Gokaldas Exports Ltd Management Discussions

Management Discussion And Analysis Report

Global Economy Overview

The global economy recorded an estimated growth of 3.4% in 2025, outperforming earlier expectations as trade disruptions proved less severe than feared and domestic demand across major economies held relatively firm. This resilience was interrupted by the outbreak of conflict in the Middle East in late February 2026, which arrived as the global economy was still absorbing the realignment of United States trade policy that had shaped much of 2025. The conflict has lifted commodity and energy prices, firmed inflation expectations and tightened financial conditions, with oil, having averaged about US$67.74 per barrel in 2025, now expected to rise to over US$82 per barrel in 2026 as regional supply and transport disruptions take hold.

Assuming the conflict remains limited in scope and duration, the International Monetary Fund projects global growth to slow to 3.1% in 2026 before recovering modestly to 3.2% in 2027, well below pre-pandemic averages. Advanced economies are expected to expand by 1.8% in 2026, supported by firm activity in the United States and a gradual recovery in the euro area, while emerging market and developing economies are projected to grow 3.9%, with commodity importers facing the sharpest pressure from higher energy and food prices. Global headline inflation, having eased to about 4.1% in 2025, is expected to rise to 4.4% in 2026 before declining the following year. Risks remain firmly to the downside, with growth slowing to around 2.5% should the disruption prove prolonged. For economies anchored by strong domestic demand and active policy support, these headwinds, while real, remain manageable.

Source: IMF, World Economic Outlook, April 2026.

Global Apparel Industry Overview

The global apparel industry remained a central component of world trade in 2025, navigating a complex landscape of shifting supply chains, an evolving tariff regime and gradually recovering discretionary demand. Global apparel exports grew from US$470 billion in 2014 to US$546 billion in 2025, a CAGR of about 1.4%, while apparel imports rose from US$408 billion to US$488 billion over the same period. Apparel accounts for roughly 60% of the broader global textile and apparel trade, estimated at about US$900 billion in 2025. After a volatile and broadly flat phase over 2021 to 2025, demand began to stabilise from 2025, supported by the completion of retailer inventory corrections, easing inflation and a more settled tariff environment.

The United States and Europe remain the largest consumption markets. After two to three years of elevated stock, inventories at major United States apparel retailers have corrected to near pre-pandemic levels, and with inventory- to-sales ratios stabilising, retailers have begun normalising their ordering cycles. This is translating into steadier order flows and improved capacity utilisation for sourcing nations. At the same time, sourcing continues to diversify away from China towards alternative hubs, with India increasingly positioned to participate, subject to the realisation of recent and upcoming trade agreements. India held roughly 3% of global apparel exports in 2025, with apparel exports of about US$16 billion, underscoring both the scale of the opportunity and the work required to capture it.

Global Textile and Apparel Trade Trends

Global textile and apparel trade has grown steadily but unevenly, with the structure of sourcing shifting markedly over the past decade. China remains the largest exporter, with about a 32% share of total textile and apparel trade and roughly 27% of global apparel exports in CY25, though its apparel export share has declined from about 37% in 2014 as rising labour costs, regulatory pressures including restrictions on Xinjiang cotton, and the China-plus-one sourcing strategy have prompted brands to diversify. Bangladesh and Vietnam have been the principal beneficiaries, lifting their apparel export shares to about 10% and 8% respectively, supported by competitive labour costs, duty access and foreign investment. India has held at about 3%, constrained historically by scale, limited trade agreements, higher logistics costs and a cotton-heavy product mix relative to the global shift towards man-made fibres.

The diversification is most visible in the major import markets. In the United States, Chinas share of apparel imports has fallen sharply from about 37% in 2014 to roughly 15% in 2025, with Vietnam (about 21%) and Bangladesh (about 10%) gaining the most and India improving to about 5%. In the EU-27, Chinas share has eased from about 39% to 30%, with Bangladesh rising to about 22%. In the United Kingdom, the apparel import market has contracted following Brexit, with sourcing consolidating towards low-cost suppliers led by Bangladesh, while India holds about 6%.

