Deckers Outdoor Corporation · NYSE:DECK
Deckers Outdoor — Investor Presentation (April 2014)
42 slides from Deckers Outdoor's investor presentation, April 2014
Slide 1: Deckers Investor Presentation April 2014
Deckers Investor Presentation APRIL 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: Two Decades of Growth
TWO DECADES OF GROWTH 1993 2013 Revenue <20M 1.56B Market Cap <20M 2.9B Employees <50 2,500 Americas, Geographies U.S. Europe, Asia Brands Deckers, UGG, Teva, Sanuk, Ahnu, Teva, Simple Hoka One One, Tsubo, MOZO 3
Slide 4: Keys to Our Success
KEYS TO OUR SUCCESS + + • Unique culture of very creative and engaged people who work collaboratively to design and develop highly authentic footwear • History of developing niche footwear brands into lifestyle market leaders • Unconventional and distinct styles combined with quality materials have
Slide 5: Growth Strategy: 4 Primary Initiatives
GROWTH STRATEGY: 4 PRIMARY INITIATIVES 1 BUILD 2 EXPAND 3 INNOVATE 4 GROW Build UGG Expand direct Drive innovation Grow success globally to consumer across our Teva, Sanuk business business & HOKA and evolve Omni-Channel capabilities 5
Slide 6: The Power of UGG: 35 Years of Success
THE POWER OF UGG: 35 years of success $85 BILLION 35 YEARS $1+ BILLION Market Size* Brand Growth Revenues * Source: 2012 GIA Global Footwear Report and Internal Estimates 6
Slide 7: Building on UGG Success
BUILDING ON UGG SUCCESS Align Around a Infuse Newness in Continue to Expand Single Brand Message: Women’s Heritage Women’s Casual Boots Feels Like Nothing Else Continue to Grow Continue Success UGG for Men with Slippers 7
Slide 8: Feels Like Nothing Else
FEELS LIKE NOTHING ELSE Captures the UGG promise, and what UGG products deliver Delivers a consistent message throughout UGG: from product and marketing to how we treat our customers and consumers Cross-functional, global collaboration across all mediums to achieve greatest impact, engagement and re
Slide 9: UGG Marketing Strategic Initiatives
UGG MARKETING STRATEGIC INITIATIVES INCREASING BRAND SPEND TO DRIVE AWARENESS AND DEMAND • At 5% of total brand revenue, still below industry standards • Majority (75%) directed towards digital and mobile I HEART UGG CAMPAIGN LAUNCHING 7/14 • Support the launch of UGG’s new Premium Tween Brand “THIS
Slide 10: Infuse Newness in Women's Heritage
INFUSE NEWNESS IN WOMEN’S HERITAGE Newness in boots provides a reason to buy each season: - Josette and Bailey Bow are examples of how Specialty Classics drive sales Newness in slippers provides a reason to buy on a year round business: - Introducing new styles each quarter at retail 10
Slide 11: Expand Spring Women's Fashion & Casuals
EXPAND SPRING WOMEN’S FASHION & CASUALS Deliver exceptional products at more competitive price points Focus on $70 - $100 price range for casuals to boost Q1 and Q2 sales 11
Slide 12: Expand Fall Women's Casual Boots
EXPAND FALL WOMEN’S CASUAL BOOTS Sharpen prices to $150 - $250 for Fall 2014 casual boots 12
Slide 13: Grow UGG for Men
GROW UGG FOR MEN Non-slipper business grew over 70% in the last 4 years Continue partnership with Tom Brady; increase in men’s sales demonstrates power of DTC men’s platform 13
Slide 14: Continue Success in Kids
CONTINUE SUCCESS IN KIDS Represents 15% of total UGG revenues Emerged as major player in category 14
Slide 15: Expand Handbags, Loungewear & Home
EXPAND HANDBAGS, LOUNGEWEAR & HOME 15
Slide 16: UGG Is One of the Most Well Known Footwear Brands Among Women
UGG IS ONE OF THE MOST WELL KNOWN FOOTWEAR BRANDS AMONG WOMEN 93% 78% 86% Source: Deckers Global Brand Tracker – March 2013 (US Women 13-54) 16
Slide 17: Strong Awareness in China
STRONG AWARENESS IN CHINA Awareness among women is significantly higher than other international brands 50% 38% 30% Source: Deckers Global Brand Tracker – March 2013 (Chinese Women 18-49 / Tier 1-3 cities) 17
Slide 18: Direct to Consumer
DIRECT TO CONSUMER 18
Slide 19: Honolulu Expansion
deckers OR CORPORATION .-)
Slide 20: Woodbury Outlet
WOODBURY OUTLET _ . amt 4 + *@ TOBE COZY
Slide 21: Madison Avenue, New York
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Slide 22: Direct-to-Consumer Highlights
DIRECT-TO-CONSUMER HIGHLIGHTS • Opened 36 stores in 2013 including 24 in Asia • Expect to open 30-35 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 capabilities
