The purpose of this presentation is to assist you in finalizing an Adams Fashion Headwear product allocation which ensures alphabroder achieves their corporate objectives for our brand and the headwear category.

By utilizing a merchandising allocation plan which integrates both stocking and drop ship styles, significant financial, sales, merchandising and logistical benefits will be realized.

This proposal will review both existing and new styles, demonstrating how a thoughtful and comprehensive combination of the two into a full line offering, will realize C-Level corporate mandates. While product benefits and features are important, assisting you in achieving specific solutions to your business challenges is our primary focus.

By The Numbers - 1st Qtr.

By The Numbers - Annually

New Styles - Stay Fresh

• Address current trends- remain top of mind and relevant in your customer's mind
• Excite the sales force
• Enhance the current assortment by penetrating a niche market and offering clear points of differentiation from key competitors

Logistical Benefits

• 1-2 day transit – Short transit times and low shipping costs are deciding factors for customers
• Eliminate split location shipments
• Total control of inventory and shipments

Logistical Benefits

• Reduce freight costs for free freight programs
• Offer customer pick up of top sellers

Implement Full Line Strategy

• Set A New Course Merchandising/Sales benefits of a hybrid full line offering: • Increase customer delight • Eliminate redundancy by offering fewer labels •Offer a greater selection by adding fringe styles or colors

Additional Benefits

• Increase confidence in your customer’s minds that the product will be available
• Sell styles with high perceived value and market position in the minds of your customers
• Market to specific merchandising requirements, in order to meet under served markets and current trends

Additional Benefits

• Sales velocity - Increased sku allocation increases the sales volume of all styles
• Offer a respected headwear label with brand awareness and a long sales history

Financial Benefits

• Extended terms on opening orders for new styles – 90 days
• Liberal return policy eliminates risk
• Margin enhancement – Volume discount and free freight volume program for stocking items

Financial Benefits

• Drop shipments offer low investment and exposure
• Reduced warehouse space requirements- ship from the mill

2016 Trends

• Consumer fashion direction will have a greater impact on headwear design than function. Young adults will continue to be a key buyer
• Color blocking will continue to be important
• Flat bills remain relevant
• Snap back closures and mesh backs continue as significant trends

2016 Trends

• Pigment dyes will expand into a number of markets including collegiate
• That 70's Show - growing adversity has consumers ready to embrass the love and peace movement
• Mixed media - blending different fabrics and unexpected color combinations
• Sustainability - code of conduct

2016 Trends

• Plaids, patterns and heather treatments will be a force
• Increased consumer desire for goods that evoke nature in color or texture
• Bold colors and heavy use of accent colors will continue to be important
• Headwear will be one of the most commonly pitched accessories - a projected 10% sales growth

Top Headwear Silhouttes For 2016

• Knit beanie
• Bucket Hat- 90's nostalgia
• Minimalist Baseball Cap-No longer a purely casual option

Top Headwear Silhouttes For 2016

• Wide Brim Fedora
• Flat Cap- Gastby/Cabby
• Ladies Floppy Brim -70's old is new again

Existing Styles Worth Another Look

• LP105 Evolution- Strong sales as new 2015 style
• FA102 - Mesh backs are still strong, exciting new color adds - 11 to 18 colors
• VA101 Vacationer Bucket - Legimate resurgence
• TH101 Triumph - Mico jacquard performance mesh

Existing Styles Worth Another Look

• UV Protective Sun Block Collection
• OB101- Outback - 2 colors & sizes - exceptional percieved value
• XCM101- Extreme Condition - 6 colors & 2 sizes - strong sales, niche market, high price points allow for efficient sales

Merchandising Recommendations

By grouping like skus into collections,we believe you are able to tell a more clear and powerful product story. This translates into a clear market positioning and brand understanding by your customers.

Launch Collections

• Pigment Collection - Leveraging brand recognition and first to market positioning, adding the balance of the pigment styles becomes a natural extension of the very successful AD969. A two page spread featuring this collection would be a great story.

Launch Collections

• UV Sunblock - The same color palette in every style, along with key technical features makes these styles a natural to be grouped as a collection. Our Sunblock Collection represents an important subcategory with few competitors. One of the first companies to offer UV protective headwear to the promotional and decorator markets, we are a category leader.

Launch Collections

• Technical Performance Collection - Synthetic light weight fabrics with quick drying, moisture wicking functionality continue to be a growing category. Combining new and existing styles demonstrates a strong statement and commitment to this category.

Style Drops 2016

• CG102
• BA102
• ES102
• SD102
• LPSB1
• LPWVS1

Existing Style Color Additions

• OL102- Ollie
• FA102 - Fairway
• LP101 - Optimum

New Styles 2016

• LP106 - Spinnaker - Pigment
• DP102 - First String - Performance
• GS102 - Grand Slam - Team Color Block
• TB102 - Throw back - Mixed Media
• HH101 - Innovator - Hemp - Eco/ Sustainablity
• LS101 - Sea Breeze - Ladies Floppy
• XA101 - Extreme Adventurer

Stocking Program

• 90 day terms on new style opening buy
• 5% discount and and free freight on orders totaling 1,008 dozen
• Stocking discount
• Ability to eliminate slow moving sku's for a credit against replacement stock

Why Adams Headwear - Our Value Propostion

• Industry experience and knowledge
• Excellent brand awareness
• Superior inventories ensure high fill rates
• Retail quality and design at promotional pricing
• Our hats provide customers with the logo exposure they require, since they will be worn

Why Adams Headwear - Our Value Propostion

• Proper fitting crowns
• High perceived value reduced discounting
• Dedicated customer care and superior back office support
• Integrated systems ensure seamless order management
• Our philosophy is to make you as successful as we can

It is clear that a number of benefits result by expanding the Adams Fashion Headwear style allocation. The benefits reinforce the company’s primary objectives, resulting in improvements in key financial, sales, and logistical metrics.

In addition, those benefits can be achieved by a merchandising plan which does not require a large financial investment, unacceptable risk or utilize excessive critical warehouse space.

Executing an allocation plan which leverages catalog and web exposure is a low cost option for creating new sales opportunities, gaining market share and a competitive advantage.

Questions