This realignment is structural rather than cyclical. Sourcing decisions are increasingly driven by cost efficiency, trade access, compliance and speed to market rather than scale alone, and the market is becoming more fragmented and competitive. Near-shoring hubs such as Poland, the Netherlands and Morocco are gaining relevance for European demand, while South Asian and African suppliers compete on cost. For India, the combination of an improving tariff position and new trade agreements creates a meaningful, if gradual, opportunity to gain share.

Looking beyond 2025, the global apparel market size, valued at about US$1.9 trillion in 2025, is projected to grow at about 4% CAGR through 2030 to roughly US$2.3 trillion. Recovery is expected to be supported by normalised retailer inventories, easing inflation and a more settled tariff environment, alongside the continued diversification of sourcing towards competitive hubs.

Key Trends Shaping the Global Apparel Industry

Supply chain diversification and the China-plus-one shift

The realignment of global sourcing away from China remains the defining theme. Rising labour and compliance costs in China, restrictions on Xinjiang cotton in the United States and the European Union, and the broad adoption of a China-plus-one strategy by global brands are redistributing volumes towards alternative hubs across South Asia, South-East Asia and parts of Africa. Brands are also consolidating towards large-scale, compliant suppliers with streamlined audit processes, which favours established exporters in countries with integrated value chains.

Capacity expansion, automation and digitalisation

Producers across the value chain are investing in automation, backward integration and digital tools to improve efficiency, quality and responsiveness. Digitalisation supports better demand forecasting, shorter lead times and tighter supply chain management, helping manufacturers navigate tariff and demand volatility while protecting margins.

Sustainability and ESG compliance

Consumer and regulatory demand for sustainability continues to influence sourcing decisions, particularly in the European Union and the United States. Brands are prioritising decarbonisation, resource efficiency, traceability and circularity, and green compliance is becoming a competitive differentiator alongside cost and speed. Suppliers that can evidence credible environmental and social practices, and that invest in sustainable processes and workforce development, are increasingly preferred.

Improving tariff landscape and trade agreements

The tariff environment has converged towards a more level playing field. United States tariffs on Indian apparel, which rose as high as 50% in mid-2025, were subsequently reduced to about 10% through 2025 under new Section 301, which is in line with Bangladesh, Cambodia, Indonesia, Jordan, Malaysia, Pakistan and Sri Lanka. However, China and Vietnam both face a 12.5% tariff rate for the United States. In parallel, India has expanded its trade agreement network: the India-UK Free Trade Agreement was implemented in July 2025, providing duty-free access for the large majority of Indian exports, and the India-EU Free Trade Agreement was recently concluded but is yet to be ratified. These agreements address a long-standing tariff disadvantage of roughly 9% to 12% versus duty-free competitors in two of the worlds largest apparel import markets

Man-made fibres and premiumisation

Demand is shifting towards man-made fibres and higher-value, premium product. Manmade fibres now account for nearly 70% of global fibre consumption and roughly 41% of the apparel fibre mix, broadly level with cotton, reflecting affordability, durability and changing consumer preferences. This shift, alongside premiumisation in developed markets, is steering investment towards synthetic and blended categories and value-added segments.

Indian Economic Overview

India remained the fastest-growing major economy in FY26, with real GDP estimated to have grown 7.7% according to the provisional estimates of the National Statistical Office, up from 7.1% the previous year.

Growth was broad-based: manufacturing accelerated to around 10.7%, services stayed resilient, and both private consumption and fixed investment strengthened, while agriculture grew at a steadier pace. This was a notable result given a challenging external environment in which steep United States tariffs weighed on exports for much of the year. Domestic activity was supported by a goods and services tax overhaul, reductions in personal income tax, easing inflation and steady rural demand.

Monetary conditions turned supportive through the year. With headline retail inflation easing to around 3.5% by April 2025, the Reserve Bank of India reduced the policy repo rate to 5.25%, a cumulative cut of 100 basis points from early 2025, before pausing in June 2025 to hold a neutral stance amid fresh global uncertainty. For FY27, the Reserve Bank of India projects growth to moderate to 5.5% and inflation to rise to 5.1%, citing the conflict in West Asia, higher energy prices, supply-chain disruption and the risk of a below-normal monsoon. Supported by a stable macroeconomic framework, continued public capital expenditure, a widening set of free trade agreements and resilient domestic demand, India is expected to retain its place among the worlds fastest-growing large economies over the medium term, even as global headwinds persist.

