We have acted quickly to adjust volumes and ranges in our seasonal launches, helping our retail partners, many of whom are currently closed and have no way of selling stock. This will reduce obsolete stock levels in the supply chain, allowing for the sell-through of stock and reducing the amount of liquidation products that retailers may face at the end of the season.

We have always worked with factories we trust and treat them as valuable partners. We have a responsibility to the people who make our products and chose to make the conscious decision to support their workforce and their way of life. We would not expect our partners to work alongside us, making our products, and then put unfair pressure on them when we face difficulties.

We have taken the following steps to lessen the impact:

• We made an early decision to reduce planned production for the Fall and Winter 2020 ranges.
• We have spaced out orders and replanned production levels and ranges.
• We have NOT canceled any orders already in production.
• If costs have already been incurred, we are working with our factories to manage the impact.

COVID-19 will have a huge impact on the overseas factories we use, but we are committed to working in partnership to minimize the consequences and manage fluctuations in demand. We do not expect our factories to have to lay off workers as a result of Covid-19. We anticipate that overtime hours will be reduced locally to help factories manage peak volume reductions.

Volume reductions are difficult for everyone. By communicating with our factories early, sharing production numbers in advance, and working collaboratively to replan volumes, we can help support their businesses, which is ultimately sustainable for everyone.