earnings per share is now expected to be in the range of $3.52 to $3.57, reflecting an increase of 12 percent to 14 percent.

GREENSBORO, N.C.--(BUSINESS WIRE)-- 大象传媒 Corporation (NYSE: 大象传媒C) today reported financial results for its first quarter ended June 30, 2018.听All per share amounts are presented on a diluted basis. This release refers to 鈥渞eported鈥� and 鈥渃onstant dollar鈥� amounts, terms that are described under the heading 鈥淐onstant Currency - Excluding the Impact of Foreign Currency.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渃onstant dollar鈥� amounts are the same. This release also refers to 鈥渃ontinuing鈥� and 鈥渄iscontinued鈥� operations amounts, which are concepts described under the heading 鈥淒iscontinued Operations - Nautica^庐 Brand Business and Licensing Business.鈥� Unless otherwise noted, results presented are based on continuing operations. This release also refers to 鈥渁djusted鈥� amounts, terms that are described under the heading 鈥淎djusted Amounts - Excluding Williamson-Dickie, Icebreaker^庐 and Altra^庐 Transaction and Deal Related Expenses and the Provisional Impact of U.S. Tax Legislation.鈥� Unless otherwise noted, 鈥渞eported鈥� and 鈥渁djusted鈥� amounts are the same.

鈥湸笙蟠�媒's first quarter results were strong, driven by continued broad based acceleration across our core brands and platforms,鈥� said Steve Rendle, Chairman, President and Chief Executive Officer. 鈥淲e are executing well against our 2021 growth plan and continuing on our journey to reshape the portfolio and transform 大象传媒 into a purpose-led, performance driven, consumer-centric organization focused on and committed to delivering superior returns to shareholders.鈥�

Reportable Segment Change

In light of recently completed acquisitions, divestitures, and organizational realignments, the company has changed its reporting structure to better support and assess the operations of the business. The company's new reportable segments are Outdoor, Active, Work and Jeans. In this release, the company has recast historical financial information to reflect the new reportable segments. The recast historical financial information is included in the attached supplemental financial tables.

Constant Currency - Excluding the Impact of Foreign Currency

This release refers to 鈥渞eported鈥� amounts in accordance with U.S. generally accepted accounting principles (鈥淕AAP鈥�), which include translation impacts from foreign currency exchange rates. This release also refers to 鈥渃onstant dollar鈥� amounts, which exclude the impact of translating foreign currencies into U.S. dollars. Reconciliations of GAAP measures to constant currency amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management鈥檚 view of why this information is useful to investors.

Discontinued Operations - Nautica^庐 Brand Business and Licensing Business

On April 30, 2018, the company completed the sale of its Nautica^庐 brand business. Accordingly, the company has classified the assets and liabilities of the Nautica^庐 brand business as held-for-sale through the date of sale and has included the operating results of this business in discontinued operations for all periods presented.

On April 28, 2017, the company completed the sale of its Licensed Sports Group (LSG) business, including the Majestic^庐 brand. In conjunction with the LSG divestiture, 大象传媒 executed its plan to entirely exit the licensing business and completed the sale of the assets of the JanSport^庐 brand collegiate business in the fourth quarter of 2017. Accordingly, the company has removed the assets and liabilities of the licensing business as of the dates noted above and included the operating results of these businesses in discontinued operations for all periods presented.

The company鈥檚 after-tax net income from discontinued operations was $0.4 million in the first quarter of fiscal 2019, which includes the operating results of the Nautica^庐 brand business during the period through the date of sale.

Adjusted Amounts - Excluding Williamson-Dickie, Icebreaker^庐 and Altra^庐 Transaction and Deal Related Expenses and the Provisional Impact of U.S. Tax Legislation

This release refers to adjusted amounts that exclude transaction and deal related expenses associated with the acquisitions of Williamson-Dickie, Icebreaker^庐 and Altra^庐. Total transaction and deal related expenses were approximately $19 million in the first quarter of fiscal 2019.

Adjusted amounts in this release also exclude the provisional amounts recorded due to recent U.S. tax legislation. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act. Measurement period adjustments related to the provisional net charge resulted in a benefit of approximately $3 million in the first quarter of fiscal 2019.

