Page 31-32

The Company has not given evidence related to apparel overstock but it has mentioned about material overstock, hence considered.

pg, 31-32

Throughout our production process, we sample many fabrics, leathers and materials to ensure that our handbags, accessories and clothes fit our high quality standards. Inevitably, we have a surplus of sample materials that are often in the form of full rolls, and occasionally, scraps. To avoid sending material to a landfill, we partner with the following organizations at our headquarters and offices: Materials for the Arts (MFTA), Fabscrap and ReFashioNYC.

• MFTA is a New York-based rescue center that allows companies and individuals to donate unneeded supplies to thousands of nonprofit organizations with arts programming and public schools.

• Fabscrap, a New York-based 501(c)3 charitable organization, recycles fabric scraps, cuttings, mock-ups and samples.

• ReFashioNYC is a New York City initiative to remove textile waste from landfills.