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					          INDUSTRY NOTE
          Target | Estimate Change

          USA | Consumer | Apparel, Footwear & Textiles                          January 17, 2012




                                                                                                                                                                    EQUITY RESEARCH AMERICAS
Apparel, Footwear & Textiles
ICR Takeaways

Key Takeaway
We are recalibrating thoughts and expectations following the ICR conference
last week. Judging by the reaction to various pre-announcements and
presentations last week, we think this is a group that investors want to own. As
such, we see upward multiple bias as the market becomes more risk-tolerant.
Top takeaways below. See more specific detail on pages 2 and 3.

DECK (Buy, $125 PT). We think management did a good job of alleviating investor
anxiety. However, judging by the stock's underperformance following WWW's lower 4Q
outlook (on Thursday), there still appears to be a degree of skepticism in the stock. We do
not see WWW's relatively soft 4Q as a read to DECK for 2 reasons: 1) WWW's weakness was
in at-once orders, which account for 50% of 4Q sales (vs. DECK where at-once is <10% of 4Q
wholesale) and 2) WWW's business is much more cold weather sensitive than UGG, which
is more of a comfort/lifestyle brand. Finally - note the company's 2015 sales outlook, which
was raised from $2 billion to $2.4 billion. The new store target of 200 (up from 150) is the
most noteworthy nugget given the potent contribution of that channel. At 25% of sales, the
implied 2015 retail productivity assumption calls for $3m sales/store vs. the $6m sales/store
UGG is doing today. We see significant upside to DECK's conservative retail assumptions.

LULU (Hold, $65 PT). Tweaking up EPS and PT on pre-announcement last week. An
upward sales trajectory is clearly underway given better inventory position and easier
compares in 2012. That said, we'd wait for 1) a better entry point and/or 2) visibility into
2012 margins (in light of a 25% long-term operating margin target) before chasing. We see
a floor in the low-$50's as investors are apt to buy this structurally robust story on dips at
this point.

Finish Line (Buy, $25 PT). Stock continues to be weak despite management's positive
tone at the dinner we hosted and presentation/break-outs. Athletic cycle momentum
remains quite strong with no resistance to higher prices to date. See higher ASP's as a catalyst
to sales in 2012. At FINL, we also see a rapidly growing e-commerce channel providing 3%+
points to comp along with better conversion/average transaction trends (as the sales-force
is now commission based). Despite our positive fundamental view, we agree that the stock
needs a positive margin catalyst. We think that comes in March when 4Q11 is reported with
an extra-week, which could drive better than expected leverage (against a bar which was
reset lower with 3Q's GM% miss). See $19 as a near-term valuation floor.




                                                                                                                                   Taposh Bari, CFA, CPA *
                                                                                                                                             Equity Analyst
                                                                                                                               (212) 708-2712 TBari@jefferies.com
                                                                                                                                   * Jefferies & Company, Inc.
                         Current         Previous         Current     Previous                       Current                             Previous
 Ticker       Price       Rating          Rating          Target       Target      Est.    2010        2011        2012        2010        2011         2012
 DECK**      $84.50         BUY             BUY           $125.00      $125.00     EPS     $4.04       $5.16       $6.10       $4.04        $5.16       $6.10
   FINL      $19.05         BUY             BUY           $25.00       $25.00      EPS     $0.86       $1.30       $1.61       $0.86       $1.30        $1.61
  LULU       $61.96        HOLD            HOLD           $65.00       $54.00      EPS     $0.79       $1.26       $1.63       $0.79        $1.18       $1.54
  WWW        $35.83        HOLD            HOLD           $37.00       $40.00      EPS     $2.17       $2.48       $2.63       $2.17       $2.54        $2.80
   ZQK        $4.26         BUY             BUY            $5.00        $4.20      EPS     $0.32       $0.17       $0.24       $0.32        $0.17       $0.24
** Conviction List

Jefferies does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that Jefferies may have a conflict
of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.
Please see analyst certifications, important disclosure information, and information regarding the status of non-US analysts on pages 12 to 17 of this report.
      Consumer
      Target | Estimate Change

      January 17, 2012


                                                            Updated Thoughts Following ICR
                                                            We are recalibrating thoughts and expectations following the ICR conference last week.
                                                            Judging by the reaction to various pre-announcements and presentations last week, we
                                                            think this is a group that investors want to own. As such, we see upward multiple bias as
                                                            the market becomes more risk-tolerant (from a very risk-averse position).

                                                            Another observation is that companies with weather exposure are, for the most part,
                                                            getting a free pass as most pre-announced results are not as bad as feared.

                                                            Next catalyst is earnings where companies will provide 2012 outlooks. Expect
                                                            conservatism following a tough (weather inhibited) 4Q11, higher pension expense into
                                                            2012, and FX headwinds. We think the market looks through these (somewhat transient)
                                                            issues and focuses on underlying organic trends, which for the most part are still strong.

                                                            Deckers Outdoor (DECK, $125 PT)
                                                            We believe management did a good job of relieving investor anxiety last week (between
                                                            the dinner we hosted, CEO presentation and breakouts). After a relief rally on Wednesday,
                                                            the stock again traded off Thursday following WWW comments that 4Q sales were hurt
                                                            by weather. WWW was down 5%+ on the news but rallied (to end the day up) whereas
                                                            DECK was down and has underperformed since. An important fact that’s being missed, in
                                                            our view, is that WWW’s 4Q is 50% at-once/reorder whereas DECK’s is <10%. DECK is
                                                            also, in our opinion, less weather sensitive than WWW.

                                                            This leads us to believe that there is still an elevated degree of investor skepticism in
                                                            DECK, even after management’s encouraging tone last week. We would buy the stock
                                                            here and ahead of 4Q11 earnings (late February) for the following reasons:

                                                                  1)    we believe 4Q11 EPS has an upward bias (mostly pre-booked and guided
                                                                        conservatively)

                                                                  2)    management tone was very encouraging regarding sell-through,

                                                                  3)    risks to 2012 EPS outlook from conservative margins appear to be reflected in
                                                                        the stock and

                                                                  4)    management’s upward adjustment to 2015 outlook reinforces LT confidence in
                                                                        the brand; more importantly, the company raised retail store count from 150 to
                                                                        200 by 2015; implied assumption calls for $3m sales/store (up from 2.6m in
                                                                        prior outlook); this compares to $6m/store LTM.


                                                            Lululemon (Hold, $65 PT)
                                                            We are raising our EPS and PT following the company’s pre-announcement last week. The
                                                            company’s more aggressive inventory position is driving accelerating sales momentum
                                                            with 4Q11 sales set to be well ahead of initial expectations. This suggests a continued
                                                            upward bias to sales over the next 12 months as the company anniversaries easier
                                                            comparisons (2011 was a year where sales were ‘light’ as the company constantly chased
                                                            goods).

                                                            With shares up $15 / 33% in the past four weeks, we would rather wait for a better entry
                                                            point. We are also curious to see how management guides 2012 margins in light of a
                                                            seemingly better sales trajectory but against a ‘25% LT margin target’ that we heard
                                                            repeatedly in 2011. Bottom line here is the fundamental momentum is clearly to the
                                                            upside with a virtual floor in the low-$50’s as we expect investors to buy on dips (barring
                                                            a structural dislocation in the story).



page 2 of 17                                                                           Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
      Consumer
      Target | Estimate Change

      January 17, 2012



                                                            Quiksilver (Buy, $5 PT)
                                                            We are tweaking up our PT on higher multiple assumptions. The stock’s appreciation last
                                                            week following management’s presentation at ICR reinforces our view that Quiksilver
                                                            remains a misunderstood story by many.

