1. 2014 2H Platform Roadmap July 30, 2014

2. Agenda Biz Ops Fulfillment Center Customer Experience Payments and Fraud Tech Infrastructure

3. 2H 2014 Biz Ops Platform What is Biz Ops? ConceptPublished WORKFLOW + REPORTING + PLANNING + FINANCE

4. 2H 2014 Biz Ops Platform

5. Why work on it? – 50+ New Arrivals Daily, 5000+ designs a year HARD! – Quality and Consistency of Product – Reduce Time to Market “Enable the Product Development team to focus on quality and quantity of designs and not struggling with data and communication”

6. 2H 2014 Biz Ops Platform 2014 2H Goals “Improve Foundation” – Data integration – the beginnings of PLM – Data integrity on product, inventory and financials – Reduce Data Redundancy – Enable better/easier Reporting and Planning

7. 2H 2014 Biz Ops Platform Improve Foundation – Unified Merchandise Hierarchy Single source of truth Data integrity on product, inventory and financials Reduce Data Redundancy – SKU infrastructure Connect Style to SKU Decouple attributes from SKU

8. 2H 2014 Biz Ops Platform Improve Foundation – Product Lifecycle Management Integrating data flow from D&M to PO’s – Reduce time lost in pre-production – Better visibility of complete lifecycle – Reduce Errors Invoice layer in Admin – Product tracking and receiving – Track ELC vs ALC

9. 2H 2014 Biz Ops Platform Workflow Efficiencies (LHF) – New PO Layout Remove redundant work Become legal binding document – Flow Code Better planning – Misc D&M enhancements

10. 2H 2014 FC Platform 2H 2014 Goals Not ready for Multi-FC “Continue improving Foundation! Get Better!” – Inventory Accuracy 5-10% to CNF (Secondary Pick) still too high 96.8% Order fulfilled rate can be improved – Ability to effectively support more inventory – Quantification of processes

11. 2H 2014 FC Platform Inventory Accuracy Phase 2 – Cycle Count Program What do we cycle count? How do we handle the variance? – Mobile scanning New FC layout Support – Fall Receipts coming Mid August Quantification – Put tracking in place

12. 2H 2014 Customer Experience Platform 2014 2H Goals “Build Fully Native iOS experience” – Why fully native? Mobile orders already 20%. Will be 50%+ Better User Experience – Improve Time in App, Conversion Improved Performance – Minimize design scope

13. 2H 2014 Customer Experience Platform 1.1 iOS Release? E-commerce and Customer Care Projects – Complete some “on deck” projects during 2.0 Design Phase

14. 2H 2014 Payments and Fraud Platform 2H 2014 Goals “Continue on The Road to PCI compliance” – Connect Month Close Financial Reporting with Chase – Customer Profiles (Tokenization) and Hosted Pay Form Reduce our liability Simplify and PCI compliance validation – Complete PCI Compliance for Merchant Level 3

15. 2H 2014 Payments and Fraud Platform PayPal (still evaluating) Fraud Screener

16. 2H 2014 Tech Infrastructure 2H 2014 Goals “Always Up” – Remove Single Points of Failure – External API Integration for all core external services

17. 2H 2014 Tech Infrastructure 2H 2014 Goals “Always Delivering Product” – Replace 8 years old Stop Gap with real process – Secure Production credentials from source control – Segment application ensuring one platform does not break another

18. Summary