Slide 1: Q1 2024 Investor Presentation
Q1 2024 Investor Presentation
Slide 2: Forward Looking Statement
Forward Looking Statement This document includes estimates, projections, and statements relating to our business plans, commitments, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27
Slide 3: Contents
Contents • Company Highlights • Financial Review • Appendix
Slide 4: Company Highlights
Company Highlights 4
Slide 5: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS Q1 2024 Highlights (1) • Revenues of $939M, +7% (1) ◦ Crocs Brand revenues of $744M, +16% (1) ▪ North America revenues +9% (1) ▪ International revenues +24% (1) (1) ▪ DTC +19% and WHL +14% ◦ HEYDUDE Brand revenues of $195M, (17)% ▪ DTC (11)% and WHL (20)% (2) • Adjusted operating
Slide 6: Diversified Sources of Growth
Q1 2024 HIGHLIGHTS (1) Diversified Sources of Growth HEYDUDE International 23% 42% (2) Brand Geography SHARE OF BUSINESS Crocs North America 77% 58% DTC WHL Channel 48% 52% 1. Trailing Twelve Month ratio 2. Crocs Brand only 6
Slide 7: Driving Durable & Consistent Growth
Q1 2024 HIGHLIGHTS Driving Durable & Consistent Growth #2 #3 #1 Tier 1 Market Attract New Ignite Our Icons Share Gains Consumers through driving awareness through strategic through methodically and global relevance for investment behind talent, diversifying our product new and existing marketing, di
Slide 8: Crocs Brand Highlights
Q1 2024 HIGHLIGHTS Crocs Brand Highlights Q1 2024 Revenues $744M (1) +16% exceeding high-end of guidance +6% to +8% #7 footwear brand in "Piper Sandler, Taking Stock With Teens" survey, more than 4 years of being a top-10 brand Double-digit growth in our direct Western Europe markets and triple- dig
Slide 9: Crocs Brand | Our Product Franchises
Q1 2024 HIGHLIGHTS Crocs Brand | Our Product Franchises Crocs x Hello Kitty Classic Clog - Glitter Mega Crush Sandal Echo Franchise - Storm Crocs x Simone Rocha Getaway Franchise - Strappy 9
Slide 10: Global Market Highlights
Q1 2024 HIGHLIGHTS Global Market Highlights Crocs brand continues to resonate globally, with (1) international growing +24% Australia & China grew (1) triple-digits Double-digit growth in direct Western European markets led by the U.K., France and (1) Germany Tier 1 Markets: China, India, Japan, Sou
Slide 11: HEYDUDE Brand Highlights
Q1 2024 HIGHLIGHTS HEYDUDE Brand Highlights Q1 2024 Revenues $195M (1) (17)% exceeding high-end of guidance (23%) to (20%) #8 footwear brand in "Piper Sandler, Taking Stock With Teens" survey in-line YoY Established Wally and Wendy Icons through color, graphics and height Opened 6 outlet locations 1
Slide 12: HEYDUDE Brand | Our Product Franchises
Q1 2024 HIGHLIGHTS HEYDUDE Brand |Our Product Franchises Wendy Heart Wally Slip Hudson Lift Wally - Big Lebowski Hudson / Hudson Lift Wally - Collegiate 12
Slide 13: HEYDUDE Brand | Distribution Strategy
Q1 2024 HIGHLIGHTS HEYDUDE Brand | Distribution Strategy Solidify long-term brand health through establishing the Wally and Wendy as iconic franchises for the consumer Maintain price integrity on digital, improve channel inventories and create more segmentation across wholesale partners Open approxi
Slide 14: Financial Highlights
Financial Highlights 14
Slide 15: Q1 2024 Financial Highlights
FINANCIAL HIGHLIGHTS (1) Q1 2024 Financial Highlights B/(W) ($M) Q1 vs. PY Revenues $939 +7% (2) Adjusted Gross Margin 56.0% 180 bp (2) Adjusted SG&A as % of Revenue 28.8% (250) bp 430 (2) Adjusted Operating Income $255 3.1% (2) Adjusted Operating Margin 27.1% (80) bp (2) Adjusted Diluted EPS $3.02
Slide 16: Q1 Adjusted Gross Margins
FINANCIAL HIGHLIGHTS (1) Q1 Adjusted Gross Margins 56.0% 56.3% 58.1% 54.2% 49.6% 47.8% Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 1. See reconciliation to GAAP equivalents in Appendix. 16