Sources: NSO, Ministry of Statistics and Programme Implementation, Provisional Estimates, May 2026; Reserve Bank of India, Monetary Policy Statement, June 2026.

Indian Apparel Industry Overview

The Indian textile and apparel industry remained a key pillar of the economy in FY25, valued at about US$194 billion and contributing roughly 2.3% to GDP, 13% to industrial output and 12% to total exports, while employing nearly 45 million people. The domestic market accounts for about 80% (US$157 billion) and exports for about 20% (US$37 billion). Within total exports, apparel is the largest segment at about 43% (US$15 billion), followed by other textile products and home textiles. India exports to more than 100 countries, with the United States, the European Union and the United Kingdom as the top three destinations.

SEGMENT

(US$ bn)

Indias competitive edge stems from a large and skilled workforce, an integrated value chain spanning cotton to garment, and a domestic cotton base that supports raw material security. Readymade garments are the largest export category at about 44% of textile and apparel exports, with cotton-based products dominant overall, reflecting Indias traditional cotton strength, even as the global mix shifts towards man-made fibres, an area where India retains significant headroom to grow. In FY26, Indias apparel exports were broadly flat, declining about 1.4%, as elevated United States tariffs disrupted order flows for much of the year before normalising, in contrast to the double-digit growth recorded in FY25. The structural opportunity, however, remains intact.

Indian textile and apparel market structure, FY26.

Source: Crisil MlftA and Wazir Advisors.

Trade policy remains a meaningful structural catalyst for the sector. India has expanded its network of free trade agreements, including with the United Kingdom and the European Union, which together help address a long-standing tariff disadvantage of roughly 9% to 12% versus duty-free competitors in two of the worlds largest apparel import markets. Alongside a more balanced tariff position in the United States, these agreements improve Indias competitiveness and are expected to support export growth over the medium term. The Government of India has reinforced this with continued policy support, including a higher budget allocation to the Ministry of Textiles in FY26 and schemes such as PM MITRA, the Production Linked Incentive scheme and ATUFS, aimed at building scale, modernising capacity and strengthening the value chain.

Looking ahead, the Government of India has set a target to scale the textile and apparel market to about US$350 billion by 2030 from about US$194 billion in FY26. The exports and domestic market are projected to expand to US$ 100 billion and US$ 250 billion respectively by 2030. These targets frame the scale of the structural opportunity, even as their realisation will depend on execution, investment and the trade environment.

Realising this opportunity requires the industry to address structural constraints, notably a fragmented manufacturing base, the need for larger and more automated factories, and a product mix weighted towards cotton relative to global demand. Near-term headwinds include United States tariff uncertainty and a gradual ramp in the European Union given its fragmented retail structure.

Even so, the combination of an improving tariff position, supplier consolidation towards large and compliant exporters, the China-plus-one shift, and continued investment in scale, automation and sustainability positions India to capture a larger share of global apparel sourcing over the medium term. Large, vertically capable exporters with established brand relationships are best placed to benefit from this realignment.

Source: Wazir Advisors; Government of India, Ministry of Textiles and Tradestat; free trade agreement status per UK Government, European Commission and India Ministry of Commerce (2026).

Company Overview

Established in 1979, Gokaldas Exports Limited is among Indias largest manufacturers and exporters of apparel, with more than four decades of experience designing and producing garments for many of the worlds leading fashion brands and retailers. The Company serves customers in over 50 countries and operates an integrated value chain spanning design, product development, fabric processing, garmenting and finishing, supported by in-house capabilities in printing, embroidery, laundry and polyfill manufacture Its manufacturing footprint comprises more than 30 facilities equipped with over 30,000 machines and an annual production capacity of around 92 million pieces, with production located in India, Kenya and Ethiopia and marketing and product development functions across India, the UAE and the United States. A workforce of more than 54,000, around three-quarters of them women, underpins the Companys emphasis on quality, nnovation, inclusivity and sustainability. This combination of scale, breadth of capability and global delivery reach establishes the Company as a preferred sourcing partner for complex, value-added apparel.

Product Overview

The Company continued to reshape its portfolio towards higher-value categories during the year, lifting the share of outerwear and sportswear as customers looked to expand sourcing in these segments.

