Deckers Outdoor Corporation · NYSE:DECK
Deckers Outdoor — Investor Presentation (January 2012)
29 slides from Deckers Outdoor's investor presentation, January 2012
Slide 1: Investor Presentation January 2012
Investor Presentation January 2012
Slide 2: Safe Harbor
Safe Harbor 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 other sim
Slide 3: Key Investment Highlights
Key Investment Highlights § Own $1+ billion UGG brand and 5 other non-competing lifestyle brands § Meaningful domestic growth opportunities § Significant untapped international potential § Growing direct to consumer business § Solid earnings, cash flow and strong balance sheet
Slide 4: Company Portfolio
Company Portfolio “Beyond Great Products to Build Great Brands.” Brand LTM Net Sales @ 9/30/11* 84% § Accessible luxury comfort 10% § Outdoor performance 5% § Action Sports 1% § Emerging Brands * Proforma - includes Sanuk sales for full period and excludes Simple sales
Slide 5: Strong Sales Momentum
Strong Sales Momentum CAGR: 35% $1.0B $304M 2006 2007 2008 2009 2010
Slide 6: Strong EPS Performance
Strong EPS Performance $4.03 CAGR: 38% $2.98 $2.42 $1.69 $1.10 2006 (1) 2007 2008 (1) 2009 (1) 2010 1) Operating income results are pro forma, adjusted to exclude litigation expenses, impairment losses and before restatements. 2) For all years mentioned above : EPS reflects July 2010 Stock Split
Slide 7: Increasing Long-Term Sales Growth Targets - 2015
Increasing Long-Term Sales Growth Targets - 2015 § $2.4 Billion – from $2 Billion Ø UGG Australia - $1.85 billion – from $1.65 billion Ø Teva - $250 million – from $200 million Ø Sanuk - $200 million Ø Emerging Brands - $100 million – from $150 million § International ~ 40% § Retail ~ 25% ~ 200 stor
Slide 8: Where does the next $1.1 billion come from?
Where does the next $1.1 billion come from?
Slide 9: Growth Strategy - UGG Brand
Growth Strategy - UGG Brand § Expansion of products and categories § Accelerate international growth § Grow retail business § Increase emphasis on marketing
Slide 10: Expansion of Products & Categories
Expansion of Products & Categories § Expand cold weather and UGG Collection § Grow men’s business § Expand Spring business § Further develop handbags, apparel & accessories collections
Slide 11: Expansion of Products & Categories - Women's
Expansion of Products & Categories - Women’s
Slide 12: Expansion of Products & Categories – Men's
Expansion of Products & Categories – Men’s
Slide 13: Expansion of Products & Categories - Handbags
Expansion of Products & Categories - Handbags
Slide 14: Expansion of Products & Categories - Outerwear
Expansion of Products & Categories - Outerwear
Slide 15: Expansion of Products & Categories – UGG Collection
Expansion of Products & Categories – UGG COLLECTION
Slide 16: Expansion of Products & Categories – Spring '12
Expansion of Products & Categories – Spring ‘12
Slide 17: Expansion of Products & Categories: Shop-in-Shops
Expansion of Products & Categories Expand shop-in-shops to showcase product range • Showcase ~ 100 styles vs. ~ 40 styles at typical account • Drives 35% to 50% increase in sales • ~350 total shop-in-shops worldwide in 2011 vs. 258 total in 2010 Selfridges in London Footwear, Etc., San Mateo, CA
Slide 18: Accelerate International Growth
Accelerate International Growth § Increase penetration of entire product line in subsidiary markets § Establish additional subsidiaries in key developed markets § Establish/grow 3rd party distributors in less developed markets § Continue to develop subsidiaries’ infrastructure platforms § Expand Com
Slide 19: Grow Retail Business
Grow Retail Business Concept Outlet Boutique TOTAL U.S. 11 8 0 19 Canada 2 0 0 2 U.K. 4 1 0 5 Japan 3 1 3 7 China 10 1 0 11 TOTAL 30 11 3 44 § All locations profitable with accretive margins, fast paybacks and strong sales per square foot § Opening ~ 25 stores in 2012 § 2015 ~ 200 stores ~ 25% of to
Slide 20: Grow Retail Business
Grow Retail Business Madison Avenue, NYC Shanghai Plaza, Shanghai Manchester, UK
Slide 21: Increase Emphasis on Marketing
Increase Emphasis on Marketing § Increased marketing spend in 2011, to 3.5% of sales from 2% § Aggressive Men’s Marketing Program § Reaching & Converting Prospects § Grow & Refine Social Media Strategy and Management § Retail Marketing Initiatives
Slide 22: "Feels Like Nothing Else"
“Feels Like Nothing Else” UGG INSIDE. MAN OUTSIDE.
Slide 23: Growth Strategy - Teva Brand
Growth Strategy - Teva Brand § Re-positioned as the leading action-outdoor brand targeting a younger, more active consumer § A legitimate four-season product offering with superior wet weather technology § More targeted, non-traditional marketing
Slide 24: Product Diversification
Product Diversification
Slide 25: Growth Strategy - Sanuk Brand
Growth Strategy - Sanuk Brand § Further develop key retail relationships in department store, outdoor, sporting goods and specialty footwear channels § Line extensions and new product introductions to become a year ‘round brand § Category expansion: Apparel & Accessories § Focus international growth
Slide 26: Product Assortment
Product Assortment
Slide 27: What's the outlook for next year?
What’s the outlook for next year?
Slide 28: Preliminary 2012 Outlook
Preliminary 2012 Outlook § Sales growth driven by: ØNew store openings ØNew products and categories ØFull year of Sanuk ØInternational § Gross Margins impacted by: ▼Sheepskin costs ▲Price, Mix & Sanuk § Operating expenses to support: ØRetail & International ØMarketing ØSanuk non-cash expenses
Slide 29: Key Investment Highlights
Key Investment Highlights § Own $1+ billion UGG brand and 5 other non-competing lifestyle brands § Meaningful domestic growth opportunities § Significant untapped international potential § Growing direct to consumer business § Solid earnings, cash flow and strong balance sheet
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