Slide 23: Store Count as of 3/31/2014
STORE COUNT AS OF 3/31/2014 Location Concept Outlet Total US 23 18 41 China 31 6 37 Japan 15 5 20 EMEA 11 6 17 Canada 2 1 3 Hong Kong 2 0 2 Total 84 36 120 23
Slide 24: Compelling Store Economics
COMPELLING STORE ECONOMICS • Average store is approximately 2,700 square feet • $1,300 sales per square foot for all stores open 12 months • Average Store Investment = approximately $1MM • Going forward: Smaller stores and lower CapEx investment 24
Slide 25: DTC Management Team
DTC MANAGEMENT TEAM PRESIDENT OF OMNI-CHANNEL DAVE POWERS (Converse, Timberland, GAP) REGIONAL LEADERSHIP DIRECTOR DTC JAPAN VP N.A. RETAIL VP DTC CHINA GARY FUKUMOTO GERARD MARCEDA MICHAEL WELLMAN (Gap, Coach, Nike) (Gap, Williams Sonoma) (Nike, Adidas, NB, Disney) FUNCTIONAL TOP TALENT VP DTC GLOB
Slide 26: Evolving the UGG Store Experience
EVOLVING THE UGG STORE EXPERIENCE Elevated In-Store Digital Store Window Infinite UGG Presentation 26
Slide 27: Expanding E-Commerce Capabilities
EXPANDING E-COMMERCE CAPABILITIES • Launched Infinite UGG • Launched UGG in China and Sanuk in EU • Increased customization through UGG By You • Launching HOKA and new sites for UGG, Sanuk and Teva • Launching I Heart UGG site • Displaying UGG store inventory online • Implementing flash sale capabil
Slide 28: DTC 360: Our Approach to Omni-Channel
DTC 360: OUR APPROACH TO OMNI-CHANNEL We are moving from distinct channels To achieving alignment across channels talking to different customers… to engage with a single customer WHOLESALE CUSTOMER RETAIL CUSTOMER CUSTOMER CUSTOMER E-COMMERCE 28
Slide 29: DTC 360: A Customer-Centric Focus
DTC 360: A CUSTOMER-CENTRIC FOCUS Putting the customer at the center of our organization and elevating the brand experience across all channels through relevant Omni-Channel capabilities Systems Loyalty CRM and Process Digital Expertise Program Alignment 29
Slide 30: Piccadilly
PICCADILLY 30
Slide 31: EMEA: '13 Progress and '14 Initiatives
EMEA: ‘13 PROGRESS and ‘14 INITIATIVES • 2013 sales up in total for the region, which includes directly operated markets UK, Benelux and France • DTC sales accelerating (+44% in 2013), driven by new stores, improving comps and E-Commerce • Drive retail profitability through optimized operating model
Slide 32: Shibuya Concept Store
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Slide 33: APAC: '13 Progress and '14 Initiatives
APAC: ‘13 PROGRESS AND ‘14 INITIATIVES • Fastest growing region led by China and Japan • DTC sales accelerating (+40% in 2013), driven by new stores, improving comps and E-Commerce • UGG retail the major driver of recent success with up to 20 openings planned in 2014 • Organizational investments yie
Slide 34: Significant Growth Opportunity
SIGNFICANT GROWTH OPPORTUNY Outdoor / Lifestyle Active Lifestyle / Running Brand Brand Casuals Brand Key Competitors: Key Competitors: Key Competitors: 34
Slide 35: Teva
’ deckers OUTB@@R CORPORATION
Slide 36: Growth Strategy: Teva
GROWTH STRATEGY: TEVA • Appointed industry veteran Jeff Bua as new brand President • Strengthening core product strategy through the Originals sandal collection, Fundamentals a new casual collection and a focus to women • Originals highlighted as a key fashion item in many media outlets including Go
Slide 37: Sanuk
SANUK 37
Slide 38: 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: initial sell through encouraging for women’s Yoga Sling sandal and men’s Commodore shoe
Slide 39: HOKA ONE ONE
— deckers QUTDOOR CORPORATION
Slide 40: Growth Strategy: HOKA ONE ONE
GROWTH STRATEGY: HOKA ONE ONE • Created new category in specialty running; the oversize running shoe • Leveraging authenticity in ultra-marathon community and attracting key influencers to enter new segments • Increasing visibility through numerous running/outdoor awards and through sponsorship of 2
Slide 41: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Driving growth through our direct-to-consumer business • Investing in our brands and Omni-channel strategy • Leveraging our brands across multiple consumer segments • Introducing innovation across our product lines • Significant untapped international potential • Business
Slide 42: Thank You
THANK YOU visit www.deckers.com/investors for more info