Deckers Outdoor Corporation · NYSE:DECK
Deckers Outdoor — Investor Presentation (June 2015)
26 slides from Deckers Outdoor's investor presentation, June 2015
Slide 1: Investor Presentation June 2015
INVESTOR PRESENTATION June 2015
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: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS • Driving growth through our Omni-Channel business • Significant untapped international potential • Investing in our brands and Omni-Channel strategy • Introducing innovation across our product lines • Leveraging our brands across multiple consumer segments • Business model
Slide 4: Fiscal Year 2016 Guidance
FISCAL YEAR 2016 GUIDANCE* • Total revenues to increase approximately 10.5% in constant currency over twelve month period ended March 31, 2015. On a reported basis, revenues are expected to increase 8% – UGG reported revenues up 5-6% – Teva reported revenues up 9% – Sanuk reported revenues up 11% –
Slide 5: Growth Strategy: 4 Primary Initiatives
GROWTH STRATEGY: 4 PRIMARY INITIATIVES 1 BUILD 2 EXPAND 3 INNOVATE 4 GROW Build UGG Expand Omni- Drive innovation Grow success globally Channel business across the Teva, Sanuk business & HOKA brands and evolve Omni-Channel capabilities 5
Slide 6: Building on UGG Success
BUILDING ON UGG SUCCESS Grow Casuals, Weather, Infuse newness in and Fashion across Women’s Heritage channels Expand offerings in Grow UGG for Men Non-Footwear Categories 6
Slide 7: Infuse Newness in Women's Heritage
INFUSE NEWNESS IN WOMEN’S HERITAGE • Newness in Classics provides a reason to buy each season - Introducing new collections of specialty classics with a wider assortment of designs and expanded price points - In terms of dollars, specialty classics category approaching parity in size with core class
Slide 8: Expand Women's Casuals, Weather, and Fashion
EXPAND WOMEN’S CASUALS, WEATHER, AND FASHION • Focus on improved styling, sharper price points and greater functionality - Price points range from $120 - $250 with key focus on $150 - $200 - Product line has comfort and function stories that tie to UGG DNA - UGGpure utilized in footbeds and linings
Slide 9: Grow UGG for Men
GROW UGG FOR MEN • Men’s business represents approximately 10% of UGG revenue • Focus on innovating and creating new entry points for the male consumer - Twinsole dual footbed insert is helping drive non-slipper business growth - Treadlite by UGG™, a proprietary midsole compound, offers light-weight
Slide 10: Continue Success in Kids
CONTINUE SUCCESS IN KIDS • Kids’ represents approximately 15% of UGG revenues • Emerged as a major player in the category • Reinforces UGG as a premium lifestyle brand for all ages • I Heart UGG being repositioned as a juniors line in Fall 2015 10
Slide 11: Drive Growth in New Categories
DRIVE GROWTH IN NEW CATEGORIES • The Duffield is the best selling robe in Nordstrom, Neiman and Bloomingdales, and the Men’s Colton pant is the number one loungewear piece in Men’s at Nordstrom • Loungewear market is $4.3B in US and $30B globally • Success in lounge is creating opportunities for the
Slide 12: Omni-Channel
OMNI-CHANNEL | 4 | a DECKERS — BRANDS —
Slide 13: Omni-Channel Highlights
OMNI-CHANNEL HIGHLIGHTS • Opened 30 UGG stores in FY ‘15 • In FY’16 plan to open 16 net new stores; 9 outlets and 7 concepts • Compelling store economics • Evolving the in-store experience • Expanding E-Commerce capabilities 13
Slide 14: Store Count as of 3/31/2015
STORE COUNT AS OF 3/31/2015 Location Concept Outlet Total US 27 24 51 China 30 9 39 Japan 16 8 24 EMEA 11 6 17 Canada 6 2 8 Hong Kong 3 0 3 Total 93 49 142* *Total excludes partner stores 14
Slide 15: Target Store Economic Model
TARGET STORE ECONOMIC MODEL • 2,500 square foot store • Sales per square foot of $1,000 • $750,000 in build out costs • 20% 4-wall margins • 1 year cash payback 15
Slide 16: Expanding E-Commerce Capabilities
EXPANDING E-COMMERCE CAPABILITIES • Increased UGG By You customization to include more styles and into Japan • Created new NA sites for UGG, Sanuk, Teva, Ahnu and launched first Hoka site • Displaying UGG store inventory online • Launching new international sites across the brand portfolio • Expandi
Slide 17: EMEA Progress and Initiatives
EMEA PROGRESS AND INITIATIVES • Acquired distribution rights for the UGG brand in Germany on July 1, 2014 • Upgraded leadership in the region • Driving retail profitability through optimized operating model and enhanced consumer experience • Broadening merchandise assortment with focus on increasing
Slide 18: APAC Progress and Initiatives
APAC PROGRESS AND INITIATIVES • Fastest growing region led by Japan • UGG DTC the major driver of recent success • Organizational investments in place and yielding positive returns • Significant untapped opportunities across brands and channels • Expanding door count in China through a partner model
Slide 19: Growth Opportunity in Other Brands
GROWTH OPPORTUNITY IN OTHER BRANDS Outdoor / Lifestyle Active Lifestyle / Running Brand Brand Casuals Brand Key Competitors: Key Competitors: Key Competitors: 19
Slide 20: Teva
TEVA 20
Slide 21: Growth Strategy: Teva
GROWTH STRATEGY: TEVA • Strengthening core product strategy through the Originals sandal collection • Originals highlighted as a key fashion item in numerous media outlets including Good Morning America and Vogue; featured runway attention at NY and London Fashion Week • Redefining Sport sandals thr
Slide 22: Sanuk
SANUK 22
Slide 23: 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 • Strategic focus on women’s with growth being led by Yoga mat Collection • Robust distr
Slide 24: HOKA ONE ONE
HOKA ONE ONE 24
Slide 25: Growth Strategy: HOKA ONE ONE
GROWTH STRATEGY: HOKA ONE ONE • Created new category in specialty running; the oversized running shoe • Expanding product offering to include lower profiles and lower price points and into new categories such as hiking. • Increasing awareness through numerous awards including Runner’s World Editor’s
Slide 26: Thank You
THANK YOU