Crocs, Inc. · NASDAQ:CROX
Crocs — 22nd Annual ICR Conference 2020
23 slides from Crocs's conference presentation, Jan 14, 2020
Slide 1: Investor Presentation January 2020
INVESTOR PRESENTATION JANUARY 2020
Slide 2: Forward-Looking Statement
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 law. These statements include, but are not limited to, statements regarding future revenues, gross margin, selling, genera
Slide 3: Agenda
AGENDA • 2019 Highlights • Long-Term Growth Drivers • Financial Information • Key Investment Considerations • Appendix 3
Slide 4: 2019 Highlights
2019 HIGHLIGHTS crocs
Slide 5: 2019 Was an Incredible Year for the Crocs Brand
2019 WAS AN INCREDIBLE YEAR FOR THE CROCS BRAND • Projecting brand revenues to be at an all time high, propelled by double digit growth, in 2019 • Advanced to #7 preferred footwear brand among teens, up from 13 last year and 27 two years ago in the Piper Jaffray’s Taking Stock with Teens Fall 2019 S
Slide 6: Long-Term Growth Drivers
LONG-TERM GROWTH DRIVERS crocs
Slide 7: Long-Term Growth Drivers
LONG-TERM GROWTH DRIVERS Product & Channel Region Marketing 1 2 3 • Clogs: Innovate & grow • DTC: double digit growth • Asia: largest long-term clog relevance continues in E-commerce growth potential and prioritization of outlets • Sandals: Significant long- • Americas: strong growth as the most pro
Slide 8: Grow Clog Relevance
GROW CLOG RELEVANCE • Market leader in growing global category that has grown to $5B* • Crocs grew clog revenues by 21% in 2019 to ~53%^ of footwear sales • The key drivers of Clog growth and relevance are: ‒ Impactful collaborations across the globe ‒ Personalization with expanded Jibbitz charms •
Slide 9: Sandals: Significant Long-Term Growth Opportunity
SANDALS: SIGNIFICANT LONG-TERM GROWTH OPPORTUNITY • Opportunity in growing $30B* fragmented global casual sandal market with no clear market leader • Crocs has had a consistent track record of growth and grew sandal revenues by 11% in 2019 to ~25%^ of footwear sales • The key drivers of sandal growt
Slide 10: Invest in New, Visible Comfort Technology
INVEST IN NEW, VISIBLE COMFORT TECHNOLOGY • Our LiteRide™ collection, featuring foam footbeds, is a top 5 franchise for Crocs ‒ The franchise approximately doubled between 2018 and 2019 ‒ LiteRide™ comfort technology will be leveraged in other collections including Brooklyn sandals and Crocs@Work™ •
Slide 11: Personalization with Jibbitz Charms
PERSONALIZATION WITH JIBBITZ CHARMS • Personalization is a global megatrend that drives relevance for the Crocs brand • Jibbitz™ provide consumers with a fun and unique way to personalize their clogs and sandals at point of purchase • The effect we see is an overall increase in clog and sandal sales
Slide 12: Growth Ignited by Powerful Global Social & Digital Marketing
OUR GROWTH WILL CONTINUE TO BE IGNITED BY POWERFUL GLOBAL SOCIAL & DIGITAL MARKETING BRAND AMBASSADORS • 2020: year four of “Come As You Are” – the evolution will continue - We will welcome Priyanka Chopra Jonas and Yang Mi of China as brand ambassadors • Focus will continue on driving clog COLLABOR
Slide 13: DTC Will Be Led by E-commerce Growth & Outlets
DTC WILL BE LED BY E-COMMERCE GROWTH & OUTLETS DTC Comps • E-commerce: Drive elevated consumer experience and more effective digital marketing 2019 ‒ Investment in people and technologies to execute e-commerce growth roadmap Americas 21.0% • Marketplaces: Expand direct participation in leading globa
Slide 14: E-tail and Distributors Drive Wholesale
E-TAIL AND DISTRIBUTORS DRIVE WHOLESALE 2019 DISTRIBUTOR FOOTPRINT • E-tailers and distributors represent approximately half of the global wholesale business • Multibrand e-tailers are gaining share globally ‒ Crocs: achieving consistent double-digit e-tail growth with elevated brand representation,
Slide 15: Changing How We Report Direct-to-Consumer and Digital Businesses
IN 2020, WE WILL BE CHANGING HOW WE REPORT ON OUR DIRECT-TO-CONSUMER AND DIGITAL BUSINESSES FROM: TO: • Separate reporting for: • Combined reporting on Direct-to-Consumer that will include both E-commerce and Retail • E-Commerce Revenue and Comps • Reporting on % Digital revenue which will • Owned R
Slide 16: Asia Is Largest Growth Opportunity
ASIA IS LARGEST GROWTH OPPORTUNITY Asia – Greatest growth opportunity long-term • Increase brand recognition and drive clog relevance in China with new Tier 1 celebrity, Yang Mi • Multichannel growth in Japan and South Korea • Strong e-commerce growth supported by participation on key marketplaces A
Slide 17: Financial Information
FINANCIAL INFORMATION crocs
Slide 18: 2019 - A Very Successful Year
2019 - A VERY SUCCESSFUL YEAR • Robust revenue growth ‒ Growth of ~13% • Improved the quality of revenues ‒ Fewer and narrower promotions and less liquidation • Reduce costs ‒ Leveraged the business while making significant investments in marketing • Deployment of capital for value creation ‒ Invest
Slide 19: Financial Guidance
FINANCIAL GUIDANCE 2019 Expectations • Q4 2019 Revenues between $260-262M, ~21% growth, compared to our previous guidance of $245 - $255M vs. $216.0M in 4Q18 • Includes ~ $2M of store closures and ~$2M of negative currency impact • FY 2019 Revenues increase ~13% over $1,088.2M in 2018 • Adj. Gross M
Slide 20: Looking Ahead - 2020
LOOKING AHEAD - 2020 • Expect 2020 revenues to grow ~12-14% over 2019 • We will communicate Crocs growth plan in more detail during our Q3 2020 Investor Day 20
Slide 21: Key Investment Considerations
KEY INVESTMENT CONSIDERATIONS 21
Slide 22: Key Investment Considerations
KEY INVESTMENT CONSIDERATIONS We are confident that our strategic plan will drive long-term, sustainable growth An unmistakable icon recognized A powerful global brand with a around the world large, democratic consumer base • Growing revenues to drive a sustainable, profitable business model • Proje
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