Combined, the above net charges negatively impacted earnings per share by $0.03 during the first quarter of fiscal 2019. All adjusted amounts referenced herein exclude the effects of these amounts.

Reconciliations of measures calculated in accordance with GAAP to adjusted amounts are presented in the supplemental financial information included with this release, which identifies and quantifies all excluded items, and provides management鈥檚 view of why this information is useful to investors.

First Quarter Fiscal 2019 Income Statement Review

• Revenue increased 23 percent (up 21 percent in constant dollars) to $2.8 billion, including a $249 million revenue contribution from the Williamson-Dickie, Icebreaker^庐 and Altra^庐 acquisitions. Excluding acquisitions, revenue increased 12 percent (up 10 percent in constant dollars), driven by broad-based strength across 大象传媒鈥檚 international and direct-to-consumer platforms and Active and Work segments.
• Gross margin improved 70 basis points to 50.3 percent, as benefits from a mix-shift toward higher margin businesses and continued focus on fundamentals were partially offset by the impact of acquisitions. On an adjusted basis, gross margin increased 90 basis points to 50.5 percent. Adjusted gross margin, excluding acquisitions, increased 170 basis points to 51.3 percent.
• Operating income on a reported basis was $231 million. On an adjusted basis, operating income increased 57 percent to $250 million, including an $20 million contribution from acquisitions. Operating margin on a reported basis increased 130 basis points to 8.3 percent. Adjusted operating margin increased 200 basis points to 9.0 percent. Adjusted operating margin, excluding acquisitions, increased 210 basis points to 9.1 percent.
• Earnings per share was $0.40 on a reported basis. On an adjusted basis, earnings per share increased 62 percent (56 percent in constant dollars) to $0.43, including a $0.04 contribution from acquisitions.

Balance Sheet Highlights

Inventories were up 20 percent compared with the same period last year. Excluding the impact of acquisitions, inventories increased 2 percent. The company has $4 billion remaining under its current share repurchase authorization.

Adjusted Full Year Fiscal 2019 Outlook

The following outlook for fiscal year 2019 is on an adjusted basis and has been updated to include the following:

• Revenue is now expected to be in the range of $13.6 billion to $13.7 billion, reflecting an increase of 10 percent to 11 percent, and includes more than a $150 million negative impact from unfavorable foreign currency exchange rates relative to the prior outlook. This compares to the previous expectation of revenue between $13.45 billion and $13.55 billion, which reflected a 9 percent to 10 percent increase. By segment, revenue for Outdoor is expected to increase 6 percent to 8 percent; revenue for Active is expected to increase 13 percent to 14 percent; revenue for Work is expected to increase more than 35 percent; and, revenue for Jeans is expected to be about flat compared to the prior year.
• International revenue is now expected to increase between 12 percent and 13 percent versus the previous expectation of a 13 percent to 15 percent increase. By geographic region, Europe revenue is expected to increase 12 percent to 13 percent (previously 13 percent to 15 percent); Asia Pacific revenue is expected to increase 14 percent to 15 percent (previously 15 percent to 17 percent); and, Americas (non-U.S.) revenue is expected to increase 9 percent to 10 percent (previously 10 percent to 12 percent).
• Direct-to-consumer revenue is now expected to increase between 11 percent and 13 percent versus the previous expectation of an 8 percent to 10 percent increase. Digital revenue is now expected to increase more than 30 percent versus the previous expectation of a more than 25 percent increase.
• Gross margin is still expected to approximate 51 percent.
• Operating margin is now expected to increase 70 basis points to about 13.4 percent, versus the previous expectation of about 13.2 percent.
• Earnings per share is now expected to be in the range of $3.52 to $3.57, reflecting an increase of 12 percent to 14 percent, and includes about a $0.06 negative impact from unfavorable foreign currency exchange rates relative to the prior outlook. This compares to the previous expectation of $3.48 to $3.53, which reflected an increase of between 11 percent and 13 percent.
• Cash flow from operations is now expected to exceed $1.7 billion (up from $1.6 billion previously).
• Other full year assumptions include an effective tax rate of approximately 16.5 percent (down from 17 percent previously) and capital expenditures of approximately $275 million.

