This supplemental CLV worksheet provides the basic framework for evaluating the profitability of various

retail business model scenarios for the business case: Wildfang

 Business Model Private Label B&C Model

Annual
Customer Cohort and Purchase
Primary Acquisition Channel % of Portfolio AOV Frequency

Fashion Engaged Online 25% $ 1 1

Fashion Engaged Walkin 25% $ 1 1
Core Loyalists - Social Media 25% $ 1 1
WF Exclusive - Online and Retail Walk-in 25% $ 1 1
Blended Portfolio Assumptions $ 1.0 $ 1.0

NOTE: CLV Model assumptions included in

Wildfang case detail and Exhibit 6-7

INPUT FIELDS HIGHLIGHTED IN

YELLOW
Business Model Churn Rate Direct Revenue % Royalty Fee
Gross Margin (yr-yr as % of AOV * Revenue: (15% of
Benchmark CCA inactivity) Freq AOV * Frequency)

0.2 $10.00 10% 100% 0.0%

0.2 $10.00 10% 100% 0.0%
0.2 $10.00 10% 100% 0.0%
0.2 $10.00 10% 100% 0.0%
$ 0.20 $ 10.00 10% 100% 0%
 Active
Private Label Shoppers
B&C Model
Fashion Engaged -
Online 10,000

Years as a Wildfang Customer Segment Size Retention Rate Retained Customers

1 2,500 1 2500
2 0.9 2250
3 0.9 2025
4 0.9 1823
5 0.9 1640

Fashion Engaged -
Walkin

Years as a Wildfang Customer Segment Size Retention Rate Retained Customers

1 2,500 1 2500
2 0.9 2250
3 0.9 2025
4 0.9 1823
5 0.9 1640.3

Core Loyalists
Years as a Wildfang Customer Segment Size Retention Rate Retained Customers
1 2,500 1 2500
2 0.9 2250
3 0.9 2025
4 0.9 1823
5 0.9 1640

WF EXCLUSIVE

Years as a Wildfang Customer Segment Size Retention Rate Retained Customers

1 2,500 1 2500
2 0.9 2250
3 0.9 2025
4 0.9 1823
5 0.9 1640

Private
Label B&C
Model

Blended
Portfolio

Years as a Wildfang Portfolio Size Retained Customers

1 10,000 10,000
2 9,000
 3 8,100
4 7,290
5 6,561

ASSUMPTION: Retention based on annual repurchase

Retention = 1 churn
If Churn = 30%, Average Life =(1/.3) = 3.33 Years
 Inactive BENCHMARK Segment
"Churn" Gross Margin CAC

10% 0.2 $ 10

AOV Freq Revenue COGS

$ 1 1.00 $ 2,500 $ 2,000
$ 2,250 $ 1,800
$ 2,025 $ 1,620
$ 1,823 $ 1,458
$ 1,640 $ 1,312

BENCHMARK Gross
Inactive 'churn' Margin Segment CAC

10% 0.2 $ 10

AOV Freq Revenue COGS

$ 1 1.00 $ 2,500 $ 2,000
$ 2,250 $ 1,800
$ 2,025 $ 1,620
$ 1,823 $ 1,458
$ 1,640 $ 1,312

BENCHMARK Gross
Inactive 'churn' Margin Segment CAC
10% 0.2 $ 10
 AOV Freq Revenue COGS
$ 1 1.00 $ 2,500 $ 2,000
$ 2,250 $ 1,800
$ 2,025 $ 1,620
$ 1,823 $ 1,458
$ 1,640 $ 1,312

BENCHMARK Gross
Inactive 'churn' Margin Segment CAC
10% 0.2 $ 10

AOV Weighted Freq Revenue COGS

$ 1 1.00 $ 2,500 $ 2,000
$ 2,250 $ 1,800
$ 2,025 $ 1,620
$ 1,823 $ 1,458
$ 1,640 $ 1,312

BLENDED
Inactive BLENDED Gross BLENDED
'churn' Margin CAC

10% 20% $ 10.00

Blended
Blended AOV Purchase Freq Rev (000) COGS (000)
$ 1 1.00 10 $ 8
9 $ 7
8 $ 6
7 $ 6
7 $ 5
 Cost of Funds:
Discount Rate

0.12

Adjusted
Contribution NPV of future cash Discounted Cash Cumulative Cash
Margin flows CAC Flows Flow CLV
$ 500 $ 500 $ 25,000 $ (24,500) $ (24,500) $ (10)
$ 450 $ 402 $ 402 $ (24,098) $ (10)
$ 405 $ 323 $ 323 $ (23,775) $ (10)
$ 365 $ 259 $ 259 $ (23,516) $ (9)
$ 328 $ 208 $ 208 $ (23,307) $ (9)

Cost of Funds:
Discount Rate

0.12

Adjusted
Contribution
Margin NPV of future cash Discounted Cash Cumulative Cash
[Rev- COGS] flows CAC Flows Flow CLV
$ 500 $ 500 $ 25,000 $ (24,500) $ (24,500) $ (10)
$ 450 $ 402 $ 402 $ (24,098) $ (10)
$ 405 $ 323 $ 323 $ (23,775) $ (10)
$ 365 $ 259 $ 259 $ (23,516) $ (9)
$ 328 $ 208 $ 208 $ (23,307) $ (9)

Cost of Funds:
Discount Rate
0.12
 Adjusted
Contribution
Margin NPV of future cash Cost Acquiring Discounted Cash Cumulative Cash
[Rev- COGS] flows Customer (CAC) Flows Flow CLV
$ 500 $ 500 $ 25,000 $ (24,500) $ (24,500) $ (10)
$ 450 $ 402 $ 402 $ (24,098) $ (10)
$ 405 $ 323 $ 323 $ (23,775) $ (10)
$ 365 $ 259 $ 259 $ (23,516) $ (9)
$ 328 $ 208 $ 208 $ (23,307) $ (9)

Cost of Funds:
Discount Rate
0.12

Adjusted
Contribution
Margin NPV of future cash Cost Acquiring Discounted Cash Cumulative Cash
[Rev- COGS] flows Customer (CAC) Flows Flow CLV
$ 500 $ 500 $ 25,000 $ (24,500) $ (24,500) $ (10)
$ 450 $ 402 $ 402 $ (24,098) $ (10)
$ 405 $ 323 $ 323 $ (23,775) $ (10)
$ 365 $ 259 $ 259 $ (23,516) $ (9)
$ 328 $ 208 $ 208 $ (23,307) $ (9)

Cost of Funds:
Discount Rate

0.12

Adj Contribution
Margin NPV of future cash Cost Acquiring Discounted Cash Cumulative Cash
(000) flows (000) Customer (000) Flows (000) Flow (000) CLV (000)
$ 2 $ 2 $ 100 $ (98) $ (98) $ (10)
$ 2 $ 2 $ 2 $ (96) $ (10)
$ 2 $ 1 $ 1 $ (95) $ (10)
$ 1 $ 1 $ 1 $ (94) $ (9)
$ 1 $ 1 $ 1 $ (93) $ (9)