                                                             With a stock price under $5, levered balance sheet, and elevated European mix, ZQK
                                                            screens poorly on paper. Fundamentally however - as we have said all along - the
                                                            company has a world class portfolio of brands, is very liquid (HSD% FCF yield, no debt
                                                            maturities until 2015) and is performing well in Europe despite macro headwinds.

                                                            We came to appreciate that the company’s 2015 plan is conservative with upside to both
                                                            sales and margins. For example, retail margins, which improved markedly over the past
                                                            year, are currently at break-even but still well below where they were in the mid-2000’s at
                                                            their peak. The opportunity for recovery there is still very meaningful. If the company
                                                            performed to its current plan (~8% rev CAGR, 200 bps margin expansion), it would ~80c
                                                            of EPS. An implied 15x P/E would yield a $12 stock three years from now.


                                                            Wolverine World Wide (Hold, $37 PT)
                                                            We are tweaking our EPS and PT down following the company’s comments at ICR. Two
                                                            new developments:

                                                                       4Q sales will be softer (yet still within original guidance range) due to at-once
                                                                        business (which represents 50% of 4Q volumes) being down YoY and

                                                                       pension expense will increase $10 million in 2012, a 65 bps hit to margins

                                                            Fundamental boot trend appears in-tact but sales growth will be slower in 2012 vs. 2011
                                                            as the company anniversaries the initial Merrell barefoot sell-in cycle. We continue to see
                                                            meaningful long-term value in this company as growth areas like apparel, DTC and
                                                            international are scaled and gain appreciation by the market. We see the stock range-
                                                            bound in the mid-to-high $30’s until sales and/or margins inflect to the upside. Two
                                                            potential catalysts include 1) an acquisition, which we think could occur within the next
                                                            12 months and 2) net retail growth by mid-2012 once store closures wind down


                                                            Finish Line (Buy, $25 PT)
                                                            Management tone was positive at the dinner we hosted along with the presentation and
                                                            break-outs. The athletic cycle momentum appears well in tact with strong contribution
                                                            from brands like Nike, Adidas and Reebok.

                                                            That said, the stock continues to underperform on what is perceived as a disappointing
                                                            margin story. While we are comfortable with the lack of near-term margin upside bias, we
                                                            do agree that the stock needs a positive margin catalyst to regain near-term momentum.

                                                            We think that catalyst comes in March when the company reports 4Q11 earnings. This
                                                            quarter will have an extra (high volume) week which could yield better than expected
                                                            leverage. Once 4Q passes, some of the near-term GM% headwinds (private label
                                                            liquidation, fleece pricing) will have passed paving the way for better margin
                                                            performance).

                                                            We think $19 is a floor for FINL based on current valuation well below FL. In fact, we
                                                            recommend FINL over FL for its 1) lack of European/FX exposure, 2) faster growing e-
                                                            commerce channel and 3) conversion catalyst (sales force now commission based).



page 3 of 17                                                                            Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
      Consumer
      Target | Estimate Change

      January 17, 2012

Chart 1: DECK Income Statement
 ($ Millions, except per share amounts) 2009           2010      2011E      2012E       1Q10      2Q10      3Q10      4Q10      1Q11       2Q11      3Q11    4Q11E
 Total Sales                               $813      $1,001     $1,343     $1,681      $156      $137      $278      $430      $205       $154      $414     $569
 Cost of Goods Sold                          442        499        662         872        78        76       148       197       102         88       212      260
 Gross Profit                                371        502        680         809        78        61       130       233       102         66       203      309
 SG&A                                        189        254        388         469        49        48        65        93        74         77       112      125
 Operating Income                           182        248        293        341         29        13        65       141        28        (11)       91      184
 Other (income) expense, net                 (2.0)      (1.0)      (0.2)       (0.8)     (0.1)     (0.5)     (0.2)     (0.2)     (0.1)      (0.0)     0.1      (0.1)
 Pretax Income                               184        249        293         341        29        14        66       141        28        (11)       91      185
 Income Taxes                                 67         90         91         102        11         5        25        50         9         (3)       28       57
 Net Income                                 118        159        202        239         18          9       41        91        20          (7)      62      127
 minority interest                             (0)        (2)       (0)          0        (0)        0         0        (2)       (1)         0         0        0
 Fully Diluted EPS                        $2.98       $4.01      $5.16      $6.10      $0.46     $0.23     $1.05     $2.27     $0.49     ($0.19)    $1.59    $3.25
 Fully Diluted Shares Outstanding           39.4        39.2      39.1        39.2      39.1      39.1      39.2      39.3      39.4       38.7      39.2     39.2


 % of Sales                                 2009       2010      2011E      2012E       1Q10      2Q10      3Q10      4Q10      1Q11       2Q11      3Q11    4Q11E
 Gross Profit                              45.6%       50.1%      50.7%      48.1%      50.0%     44.3%     46.8%     54.2%     50.0%      42.8%     49.0%    54.3%
 SG&A                                      23.2%       25.4%      28.9%      27.9%      31.5%     34.7%     23.3%     21.5%     36.3%      49.7%     27.1%    21.9%
 Operating Income                         22.4%       24.8%      21.8%      20.3%      18.5%      9.6%     23.5%     32.7%     13.7%      -6.9%     21.9%    32.4%
 Tax Rate (% of Pretax)                    36.2%       36.0%      31.0%      30.0%      37.2%     35.0%     37.5%     35.2%     30.1%      30.2%     31.2%    31.0%



 % Growth, YoY                              2009       2010      2011E      2012E       1Q10      2Q10      3Q10      4Q10      1Q11       2Q11      3Q11    4Q11E
 Sales                                     17.9%       23.1%      34.1%      25.2%      16.2%     33.7%     21.7%     23.6%     31.3%      12.6%     49.1%    32.3%
 Gross Profit                              21.5%       35.3%      35.5%      19.0%       32%       49%       33%       35%       31%         9%       56%      32%
 SG&A                                      23.8%       34.4%      52.7%      20.9%       24%       30%       44%       37%       51%        61%       74%      34%
 Operating Income                         19.3%       36.1%      17.9%      16.4%       49%      213%       23%       33%        -2%      -181%      39%      31%
 Net Income                                22.6%       35.6%      26.8%      18.3%       47%      163%       21%       34%        9%      -184%       52%      39%
 Diluted EPS                               23.0%       34.5%      28.5%      18.2%       47%      160%       22%       31%        6%      -182%       52%      43%



 BPs Change, YoY                            2009       2010      2011E      2012E       1Q10      2Q10      3Q10      4Q10      1Q11       2Q11      3Q11    4Q11E
 Gross Profit                                135        451         53       (253)       607       455       388       440         5       (155)      219        5
 SG&A                                        109        214        352       (100)       199       (98)      362       204       479      1,504       381       35
 Operating Income                            26        237       (299)      (153)       409       552        27       237      (474) (1,659)        (162)     (30)