The shift shows up both in the category mix and in the rising contribution of higher-priced products.

PRODUCT CATEGORY

	FY 2026	FY 2025
Men	48%	38%
Women	37%	52%
Kids	14%	9%
Others	1%	1%
Total	100%	100%
Jackets	30%	22%
Pants	28%	32%
Tops/Shirts	40%	45%
Others	2%	1%
Total	100%	100%

Financial Performance

The consolidated financial statements have been drawn up in accordance with the Companies Act, 2013, and the Indian Accounting Standards (Ind AS) notified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments, together with other accounting principles generally accepted in India.

Revenues

Total income for FY26 rose to Rs.4,065.0 crore from Rs.3,917.2 crore a year earlier, while revenue from operations grew 3.2% to Rs.3,987.6 crore and other income contributed Rs.77.3 crore, up 46%. The India business was the principal driver, expanding 10% year-on-year even as overall Indian apparel exports contracted by 1.4%, a result achieved against a difficult external backdrop marked by elevated United States duties for much of the year. The Africa business declined 19% over the year, held back through the second and third quarters by uncertainty over the renewal of the African

Growth and Opportunity Act; once that uncertainty cleared, it returned to healthy growth in the closing quarter. By region, India accounted for Rs.3,373.0 crore of total income and Africa Rs.692.0 crore. Much of the first- half FY27 order book was secured during the year, and a temporary reset of pricing on United States shipments, since restored, helped preserve customer relationships through the disruption

Expenses

Total expenses, excluding finance costs and depreciation, were Rs.3,631.3 crore in FY26 against Rs.3,493.3 crore in FY25. Material consumption as a proportion of revenue from operations was 48% against 50.0% in the previous year, and employee benefit expenses were Rs.1,329.0 crore against Rs.1,226.5 crore.

The consolidated EBITDA of the Company was Rs.433.7 crore in FY26 against Rs.423.9 crore in FY25, with the margin broadly steady at 10.7% against 10.8%, a contraction of 15 basis points. The year carried an estimated one-time cost of around Rs.97 crore arising from United States trade measures, compared with about Rs.22 crore of one-off costs in the prior year; excluding this, EBITDA was Rs.530.4 crore against Rs.446.2 crore and the margin improved to 13.0% from 11.4%.

By geography, the India operations recorded an EBITDA margin of 12.4% and the Africa operations 2.3%, the latter reflecting operating de-leverage during the AGOA-related disruption in the middle of the year and the start-up costs of new initiatives. On a consolidated basis, the Company reported profit before tax of Rs.171.6 crore against Rs.218.1 crore and profit after tax of Rs.100.1 crore against Rs.158.5 crore, lower by 21.3% and 36.8% respectively.

Sources of funds

The net worth of the Company increased by 3.8% to Rs.2,160.4 crore as on 31 March 2026 from Rs.2,080.7 crore as on 31 March 2025, the increase arising from profits retained during the year, the prior year having additionally included a Rs.600 crore qualified institutional placement. Net debt rose to Rs.552.6 crore as on 31 March 2026 from Rs.158.2 crore a year earlier, driven primarily by capital expenditure for incremental capacity, additional investment in the BTPL and higher working capital accompanying volume growth; total borrowings stood at Rs.977.6 crore against Rs.643.3 crore. Of the net debt, Rs.87.6 crore was attributable to the India operations and Rs.465.0 crore to the Africa operations. Finance costs increased by 22.9% to Rs.95.2 crore in FY26 from 177A crore in FY25, reflecting higher average borrowings during the year. The interest cover of the Company was 2.80x against 3.82x in FY25.

Applications of funds

Investment in fixed assets increased to Rs.774.3 crore as on 31 March 2026 from Rs.636.6 crore as on 31 March 2025. During the year, the Company deployed Rs.228 crore of capital expenditure, comprising Rs.58 crore towards modernisation and upgradation of existing machinery and Rs.170 crore towards additional capacity and new projects, against Rs.191 crore in the previous year, and invested a further Rs.122 crore in BTPL through a combination of debentures and equity. These investments are expected to support revenue growth and operational productivity in future periods. Depreciation and amortisation increased to Rs.166.9 crore in FY26 from T128.4 crore in FY25, in line with the larger asset base. Capital employed increased by 22.1% to Rs.2,787.8 crore as on 31 March 2026 from Rs.2,283.6 crore a year earlier, and return on capital employed was 12% in FY26 against 14% in FY25, reflecting capital work in progress and the BTPL investment that is yet to yield returns.

