Deckers Outdoor Corporation · NYSE:DECK
Deckers Outdoor — Investor Presentation (October 2014)
36 slides from Deckers Outdoor's investor presentation, October 2014
Slide 1: Investor Presentation October 2014
Investor Presentation October 2014
Slide 2: Safe Harbor Language
SAFE HARBOR LANGUAGE We make forward-looking statements in this presentation which represent our expectations or beliefs about future events and financial performance. Forward- looking statements are identifiable by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and
Slide 3: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Driving growth through our Omni-Channel business • Significant untapped international potential • Investing in our brands and Omni-Channel strategy • Introducing innovation across our product lines • Leveraging our brands across multiple consumer segments • Business model
Slide 4: Fiscal Year 2015 Guidance
FISCAL YEAR 2015 GUIDANCE* • Total revenues to increase approximately 15.0% over twelve month period ended March 31, 2015 – UGG revenue up 14% – Teva revenue up low double digits – Sanuk revenue up low double digits – Other brand revenue ~$82.0 million compared to $48.6 million • Gross profit margin
Slide 5: Growth Strategy: 4 Primary Initiatives
GROWTH STRATEGY: 4 PRIMARY INITIATIVES 1 BUILD 2 EXPAND 3 INNOVATE 4 GROW Build UGG Expand Omni- Drive innovation Grow success globally Channel business across our Teva, Sanuk business & HOKA and evolve Omni-Channel capabilities 5
Slide 6: Building on UGG Success
BUILDING ON UGG SUCCESS Focus on Marketing with Global Infuse Newness in Expand Women’s Casuals & Campaign: “This is UGG” Women’s Heritage Casual Boots Drive Growth in Grow UGG for Men New Categories 6
Slide 7: This is UGG
THIS IS UGG • First global brand marketing campaign • Connects with consumers on a emotional level and positions UGG as a year round, premium lifestyle brand • Shows how the brand fits into consumer’s lives – in smaller moments that are actually the biggest – the moments that feel like nothing else
Slide 8: Infuse Newness in Women's Heritage
INFUSE NEWNESS IN WOMEN’S HERITAGE • Newness in boots provides a reason to buy each season - Introducing new collections with a wider assortment of exclusive designs, custom materials and prints • Newness in slippers provides a reason to buy/gift year round: - Introducing new styles and colors sever
Slide 9: Expand Fall Women's Casuals & Casual Boots
EXPAND FALL WOMEN’S CASUALS & CASUAL BOOTS • For Fall ’14 focused on improved styling, shaper price points, and also utilizing UGGpure in the sock and linings of our Casual Boots - Price points range from $120 - $250 with key focus on $150 - $200 - Focus on regional relevant product and comfort stor
Slide 10: Grow UGG for Men
GROW UGG FOR MEN • Men’s business has grown 150% since launching the partnership with Tom Brady 4 years ago • Focus on innovating and creating new entry points for the male customer - Twinsole dual footbed insert is helping drive non-slipper business growth - Treadlite by UGG™, a proprietary midsole
Slide 11: Continue Success in Kids
CONTINUE SUCCESS IN KIDS • Kid’s represents approximately 15% of revenues • Emerged as a major player in the category • Reinforces UGG as a premium lifestyle brand for all ages 11
Slide 12: Drive Growth in New Categories
DRIVE GROWTH IN NEW CATEGORIES • The Duffield is the best selling robe in Nordstrom, Neiman, and Bloomingdales, and the Men’s Colton pant is the number one loungewear piece in Men’s at Nordstrom • Loungewear SKU count expected to grow significantly from 9 SKUs in 2012 to close to 200 for Fall/Holida
Slide 13: I Heart UGG
I HEART UGG • New brand created for girls age 9-13 that blends a fun, youthful tween aesthetic with the iconic comfort of UGG • Vibrant, playful product at accessible price points • Targeted media strategy focused on engaging tweens and reaching moms through key placements and activations • Market o
Slide 14: I Heart UGG Distribution
I HEART UGG DISTRIBUTION • Sold on iheartugg.com, limited UGG flagship stores, and select wholesale partners • Two dedicated stores in Waikiki, HI and San Francisco, CA 14
Slide 15: Omni-Channel
DECKERS 4 —BRANDS—~=
Slide 16: Omni-Channel Highlights