 Marketing expense                          2009       2010      2011E      2012E
 Marketing expense                            29         33         45          56
    % of revenues                            3.5%       3.3%       3.3%        3.3%
    % growth                               15.5%       15.2%      34.7%        25%
    % of SG&A                              15.2%       13.0%      11.5%      11.9%


Source: Jefferies estimates, company data




page 4 of 17                                                                             Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
      Consumer
      Target | Estimate Change

      January 17, 2012

Chart 2: DECK Segment Details
 Sales by Category                      2009     2010      2011E      2012E    1Q10       2Q10      3Q10      4Q10      1Q11      2Q11       3Q11    4Q11E
 Total Sales                            813     1,049     1,343      1,681     156         137       278       430       205       154       414       569
    Ugg                                  712       873      1,170     1,430     104         100       256       413       148       108       377       537
    Teva                                  78       101       122        140      43          31        14        13        50        40        15        17
    Sanuk                                  --       48         27        87       --          --        --        --        --        --       16        11
    Other                                 24        26         24        24       8           6         8         4         6         6         7         5



 Sales Growth, %                        2009     2010      2011E      2012E    1Q10       2Q10      3Q10      4Q10      1Q11      2Q11       3Q11    4Q11E
 Total Sales                             18%      29%        28%        25%     16%        34%       22%       24%       31%       13%       49%       32%
    Ugg                                  22%       23%        34%       22%     14%         35%       20%       24%       42%        8%       47%       30%
    Teva                                 -10%      31%        20%       15%     21%         38%       52%       26%       17%       29%        7%       25%
    Sanuk                                  --        --       20%       15%       --          --        --        --        --        --        --        --
    Other                                13%       12%       -10%         0%    15%          1%       26%        -4%     -28%        1%      -12%       20%



 other metrics                          2009     2010      2011E      2012E    1Q10       2Q10      3Q10      4Q10      1Q11      2Q11       3Q11    4Q11E
 Same-store sales, %                    27.6%    16.6%                         28.2%      19.2%     17.9%     11.6%       2.6%    23.6%      15.4%
 Retail: Sales per average store          5.3      5.6


 weighted avg selling price / pair, $   45.80    47.71                         30.71      35.41     58.61               34.24     38.28
    change, %                             8%        4%                         7.0%        1.8%      0.1%    #DIV/0!    11.5%      8.1%    -100.0%   #DIV/0!


 footwear volume (million pairs)         15.7     18.0                           4.0         3.6       4.5       5.9       4.7       3.6
    change, %                           6.8%     14.6%                         5.3%       28.6%     18.4%      7.3%     17.5%      0.0%    -100.0%   -100.0%


 Stores                                   18       27         44         69      18         19        24        27        27         30        37        44
    UGG retail (U.S.)                      6        10
    Outlet (U.S.)                          7         9
    UGG (International)                    5         8


 new stores (YoY)                          6         9         17        25       1           1         5         3         0         3         7         7


 sales / average store                                                           1.3         0.5       0.9       2.8       1.3       0.7       1.0       2.8



 Sales by Region                        2009     2010      2011E      2012E    1Q10       2Q10      3Q10      4Q10      1Q11      2Q11       3Q11    4Q11E
 Total Sales                            813     1,001                          156         137       278       430       206       154       414       569
    U.S.                                 646       764                          117          65       205       377       149        83       258       471
    International                        167       237                           39          72        73        53        57        72       156        98

 Sales Mix, %                           100%     100%                          100%       100%      100%      100%      100%      100%      100%      100%
    U.S.                                 79%       76%                          75%         48%       74%       88%       72%       54%       62%       83%
    International                        21%       24%                          25%         52%       26%       12%       28%       46%       38%       17%

 Sales Growth, %                         18%      23%                           16%        34%       22%       24%       32%       13%       49%       32%
    U.S.                                 11%       18%                          15%         16%       14%       22%       27%       27%       26%       25%
    International                        55%       42%                          21%         55%       48%       35%       46%        0%      114%       85%


Source: Jefferies estimates, company data




page 5 of 17                                                                          Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
         Consumer
         Target | Estimate Change

         January 17, 2012

Chart 3: LULU Income Statement
 ($ Millions, except per share amounts)      2009      2010     2011E      2012E        1Q10     2Q10      3Q10     4Q10     1Q11      2Q11      3Q11    4Q11E
 Total Sales                                $453      $712      $992      $1,335       $138     $152      $176     $245     $187      $212      $230     $363
   retail sales                               393       591       829          894       116      129       143      203       157      178       190      304
   direct-to-consumer sales                    18        57         99         108         9       10        14       25        14       19        24       43
   other sales                                 41        63         64          61        14       13        19       18        16       16        16       15
 Cost of Sales                                230       316       424          585        64       72        79      101        77       90       102      155
 Gross Profit                                 223       395       568          750        74       80        97      144       110      122       128      207
 SG&A                                         136       215       285          377        42       46        54       72        58       63        69       96
 Operating Income                             87       181       283           372       32       34        42        72       52        59       60      112
 Net Income                                    58       114       183          238        20       22        26       46        34       39        39       71
 Minority Interest                              0          0         0            0        0        (0)       0                 (0)       0         0         0
 Fully Diluted EPS                         $0.41     $0.79     $1.26       $1.63       $0.14    $0.15     $0.18    $0.32    $0.23     $0.26     $0.27    $0.49
 Fully Diluted Shares Outstanding           141.6     143.7      145.2      145.9      143.2    143.5     143.7    144.4     144.9     145.2    145.3     145.4

 % of Sales                                  2009      2010     2011E      2012E        1Q10     2Q10      3Q10     4Q10     1Q11      2Q11      3Q11    4Q11E
 Gross Profit                               49.2%      55.6%     57.2%      56.2%       53.8%    52.8%     55.1%    58.7%    58.7%     57.5%     55.8%    57.2%
 SG&A                                       30.1%      30.1%     28.7%      28.3%       30.3%    30.3%     31.0%    29.4%    31.0%     29.5%     29.9%    26.4%
 Operating Income                          19.2%     25.4%      28.5%      27.9%       23.5%    22.5%     24.1%    29.3%    27.7%     28.0%     25.9%    30.8%
 Interest Income (expense)                    0.0%      0.4%      0.2%         0.0%      0.1%     1.4%      0.1%     0.2%     0.5%      0.3%      0.3%     0.0%
 Pretax Income                              19.2%      25.8%     28.7%      27.9%       23.6%    23.9%     24.2%    29.5%    28.2%     28.3%     26.2%    30.8%
 Tax Rate (% of Pretax)                     32.7%      38.2%     35.9%      36.0%       40.0%    40.3%     38.9%    35.9%    36.3%     35.7%     35.5%    36.0%
 Net Income                                 12.9%      16.0%     18.4%      17.9%       14.2%    14.3%     14.8%    18.9%    18.0%     18.2%     16.9%    19.7%



