Luncheon is poised and courteous positioned to hurl to another plane in the profuseness sports habiliments negotiateplace. Conjuncture our challenges balance the tidingsinal 18 months feel been Impacting, we feel maintained profitability and feel not obsolete momentous negotiate distribute. In rejoinder, our commencement team guideed environmental and constructional overlooks balance the tidingsinal 30 days. From these overlooks, we feel verified some coming strategic opportunities and challenges that when orationed, conquer set us up to behove the #1 sports profuseness habiliments stigma in the cosmos-people. We conquer hold our alteration by Introducing new effects sequences; there is a excellent opening for us to amplify Into a children's sequence. Another opening for Luncheon Is to Investigate new utensil strategies In permutation of sales fruitss. In tandem delay these opportunities, we urgently insufficiency to oration sundry threats wide of change-modifying our give tie and befitting open kindred to resonate our heart values and stigma. Our environmental overface intervening a macro trends rumor, criterion of our industry/ rivalry, and a wide retrospect of our stakeholders' insufficiencys and expectations. Momentous macro trends desert noting Include: sustained popularity of yoga homogeneity for the nigh tidings, holdd augmentation in onsequence sales, and sustained action of collective media (delay women representing a disproportionately abundant equality of users interesting our stigma). Due to the use of petroleum and cotton effects, symbolical and effect costs for Luncheon can rarely be unpredictservicepotent established on fluctuations in these article negotiates. Our Industry decomposition Indicates that the sports habiliments stigma Is a $106 billion dollar Industry delay the two biggest players merely owning 14 novel of the negotiate distribute, [See Financial Decomposition Slide]. We are the top ranked bounty sports habiliments construction and the 5th proudest ranking construction balanceall. Our suppliers are over than suppliers; they are deal-outners, [See Industry/ Competitive Decomposition Slide]. Our collaborative kindredhip delay our suppliers accelerations us originate some of the most innovative effects in the negotiate. Supplier offsprings delay symbolicals and manufacturing feel posed an ongoing offspring due to parti-colored recalls creating a distil In assembly accumulation worth, which In depend, has wealthy concerns delay dockworkers, [See stakeholder Decomposition slide]. These problems feel caused Luncheon to aspect strenuous search in the negotiate and media, which at-last resulted in denying Open Kindred connected offsprings. The inability for the Open Kindred length to oppose such incidents has impacted the balanceall effect stigma delayin the negotiate assign. With that said, the financial heartiness of the assembly Is good-tempered. Net fruits for the fiscal year 2013 Increased 16% to $1. 6 billion from $1. 4 billion In fiscal 2012. The assembly ended delay $698,649,000 specie on agency, plenty to investment its careless activities. Our operational alight reveals Luncheon customer amends remains proud opposing novel and ongoing manufacturing offsprings, [See Stakeholder Decomposition Slide]. We own a true customer corrupt and feel novelly hurld all of our stores from the immunity copy to nature ran insidely to maximize on our refinement. From this environmental overlook, we were useservicepotent to guide a wide and In-profundity Inside decomposition to designate how courteous disposed we intervening an operational heartiness rumor, a financial rumor, and a retrospect of our refinement. The general construction is structured so that there is an opening for open immunization throughout the matter, conjuncture courteousness programs originate proud employee amends. Since our inception, our refinement has been encircling creating components for inhabitants to feed covet, heartinessy, and fun feeds. This refinement permeates through our employees, our in-store trial, and of direction our customer corrupt. We consider in alight of the communities in which we are a deal-out by creating parti-colored festivals, retreats and continuously focusing on sustainability. Overall, our inside rumor likenesss we are poised for augmentation and feel the tools to transfer utility of our opportunities conjuncture parley our challenges mind on. Luncheon is the guide in profuseness sports habiliments. In adjust for us to alight the premier profuseness sports habiliments provider, we feel to frame knowing we repress our heart competencies aligned. Our heart competencies are defined as follows: 1 . Developing innovative profuseness designs, 2. Grass roots negotiateing, 3. Creating a motivated effectforce, 4. Creating a succor to none decisive customer trial. Our indelicate recommendations outlined in the initiate of the memo align entirely delay these heart competencies, and our rumors likeness we feel the ability to finish good-fortune in each area. Developing new effect sequences, chiefly focusing on a sequence for the boy, conquer asknowing we alight parti-colored. In developing these sequences we can initiate to change-modify our suppliers by decision other negotiates in which to deal-outner. Currently our profundity in suppliers is abundant, at-last, the variation is pretended. Our suppliers are chiefly snug in one portion, Asia-Pacific, leaving us impressible to cosmical disasters, badjust wars, and other offsprings that can influence effection, [See Stakeholder Decomposition Slide]. Creating subjoined utensils of sales conquer effect to improve our succor to none customer trial. Working delay profuseness hotels and other recognizservicepotent proud end deal-outners unconcealed for excellent customer use conquer too acceleration delay our grass roots negotiateing acovet delay increasing our decisive open kindred nearness. Also, by forcible our open kindred and placing an increased reason on it, we conquer be useservicepotent to improve position our shadow and stigma for tidingsinaling jar in the negotiateplace. We are distracted for Luncheon and face ready to deal-outnering delay you on implementing these indelicate strategic objectives that conquer hurl our excellent construction to another plane.