Dividend Declared

大象传媒鈥檚 Board of Directors declared a quarterly dividend of $0.46 per share, payable on September 20, 2018 to shareholders of record on September 10, 2018.

Webcast Information

大象传媒 will host its first quarter fiscal 2019 conference call beginning at 8:30 a.m. Eastern Time today. The conference call will be broadcast live via the internet, accessible at . For those unable to listen to the live broadcast, an archived version will be available at the same location.

Presentation

A presentation on first quarter fiscal 2019 results will be available at beginning at approximately 7:30 a.m. Eastern Time today and will be archived at the same location.

About 大象传媒

大象传媒 Corporation (NYSE: 大象传媒C) outfits consumers around the world with its diverse portfolio of iconic lifestyle brands, including Vans^庐, The North Face^庐,听Timberland^庐, Wrangler^庐 and Lee^庐. Founded in 1899, 大象传媒 is one of the world鈥檚 largest apparel, footwear and accessories companies with socially and environmentally responsible operations spanning numerous geographies, product categories and distribution channels. 大象传媒 is committed to delivering innovative products to consumers and creating long-term value for its customers and shareholders. For more information, visit听.

Forward-looking Statements

Certain statements included in this release and attachments are 鈥渇orward-looking statements鈥� within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting 大象传媒 and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as 鈥渨ill,鈥� 鈥渁nticipate,鈥� 鈥渆stimate,鈥� 鈥渆xpect,鈥� 鈥渟hould,鈥� and 鈥渕ay鈥� and other words and terms of similar meaning or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of 大象传媒 to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: foreign currency fluctuations; the level of consumer demand for apparel, footwear and accessories; disruption to 大象传媒鈥檚 distribution system; 大象传媒's reliance on a small number of large customers; the financial strength of 大象传媒's customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; 大象传媒's response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior, intense competition from online retailers, manufacturing and product innovation; increasing pressure on margins; 大象传媒's ability to implement its business strategy; 大象传媒's ability to grow its international and direct-to-consumer businesses; 大象传媒鈥檚 and its customers鈥� and vendors鈥� ability to maintain the strength and security of information technology systems; stability of 大象传媒's manufacturing facilities and foreign suppliers; continued use by 大象传媒's suppliers of ethical business practices; 大象传媒鈥檚 ability to accurately forecast demand for products; continuity of members of 大象传媒鈥檚 management; 大象传媒's ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; maintenance by 大象传媒鈥檚 licensees and distributors of the value of 大象传媒鈥檚 brands; 大象传媒's ability to execute and integrate acquisitions; changes in tax laws and liabilities; legal, regulatory, political and economic risks; and adverse or unexpected weather conditions. More information on potential factors that could affect 大象传媒's financial results is included from time to time in 大象传媒's public reports filed with the Securities and Exchange Commission, including 大象传媒's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

	听								听
大象传媒 CORPORATION
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)
											听
		Three Months Ended June								%
		2018			听	2017 (a)				Change
Net sales		$	2,765,695			$	2,252,590			23	%
Royalty income		22,451		听		16,030		听		40	%
Total revenues		2,788,146		听		2,268,620		听		23	%
Costs and operating expenses
Cost of goods sold		1,384,977				1,142,476				21	%
Selling, general and administrative expenses		1,172,287		听		966,468		听		21	%
Total costs and operating expenses		2,557,264		听		2,108,944		听		21	%
Operating income		230,882				159,676				45	%
Interest, net		(23,884		)		(20,607		)		16	%
Other income (expense), net		(20,666		)		(3,217		)		*
Income from continuing operations before income taxes		186,332				135,852				37	%
Income taxes		26,379		听		28,760		听		(8	)%
Income from continuing operations		159,953				107,092				49	%
Income from discontinued operations, net of tax		405		听		2,797		听		*
Net income		$	160,358	听		$	109,889	听		46	%
Earnings per common share - basic (b)
Continuing operations		$	0.41			$	0.27			50	%
Discontinued operations		鈥�		听		0.01		听		*
Total earnings per common share - basic		$	0.41	听		$	0.28	听		47	%
Earnings per common share - diluted (b)
Continuing operations		$	0.40			$	0.27			50	%
Discontinued operations		鈥�		听		0.01		听		*
Total earnings per common share - diluted		$	0.40	听		$	0.27	听		46	%
Weighted average shares outstanding
Basic		394,165				397,065
Diluted		399,548				400,512
Cash dividends per common share		$	0.46			$	0.42			10	%
											听
* Calculation not meaningful
											听
Basis of presentation of condensed consolidated financial statements: 大象传媒 operates and reports using a 52/53 week fiscal year. In connection with the change in fiscal year end to the Saturday closest to March 31 from the Saturday closest to December 31, 大象传媒's current fiscal year will run from April 1, 2018 through March 30, 2019 (鈥淔iscal 2019鈥�). For presentation purposes herein, all references to periods ended June 2018 and June 2017 relate to the 13-week fiscal period ended June 30, 2018 and the 13-week fiscal period ended July 1, 2017, respectively, and references to March 2018 relate to the balance sheet as of March 31, 2018.
听
(a) In the first quarter of fiscal 2019, the Company adopted ASU 2017-07, "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" and restated the prior period to conform to current year presentation. For the three months ended June 2017, operating income increased and other income (expense), net decreased by $1.6 million.
听
(b) Amounts have been calculated using unrounded numbers.
											听