 % Growth, YoY                               2009      2010     2011E      2012E        1Q10     2Q10      3Q10     4Q10     1Q11      2Q11      3Q11    4Q11E
 Sales                                      28.1%      57.1%     39.4%      34.6%       69.3%    55.8%     55.7%    52.8%    35.1%     39.5%     31.0%    47.8%
 Gross Profit                               24.6%      77.3%     43.5%      32.1%       113%      78%       72%      66%       48%      52%       33%      44%
 SG&A                                       17.3%      57.5%     32.9%      32.4%        67%      49%       54%      61%       38%      36%       26%      33%
 Operating Income                          37.9% 108.6%         56.2%      31.8%       230%     139%      103%       73%      59%       74%      41%       55%
 Pretax Income                              36.4%    111.5%      54.9%      30.8%       229%     153%      103%      74%       61%      65%       42%      54%
 Net Income                                 30.5%      94.3%     60.6%      30.6%       201%     135%       84%      62%       71%      78%       50%      54%
 Diluted EPS                                29.6%      91.2%     58.9%      30.1%       195%     131%       81%      60%       70%      74%       49%      53%



 BPs Change, YoY                             2009      2010     2011E      2012E        1Q10     2Q10      3Q10     4Q10     1Q11      2Q11      3Q11    4Q11E
 Gross Profit                                (141)      633       165          (105)   1,098      654       518      479       496      474        73      (150)
 SG&A                                        (277)         6      (141)         (46)     (44)    (129)      (39)     143        76       (78)    (110)     (300)
 Operating Income                            136       627       306           (58)    1,142     783       557      336       420      552       184      150
 Pretax Income                                116       664        (19)         (21)   1,144      918       562      353       457      442       205      128
 Net Income                                    23       306       287           (80)     618      480       229      108       379      393       216       78



 Same Store Sales                            2009      2010     2011E      2012E        1Q10     2Q10      3Q10     4Q10     1Q11      2Q11      3Q11    4Q11E
 SSS                                         12%        37%       22%          15%      51%      38%       32%       32%      19%       25%      18%       25%
 SSS (constant currency)                       9%       30%        20%         15%       35%      31%       29%      28%       16%      20%       16%      25%


Source: Jefferies estimates, company data




page 6 of 17                                                                             Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
         Consumer
         Target | Estimate Change

         January 17, 2012

Chart 4: ZQK Income Statement
 ($ Millions, except per share amounts)             2010       2011      2012E      2013E       1Q11       2Q11      3Q11      4Q11     1Q12E    2Q12E    3Q12E    4Q12E
 Total sales                                     $1,838      $1,953     $2,052     $2,143       $426      $478      $503      $545      $434     $489     $540     $589
 Cost of goods sold                                  870        929        991       1,025        203       216       248       262       217      233      264      277
 Gross profit                                        967       1,024      1,061      1,118        223       262       255       283       216      256      277      312
 SG&A                                                817        890        910        940         213       217       221       240       213      218      232      247
 Operating income                                   150        134        151        178          11        45        34        44         4       38       45       65
 Interest expense                                    79.7       58.5       62.0       58.0       13.7      15.1      15.7      14.1      15.5     15.5     15.5     15.5
 minority int and other                               3.4        2.8        2.8        2.8        1.2       1.7       (0.3)     0.2       0.5      1.0      0.3      1.0
 FX loss (gain)                                      (5.9)      (0.1)       0.0        0.0        (2.1)     (2.3)     (1.5)     5.8       0.0      0.0      0.0      0.0
 Pretax income                                        73         73         86        118          (2)       31        20        23       (12)      21       29       48
 Income taxes                                         26         42         44         37           6        15         9        12        10       10       12       12
 Net income                                           48         31         42         81          (8)      16        11        11       (22)      11       17       36
 Fully diluted EPS                                $0.32       $0.17      $0.24      $0.45     ($0.05)     $0.09     $0.06     $0.06    ($0.14)   $0.06    $0.09    $0.20
 Fully diluted shares outstanding                   150.1      176.7      176.0      179.7      161.6     182.0     183.5     179.7     164.7    179.7    179.7    179.7


 % of Sales                                         2010       2011      2012E      2013E       1Q11       2Q11      3Q11      4Q11     1Q12E    2Q12E    3Q12E    4Q12E
 Gross profit                                       52.6%      52.4%      51.7%      52.2%      52.4%      54.8%     50.7%     51.9%     49.9%    52.3%    51.2%    52.9%
 SG&A                                               44.5%      45.6%      44.3%      43.9%      49.8%      45.3%     43.9%     43.9%     49.1%    44.6%    42.9%    41.9%
 Operating income                                   8.2%       6.9%       7.3%       8.3%        2.6%      9.5%      6.7%      8.0%      0.8%     7.8%     8.2%    11.0%
 Tax rate (% of pretax)                             34.9%      57.6%      51.2%      31.5%     -321.4%     47.5%     44.9%     52.5%    -80.1%    46.7%    41.7%    24.9%



 % Growth, YoY                                      2010       2011      2012E      2013E       1Q11       2Q11      3Q11      4Q11     1Q12E    2Q12E    3Q12E    4Q12E
 Sales                                              -7.1%       6.3%       5.1%       4.4%       -1.5%      2.1%     14.0%     10.1%      1.7%     2.3%     7.3%     8.1%
 Gross profit                                        3.9%       5.9%       3.6%       5.4%         1%        5%       11%        7%       -3%      -2%       8%      10%
 SG&A                                               -0.9%       8.9%       2.3%       3.3%         6%        5%       16%        9%        0%       1%       5%       3%
 Operating income                                  41.1%     -11.0%      12.6%      18.4%        -51%        6%      -14%       -5%      -68%     -17%     31%      49%
 Net income                                      1030.2%      -35.4%      36.2%      92.4%       214%        4%      -12%      -49%      192%     -30%      52%     225%
 Diluted EPS                                       876.7%     -45.1%      36.8%      88.4%       148%      -17%      -28%      -50%      187%     -29%      55%     225%



 BPs Change, YoY                                    2010       2011      2012E      2013E       1Q11       2Q11      3Q11      4Q11     1Q12E    2Q12E    3Q12E    4Q12E
 Gross profit                                        556         (21)       (73)       50         107       160      (158)     (162)     (250)    (250)      50      100
 SG&A                                                276        112       (123)        (49)       360       123        63       (31)      (75)     (75)    (100)    (200)
 Operating income                                   279       (133)         49         98       (254)       37      (220)     (131)     (175)    (175)     150      300



 Pro Forma Adjusted EBITDA                          2010       2011      2012E      2013E       1Q11       2Q11      3Q11      4Q11     1Q12E    2Q12E    3Q12E    4Q12E
 Adjusted Operating Income                          150.3      133.8      150.7      178.4       10.9      45.4      33.9      43.5       3.5     37.9     44.5     64.7
 D&A                                                 53.9       55.3       54.0       53.8       14.0      13.5      12.7      15.1      13.5     13.5     13.5     13.5
 non cash stock based comp                           12.8       14.4        8.0       11.3        2.4       2.6       4.9       4.5       2.0      2.0      2.0      2.0
 Adjusted EBITDA (calculated)                     217.0       203.5      212.7      243.5       27.3       61.5      51.6      63.1      19.0     53.4     60.0     80.2
 Adjusted EBITDA (reported)                         214.3      200.2        0.0      202.6       28.2      62.1      52.7      57.1

 EBITDA Growth, %
   calculated                                       27.7%      -6.2%       4.5%      14.5%       -27%        0%       -1%       -4%


Source: Jefferies estimates, company data




page 7 of 17                                                                                  Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
      Consumer
      Target | Estimate Change