Working capital management

Inventories, including raw materials, work in progress and finished goods, increased by 28.2% to Rs.874.5 crore as on 31 March 2026 from Rs.681.9 crore as on 31 March 2025. Trade receivables increased by 40.2% to Rs.601.1 crore from Rs.428.8 crore, and trade payables rose by 46.4% to Rs.348.8 crore from Rs.238.3 crore. Net current assets increased by Rs.208.2 crore to Rs.992.8 crore from Rs.784.6 crore, reflecting higher activity and the build-up of inventory and receivables through the tariff-affected middle of the year. Net working capital, measured in days, lengthened to 75 days in FY26 from 60 days in FY25.

The current and quick ratios for FY26 were 1.50 and 0.92 respectively, against 1.89 and 1.19 in FY25.

Key Ratios

1 Particulars	FY26	FY25 1
Debtor turnover ratio	7.09	9.16
Inventory turnover ratio	4..69	5.57
Interest coverage ratio	2.80	3.82
Current ratio	1.50	1.89
Net debt / equity ratio	0.26	0.08
EBIT to total income	6.6%	7.5%
Net profit margin	2.5%	4.0%
Return on net worth	4.7%	9.4%

Outlook

In FY26, the Company delivered a resilient performance despite a challenging external environment, growing consolidated total income by about 4% to Rs.4,065 crore while broadly maintaining its EBITDA margin at 10.7%, even as elevated United States tariffs and volatile geopolitical events weighed on costs and pricing for much of the year. The India business grew about 2%, and the Africa business recovered strongly in the fourth quarter, reporting 17% growth following the renewal of the African Growth and Opportunity Act. Exceptional teamwork, strong customer relationships and disciplined execution helped the Company absorb the tariff impact through productivity gains and cost management. With United States tariffs having moved to more comparable levels across sourcing nations and a strong order book extending into the first half of FY27, the Company expects revenue momentum to improve, aided by the restoration of pricing to customers, and anticipates a year-on-year improvement in margins in FY27 as the disruptions of FY26 recede.

Growth is expected to be supported by incremental capacity and ongoing strategic initiatives. New manufacturing capacity in India, including the Karnataka and Bhopal units, is being ramped towards full utilisation through FY27 and is expected to add meaningfully to the top line at steady state, while expanded capacity in Africa is expected to drive growth and margin improvement over the year. The Company continues to scale its fabric operations through BTPL, whose merger into Gokaldas Exports has been initiated subject to regulatory approval, strengthening backward integration. Alongside this, the Company is enhancing its product mix towards higher- value categories such as outerwear and sportswear, and continuing to diversify across customers and geographies. Management views the activation of the free trade agreements with the United Kingdom and the European Union, together with the broader China-plus-one shift, as further enhancing the opportunity for sourcing from India.

The Company remains mindful of near-term challenges, including the possibility of United States tariffs being restored to higher levels, war-induced inflation in inputs such as cotton, man-made fibres, packaging and freight, and the potential impact of higher prices on consumer sentiment. It intends to exercise judicious control over capital expenditure in line with market conditions. Even so, with its expanded capabilities, diversified geographic and customer base, integrated value chain and continued focus on operational excellence, innovation and sustainability, the Company is confident in its ability to navigate external shocks in the near term and, over the longer term, to leverage macroeconomic trends that favour sourcing from India and other low-cost regions to emerge as a strong global apparel manufacturer.

Risk Management

Operating across multiple geographies and end-markets, Gokaldas Exports treats disciplined risk management as integral to protecting margins and sustaining long-term value. The Company maintains a structured framework to identify, assess and mitigate the principal risks bearing on its business; the key exposures and the responses of the Company are set out below.

TRADE POLICY AND TARIFFS

Description

Changes in import duties and trade policy in major markets, particularly the United States, can erode price competitiveness and disrupt order flows, as the penal duty regime showed during the year.

Mitigation measures

Broaden the customer and geographic base, including duty-advantaged production in Africa; compete on value-added, differentiated product rather than price; pursue the benefits of free trade agreements.

