A version of the Brand Strategy Presentation using a watercolor theme.

1. BRAND STRATEGY

2. Detail of Key Initiative #1
Insight: Every business built as a portfolio needs a
business driver, where strong equity, long-term
sustainability, global potential allows for
continuous growth.
In our current group of brands,
Donna Karan is it.

3. Detail of Key Initiative #1
Key activities that need to be implemented to support
this initiative:
Financial impact FY09 to FY11:
Sales impact:
– Franchise growth planned at 5.3% from
09 to 11, excluding
color launch
– NOP margin impact:
– 4.8% NOP in F’08 to 7.9% by F’11,
excluding Color launch
– Color launch dilutive in first year, with
break-even after year 3, provided we
reach a productivity per door of $350 k
and we share demonstration with PX in
half of our doors. $960 k per door
required absent sharing arrangement
FY08:
• Solidify our winning franchises (Delicious and
Cashmere Mist)
• Expand distribution where relevant to generate
profitable sales
• Invest to secure our visibility in media and at POS (#
of doors)
FY09:
• Roll out DKNY Delicious Night and launch DKNY Man
• Continue to improve visibility and build “cathedrals”
with exclusive DK properties
FY10:
• Launch new DKNY woman franchise (Pure)
• Introduce DKNY color in limited (or exclusive)
distribution:

4. GLOBAL PRESTIGE FRAGRANCE COMPANIES
Men’s and Women’s Fragrances CY 2005 vs. 2006
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
CHANEL GIORGIO
ARMANI
DIOR CALVIN
KLEIN
HUGO BOSS ESTEE
LAUDER
LANCOME YSL JEAN PAUL
GAULTIER
GIVENCHY
$'000
2005 2006
Source: NPD CY05 & 06, Generations CY05 & 06, European Forecasts CY05 & 06 (Worldwide Net Sales)

5. ADF Overview
% Contribution by Brand F'05
35%
38%
16%
5%
4% 1% 1%
Donna Karan Tommy Hilfiger

6. Thank You