Crocs, Inc. · NASDAQ:CROX
Crocs — Credit Suisse Small & Mid Cap Conference 2010
29 slides from Crocs's conference presentation, Sep 14, 2010
Slide 1: Credit Suisse Small & Mid Cap Conference, Boston, September 14, 2010
www.crocs.com CREDIT SUISSE SMALL & MID CAP CONFERENCE BOSTON | SEPTEMBER 14, 2010
Slide 2: Regarding Forward Looking Statements
www.crocs.com REGARDING FORWARD LOOKING STATEMENTS This presentation may contain forward-looking statements, estimates or projections that are based on our current expectations. Any such statements, estimates or projections are subject to risks and uncertainties that could cause the actual results a
Slide 3: Crocs | Agenda
www.crocs.com CROCS | AGENDA History 2010 Profitable Growth The Company Today Regions Channels Strategy 2010 Marketing Campaign
Slide 4: History
CROCS | HISTORY www.crocs.com History 2010 Profitable Growth The Company Today Regions Channels Strategy 2010 Marketing Campaign
Slide 5: Who We Are
“Bring profound comfort, fun and innovation to the world's feet.” CROCS | WHO WE ARE www.crocs.com
Slide 6: The History
CROCS | THE HISTORY *FY10 Revenue based on avg analysts estimates Strong growth Global demand for products www.crocs.com
Slide 7: 2009: A Year of Recovery
CROCS | 2009: A YEAR OF RECOVERY Strong balance sheet : From $29.2 net cash* (2008) to $77.3 (2009) Bank debt free Inventory reduced ~60% Focused Global Wholesale Successful Direct to Consumer Global Expansion Exited marginal distribution channels Strengthened & expanded product line Streamlined ope
Slide 8: 2010 Profitable Growth
CROCS | 2010 PROFITABLE GROWTH History 2010 Profitable Growth The Company Today Regions Channels Strategy 2010 Marketing Campaign www.crocs.com
Slide 9: 2010: Profitable Growth
CROCS | 2010: PROFITABLE GROWTH Strong Top line Growth (+19% growth June YTD) ASP improvement Significant Gross Margin improvement ( 55% June YTD) Leveraged SG & A (51% to 43% June YTD) Execute against profitability plans / $0.42 EPS June YTD Exciting new product line Invest in systems, processes an
Slide 10: The Company Today
CROCS | THE COMPANY TODAY History 2010 Profitable Growth The Company Today Regions Channels Strategy 2010 Marketing Campaign www.crocs.com
Slide 11: The Brand Today
CROCS | THE BRAND TODAY Widely recognized global brand with ~60% of revenue generated internationally Global, strong, devoted and large consumer base in 129 countries in Asia, Europe, South America, Canada and US More than 140 million pairs sold since inception Recognized for comfort, casual, colorf
Slide 12: The Global Company Today
CROCS | THE GLOBAL COMPANY TODAY Wholesale remains a primary channel ( +18% growth) Roughly 60% - 70% of revenues Beginning to segment by channel and style Strong growth in company-operated retail (+23% growth) Roughly 25% of revenues Guaranteed access to consumer Full presentation of Crocs product
Slide 13: The Region Summary
CROCS | THE REGION SUMMARY Approximately 61% of revenue generated internationally *Includes Canada and S. America Americas* (+17% Growth June YTD) Asia (+20% Growth June YTD) Europe (+20% Growth June YTD) www.crocs.com
Slide 14: Global Wholesale Summary
CROCS | GLOBAL WHOLESALE SUMMARY Global wholesale growth (+18% June YTD) Strong wholesale growth June YTD by region: Asia +28% Americas +15% Europe +13% Global acceptance of new product portfolio / strong sell thru SS11 pre-books : encouraged by early indications www.crocs.com
Slide 15: Retail Advantage
CROCS | RETAIL ADVANTAGE www.crocs.com
Slide 16: Global Retail Channel Advantage
CROCS / GLOBAL RETAIL CHANNEL ADVANTAGE Global retail sales growth (+ 23% June YTD) Total company operated retail locations as of June 30, 2010: Total 363 Stores: 110 Outlets: 68 Store in Store: 94 Kiosks: 91 3rd Party: 414 Total global retail locations: 777 Advantage = guaranteed access to our cons
Slide 17: Global Internet Channel Advantage
CROCS | GLOBAL INTERNET CHANNEL ADVANTAGE Global Internet growth healthy (+17% growth June YTD) Business is strong and growing Key channel for new product launch & servicing our loyal consumers Currently 23 transactional sites globally Focus on expansion in Asia in Q3 Successful mobile commerce site
Slide 18: U.S. Retail Summary
CROCS | U.S. RETAIL SUMMARY Retail growth (+31% June YTD) Strong impact of new product sell thru New product / in-line sell thru (+35% Q3 QTD) New product/ in line comps(+30% Q3 QTD) Sell thru of back to school featured products (+40% Q3 QTD) US comps growing Q1=+ 5%, Q2= +8%, QTD August =+12%, Augu
Slide 19: Strategy
CROCS | STRATEGY History 2010 Profitable Growth The Company Today Regions Channels Strategy 2010 Marketing Campaign www.crocs.com
Slide 20: Strategic Development
CROCS | STRATEGIC DEVELOPMENT Balance Sheet Set Strategy Refocus Mgmt Attack Costs Rebuild Relationships Restore Confidence in the Street 2012 GLOBAL BRAND Top Line Growth Execute Plan Build Mgmt Team Profitability Product Driven Retail Operations SCM Excellence Invest in Systems Solid Growth New Ma
Slide 21: Global Growth Opportunities
CROCS | GLOBAL GROWTH OPPORTUNITIES Further penetrate existing wholesale account base Expanding in BRIC countries Reacquired distribution rights to key countries and territories Growing company owned retail (400 locations by year-end) Further development of international e-commerce platforms www.cro
Slide 22: Operational Efficiencies / Gross Margin Leverage
1 Streamlining supply chain systems - Transition to more pre-bookings - Balanced mfg (sub contract vs. internal) capacities - Continuous improvements in distribution 2 Ship direct systems - Pack by store for major retailers (globally) - Pack by store for Crocs Retail CROCS | OPERATIONAL EFFICIENCIES
Slide 23: Crocs | New SS11 Products
www.crocs.com CROCS | NEW SS11 PRODUCTS ! Sneakers Toning Translucents
Slide 24: Crocs | Design Leadership
www.crocs.com CROCS | DESIGN LEADERSHIP Global design resources USA ITALY JAPAN
Slide 25: Marketing Campaign
CROCS | Marketing Campaign History 2010 Profitable Growth The Company Today Regions Channels Strategy 2010 Marketing Campaign
Slide 26: Crocs | 2010 Marketing Campaign
Successful SS10 advertising campaign Successful back to school advertising campaign Driving business to both wholesale & consumer direct Significant new product sell through / wholesale and consumer direct CROCS | 2010 MARKETING CAMPAIGN www.crocs.com
Slide 27: Key Investment Highlights
CROCS | KEY INVESTMENT HIGHLIGHTS Strong, balanced global business model Large, loyal, global consumer base Diversified sale contributions in terms of distribution channels, geographies, demographics, and product styles Enhanced new product design and integrated marketing strategies driving new grow
Slide 28: Key Investment Highlights
CROCS | KEY INVESTMENT HIGHLIGHTS Crocs Spring 2010 Commercial Back to School - Crocs www.crocs.com
Slide 29: Thank You
THANK YOU Investor Contact | ICR, Inc. | Brendon Frey | 203-682-8200 | brendon.frey@icrinc.com www.crocs.com
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