Slide 1: Investor Presentation July 2021
INVESTOR PRESENTATION July 2021
Slide 2: Forward-Looking Statement
Some information provided in this document will be forward-looking, and accordingly, is subject to the Safe Harbor provisions of the federal securities laws. These statements include, but are not limited to, statements regarding potential impacts to our business related to our commitment and ability
Slide 3: Content
• Our Vision & Values CONTENT • Global Business Update • Positioned for Global Growth • Financial Results • Appendix 3
Slide 4: Our Vision: Everyone comfortable in their own shoes
OUR VISION Everyone comfortable in their own shoes 4
Slide 5: Our Values: The Path We Choose to Walk
OUR VALUES The Path We Choose to Walk INHERENT DELIGHTFULLY PEOPLE-PURPOSED SIMPLICITY DEMOCRATIC DESIGN We know smart doesn’t have to We celebrate one-of-a-kinds We think people-first at every mean complicated. So we keep and stand together with all step. We design for everything things simple, lig
Slide 6: Global Business Update
GLOBAL BUSINESS UPDATE “ We continue to see strong consumer demand for the Crocs brand globally. On the back of record second quarter results and continued momentum, we are raising our full year 2021 guidance. We are also committing to net zero emissions by 2030, enabling us to provide ‘comfort with
Slide 7: Q2 Highlights
GLOBAL BUSINESS UPDATE Q2 Highlights • Third consecutive quarter of record revenue • Revenue of $641M, +93% and +79% vs. PY and 2019, respectively ◦ Americas +136% vs. PY ◦ EMEA +63% vs. PY ◦ Asia Pacific +36% vs. PY ◦ DTC +79% vs PY and 52% of revenues ◦ WHL +112% vs PY and of 48% revenues ◦ Sandal
Slide 8: Net Zero by 2030
GLOBAL BUSINESS UPDATE Net Zero by 2030 Transitioning to Sustainable Ingredients Minimizing the Impact of Packaging • Carbon footprint per pair of shoes produced is already low(1) • By the end of 2021 Crocs will be a 100% vegan brand • 85% of all products were sold without shoe boxes in 2020 • Final
Slide 9: Fueling Brand Strength Globally
GLOBAL BUSINESS UPDATE Fueling Brand Strength Globally #2 in Fast Company's Most Innovative Joint Ventures of 2021 "Any brand that can collaborate with both Peeps, the sugar- coated marshmallow treat, and Bad Bunny, the Puerto Rican rapper and songwriter, has range" 99
Slide 10: Best in Class Marketing Activations
GLOBAL BUSINESS UPDATE Best in Class Marketing Activations TikTok Foot Locker #Hashtags User Generated Content #GetCrocd #CrocsChallenge Source: TikTok 10
Slide 11: Best in Class Marketing Collaborations
GLOBAL BUSINESS UPDATE Best in Class Marketing Collaborations Drive further brand heat and relevance with vast collaborations range Notable Q2 collaborations: • Balenciaga • Little Big • Nongshim • Palace Skateboards Source: Instagram 11
Slide 12: Continued Strength in Digital
GLOBAL BUSINESS UPDATE Continued Strength in Digital • Digital commerce growth of 25% vs PY and 99% growth vs Q2 2019 • Digital sales for Q2 now represent 36% of total sales Q2 Digital Penetration Q2 2019 Q2 2020 Q2 2021 12
Slide 13: Exceptional Second Quarter Results
GLOBAL BUSINESS UPDATE Exceptional Second Quarter Results '21 vs. '20 +93% +660bps +840bps +121% '21 vs. '19 +79% +820bps +1640bps +278% Q2 2019 Q2 2020 Q2 2021 * Note: USD millions for Revenue. Revenue growth is on a reported basis. 13
Slide 14: Positioned for Global Growth
POSITIONED FOR GLOBAL GROWTH Key Powerful Social & Digital-Led Largest Long-Term Product Pillars Digital Marketing Route to Market Growth Opportunity in Asia Clogs: Innovate & grow clog Digital and social focus globally Digital: Significant long-term Asia: Largest long-term growth relevance growth o
Slide 15: Innovate and Grow Clog Relevance
POSITIONED FOR GLOBAL GROWTH Innovate and Grow Clog Relevance • Crocs is the market leader, with the opportunity to grow the category • Crocs clog revenues +101% in Q2 2021 to 74% of footwear sales vs. 68% in Q2 2020 • Key drivers of clog growth and relevance are: ◦ Impactful collaborations across t