	听	听				听	听				听	听
大象传媒 CORPORATION
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
													听
			June					March					June
			2018					2018					2017
ASSETS
Current assets
Cash and equivalents			$	467,917				$	680,762				$	672,045
Accounts receivable, net			1,428,535					1,408,587					1,143,573
Inventories			1,993,825					1,861,441					1,663,052
Other current assets			439,870		听			732,533		听			418,980
Total current assets			4,330,147					4,683,323					3,897,650
													听
Property, plant and equipment			1,018,164					1,011,617					903,024
Goodwill and intangible assets			4,000,438					3,813,329					3,213,690
Other assets			843,005		听			803,041		听			1,159,364
Total assets			$	10,191,754	听			$	10,311,310	听			$	9,173,728
														听
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Short-term borrowings			$	1,316,923				$	1,525,106				$	921,109
Current portion of long-term debt			6,189					6,265					253,783
Accounts payable			675,581					583,004					492,480
Accrued liabilities			1,001,602		听			1,024,454		听			763,771
Total current liabilities			3,000,295					3,138,829					2,431,143
													听
Long-term debt			2,156,627					2,212,555					2,111,623
Other liabilities			1,308,455		听			1,271,830		听			986,623
Total liabilities			6,465,377		听			6,623,214		听			5,529,389
Stockholders' equity			3,726,377		听			3,688,096		听			3,644,339
Total liabilities and stockholders' equity			$	10,191,754	听			$	10,311,310	听			$	9,173,728
														听

	听	听
大象传媒 CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
			听
			Three Months Ended June
			2018 (a)			听	听	2017 (a)
Operating activities
Net income			$	160,358				$	109,889
Depreciation and amortization			71,130					65,470
Other adjustments			45,656		听			30,257		听
Cash provided by operating activities			277,144					205,616
										听
Investing activities
Business acquisitions, net of cash received			(321,395		)			鈥�
Proceeds from sale of businesses, net of cash sold			288,273					208,215
Capital expenditures			(68,919		)			(37,355		)
Software purchases			(21,546		)			(13,074		)
Other, net			(5,643		)			(324		)
Cash (used) provided by investing activities			(129,230		)			157,462
										听
Financing activities
Net (decrease) increase from short-term borrowings, long-term debt and other			(215,940		)			631,635
Purchases of treasury stock			鈥�					(762,007		)
Cash dividends paid			(181,517		)			(164,893		)
Proceeds from issuance of Common Stock, net of shares withheld for taxes			53,500		听			11,430		听
Cash used by financing activities			(343,957		)			(283,835		)
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash			(19,998		)			(10,583		)
Net change in cash, cash equivalents and restricted cash			(216,041		)			68,660
Cash, cash equivalents and restricted cash - beginning of year			689,190		听			608,280		听
Cash, cash equivalents and restricted cash - end of period			$	473,149	听			$	676,940	听
										听
(a) The cash flows related to discontinued operations have not been segregated, and are included in the Condensed Consolidated Statements of Cash Flows.
听

