Deckers Outdoor Corporation · NYSE:DECK
Deckers Outdoor — Investor Presentation (June 2012)
32 slides from Deckers Outdoor's investor presentation, June 2012
Slide 1: Investor Presentation
Investor Presentation June 2012
Slide 2: Safe Harbor
We make forward-looking statements in this presentation which represent our expectations or beliefs about future events and Safe Harbor 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: Brands for the people not the masses.
Brands for the people not the masses. Brand LTM Net Sales at 3-31-12* 85% Accessible luxurious comfort 9% 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% $1.4B $304M 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011
Slide 6: Strong EPS momentum
Strong EPS momentum CAGR: 36% $5.07 $5.07 $4.03 $4.03 $2.98 $2.98 $2.42 $2.42 $1.69 $1.69 $1.10 $1.10 2006 (1) 2006 (1) 2007 2007 2008 (1) 2008 (1) 2009(1) 2009 (1) 2010 2010 2011 2011 Operating income results are pro forma, adjusted to exclude litigation expenses, impairment losses and before resta
Slide 7: Long-term sales growth targets
Long-term sales growth targets 2015 $2.4 billion from $2 billion • UGG Australia: $1.85b from $1.65b • Teva: $250m from $200m • Sanuk: $200m • Emerging brands: $100m from $150m International: 40% Retail: 25% (200 stores)
Slide 8: Where does the next $1.1b come from?
Where does the next $1.1b 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: UGG trial, purchase interest and loyalty have increased steadily since 2010.
UGG trial, purchase interest and loyalty have increased steadily since 2010. 69% 63% Among US Women 33% 28% 23% 24% Feb 2010 Feb 2012 % Ever Purchased Future Purchase % of Past 12 Months Interest (Top 2 Box*) Purchasers Who Wear UGG Most Often Source: LRW UGG Study Feb 2010 (US Women 18-54), M+C Wom
Slide 11: UGG has strong salience, outpacing the competition
UGG has strong salience, outpacing the competition “Is on its way up and is doing a lot /some different things at the moment” 57% 50% UGG Competitive Avg Source: M+C Women's Quant Feb 2012 (Competitors: Michael Kors, Hunter, Cole Haan, Frye, Tory Burch & Coach)
Slide 12: Facebook fans have increased by 70% in the last six months alone.
Facebook fans have increased by 70% in the last six months alone. 1,358,000 970,000 787,000 549,000 Nov-10 May-11 Nov-11 May-12 Source: facebook.com
Slide 13: Expansion of Products and Categories
Expansion of Products and Categories Expand cold weather and UGG Collection Grow men’s business Expand spring business Further develop handbags, apparel & accessories collections
Slide 14: Expansion of Products and Categories: Women's
Expansion of Products and Categories: Women’s
Slide 15: Expansion of Products and Categories: Men's
Expansion of Products and Categories: Men’s
Slide 16: Expansion of Products and Categories: Handbags
Expansion of Products and Categories: Handbags
Slide 17: Expansion of Products and Categories: Outerwear
Expansion of Products and Categories: Outerwear
Slide 18: Expansion of Products and Categories: UGG Collection
Expansion of Products and Categories: UGG Collection
Slide 19: Expansion of Products and Categories: Spring 12'
Expansion of Products and Categories: Spring 12’
Slide 20: Expansion of Products and Categories
Expansion of Products and Categories Selfridges, London Footwear, Etc., San Mateo, CA Expand shop-in-shops to showcase product Drive 35% to 50% increase in sales range Showcase 100 styles 400 total shop-in-shops worldwide in 2012 vs. 40 styles at typical account vs. 329 total in 2011
Slide 21: 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 Expand company-owned retail st
Slide 22: Grow Retail Business
Grow Retail Business Location Concept Outlet Total US 11 8 20 Canada 2 0 2 UK 4 1 5 Japan 7 1 8 China 10 1 11 Total 35 11 46 Profitable with accretive margins, fast paybacks and sales per square foot Opening 25 stores in 2012 By 2015, 250 stores, 25% of total sales
Slide 23: Grow Retail Business
Grow Retail Business Top Left: Madison Ave, NYC; Bottom Left: Shanghai Plaza, Shanghai; Above: Manchester, UK
Slide 24: Increase Emphasis on Marketing
Increase Emphasis on Marketing Increased marketing spend in 2012 to 3.4% of sales 2.7% in 2011 Aggressive men’s marketing program Reaching and converting prospects Grow and refine social media strategy and management Retail marketing
Slide 25: "Feels like nothing else"
“Feels like nothing else” UGG inside. Man outside. New York campaign
Slide 26: Growth strategy: Teva brand
Growth strategy: Teva brand Repositioned as the leading action-outdoor brand, targeting a younger, more active consumer. A legitimate year-round product offering with superior wet weather technology More targeted, non-traditional marketing
Slide 27: Product Diversification
Product Diversification
Slide 28: Growth Strategy: Sanuk brand
Growth Strategy: Sanuk brand Further develop key 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 and accessories. Focus international growth in Deckers
Slide 29: Product Assortment
Product Assortment
Slide 30: Deckers 2012 Outlook
Deckers 2012 Outlook Sales growth driven by: Gross margins impacted by: Operating expenses to support New store openings Sheepskin costs Retail and international New products and Price, mix & Sanuk Marketing categories Sanuk non-cash Full year of Sanuk expenses International
Slide 31: Key investment highlights
Key investment highlights Own $1 billion+ UGG brand and five 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 32: Thank you.
Thank you. Visit www.deckers.com/investors for more info.