Second Quarter Business Update

KEY POINTS

• Significant EBIT growth – The Company expects FY21H1 Group EBIT1 of $56m to $60m, with comparable EBIT2 for the half of $41m to $45m (FY20H1: $31.6m), representing 30% - 40% EBIT growth.

• Solid growth in same store sales in all markets and channels – Same store sales were up 6.3% for the half and up 5.6% for the quarter against prior year, with an outstanding performance in Australia.

• Sustained margin improvement – Margin growth in all markets and channels of 150 to 250 bps for the half against prior year, underpinned by the strategic initiatives implemented over the last eighteen months

. • Growth maintained in digital sales – For the half, online sales were up 102%, with digital initiatives continuing to deliver increased sales and margin across all markets. Digital channels now represent 5.8% of total sales (FY20H1: 2.8%).

• Continued growth of branded collections – Branded collections represented 38.4% of total product sales for the half (FY20H1: 35.4%).

• Strong balance sheet and ongoing disciplined cost focus – Diligent management of all expenditure, working capital, inventory levels and a sustained, deliberate focus on CODB delivered a significant cash position at half year end.

• Canadian segment impacted by temporary store closures – In accordance with COVID-19 government directives, 21 stores progressively closed through November and December, and a further 25 stores closed from Boxing Day.

• Store portfolio management – No stores permanently closed or opened in the quarter, with a network total of 289 stores across all markets at the end of the half (FY20H1: 304).

*Also to pay outstanding div on 29/1/21 for shares held RD 13/1/20