	听								听			听			听
大象传媒 CORPORATION
Supplemental Financial Information
Reportable Segment Information
(Unaudited)
(In thousands)
																听
		Three Months Ended June											% Change Constant Currency (a)			% Change Organic (b)
		2018			听	2017 (a)				% Change				听
Segment revenues
Outdoor		$	568,600			$	536,250			6	%		3%			0	%
Active		1,136,937				909,290				25	%		22%			25	%
Work		442,602				206,857				114	%		114%			8	%
Jeans		603,767				587,903				3	%		2%			3	%
Other		36,240		听		28,320		听		28	%		28%			28	%
Total segment revenues		$	2,788,146	听		$	2,268,620	听		23	%		21%			12	%
Segment profit (loss)
Outdoor		$	(83,495	)		$	(62,018	)		(35	)%		(31)%
Active		269,197				184,628				46	%		42%
Work		55,244				34,159				62	%		62%
Jeans		87,049				81,258				7	%		5%
Other		2,160		听		(322		)		*			*
Total segment profit		330,155				237,705				39	%		36%
Corporate and other expenses		(119,939		)		(81,246		)		48	%		47%
Interest, net		(23,884		)		(20,607		)		16	%		16%
Income from continuing operations before income taxes		$	186,332	听		$	135,852	听		37	%		32%
																听
大象传媒's reportable segments reflect how the chief operating decision maker allocates resources and assesses performance and are comprised of the following primary brands:
听
Outdoor - Outdoor apparel, footwear and equipment
Primary brands: The North Face庐, Timberland庐 (excluding Timberland PRO庐), Smartwool庐, Icebreaker庐 and Altra庐
听
Active - Active apparel, footwear and accessories
Primary brands: Vans庐, Kipling庐, Napapijri庐, JanSport庐, Reef庐, Eastpak庐 and Eagle Creek庐
听
Work - Work and work-inspired lifestyle apparel and footwear and occupational apparel
Primary brands: Dickies庐, Bulwark庐, Red Kap庐, Timberland PRO庐, Wrangler庐 RIGGS, Walls庐, Terra庐, Kodiak庐 and Horace Small庐
听
Jeans - Denim and casual apparel
Primary brands: Wrangler庐 (excluding Wrangler庐 RIGGS), Lee庐 and Rock & Republic庐
听
Other - not considered a reportable segment
Sales of non-大象传媒 products at 大象传媒 Outlet庐 stores and results from transition services related to the sale of Nautica庐
听
The business segment information provided above reflects the changes in the Company's operating structure for all periods presented. These changes had no impact on 大象传媒's consolidated results of operations.
听
(a) Refer to constant currency definition on the following pages.
听
(b) Excludes the operating results of Williamson-Dickie, Icebreaker庐 and Altra庐. Refer to Non-GAAP financial information on "Reconciliation of Select GAAP to Non-GAAP Measures" page for additional information.
听
* Calculation not meaningful
听