      January 17, 2012

Chart 5: ZQK Segment Details
 Sales by Segment                                   2010      2011    2012E    2013E     1Q11     2Q11     3Q11     4Q11    1Q12E    2Q12E   3Q12E    4Q12E
 Total Sales                                       1,838    1,953     2,052    2,143      426      478     503      545      434      489      540      589
   Americas                                          843       914     1,022   1,093      194      211      260      250      203      232      299      287
   Europe                                            729       761      752      764      165      207      176      213      165      198      174      215
   Asia Pacific                                      261       272      274      281       67       58       65       82       65       57       66       86
   Corporate Operations                                 5        5         5       5         0       2        1        1        0        2        1        1

                                                                                                    -5%      -5%      3%       2%      -1%       5%       7%
 Sales Growth (constant currency), %                2010      2011    2012E    2013E     1Q11     2Q11     3Q11     4Q11    1Q12E    2Q12E   3Q12E    4Q12E
 Total Sales                                         -9%        3%       8%       6%       1%      -1%       6%       7%       3%       6%     11%      11%
   Americas                                           -9%       8%       12%      7%        4%       5%     11%      13%       5%      10%      15%      15%
   Europe                                             -7%       1%       6%       5%       1%       -4%      2%       6%       3%       3%       8%       8%
   Asia Pacific                                     -14%       -7%       2%       3%       -8%     -12%      -3%     -7%      -5%       0%       6%       7%
   Corporate Operations                              39%        1%        0%      3%      -46%     95%      84%      -54%      0%       0%       0%       0%

 FX (input)
   Europe                                                                                                                      -3%     -8%      -9%      -7%
   Asia Pacific                                                                                                                2%      -2%      -5%      -2%

 FX (calc)
   Europe                                             -1%       3%       -7%     -3%       -8%       3%     14%       5%       -3%     -8%      -9%      -7%
   Asia Pacific                                      18%       12%       -2%      0%        8%     11%      23%       9%       2%      -2%      -5%      -2%

 Average Currency Assumptions
   USD / euro                                        1.35     1.39      1.30    1.34      1.34     1.41     1.43     1.40     1.30    1.30     1.30     1.30
   USD / Australian dollar                           0.91     1.03      1.01    1.02      0.99     1.03     1.07     1.03     1.01    1.01     1.01     1.01
   Japanese Yen / Australian dollar                 80.47    82.89     78.97   78.97     82.22    84.51    85.78    79.06   78.97    78.97    78.97    78.97



 Sales Growth, %                                    2010      2011    2012E    2013E     1Q11     2Q11     3Q11     4Q11    1Q12E    2Q12E   3Q12E    4Q12E
 Total Sales                                         -7%        6%       5%       4%       -1%      2%      14%      10%       2%       2%       7%      8%
   Americas                                           -9%       8%       12%      7%        4%       5%     11%      13%       5%      10%      15%      15%
   Europe                                             -8%       4%       -1%      2%       -7%      -1%     16%      11%       0%      -5%      -1%       1%
   Asia Pacific                                        4%       5%        0%      3%        0%      -1%     20%       2%       -3%     -2%       1%       5%
   Corporate Operations                              39%        1%        0%      3%      -46%     95%      84%      -54%      0%       0%       0%       0%



 Sales Mix, %                                       2010      2011    2012E    2013E     1Q11     2Q11     3Q11     4Q11    1Q12E    2Q12E   3Q12E    4Q12E
 Total Sales                                       100%      100%      100%    100%      100%     100%     100%    100%     100%     100%     100%     100%
   Americas                                          46%       47%       50%     51%       45%     44%      52%      46%      47%      47%      55%      49%
   Europe                                            40%       39%       37%     36%       39%     43%      35%      39%      38%      40%      32%      36%
   Asia Pacific                                      14%       14%       13%     13%       16%     12%      13%      15%      15%      12%      12%      15%
   Corporate Operations                                0%       0%        0%      0%        0%       0%      0%       0%       0%       0%       0%       0%


Source: Jefferies estimates, company data




page 8 of 17                                                                           Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
         Consumer
         Target | Estimate Change

         January 17, 2012

Chart 6: WWW Income Statement
 ($ Millions, except per share amounts)             2009        2010      2011E      2012E      1Q10       2Q10      3Q10      4Q10      1Q11      2Q11     3Q11     4Q11E
 Total sales                                     $1,101       $1,249     $1,409     $1,518      $285      $258      $320      $385      $331      $310     $362      $407
 Cost of goods sold                                   663        755        852        917        166       154       192       242       193       188      215       256
 Gross profit                                         438        494        558        601        119       104       129       143       138       122      147       151
 SG&A                                                 314        347        387        423         79        77        81       112        88        89       90       120
 Operating income                                    123        146        171        177         40        27        48        31        49        33       56        31
 Interest expense                                     0.1         0.4        0.9       0.8        0.1       (0.0)     0.1       0.2       0.2       0.1      0.3       0.3
 Other (income)                                       (0.2)      (1.4)       0.1       0.0        (0.2)     0.4       (0.2)     (1.3)     (0.6)     1.0      (0.3)     0.0
 Pretax income                                        124        147        169        177         40        27        48        32        50        32       56        31
 Income taxes                                          35         40         47         49         12         8        14         7        14         8       16         9
 Net income                                           89        107        122        127         28        19        34        26        36        24       40        22
 Fully diluted EPS                                 $1.78       $2.17      $2.48      $2.63     $0.56      $0.39     $0.70     $0.52     $0.72     $0.48    $0.82     $0.45
 Fully diluted shares outstanding                    49.9        49.5       49.3      48.4       50.9      49.2      48.8      49.3      49.8      49.9     48.7      48.6


 % of Sales                                         2009        2010      2011E      2012E      1Q10       2Q10      3Q10      4Q10      1Q11      2Q11     3Q11     4Q11E
 Gross profit                                       39.7%       39.6%      39.6%      39.6%     41.6%      40.3%     40.1%     37.1%     41.6%     39.4%    40.6%     37.2%
 SG&A                                               28.5%       27.8%      27.5%      27.9%     27.6%      29.7%     25.2%     29.0%     26.7%     28.6%    25.0%     29.5%
 Operating income                                  11.2%       11.7%      12.1%      11.7%      14.1%     10.6%     15.0%      8.1%     14.9%     10.8%    15.6%      7.7%
 Tax rate (% of pretax)                             28.0%       27.1%      27.9%      28.0%     29.1%      29.0%     29.0%     20.4%     28.0%     25.7%    28.3%     29.0%



 % Growth, YoY                                      2009        2010      2011E      2012E      1Q10       2Q10      3Q10      4Q10      1Q11      2Q11     3Q11     4Q11E
 Sales                                               -9.8%      13.4%      12.9%       7.7%     11.6%       4.8%     11.7%     23.2%     16.1%     20.1%    12.9%      5.6%
 Gross profit                                      -10.0%       12.9%      12.9%       7.7%       13%       12%       12%       15%       16%       17%      14%        6%
 SG&A                                                -9.0%      10.6%      11.4%       9.3%        7%        5%        9%       18%       12%       16%      12%        7%
 Operating income                                 -12.4%       18.7%      16.4%       4.0%       25%       36%       16%         4%      24%       22%      18%         0%
 Net income                                          -7.2%      20.8%      13.8%       4.0%       30%       44%       11%       12%       26%       25%      18%      -14%
 Diluted EPS                                         -6.2%      21.8%      14.4%       5.9%       28%       45%       13%       15%       29%       23%      17%      -13%



