Slide 1: A Leader in Global Casual Footwear
A LEADER IN GLOBAL CASUAL FOOTWEAR JANUARY 2024 Confidential
Slide 2: Forward Looking Statements
Forward Looking Statements This document includes estimates, projections, and statements relating to our business plans, commitments, objectives, and expected operating results that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 2
Slide 3: Business Update
Business Update Andrew Rees, Chief Executive Officer
Slide 4: Crocs, Inc. Expects to Report Record 2023 Results
Crocs, Inc. Expects to Report Record 2023 Results • Expect FY23 revenues of ~$3.95B or over 11% Y/Y exceeding high-end of guidance(1) • Crocs Brand revenues expected to be up ~13% Y/Y, surpassing $3B mark(1) • HEYDUDE Brand revenues expected to be ~$949M(1) • Expect Q4’23 revenues of ~$960M or over
Slide 5: Investment Highlights
Investment Highlights ✓ Global leader in casual footwear with two iconic brands in a $160B TAM(1) ✓ Diversified sources of growth across brands, categories, channels, and regions ✓ Durable, profitable growth with top-tier margins and cash flow generation ✓ Strong value positioning with assortments <
Slide 6: A Global Leader In Branded Casual Footwear...
A Global Leader In Branded Casual Footwear... FY23E Revenue(1) ($B) $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 Skechers Deckers Crocs, Inc Wolverine Steve Madden Birkenstock Allbirds 1. FactSet consensus estimates for peers upcoming fiscal year end as of 1/5/2024. Crocs Inc. FY2023E reflects
Slide 7: ...With Best-In-Class Operating Margins
...With Best-In-Class Operating Margins FY23E Adj. Operating Margin %(1) Adj. Operating Margins supported 40.0% by best-in-class 30.0% >27.0% gross margins 22.9% 18.8% 20.0% 11.6% 9.8% 10.0% 3.4% 0.0% CROX Birkenstock Deckers Steve Madden Skechers Wolverine Allbirds -10.0% -20.0% -30.0% -40.0% -50.0
Slide 8: Taking Share Within $160B+ Total Addressable Market
Taking Share Within $160B+ Total Addressable Market ~$305B Non-Athletic Footwear Market(1) Casual Other (Dress, $125B Fashion) $142B Clogs Sandals $8B $30B 1. Total addressable market sizes based on management estimates. 8
Slide 9: Our Portfolio Is Aligned with Long-Term Consumer Trends
Our Portfolio Is Aligned with Long-Term Consumer Trends COMFORT-LED CASUALIZATION PERSONALIZATION FUNCTIONALITY Net Zero By 2040 VALUE SUSTAINABILITY POSITIONING 9
Slide 10: Our Brand Strategies Are Resonating
Our Brand Strategies Are Resonating Favorite Footwear Brand For We are driving awareness, generating buzz & capturing U.S. Teens(1) a broad base set of consumers # Fall '23 % Mindshare 1 Nike 61% 2 Converse 9% 3 Adidas 7% 4 New Balance 3% 5 Vans 3% 6 Crocs 2% 7 HEYDUDE 1% 8 On Running 1% 9 Foot Lock
Slide 11: Diversified Sources of Growth
Diversified Sources of Growth(1) 40% of Crocs Brand TTM sales HEYDUDE Int'l were from 25% 33% International markets Brand Geography Americas Crocs 67% 75% Digital 38% DTC 47% Digital Penetration(2) Channel Physical Wholesale 62% 53% 1. Data is for trailing twelve months ended September 30, 2023 11 2
Slide 12: Established Global Footprint With Accelerating Traction
Established Global Footprint With Accelerating Traction Revenue Growth(1) % of Sales(1) EMEALA 20% Americas EMEALA +7% +17% Asia +37% Asia 20% Americas 60% 1. Data is for trailing twelve months ended September 30, 2023. Geography is for Crocs Brand only. 12
Slide 13: Near-Term Catalysts
Near-Term Catalysts ✓ Strong franchise management for the Crocs’ brand augmented by new product introductions in 2024 (Street, height & new sandal franchise) ✓ Global growth expected to be led by international markets, especially in APAC ✓ Acute focus on account & channel segmentation for HEYDUDE ✓
Slide 14: Long-Term Enterprise Priorities
Long-Term Enterprise Priorities Remain confident in Crocs as a $5B brand supported by clog, sandal, Jibbitz, digital & international growth overtime Return HEYDUDE to consistent, profitable growth as we improve segmentation & product differentiation, evolve our omni-channel strategy and lay the grou
Slide 15: Track Record Of Value Creation
Track Record Of Value Creation $4.9B +39% SHAREHOLDER ANNUALIZED TOTAL VALUE CREATION SHAREHOLDER RETURN SINCE 2017(1) SINCE 2017(1) 10th Best Performer in S&P 500 over the past 6 years had Crocs Inc. been in the S&P 500(2) 1. From December 31, 2017 to December 31, 2023. Shareholder value creation d
Slide 16: Value Creation Roadmap
Value Creation Roadmap Anne Mehlman, EVP & Chief Financial Officer
Slide 17: Significant Value Creation At Enterprise Level
Significant Value Creation At Enterprise Level Durable, Industry- Exceptional Profitable leading Cash Flow Growth Profitability Generation 17
Slide 18: Expect 2023 to be a Record Year For Crocs, Inc.