	听	听
大象传媒 CORPORATION
Supplemental Financial Information
Reportable Segment Information 鈥� Constant Currency Basis
(Unaudited)
(In thousands)
			听
			Three Months Ended June 2018
			As Reported			听	听	Adjust for Foreign			听	听
			under GAAP					Currency Exchange					Constant Currency
Segment revenues
Outdoor			$	568,600				$	(15,843	)			$	552,757
Active			1,136,937					(26,862		)			1,110,075
Work			442,602					(509		)			442,093
Jeans			603,767					(2,436		)			601,331
Other			36,240		听			鈥�		听			36,240		听
Total segment revenues			$	2,788,146	听			$	(45,650	)			$	2,742,496	听
Segment profit (loss)
Outdoor			$	(83,495	)			$	1,993				$	(81,502	)
Active			269,197					(7,338		)			261,859
Work			55,244					6					55,250
Jeans			87,049					(1,943		)			85,106
Other			2,160		听			鈥�		听			2,160		听
Total segment profit			330,155					(7,282		)			322,873
Corporate and other expenses			(119,939		)			383					(119,556		)
Interest, net			(23,884		)			鈥�		听			(23,884		)
Income from continuing operations before income taxes			$	186,332	听			$	(6,899	)			$	179,433	听
Diluted earnings per share growth			50		%			(5		)%			45		%
															听
Constant Currency Financial Information
听
大象传媒 is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by 大象传媒 from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.
听
To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).
听
These constant currency performance measures should be viewed in addition to, and not in lieu of or superior to, our operating performance measures calculated in accordance with GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.
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	听				听				听				听				听				听
大象传媒 CORPORATION
Supplemental Financial Information
Reconciliation of Select GAAP Measures to Non-GAAP Measures
(Unaudited)
(In thousands, except per share amounts)
																						听
Three Months Ended June 2018		As Reported under GAAP				Transaction and Deal Related Costs (a)				Impact of Tax Act (b)				Adjusted				Contribution from Acquisitions (c)				Adjusted Organic
Revenues		$	2,788,146			$	鈥�			$	鈥�			$	2,788,146			$	(248,822	)		$	2,539,324
																						听
Gross profit		1,403,169				4,323				鈥�				1,407,492				(105,423		)		1,302,069
Percent		50.3		%										50.5		%		42.4		%		51.3		%
																						听
Operating income		230,882				19,155				鈥�				250,037				(20,164		)		229,873
Percent		8.3		%										9.0		%		8.1		%		9.1		%
																						听
Diluted earnings per share from continuing operations (d)		0.40				0.04				(0.01		)		0.43				(0.04		)		0.39
																						听
(a) Transaction and deal related costs for the three months ended June 2018 include acquisition and integration costs related to the acquisitions of Williamson-Dickie and the Icebreaker庐 and Altra庐 brands. The transaction and deal related costs resulted in a net tax benefit of $3.5 million. The diluted earnings per share impact was calculated using 399,548,000 shares.
听
(b) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (鈥淭ax Act鈥�). Measurement period adjustments related to the provisional net charge were recorded during the three months ended June 30, 2018, resulting in a tax benefit of $2.9 million. The diluted earnings per share impact was calculated using 399,548,000 shares.
听
(c) The contribution from acquisitions represents the operating results of Williamson-Dickie for the three months ended June 2018, the operating results of Icebreaker庐 beginning on the acquisition date of April 3, 2018 and the operating results of Altra庐 beginning on the acquisition date of June 1, 2018. The operating results of all acquisitions exclude transaction and deal related costs. The contribution from acquisitions resulted in tax expense of $3.2 million and the diluted earnings per share impact was calculated using 399,548,000 shares.
听
(d) Amounts shown in the table have been calculated using unrounded numbers.
听
Non-GAAP Financial Information
听
The financial information above has been presented on a GAAP basis, on an adjusted basis, which excludes the impact of transaction and deal related costs and the provisional impact of tax reform, and on an adjusted organic basis, which excludes the operating results of Williamson-Dickie, Icebreaker庐 and Altra庐. Contributions from acquisitions also exclude transaction and deal related costs. These adjusted presentations are non-GAAP measures. Management believes these measures provide investors with useful supplemental information regarding 大象传媒's underlying business trends and the performance of 大象传媒's ongoing operations and are useful for period-over-period comparisons of such operations.
听
Management uses the above financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, 大象传媒's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies.
听

	听	听	听	听	听
大象传媒 CORPORATION
Supplemental Financial Information
Top 5 Brand Revenue Information
(Unaudited)
						听
						Three Months Ended June 2018
Top 5 Brand Revenue Growth						Americas	听	听	听	听	听	EMEA	听	听	听	听	听	APAC	听	听	听	听	听	Global
Vans庐
听听听% change						36%						33%						34%						35%
听听听% change constant currency*						36%						23%						27%						32%
The North Face庐
听听听% change						0%						21%						32%						8%
听听听% change constant currency*						0%						12%						26%						5%
Timberland庐
听听听% change						6%						5%						(11)%						2%
听听听% change constant currency*						6%						(1)%						(14)%						(1)%
Wrangler庐
听听听% change						5%						5%						(5)%						4%
听听听% change constant currency*						6%						(1)%						(3)%						5%
Lee庐
听听听% change						(4)%						7%						13%						1%
听听听% change constant currency*						(3)%						1%						7%						(1)%
																								听
*Refer to constant currency definition on previous pages.
听