Slide 16: Significant Long-Term Growth Potential in Sandals
POSITIONED FOR GLOBAL GROWTH Significant Long-Term Growth Potential in Sandals • Fragmented market with no clear leader • Higher purchase frequency to address multiple wearing occasions • Crocs opportunity is to grow market share • Consistent track record of growth ◦ Sandal growth of +57%, encompass
Slide 17: Capitalize on Personalization Trend with Jibbitz Charms
POSITIONED FOR GLOBAL GROWTH Capitalize on Personalization Trend with JibbitzTM Charms ◦ Personalization is a global megatrend ◦ Optimistic story-telling and personalization ◦ Drives relevance for the Crocs brand ◦ Offers newness and inspiration at a compelling price point ◦ Supports clog and sandal
Slide 18: Digital-Led Route to Market
POSITIONED FOR GLOBAL GROWTH Digital-Led Route to Market Direct-to-consumer Wholesale Company-operated full-price Third-party e-tailers Distributors, multi- retail and outlet stores, Crocs.com marketplaces (e.g., Amazon, brand, and brick-and- kiosks, and store-in-store (e.g., eBay) Zappos, Zalando)
Slide 19: Largest Long-Term Growth Opportunity in Asia
POSITIONED FOR GLOBAL GROWTH Largest Long-Term Growth Opportunity in Asia Asia: greatest opportunity long-term • Leverage tier 1 celebrities and influencers • Developing local-for-local production, marketing and collaborations • Strong digital growth supported by participation on key marketplace pla
Slide 20: Q2 Financial Results
FINANCIAL RESULTS Q2 Financial Results Q2 vs. PY Revenue ($M) $640.8 +88%* Gross Margin 61.7% +740 bp Non-GAAP Gross Margin** 61.8% +660 bp Non-GAAP SG&A as % of 31.2% +180 bp Revenue** Operating Margin 30.5% +1,340 bp Non-GAAP Operating Margin** 30.7% +840 bp Diluted EPS $4.93 +494% Non-GAAP Dilute
Slide 21: YTD Financial Results
FINANCIAL RESULTS YTD Financial Results Q2 YTD vs. PY Revenue ($M) $1,100.9 +75.6%* Gross Margin 58.9% +760 bp Non-GAAP Gross Margin** 59.1% +720 bp Non-GAAP SG&A as % of 29.8% +580 bp Revenue** Operating Margin 29.1% +1,650 bp Non-GAAP Operating Margin** 29.3% +1,300 bp Diluted EPS $6.35 +541% Non-
Slide 22: Raised FY2021 Guidance
FINANCIAL RESULTS Raised FY2021 Guidance Q3 2021E FY 2021E Revenue Growth 60% - 70% 60% - 65% Non-GAAP Gross Margin Adj. $3M $8 - $10M Non-GAAP Operating Margin 24% - 26% ~25% Non-GAAP Tax Rate ~23% Capital Expenditures $80M - $100M Source: Image from Nasdaq 22
Slide 23: Appendix
APPENDIX 23
Slide 24: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Non-GAAP cost of sales, gross profit, and gross margin reconciliation: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) GAAP revenues $ 640,773 $ 331,549 $ 1,100,871 $ 612,709 GAAP cost of sales $ 245,592 $ 151,616 $ 452,471 $ 298,614 N
Slide 25: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) GAAP revenues $ 640,773 $ 331,549
Slide 26: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP income from operations and operating margin reconciliation: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) GAAP revenues $ 640,773 $ 331,549 $ 1,100,871 $ 612,709 GAAP income from operations $ 195,322 $ 56,595 $ 320,
Slide 27: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP income tax expense (benefit) and effective tax rate reconciliation: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) GAAP income from operations $ 195,322 $ 56,595 $ 320,008 $ 77,407 GAAP income before income taxes 190
Slide 28: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP earnings per share reconciliation: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except per share data) Numerator: GAAP net income $ 318,954 $ 56,551 $ 417,352 $ 67,642 Non-GAAP cost of sales adjustments (1) 1,115 3
Slide 29: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Reconciliation of GAAP to Non-GAAP Financial Guidance: Third Quarter 2021: Approximately: Non-GAAP operating margin reconciliation: GAAP operating margin 23% to 25% Non-GAAP adjustments associated with distribution center investments 1% Non-GAAP operating margin 24%
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