Expect 2023 to be a Record Year For Crocs, Inc. 2023E(1) Revenues ~$3.0B ~$0.95B ~$3.95B Revenue Growth (Y/Y) +13% +6% / (4%) PF(2) +11% Adjusted Operating Margin >27% 1. FY 2023E reflects expected estimated revenues and guidance for revenues and non-GAAP operating margin. Full 2023 financial result
Slide 19: 6th Year of Crocs Brand Revenue Growth
6th Year of Crocs Brand Revenue Growth $3.5 ~$3.0 $3.0 $2.7 $2.5 $2.3 $2.0 $1.5 $1.4 $1.2 $1.0 $1.1 $1.0 $0.5 $0.0 2017 2018 2019 2020 2021 2022 2023E YoY (1.2%) 6.3% 13.1% 12.6% 66.9% 14.9% ~13% Growth Transformation & 5+ Years of Profitable Growth(2) Brand Re-ignition 1. Reflects Crocs Brand reven
Slide 20: Crocs Brand Holiday & 2023E Highlights
Crocs Brand Holiday & 2023E Highlights(1) FY23E Revenues Q4’23E Revenues ~$3.0B ~$732M >13% Y/Y slightly ahead of the high-end Up almost 10% Y/Y exceeding guidance of +12% to +13% high-end of guidance +4% to +7% Another year of double-digit Brand growth Broad-based global growth Broad-based global g
Slide 21: HEYDUDE Brand Holiday & 2023E Highlights
HEYDUDE Brand Holiday & 2023E Highlights(1) FY23E Revenues Q4’23E Revenues ~$949M ~$227M +6% Y/Y in-line with high-end of guidance of +4% to +6% (19%) Y/Y exceeding high-end of guidance (25%) to (20%) Drove brand awareness from 18% to 32% Took proactive action to improve channel Top-5 footwear brand
Slide 22: 2024E Guidance Framework
2024E Guidance Framework Revenue Growth(1) +4% to 6% Flat to slightly up +3% to 5% Adjusted Gross Margin(2) Stable Up vs. 2023 Up vs. 2023 Adjusted Operating Margin(2) ~25% Reinvest gross margin into SG&A to support brand-accretive, strategic investments 1. FY2024E reflects expected estimated revenu
Slide 23: Upcoming Segment Reporting Changes
Upcoming Segment Reporting Changes We are changing our reportable operating segments from four to two: • Old reportable segments were comprised of three regions for Crocs and HEYDUDE • New reportable segments to be Crocs Brand and HEYDUDE Brand • As filed in today’s 8-K we have included: • Three yea
Slide 24: Significant Cash Flow Generation Fuels Rapid Deleveraging
Significant Cash Flow Generation Fuels Rapid Deleveraging Gross Leverage Ratio(1) ◦ Net debt paydown of 2.25x $277M in Q4 2023 bringing 2023E full-year 2.1x pay down to $665M 1.8x • Repaid $1.2B since the 1.7x Net Leverage(3): HEYDUDE acquisition <1.5x 1.0x-1.5x • Met the upper- bound of LT target t
Slide 25: Capital Allocation Priorities
Capital Allocation Priorities #1 #2 #3 Return of Brand Growth Debt Capital to Investment Paydown Shareholders 25
Slide 26: Appendix
Appendix CROCS ine:
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America (“GAAP”), we present “Non-GAAP gross margin,” “Non-GAAP gross margin by brand,” “Non-GAAP operating margin,” and “net leverage” which are non-
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of GAAP to Non-GAAP Operating Margin Outlook Full Year 2023 (estimated): Approximately: Non-GAAP operating margin reconciliation: GAAP operating margin >25.5% Non-GAAP adjustments associated with distribution center investments & Other 1.5% Non-GAAP operating
Slide 29: Confidential
Confidential