	听
大象传媒 CORPORATION
Supplemental Financial Information
Geographic and Channel Revenue Information
(Unaudited)
		听
		Three Months Ended June 2018
		% Change	听	% Change Constant Currency*	听	% Change Organic (a)
Geographic Revenue Growth
U.S.		20%		20%		11%
EMEA		32%		24%		18%
APAC		24%		18%		14%
China		45%		35%		31%
Americas (non-U.S.)		21%		23%		5%
International		27%		22%		14%
						听
		Three Months Ended June 2018
		% Change		% Change Constant Currency*		% Change Organic (a)
Channel Revenue Growth
Wholesale		23%		21%		10%
Direct-to-consumer		22%		20%		16%
Digital		54%		50%		33%
						听
		As of June
听		2018 (b)		2017
DTC Store Count
Total		1,513		1,432
						听
*Refer to constant currency definition on previous pages.
听
(a) Excludes the operating results of Williamson-Dickie, Icebreaker庐 and Altra庐. Refer to Non-GAAP financial information on "Reconciliation of Select GAAP to Non-GAAP Measures" page for additional information.
听
(b) The June 2018 DTC store count includes 97 Williamson-Dickie, Icebreaker庐 and Altra庐 stores.
听

	听				听				听				听				听
大象传媒 CORPORATION
Supplemental Financial Information
Revised Reportable Segment Information - Trailing Twelve Months Ended March 31, 2018
(Unaudited)
(In thousands)
																		听
		Three Months Ended July 1, 2017				Three Months Ended September 30, 2017				Three Months Ended December 30, 2017				Three Months Ended March 31, 2018				Trailing Twelve Months Ended March 31, 2018
Segment revenues
Outdoor		$	536,250			$	1,381,002			$	1,456,654			$	888,039			$	4,261,945
Active		909,290				1,089,616				983,983				1,071,598				4,054,487
Work		206,857				210,062				482,827				442,258				1,342,004
Jeans		587,903				682,884				692,506				623,266				2,586,559
Other		28,320		听		29,370		听		33,313		听		20,285		听		111,288		听
Total segment revenues		$	2,268,620	听		$	3,392,934	听		$	3,649,283	听		$	3,045,446	听		$	12,356,283	听
Segment profit (loss)
Outdoor		$	(62,018	)		$	250,596			$	275,509			$	44,673			$	508,760
Active		184,628				273,092				198,872				237,620				894,212
Work		34,159				34,260				57,509				40,024				165,952
Jeans		81,258				117,563				93,196				103,805				395,822
Other		(322		)		(782		)		209		听		(3,074		)		(3,969		)
Total segment profit		$	237,705	听		$	674,729	听		$	625,295	听		$	423,048	听		$	1,960,777	听
																		听
The information provided above reflects changes in 大象传媒's reportable segment information for all periods presented - see segment discussion at "Supplemental Financial Information - Reportable Segment Information" for additional detail.
听
Non-GAAP Financial Information
听
In connection with the change in fiscal year end to the Saturday closest to March 31 from the Saturday closest to December 31, 大象传媒's current fiscal year will run from April 1, 2018 through March 30, 2019 (鈥淔iscal 2019鈥�).
听
The financial metrics provided for the trailing twelve months ended March 31, 2018 are a non-GAAP measure and have been presented in order to provide a comparison that aligns with 大象传媒's new fiscal year end. Management believes these measures provide investors with useful supplemental information regarding 大象传媒's underlying business trends and the performance of 大象传媒's ongoing operations and are useful for period-over-period comparisons of such operations.
听
Management uses the above financial measures internally in its budgeting and review process. While management believes that these non-GAAP financial measures are useful in evaluating the business, this information should be considered as supplemental in nature and should be viewed in addition to, and not in lieu of or superior to, 大象传媒's operating performance measures calculated in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures presented by other companies.

View source version on businesswire.com:

大象传媒 Corporation
Joe Alkire, 336-424-7711
Vice President, Corporate Development, Investor Relations and
Financial Planning & Analysis
or
Craig Hodges, 336-424-5636
Senior Director, Corporate Communications

Source: 大象传媒 Corporation