Slide 17: Q1 Adjusted Operating Margin
FINANCIAL HIGHLIGHTS (1) Q1 Adjusted Operating Margin 27.9% 27.1% Q1'23 Q1'24 1. See reconciliation to GAAP equivalents in Appendix. 17
Slide 18: Both Brands Achieve Target Inventory Turns of 4x
FINANCIAL HIGHLIGHTS Both Brands Achieve Target Inventory Turns of 4x Inventory Balance ($M) 18% YoY de crease $476 $392 Q1 '23 Q1 '24 18
Slide 19: 2024 Capital Allocation Priorities
FINANCIAL HIGHLIGHTS 2024 Capital Allocation Priorities Brand Growth Debt Return of Capital to Investment Paydown Shareholders 2024 is an investment year Total borrowings of $1.7B, $875 million remaining on our supported by our best-in- within our target range of current share repurchase class gross
Slide 20: Financial Outlook
Financial Outlook CROCS ine:
Slide 21: Guidance: Q2 and Full Year 2024
FINANCIAL OUTLOOK Guidance: Q2 and Full Year 2024 (numbers on reported basis, unless otherwise noted) Q2 2024 FY 2024 (1) Total Revenue Growth +1% to 3% +3% to 5% (1) Revenue Growth '+7% to 9% '+7% to 9% (1) Revenue Growth (19)% to (17)% (10)% to (8)% (2,3) Adjusted Gross Margin Up vs. PY Up vs. PY
Slide 22: Appendix
Appendix 22
Slide 23: Non-GAAP Reconciliation
APPENDIX Non-GAAP Reconciliation In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America (“GAAP”), we present "Non-GAAP gross profit," “Non-GAAP gross margin,” “Non-GAAP gross margin by brand,” "Non-GAAP selling, general, a
Slide 24: Non-GAAP Reconciliation
APPENDIX Non-GAAP Reconciliation Non-GAAP Gross Profit and Gross Margin Reconciliation: Three Months Ended March 31, 2024 2023 (in thousands) GAAP revenues $ 938,633 $ 884,166 GAAP gross profit $ 522,077 $ 476,370 (1) Distribution centers 3,242 3,281 Non-GAAP gross profit 525,319 479,651 GAAP gross
Slide 25: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP Gross Margin Reconciliation by Brand: Three Months Ended March 31, 2024 2023 GAAP Crocs Brand gross margin 58.1 % 55.8 % Non-GAAP adjustments: (1) Distribution centers —% 0.5 % Non-GAAP Crocs Brand gross margin 58.1 % 56.3 % (1) Represents prior yea
Slide 26: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP selling, general and administrative reconciliation: Three Months Ended March 31, 2024 2023 (in thousands) GAAP revenues $ 938,633 $ 884,166 GAAP selling, general and administrative expenses $ 295,648 $ 241,442 (1) Impairment related to information t
Slide 27: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP Income from Operations and Operating Margin Reconciliation: Three Months Ended March 31, 2024 2023 (in thousands) GAAP revenues $ 938,633 $ 884,166 GAAP income from operations $ 226,429 $ 234,928 Non-GAAP gross profit adjustments (1) 3,242 3,281 Non
Slide 28: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP Income Tax Expense (Benefit) and Effective Tax Rate Reconciliation: Three Months Ended March 31, 2024 2023 (in thousands) GAAP income from operations $ 226,429 $ 234,928 GAAP income before income taxes 194,029 191,766 Non-GAAP income from operations
Slide 29: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP Earnings Per Share Reconciliation: Three Months Ended March 31, 2024 2023 (in thousands, except per share data) Numerator: GAAP net income $ 152,454 $ 149,543 Non-GAAP gross profit adjustments (1) 3,242 3,281 Non-GAAP selling, general and administra
Slide 30: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Reconciliation of GAAP to Non-GAAP Financial Guidance: Full Year 2024: Approximately: Non-GAAP operating margin and operating income reconciliation: GAAP operating margin 24% Non-GAAP adjustments, primarily related to IT system impairments (1) 1% Non-GAAP op
Slide 31: CROCS inc:
CROCS inc: