Slide 1: Investor Presentation
INVESTOR PRESENTATION April 2021
Slide 2: 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 potential FORWARD-LOOKING impacts to our business related to the COVID-1
Slide 3: Content
• Our Vision & Values CONTENT • Global Business Update • Positioned for Global Growth • Financial Results • Appendix 3
Slide 4: Our Vision: Everyone comfortable in their own shoes
OUR VISION Everyone comfortable in their own shoes Source: Image from Reddit. 4
Slide 5: Our Values: The Path We Choose to Walk
O U R VA L U E S The Path We Choose to Walk P E O P L E - P U R P O S E D I N H E R E N T D E L I G H T F U L LY D E S I G N S I M P L I C I T Y D E M O C R AT I C We think people-first at We know smart doesn’t have We celebrate one-of-a-kinds every step. We design for to mean complicated. So we and
Slide 6: Global Business Update
GLOBAL BUSINESS UPDATE “ The strength of the Crocs brand is exceptional, experiencing growth across all regions and all channels. I am proud of our results and am incredibly confident in our ability to deliver sustained, long-term profitable growth. – Andrew Rees, CEO 6
Slide 7: Q1 Highlights
GLOBAL BUSINESS UPDATE Q1 Highlights • Q1 achieved third consecutive quarter of record revenue • Revenue of $460 million, +64% vs. PY with growth in every channel ◦ Americas +87% with DTC +131% vs. PY ◦ EMEA +49% with double-digits increases in Digital and Wholesale ◦ Asia achieved strong double-dig
Slide 8: Fueling Brand Strength Globally
GLOBAL BUSINESS UPDATE Fueling Brand Strength Globally #2 in Fast Company's Most Innovative Joint Ventures of 2021 "Any brand that can collaborate with both Peeps, the sugar- coated marshmallow treat, and Bad Bunny, the Puerto Rican rapper and songwriter, has range" 88
Slide 9: Best in Class Marketing Activations
GLOBAL BUSINESS UPDATE Best in Class Marketing Activations LUCKY CHARMS JIBBITZ BRETMAN ROCK HIGHSNOBIETY 9
Slide 10: Continued Strength in Digital
GLOBAL BUSINESS UPDATE Continued Strength in Digital • Digital commerce growth of 75% with growth in all regions • Strong double-digit growth across e-commerce and multiple e-tail platforms and marketplaces Q1 Digital Penetration Q1 2020 Q1 2021 10
Slide 11: Exceptional First Quarter Results
GLOBAL BUSINESS UPDATE Exceptional First Quarter Results +61% +720bps +1,790bps +577% Q1 2020 Q1 2021 * Note USD millions for Revenue and constant currency growth 11
Slide 12: Positioned for Global Growth
POSITIONED FOR GLOBAL GROWTH Key Powerful Social & Digital-Led Largest Long-Term Product Pillars Digital Marketing Route to Market Growth Opportunity in Asia Clogs: Innovate & grow clog Digital and social focus globally Digital: Significant long-term Asia: Largest long-term growth relevance growth o
Slide 13: Innovate and Grow Clog Relevance
POSITIONED FOR GLOBAL GROWTH Innovate and Grow Clog Relevance • $6B global category that has outpaced casual footwear growth* ◦ Crocs is market leader with $1B or ~20% share ◦ Crocs opportunity is to grow the category • Crocs clog revenues +87% in Q1 2021 to 76% of footwear sales vs. 65% in Q1 2020
Slide 14: Significant Long-Term Growth Potential in Sandals
POSITIONED FOR GLOBAL GROWTH Significant Long-Term Growth Potential in Sandals • $30B global category growing ~4% p.a. ◦ Fragmented market with no clear leader ◦ Crocs opportunity is to grow our share • Consistent track record of growth ◦ Sandal growth of 17%, encompassing 17% of footwear sales in Q
Slide 15: Capitalize on Personalization Trend with Jibbitz Charms
POSITIONED FOR GLOBAL GROWTH Capitalize on Personalization Trend with JibbitzTM Charms ◦ Personalization is a global megatrend ◦ Optimistic story-telling and personalization will be even more critical post COVID-19 ◦ Drives relevance for the Crocs brand ◦ Offers newness and inspiration at a compelli
Slide 16: Digital-Led Route to Market
POSITIONED FOR GLOBAL GROWTH Digital-Led Route to Market Direct-to-consumer Wholesale Company-operated full-price Third-party e-tailers Distributors, multi- retail and outlet stores, Crocs.com marketplaces (e.g., Amazon, brand, and brick-and- kiosks, and store-in-store (e.g., eBay) Zappos, Zalando)
Slide 17: Largest Long-Term Growth Opportunity in Asia
POSITIONED FOR GLOBAL GROWTH Largest Long-Term Growth Opportunity in Asia Asia: greatest opportunity long-term • Leverage tier 1 Celebrities and influencers • Developing local-for-local production, marketing and collaborations • Strong digital growth supported by participation on key marketplace pla
Slide 18: Prudent Investments to Support Our Long-Term Growth
POSITIONED FOR GLOBAL GROWTH Prudent Investments to Support Our Long-Term Growth Product & Marketing Digital Distribution Talent • "Come As You Are" brand • Customer experience • EMEA DC relocated and • Focus on hiring high caliber campaign with use of expanded talent across following areas: influen
Slide 19: Q1 Financial Results
FINANCIAL RESULTS Q1 Financial Results Q1 vs. PY Revenue ($M) $460.1 +61%* Gross Margin 55.0% +730 bp Adj. Gross Margin** 55.2% +720 bp Adj. SG&A as % of Revenue** 27.9% +1,080 bp Operating Margin 27.1% +1,970 bp Adj. Operating Margin** 27.3% +1,790 bp Diluted EPS $1.47 +819% Adj. Diluted EPS** $1.4
Slide 20: FY2021 Guidance
FINANCIAL RESULTS FY2021 Guidance Q2 2021E FY 2021E Revenue Growth 60% - 70% 40% - 50% Non-GAAP Gross Margin Adj. $3M $12 - $15M Adjusted Operating Margin 21% - 23% 22% - 24% GAAP Tax Rate 20% Non-GAAP Tax Rate 20% Capital Expenditures $100 - $130M Source: Image from British GQ 20
Slide 21: Appendix
APPENDIX 21 21
Slide 22: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Non-GAAP cost of sales, gross profit, and gross margin reconciliation: Non-GAAP selling, general and administrative expenses reconciliation: Three Months Ended March 31, Three Months Ended March 2021 2020 31, (in thousands) 2021 2020 GAAP revenues $ 460,098 $ 281,160 (in thou
Slide 23: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP income from operations and operating margin reconciliation: Non-GAAP income tax expense (benefit) and effective tax rate reconciliation: Three Months Ended March 31, Three Months Ended March 31, 2021 2020 2021 2020 (in thousands) (in thousands) GAAP revenues
Slide 24: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP earnings per share reconciliation: Three Months Ended March 31, 2021 2020 (in thousands, except per share data) Numerator: GAAP net income $ 98,398 $ 11,091 Non-GAAP cost of sales adjustments (1) 985 927 Non-GAAP selling, general and administrative expenses
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