 BPs Change, YoY                                    2009        2010      2011E      2012E      1Q10       2Q10      3Q10      4Q10      1Q11      2Q11     3Q11     4Q11E
 Gross profit                                          (8)        (18)        1         (1)        39       257        (7)     (262)        3       (95)      44        10
 SG&A                                                  26         (70)       (36)       41       (109)       16       (63)     (116)      (87)     (110)     (22)       50
 Operating income                                    (33)         52         37       (42)       148       241        55      (146)       90        15       66       (40)


Source: Jefferies estimates, company data




page 9 of 17                                                                                  Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
      Consumer
      Target | Estimate Change

      January 17, 2012

Chart 7: WWW Sales Details
 Sales by Segment                                    2009     2010     2011E   2012E      1Q10     2Q10     3Q10     4Q10     1Q11    2Q11     3Q11    4Q11E
 Total Sales                                       1,101     1,249     1,409   1,518      285      258      320      385      331      310      362      407
   Outdoor                                            416      468       552     599       114       98      121      135      138      127      145      142
   Heritage Brands                                      --     455       501     534        94       89      120      151      111      103      128      159
   Lifestyle Group                                      --     183       206     221        51       35       46       51       52       42       55       57
   Other                                               12       13        16      16         3        3        3        4        3        4        4        5
   Other Business Units                               110      131       134     148        23       33       30       44       27       35       29       44



 Sales Growth, %                                     2009     2010     2011E   2012E      1Q10     2Q10     3Q10     4Q10     1Q11    2Q11     3Q11    4Q11E
 Total Sales                                         -10%      13%      13%       8%       12%       5%      12%     23%      16%      20%      13%        6%
   Outdoor                                            -3%      12%       18%      9%       16%       5%       6%      22%      22%      30%      20%       5%
   Heritage Brands                                      --        --     10%      7%         --       --       --       --     18%      15%       7%       5%
   Lifestyle Group                                      --        --     13%      7%         --       --       --       --      1%      17%      22%      13%
   Other                                              -6%        6%      24%      5%        6%      -28%      9%      43%      11%      45%      23%      20%
   Other Business Units                               -4%      19%        3%     10%       15%      17%      27%      18%      14%       5%      -5%       0%



 Backlog                                              424
   growth, %                                          19%                                  30%      38%      55%      38%      30%      13%       8%

Source: Jefferies estimates, company data




page 10 of 17                                                                          Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
         Consumer
         Target | Estimate Change

         January 17, 2012

Chart 8: FINL Income Statement
 ($ Millions, except per share amounts)              2010      2011     2012E     2013E       1Q11      2Q11     3Q11      4Q11     1Q12     2Q12     3Q12    4Q12E
 Total sales                                      $1,170     $1,229    $1,334    $1,388      $282      $301     $261      $385     $299     $332     $282     $421
 Cost of goods sold                                   794       815       866       895        188       201      179       246      196      215      191      264
 Gross profit                                         376       414       467       492         94       100       82       138      103      116       91      157
 SG&A                                                 300       301       331       347         72        73       75        81       77       83       82       90
 Operating income                                     76       113       136       145          22       27         7       57       27       34        9       67
 Interest income                                      0.3        0.5       0.5      0.4         0.1      0.2       0.2      0.1      0.1      0.1      0.1      0.1
 Pretax income                                         77       113       137       145         22        27        7        57       27       34        9       67
 Income taxes                                          30        42        52        55           9       10        3        21       10       13        3       25
 Net income                                           47         71        85       91          14       17         4       36       16       21        6       42
 Fully diluted EPS                                 $0.86      $1.32     $1.61     $1.75     $0.25      $0.31    $0.08     $0.67    $0.30    $0.39    $0.11    $0.81
 Fully diluted shares outstanding                    54.6       53.8      52.8     51.9        54.3     54.0      53.4     53.5     54.0     53.1     52.1     51.9


 % of Sales                                          2010      2011     2012E     2013E       1Q11      2Q11     3Q11      4Q11     1Q12     2Q12     3Q12    4Q12E
 Gross profit                                       32.2%      33.7%     35.0%     35.5%      33.3%     33.1%    31.4%     36.0%    34.5%    35.1%    32.3%    37.3%
 SG&A                                               25.6%      24.5%     24.8%     25.0%      25.4%     24.2%    28.9%     21.2%    25.6%    24.9%    29.2%    21.3%
 Operating income                                    6.5%      9.2%     10.2%     10.4%       7.9%      9.0%     2.5%     14.8%     8.9%    10.2%     3.1%    16.0%
 Tax rate (% of pretax)                             38.8%      37.5%     37.9%     37.5%      38.6%     38.1%    37.7%     36.7%    38.5%    38.1%    37.6%    37.5%



 % Growth, YoY                                       2010      2011     2012E     2013E       1Q11      2Q11     3Q11      4Q11     1Q12     2Q12     3Q12    4Q12E
 Sales                                               -3.3%      5.1%      8.5%      4.1%       9.0%      0.8%     8.7%      3.4%     6.0%    10.1%     8.1%     9.4%
 Gross profit                                        1.8%      10.0%     12.9%      5.4%       23%        5%      15%        4%      10%      17%      11%      13%
 SG&A                                                -5.7%      0.4%      9.9%      4.9%        -2%      -5%       6%        3%       7%      14%       9%      10%
 Operating income                                  48.1%      47.8%     21.0%      6.4%      642%       44% 25154%           4%     20%      25%      33%      18%
 Net income                                         49.2%      51.0%     20.1%      7.0%      677%       43%    13403%       8%      20%      24%      32%      17%
 Diluted EPS                                        47.8%      53.4%     22.4%      8.8%      679%       45%    13789%      10%      21%      26%      35%      20%



 BPs Change, YoY                                     2010      2011     2012E     2013E       1Q11      2Q11     3Q11      4Q11     1Q12     2Q12     3Q12    4Q12E
 Gross profit                                         161       152       136        44        380       122      183         4      121      195       90      130
 SG&A                                                 (65)     (113)       31        20        (291)    (148)      (68)     (10)      19       76       31       10
 Operating income                                    226       265       105        23        670       270      251        14      101      118       59      120



 Same store sales                                    2010      2011     2012E     2013E       1Q11      2Q11     3Q11      4Q11     1Q12     2Q12     3Q12    4Q12E
   SSS                                               -0.5%      6.3%      7.7%      5.0%      10.9%      2.0%    10.1%      4.0%     6.5%    11.0%     7.7%     6.0%


Source: Jefferies estimates, company data




page 11 of 17                                                                              Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
      Consumer
      Target | Estimate Change

      January 17, 2012


Company Description
Lululemon Athletica is a yoga-inspired athletic apparel retailer. Founded in 1998, Lululemon is headquartered in Vancouver, Canada where
it originated but is an American company incorporated in Delaware. The brand''s points of differentiation include grass roots community-
based marketing, a unique culture, innovative product development and tight distribution through an interactive store fleet. With ~$500m
in sales, Lululemon is an early-cycle retailer with growth opportunities which include domestic store expansion, new product launches and
economies of scale.

