Deckers Outdoor Corporation · NYSE:DECK
Deckers Outdoor — Jefferies 2018 Global Consumer Conference
19 slides from Deckers Outdoor's conference presentation, Jun 19, 2018
Slide 1: Jefferies 2018 Global Consumer Conference
JEFFERIES 2018 GLOBAL CONSUMER CONFERENCE JUNE 19, 2018 Dave Pow ers, Pr e s id e n t & CEO Tom George, CFO Steve Fasching, SVP Co r p o r a t e St r a t e g y, Pla n n in g & I n v e s t o r Re la t io n s 1
Slide 2: Disclosures
DISCLOSURES 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”
Slide 3: Deckers at a Glance
DECKERS AT A GLANCE Snapshot Brands • Portfolio of leading footwear • Fiscal year 2020 targets of $2B and lifestyle brands serving in revenue, improving FASHION both casual and high- operating income by $100M LIFESTYLE performance needs (from FY17) and operating GROUP margins of 13% • Global infrast
Slide 4: Why Deckers Is a Compelling Story
WHY DECKERS IS A COMPELLING STORY 1 Premium Iconic Brands 2 Quality Distribution 3 Strong Balance Sheet & Cash Position 4 Great Financial Model and Increasing ROIC 5 Driving Shareholder Value 4
Slide 5: Build Brands That Connect With Consumers Globally
BUILD BRANDS THAT CONNECT WITH CONSUMERS GLOBALLY FASHION LIFESTYLE GROUP UGG: Iconic ~$1.5B global lifestyle brand, known primarily for its luxurious comfort-based sheepskin footwear Koolaburra: Sub-$100 priced sheepskin/wool boot category attack brand that complements premium UGG offerings PERFORM
Slide 6: Building a Diversified Global Lifestyle Brand
BUILDING A DIVERSIFIED GLOBAL LIFESTYLE BRAND PRESERVING THE CLASSICS BUSINESS WHILE BUILDING A DIVERSIFIED, YEAR-ROUND GLOBAL LIFESTYLE BRAND MEN’S WOMEN’S SPRING/SUMMER APPAREL / LOUNGEWEAR 6
Slide 7: Rapidly Growing Authentic Running Brand
RAPIDLY GROWING AUTHENTIC RUNNING BRAND SIGNIFICANT DOMESTIC AND INTERNATIONAL EXPANSION OPPORTUNITIES BECOMING A MATERIAL GROWTH DRIVER WITHIN OUR PORTFOLIO MEN’S WOMEN’S AWARDS & PARTNERSHIPS 7
Slide 8: Established Platform
LEADING OMNI-CHANNEL DISTRIBUTION ESTABLISHED International revenue grew 12% in FY18 PLATFORM STRONG PRODUCT SEGMENTATION & INTERNATIONAL DIVERSIFICATION EXPANSION GLOBAL STRONG PRODUCTIVE ECOMMERCE GLOBAL PARTNER PRESENCE PARTNERS STORE MODEL Notes: Financials as of fiscal year ended March 31, 2018
Slide 9: Creating Stockholder Value Over the Long Term
CREATING STOCKHOLDER VALUE OVER THE LONG TERM MAJOR COMPONENTS DRIVING STOCKHOLDER VALUE EVOLVING THE ORGANIZATION TRANSFORMING BRANDS INCREASING OPERATING TO MEET THE CHANGING IN THE MARKETPLACE PROFITS MARKETPLACE • Elevate our brands in the Continue to improve Org. Retail Optimize existing fleet
Slide 10: Fiscal Year 2018 Performance
FISCAL YEAR 2018 PERFORMANCE REVENUE ($M) GROSS MARGIN NON-GAAP $1,903 48.9% $1,790 OPERATING MARGIN 46.7% +6.3% HAS SIGNIFICANTLY +220 bps EXPANDED, AND AHEAD OF FY17 FY18 FY17 FY18 EXPECTATIONS NON-GAAP OPERATING MARGIN NON-GAAP EPS $5.74 12.4% $3.82 9.2% +50% +320 bps FY17 FY18 FY17 FY18 Source:
Slide 11: Strategic Decisions Included in Our FY19 Revenue Guidance
STRATEGIC DECISIONS INCLUDED IN OUR FY19 REVENUE GUIDANCE KEY ELEMENTS STRATEGIC RATIONALE 1. Further rationalization of brick- More control over product pricing and-mortar and online wholesale integrity as well as the in-store or accounts online presentation of our brands 2. Implementation of a Cla
Slide 12: Driving Revenue Growth Through Men's Distribution
DRIVING REVENUE GROWTH THROUGH MEN’S Continuing to grow core running Increase men’s product penetration internationally while offering outdoor and Attract younger consumer fitness products Compelling replenishment cycle on growing customer base DISTRIBUTION SPRING/SUMMER Exploit digital capabilities
Slide 13: Why Deckers Is a Compelling Story
WHY DECKERS IS A COMPELLING STORY 1 Premium Iconic Brands 2 Quality Distribution 3 Strong Balance Sheet & Cash Position 4 Great Financial Model and Increasing ROIC 5 Driving Shareholder Value 13
Slide 14: Attractive Way to Return Value to Shareholders
ATTRACTIVE WAY TO RETURN VALUE TO SHAREHOLDERS SHARE BUYBACKS Completed To Date Remaining OUR BOARD INCREASED THE SHARE REPURCHASE AUTHORIZATION TO $25M $125M $251M $400M IN OCTOBER 2017, WITH AN INTENTION TO COMPLETE THE FULL By the end of FY2018 Q3 FY2018 Q4 AMOUNT BY THE END OF FY2020 FY2020 Shar
Slide 15: Delivering on Board Refreshment
DELIVERING ON BOARD REFRESHMENT IN THE PAST TWO MONTHS WE HAVE APPOINTED COMMITTED TO THREE NEW MEMBERS TO OUR BOARD OF DIRECTORS: EXECUTING THE PLAN, • Cindy L. Davis DRIVING • Board and audit committee member of Kennametal, Inc. since 2012 SHAREHOLDER VALUE • Vice President, Nike Golf (2005-2008)
Slide 16: Thank You
DECKERS BRANDS. = 5 H i Gen wet HOw“: Tea -RD \ KOOLABURRA rr Oe Area rer eee ese:
Slide 17: Appendix
BRANDS— DECKERS
Slide 18: Reconciliation of Fiscal Year 2018 Financials
Reconciliation of Fiscal Year 2018 Financials Twelve-month period ended March 31, 2018 Non-GAAP GAAP Measures Restructuring and Measures (As Reported) Other Charges (1) (Excluding Items) (2) Net sales $ 1,903,339 $ 1,903,339 Cost of sales 971,697 971,697 Gross profit 931,642 931,642 Selling, general
Slide 19: Reconciliation of Fiscal Year 2017 Financials
Reconciliation of Fiscal Year 2017 Financials Twelve-month period ended March 31, 2017 Non-GAAP GAAP Measures Restructuring and Measures (As Reported) Other Charges (1) (Excluding Items) (2) Net sales $ 1,790,147 $ 1,790,147 Cost of sales 954,912 954,912 Gross profit 835,235 835,235 Selling, general
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