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16. Investor Michael Green in “A Designer Takes Stock,” by Teri Agins, The Wall Street Journal, Nov. 14, 1996.
17. Editor Alan Millstein from Tom Lowry, “Donna Karan Earnings Unravel,” USA Today, Oct. 30, 1996, p. 3B.
929
Case: Donna Karan International Inc.




199
Part 4 Additional Cases




EXHIBIT 1
Donna Karan International Inc., Sources of Revenue, 1995 and 1996
($ in millions)

1995 Product Categories Revenue 1995 Geographic Categories Revenue
..................................................................................................................................................
Donna Karan New York Collection




Donna Karan International
(women) $77 United States $301
DKNY (women) $271 Japan $64
Donna Karan New York Collection
(men) $40 Europe and the Middle East $57
DKNY (men) $37 Asia (excluding Japan) $23
Beauty products $30 Other markets $10
Outlet stores and licensing $55

1996 Product Categories Revenue 1996 Geographic Categories Revenue
..................................................................................................................................................
Donna Karan New York Collection
(men & women) $123 United States $342
DKNY (men & women) $378 Japan $76
Beauty products $44 Europe and Middle East $73
Outlet stores and licensing $68 Asia (excluding Japan) $36
Other markets $18
..................................................................................................................................................
Source: Donna Karan International Prospectus and Annual Report, 1996.
Donna Karan International
930




200


EXHIBIT 2
Retail Prices for Selected Collections™ Items (DKNY brands post-restructuring)

Skirts & Shirts, Body- Dresses (non-
Apparel Collections Jackets Trousers suits, & Sweats eveningwear) Suits Sportscoats
.........................................................................................................................................................................................
Women:
Donna Karan New York Collection $1,200-1,800 $400-900 $300-600 $650-1,200
Donna Karan New York Signature $750-1,100 $300-600 $200-400 $500-950
D $415-625 $195-375 $100-295 $225-450
Part 4 Additional Cases
Case: Donna Karan International Inc.




DKNY $295-425 $140-225 $165-175 $175-225
DKNY Classic $220-365 $105-175 $45-130 $130-175
DKNY Active $95-225 $55-85
DKNY Jeans $115-225 $45-125 $65-115
Men:
Donna Karan New York Collection $300-400 $1,350-1,850 $950-1,750
Donna Karan New York Signature $225-275 $875-995 $595-750
DKNY $65-290 $550-1,200 $250-450

Accessory Collections Handbags Belts Hats Jewelry Leather Goods
.........................................................................................................................................................................................
Donna Karan New York $350-1500 $80-250 $200-800 $75-300
DKNY $40-525 $15-175 $15-150
Shoes
.........................................................................................................................................................................................
Donna Karan New York (women) $110-700
DKNY (women) $50-400
Donna Karan New York (men) $275-600
DKNY (men) $75-295

Beauty Products
.........................................................................................................................................................................................
Priced between $15 and $375 with median product prices at $85 and below.
.........................................................................................................................................................................................
Sources: Donna Karan International Prospectus; Annual Report 1996; and Donna Karan International Inc.
931
Case: Donna Karan International Inc.




201
Part 4 Additional Cases




EXHIBIT 3
Donna Karan International Stock Price vs. S&P 500,
June 28, 1996, to March 31, 1997 (Both indexed to 1.00 as of 6/28/96)
1.40

S&P 500
1.20




Donna Karan International
1.00



0.80



0.60



0.40 Donna Karan


0.20



0.00
6/28/96

7/9/96

7/18/96

7/29/96

8/7/96

8/16/96

8/27/96

9/5/96

9/16/96

9/25/96

10/4/96

10/15/96

10/24/96

11/4/96

11/13/96

11/22/96

12/3/96

12/12/96

12/23/96

1/1/97

1/10/97

1/21/97

1/30/97

2/10/97

2/19/97

2/28/97

3/11/97

3/20/97

3/31/97
As of June 28, 1996: As of March 31, 1997:
T-Bill 5.16% T-Bill 6.02%
T-Note 5.69% T-Note 6.92%
Donna Karan stock price $28 Donna Karan stock price $9.63
S&P 500 670.63 S&P 500 757.12
Beta vs. S&P 500 1.28 Beta vs. S&P 500 1.05

Source: Datastream International, Bloomberg.
932 Case: Donna Karan International Inc.




202 Part 4 Additional Cases




EXHIBIT 4
Donna Karan International Stock Price Indexed to Competitors,
June 28, 1996, to March 28, 1997 (Indexed to 1.00 as of 6/28/96)
1.40
Gucci
1.20
Donna Karan International




1.00


0.80

Hilfiger
0.60

Ann Taylor
0.40
Donna Karan
0.20


0.00
6/28/96

7/9/96

7/18/96

7/29/96

8/7/96

8/16/96

8/27/96

9/5/96

9/16/96

9/25/96

10/4/96

10/15/96

10/24/96

11/4/96

11/13/96

11/22/96

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