Quiksilver is the world's largest wholesaler of action sports inspired apparel and footwear. The company was co-founded in 1976 by Bob
McKnight (Chairman, CEO and President) and Jeff Hackman as the U.S. licensee of the Australian brand (which has since been acquired). The
company has since evolved into a diverse portfolio of leading brands, most notably Quiksilver (the namesake surf brand), Roxy (a juniors surf
brand started in 1991) and DC (a footwear/skate inspired company acquired in 2004). It operates across a diverse global distribution network
(60% of sales outside the U.S.) and sells into a wide range of retail channels ranging from core surf/skate shops to national department stores
to owned retail stores.

Deckers is a leading designer and wholesaler of footwear brands based in Goleta, California. The company's portfolio of brands includes
UGG, Teva, Simple, Tsubo and Ahnu.

Based out of Rockford, Michigan, Wolverine World Wide is a leading designer and wholesaler of casual, work and military footwear.
The company manages a portfolio of 11 brands (includes both owned and licensed brands), some which have a much larger presence
internationally than in the U.S. As a whole, the company is very well diversified across brand, distribution, geography, end use and customer
demographic. Merrell, part of the Outdoor Group, is the company's largest brand (just under 40% of sales) and most visible growth lever
over the next 3-5 year period. As an established leader in the outdoor footwear space, Merrell continues to embark on its strategy of extending
its lifestyle appeal into product adjacencies and the direct to consumer channel of distribution.

Finish Line is one of the leading retailers of athletic footwear in the U.S. with over 650 stores. The company sells to men, women and kids
across a variety of brands with Nike accounting for 61% of the product mix last year. The company also operates an e-commerce website,
finishline.com, which we estimate to represent 5-10% of sales.


Analyst Certification
I, Taposh Bari, CFA, CPA, certify that all of the views expressed in this research report accurately reflect my personal views about the subject
security(ies) and subject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific
recommendations or views expressed in this research report.
As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receives
compensation based in part on the overall performance of the firm, including investment banking income. We seek to update our research as
appropriate, but various regulations may prevent us from doing so. Aside from certain industry reports published on a periodic basis, the large majority
of reports are published at irregular intervals as appropriate in the analyst's judgement.
Jefferies & Company, Inc makes a market in the securities or ADRs of Lululemon Athletica.
Jefferies & Company, Inc makes a market in the securities or ADRs of Deckers Outdoor.
Jefferies & Company, Inc makes a market in the securities or ADRs of Finish Line.



Meanings of Jefferies Ratings
Buy - Describes stocks that we expect to provide a total return (price appreciation plus yield) of 15% or more within a 12-month period.
Hold - Describes stocks that we expect to provide a total return (price appreciation plus yield) of plus 15% or minus 10% within a 12-month period.
Underperform - Describes stocks that we expect to provide a total negative return (price appreciation plus yield) of 10% or more within a 12-month
period.
The expected total return (price appreciation plus yield) for Buy rated stocks with an average stock price consistently below $10 is 20% or more within
a 12-month period as these companies are typically more volatile than the overall stock market. For Hold rated stocks with an average stock price
consistently below $10, the expected total return (price appreciation plus yield) is plus or minus 20% within a 12-month period. For Underperform
rated stocks with an average stock price consistently below $10, the expected total return (price appreciation plus yield) is minus 20% within a 12-
month period.
NR - The investment rating and price target have been temporarily suspended. Such suspensions are in compliance with applicable regulations and/
or Jefferies policies.
CS - Coverage Suspended. Jefferies has suspended coverage of this company.
NC - Not covered. Jefferies does not cover this company.
Restricted - Describes issuers where, in conjunction with Jefferies engagement in certain transactions, company policy or applicable securities
regulations prohibit certain types of communications, including investment recommendations.

page 12 of 17                                                                      Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
      Consumer
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      January 17, 2012

Monitor - Describes stocks whose company fundamentals and financials are being monitored, and for which no financial projections or opinions on
the investment merits of the company are provided.

Valuation Methodology
Jefferies' methodology for assigning ratings may include the following: market capitalization, maturity, growth/value, volatility and expected total
return over the next 12 months. The price targets are based on several methodologies, which may include, but are not restricted to, analyses of market
risk, growth rate, revenue stream, discounted cash flow (DCF), EBITDA, EPS, cash flow (CF), free cash flow (FCF), EV/EBITDA, P/E, PE/growth, P/CF,
P/FCF, premium (discount)/average group EV/EBITDA, premium (discount)/average group P/E, sum of the parts, net asset value, dividend returns,
and return on equity (ROE) over the next 12 months.


Conviction List Methodology
       1. The aim of the conviction list is to publicise the best individual stocks ideas from the Jefferies Global Research.
       2. Only stocks with a Buy rating are allowed to be included in the recommended list.
       3. Stocks are screened for minimum market capitalisation and adequate daily turnover. Furthermore, a valuation, correlation and style screen
          is used to ensure a well-diversified portfolio.
       4. Stocks are sorted to a maximum of 30 stocks with the maximum country exposure at around 50%. Limits are also imposed on a sector basis.
       5. Once a month, analysts are invited to recommend their best ideas. Analysts’ stock selection can be based on one or more of the following:
          non-Consensus investment view, difference in earnings relative to Consensus, valuation methodology, target upside/downside % relative
          to the current stock price. These are then assessed against existing holdings to ensure consistency. Stocks that have either reached their
          target price, been downgraded over the course of the month or where a more suitable candidate has been found are removed.
       6. All stocks are inserted at the last closing price and removed at the last closing price. There are no changes to the conviction list during
          the month.
       7. Performance is calculated in US dollars on an equally weighted basis and is compared to MSCI World AC US$.
       8. The conviction list is published once a month whilst global equity markets are closed.
       9. Transaction fees are not included.
      10. All corporate actions are taken into account.

Risk which may impede the achievement of our Price Target
This report was prepared for general circulation and does not provide investment recommendations specific to individual investors. As such, the
financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions based
upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Past performance of
the financial instruments recommended in this report should not be taken as an indication or guarantee of future results. The price, value of, and
income from, any of the financial instruments mentioned in this report can rise as well as fall and may be affected by changes in economic, financial
and political factors. If a financial instrument is denominated in a currency other than the investor's home currency, a change in exchange rates may
adversely affect the price of, value of, or income derived from the financial instrument described in this report. In addition, investors in securities such
as ADRs, whose values are affected by the currency of the underlying security, effectively assume currency risk.




page 13 of 17                                                                      Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
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      January 17, 2012




page 14 of 17                                                                  Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
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      January 17, 2012




Distribution of Ratings
                                                                                                               IB Serv./Past 12 Mos.
                           Rating                                              Count          Percent            Count          Percent
  BUY                                                                            742           52.50%               107          14.42%
  HOLD                                                                           577           40.80%                61          10.57%
  UNDERPERFORM                                                                    94            6.70%                 2           2.13%

Other Important Disclosures

Jefferies Equity Research refers to research reports produced by analysts employed by one of the following Jefferies Group, Inc. (“Jefferies”) group
companies:

United States: Jefferies & Company, Inc., which is an SEC registered firm and a member of FINRA.
page 15 of 17                                                                          Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.
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United Kingdom: Jefferies International Limited, which is authorized and regulated by the Financial Services Authority; registered in England and
Wales No. 1978621; registered office: Vintners Place, 68 Upper Thames Street, London EC4V 3BJ; telephone +44 (0)20 7029 8000; facsimile +44 (0)20
7029 8010.