OMNI-CHANNEL HIGHLIGHTS • Opened 36 UGG stores in 2013 including 24 in Asia • Expect to open approx. 30 retail stores and as many as 10 partner retail stores in 2014 • Compelling store economics • Upgraded leadership in key markets • Evolving the in-store experience • Expanding E-Commerce capabiliti
Slide 17: Store Count as of 9/30/2014
STORE COUNT AS OF 9/30/2014 Location Concept Outlet Total US 25 22 47 China 29 8 37 Japan 16 7 23 EMEA 11 6 17 Canada 2 2 4 Hong Kong 2 0 2 Total 85 45 130 17
Slide 18: Compelling Store Economics
COMPELLING STORE ECONOMICS • Average store is approximately 2,700 square feet • $1,200 sales per square foot for all stores open 12 months • Average Store Investment = approximately $1MM • Going forward: Smaller stores and lower CapEx investment 18
Slide 19: Key Omni-Channel Technology Initiatives
KEY OMNI-CHANNEL TECHNOLOGY INITIATIVES Endless Aisle (Infinite UGG) • Shop extended assortment of products that are either sold out in-store or not carried in-store • Creates ability to captures lost sales in-store, saves costs on in-store inventory and increases customer interaction • Currently in
Slide 20: Evolving UGG Store Experience: Tyson's Galleria
EVOLVING UGG STORE EXPERIENCE: TYSON’S GALLERIA • New initiatives including: RFID technology and interactive displays, traffic counting system, customer WIFI, and tablet-based point of sales • New fixture plan featuring modern design and lighter colors • Smaller store footprint (approx. 2,100 sq. ft
Slide 21: Expanding E-Commerce Capabilities
EXPANDING E-COMMERCE CAPABILITIES • Increasing UGG By You customization to include more SKUs and launching in Japan for Fall ‘14 • Launched NA sites for HOKA, I HEART UGG • Created new sites for UGG, Sanuk and Teva and implemented flash sale capabilities • Displaying UGG store inventory online • Lau
Slide 22: Honolulu Expansion
HONOLULU EXPANSION 22
Slide 23: Woodbury Outlet
WOODBURY OUTLET — IDBECOZY SS. 4h88 hae
Slide 24: Madison Avenue, New York
MADISON AVENUE, NEW YORK 24
Slide 25: Piccadilly
PICCADILLY - - ECKERS BDECKERS
Slide 26: EMEA Progress and Initiatives
EMEA PROGRESS AND INITIATIVES • Acquired distribution rights for the UGG brand in Germany on July 1, 2014 and searching for retail locations • Launched UGG E-Commerce sites in Italy and Germany in August ‘14 • Successful re-launch of responsive websites which has led to growth in France and EU onlin
Slide 27: Shibuya Concept Store
27 —_ ~<iP.* SHIBUYA CONCEPT STORE Tey — Sasa et — | ol w= am $ = Loo z ~~ ' , | ' | a ) = 4 — ‘ i . = . —_ 44 tay ) oe o-F wise tt / \ rs ali" ’ aA = pin ey ati | Westerns — BRANDS —
Slide 28: APAC Progress and Initiatives
APAC PROGRESS AND INITIATIVES • Fastest growing region led by China and Japan • Q1 2015 DTC comps increased 38% • UGG retail the major driver of recent success with up to 20 store openings planned in 2014 • Organizational investments in place and yielding positive returns • Significant untapped oppo
Slide 29: Significant Growth Opportunity
SIGNIFICANT GROWTH OPPORTUNITY Outdoor / Lifestyle Active Lifestyle / Running Brand Brand Casuals Brand Key Competitors: Key Competitors: Key Competitors: 29
Slide 30: Teva
TEVA 30
Slide 31: Growth Strategy: Teva
GROWTH STRATEGY: TEVA • Strengthening core product strategy through the Originals sandal collection, Fundamentals a new casual collection with focus on women • Q1 2015 comps sales growth of 25.7% • Originals highlighted as a key fashion item in numerous media outlets including Good Morning America a
Slide 32: Sanuk
~S ae , (RS | = us is yg if > Tews ies, - gS)| ry, i . day : B. aes ic? : . _— =e ja i ee SS CL)
Slide 33: Growth Strategy: Sanuk
GROWTH STRATEGY: SANUK • Leverage strength and authenticity in Action Sports Surf to expand in new frontiers and speak to new audiences • The Sandal and Casual categories are established and building each season • Expand product offering and aggressively target growth in casual canvas category • Foc
Slide 34: HOKA ONE ONE
HOKA ONE ONE 34
Slide 35: Growth Strategy: HOKA ONE ONE
GROWTH STRATEGY: HOKA ONE ONE • Created new category in specialty running; the oversized running shoe • Leveraging authenticity in ultra-marathon community, attracting key influencers to support expansion among mainstream running population • Expanding product offering to include a wider range of sh
Slide 36: Deckers Brands
« “a 2 a uGS iv Tea (RD ahnvgé wena: | 9 Mozo DECKERS — BRANDS —
Deckers Outdoor — Investor Presentation (October 2014) on 6ix