CURRENCY VOLATILITY

Description

A large share of revenue is earned in United States dollars and euros, while part of the raw material is imported, leaving earnings exposed to exchange- rate movements.

Mitigation measures

Run active hedging programmes; spread exposure across currencies; monitor global monetary and macroeconomic developments.

REGULATORY LANDSCAPE

Description

Revisions to incentives and policy, such as RoSCTL, EPCG and duty drawback, can affect realised profitability.

Mitigation measures

Engage constructively with policymakers; diversify markets to limit reliance on any single scheme; raise operating efficiency to absorb policy shifts.

GEOPOLITICAL AND INPUT COST

Description

Geopolitical conflict and commodity-price swings raise the cost of fibres, fuel, packaging, trims and freight, and can soften end-consumer demand through inflation.

Mitigation measures

Strengthen supplier partnerships and alternative sourcing; pass through costs selectively; invest in productivity and automation to defend margins.

CUSTOMER CONCENTRATION

Description

A meaningful portion of revenue rests with a limited set of marquee accounts.

Mitigation measures

Add and grow customers across regions and categories; deepen account relationships; sustain quality and delivery to retain anchor clients.

SUPPLY CHAIN DISRUPTION

Description

Delays in fabric and trim availability can disrupt production schedules and delivery commitments.

Mitigation measures

Build a resilient, multi-source supplier network; deploy advanced inventory planning; develop backward integration and nearer-shore options to shorten lead times.

FASHION-TREND AGILITY

Description

Fast-moving fashion cycles and shifting consumer tastes call for rapid product adaptation.

Mitigation measures

Invest in design and market intelligence; run agile, flexible manufacturing lines; collaborate with customers on trend forecasting.

Human Resources

The workforce of Gokaldas Exports Limited remains central to its performance in the global apparel industry, with more than 54,000 employees as of FY26, of whom about 75% are women. This reflects the continued commitment of the Company to inclusivity and social empowerment, evidenced by an increase in gender balance in supervisory roles to 47% and the graduation of over 3,700 women workers from its women empowerment programmes during the year. The Company provided skill development training to more than 32,000 employees through structured initiatives spanning supervisory skills, life skills and capacity building, alongside training on workplace safety, prevention of sexual harassment, financial literacy and wellbeing.

These programmes supported a collaborative and agile working environment across its operations in India, Kenya and Ethiopia. Looking ahead, the Company intends to sustain its workforce-driven growth by continuing to invest in human capital, strengthening leadership depth and aligning its people practices with global environmental, social and governance standards.

Internal Control Systems and Their Effectiveness

In FY26, the Company further strengthened its internal control systems to support its expanded operations and to ensure robust financial reporting and operational efficiency. It continued to operate centralised systems for managing risks, controls and compliance, improving visibility and coordination across departments and geographies. The scope of internal audit was maintained across the groups entities, including its overseas operations, ensuring consistent control standards, while the risk management framework was further enhanced to address the evolving challenges in the global apparel industry, particularly those arising from trade policy and tariff volatility. The Company continued to embrace technology and to align its controls with its strategic objectives, building a resilient, transparent and agile organisation. The internal audit process remains rigorous, with periodic audits conducted across key business areas. The Audit Committee, comprising a majority of independent directors, reviews the audit findings and managements responses, ensuring transparency and accountability. As integration across the groups entities continues, the Company has placed particular emphasis on harmonising internal control practices, an exercise that has yielded improvements in operational efficiency and risk mitigation. The Board remains actively involved in overseeing the effectiveness of the internal control systems, regularly reviewing the Audit Committees minutes and providing guidance on strengthening the control environment.

Cautionary Statement

This Management Discussion and Analysis contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in this report and elsewhere in the Annual Report. These statements are based on current expectations and projections about future events and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, global economic conditions, geopolitical tensions and conflicts, the imposition or revision of tariffs and other trade measures, the implementation of free trade agreements, changes in government policies and incentives, fluctuations in currency exchange rates, movements in input and freight costs, shifts in consumer preferences and competitive pressures in the apparel industry. The Company undertakes no obligation to publicly update or revise any forwardlooking statement, whether as a result of new information, future events or otherwise. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.