Hong Kong: Jefferies Hong Kong Limited, which is licensed by the Securities and Futures Commission of Hong Kong with CE number ATS546; located
at Suite 2201, 22nd Floor, Cheung Kong Center, 2 Queen’s Road Central, Hong Kong.

Singapore: Jefferies Singapore Limited, which is licensed by the Monetary Authority of Singapore; located at 80 Raffles Place #15-20, UOB Plaza 2,
Singapore 048624, telephone: +65 6551 3950.

Japan: Jefferies (Japan) Limited, Tokyo Branch, which is a securities company registered by the Financial Services Agency of Japan and is a member
of the Japan Securities Dealers Association; located at Hibiya Marine Bldg, 3F, 1-5-1 Yuraku-cho, Chiyoda-ku, Tokyo 100-0006; telephone +813 5251
6100; facsimile +813 5251 6101.

India: Jefferies India Private Limited, which is licensed by the Securities and Exchange Board of India as a Merchant Banker (INM000011443) and a Stock
Broker with Bombay Stock Exchange Limited (INB011438539) and National Stock Exchange of India Limited (INB231438533) in the Capital Market
Segment; located at 42/43, 2 North Avenue, Maker Maxity, Bandra-Kurla Complex, Bandra (East) Mumbai 400 051, India; Tel +91 22 4356 6000.

This material has been prepared by Jefferies employing appropriate expertise, and in the belief that it is fair and not misleading. The information set
forth herein was obtained from sources believed to be reliable, but has not been independently verified by Jefferies. Therefore, except for any obligation
under applicable rules we do not guarantee its accuracy. Additional and supporting information is available upon request. Unless prohibited by the
provisions of Regulation S of the U.S. Securities Act of 1933, this material is distributed in the United States ("US"), by Jefferies & Company, Inc.,
a US-registered broker-dealer, which accepts responsibility for its contents in accordance with the provisions of Rule 15a-6, under the US Securities
Exchange Act of 1934. Transactions by or on behalf of any US person may only be effected through Jefferies & Company, Inc. In the United Kingdom
and European Economic Area this report is issued and/or approved for distribution by Jefferies International Limited and is intended for use only by
persons who have, or have been assessed as having, suitable professional experience and expertise, or by persons to whom it can be otherwise lawfully
distributed. Jefferies International Limited has adopted a conflicts management policy in connection with the preparation and publication of research,
the details of which are available upon request in writing to the Compliance Officer. For Canadian investors, this material is intended for use only by
professional or institutional investors. None of the investments or investment services mentioned or described herein is available to other persons or
to anyone in Canada who is not a "Designated Institution" as defined by the Securities Act (Ontario). For investors in the Republic of Singapore, this
material is provided by Jefferies Singapore Limited pursuant to Regulation 32C of the Financial Advisers Regulations. The material contained in this
document is intended solely for accredited, expert or institutional investors, as defined under the Securities and Futures Act (Cap. 289 of Singapore).
If there are any matters arising from, or in connection with this material, please contact Jefferies Singapore Limited. In Japan this material is issued and
distributed by Jefferies (Japan) Limited to institutional investors only. In Hong Kong, this report is issued and approved by Jefferies Hong Kong Limited
and is intended for use only by professional investors as defined in the Hong Kong Securities and Futures Ordinance and its subsidiary legislation. In the
Republic of China (Taiwan), this report should not be distributed. In India this report is made available by Jefferies India Private Limited. In Australia this
information is issued solely by Jefferies International Limited and is directed solely at wholesale clients within the meaning of the Corporations Act 2001
of Australia (the "Act") in connection with their consideration of any investment or investment service that is the subject of this document. Any offer
or issue that is the subject of this document does not require, and this document is not, a disclosure document or product disclosure statement within
the meaning of the Act. Jefferies International Limited is authorised and regulated by the Financial Services Authority under the laws of the United
Kingdom, which differ from Australian laws. Jefferies International Limited has obtained relief under Australian Securities and Investments Commission
Class Order 03/1099, which conditionally exempts it from holding an Australian financial services licence under the Act in respect of the provision of
certain financial services to wholesale clients. Recipients of this document in any other jurisdictions should inform themselves about and observe any
applicable legal requirements in relation to the receipt of this document.

This report is not an offer or solicitation of an offer to buy or sell any security or derivative instrument, or to make any investment. Any opinion or
estimate constitutes the preparer's best judgment as of the date of preparation, and is subject to change without notice. Jefferies assumes no obligation
to maintain or update this report based on subsequent information and events. Jefferies, its associates or affiliates, and its respective officers, directors,
and employees may have long or short positions in, or may buy or sell any of the securities, derivative instruments or other investments mentioned or
described herein, either as agent or as principal for their own account. Upon request Jefferies may provide specialized research products or services
to certain customers focusing on the prospects for individual covered stocks as compared to other covered stocks over varying time horizons or
under differing market conditions. While the views expressed in these situations may not always be directionally consistent with the long-term views
expressed in the analyst's published research, the analyst has a reasonable basis and any inconsistencies can be reasonably explained. This material
does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual
clients. Clients should consider whether any advice or recommendation in this report is suitable for their particular circumstances and, if appropriate,
seek professional advice, including tax advice. The price and value of the investments referred to herein and the income from them may fluctuate. Past
performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange
rates could have adverse effects on the value or price of, or income derived from, certain investments. This report has been prepared independently of
any issuer of securities mentioned herein and not in connection with any proposed offering of securities or as agent of any issuer of securities. None
of Jefferies, any of its affiliates or its research analysts has any authority whatsoever to make any representations or warranty on behalf of the issuer(s).
Jefferies policy prohibits research personnel from disclosing a recommendation, investment rating, or investment thesis for review by an issuer prior
to the publication of a research report containing such rating, recommendation or investment thesis. Any comments or statements made herein are
those of the author(s) and may differ from the views of Jefferies.

This report may contain information obtained from third parties, including ratings from credit ratings agencies such as Standard & Poor’s. Reproduction
and distribution of third party content in any form is prohibited except with the prior written permission of the related third party. Third party content
providers do not guarantee the accuracy, completeness, timeliness or availability of any information, including ratings, and are not responsible for
any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such content. Third party content
providers give no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or
use. Third party content providers shall not be liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential
page 16 of 17                                                                        Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


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      January 17, 2012

damages, costs, expenses, legal fees, or losses (including lost income or profits and opportunity costs) in connection with any use of their content,
including ratings. Credit ratings are statements of opinions and are not statements of fact or recommendations to purchase, hold or sell securities. They
do not address the suitability of securities or the suitability of securities for investment purposes, and should not be relied on as investment advice.

Jefferies research reports are disseminated and available primarily electronically, and, in some cases, in printed form. Electronic research is
simultaneously available to all clients. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of
Jefferies. Neither Jefferies nor any officer nor employee of Jefferies accepts any liability whatsoever for any direct, indirect or consequential damages
or losses arising from any use of this report or its contents.

For Important Disclosure information, please visit our website at https://javatar.bluematrix.com/sellside/Disclosures.action or call 1.888.JEFFERIES

© 2012 Jefferies Group, Inc.




page 17 of 17                                                                     Taposh Bari, CFA, CPA, Equity Analyst, (212) 708-2712, TBari@jefferies.com


Please see important disclosure information on pages 12 - 17 of this report.

				
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