Slide 1: Q2 2024 Investor Presentation
Q2 2024 Investor Presentation
Slide 2: Forward Looking Statement
Forward Looking Statement 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 27
Slide 3: Contents
Contents • Company Highlights • Financial Review • Appendix
Slide 4: Company Highlights
Company Highlights 4
Slide 5: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS Q2 2024 Highlights (1) • Revenues of $1,112M, +5% (1) ◦ Crocs Brand revenues of $914M, +11% (1) ▪ North America revenues +3% (1) ▪ International revenues +22% (1) (1) ▪ DTC +14% and WHL +9% ◦ HEYDUDE Brand revenues of $198M, (17.5)% ▪ DTC (8)% and WHL (24)% (2) • Adjusted operatin
Slide 6: Diversified Sources of Growth
Q2 2024 HIGHLIGHTS (1) Diversified Sources of Growth HEYDUDE 21% ENTERPRISE SHARE OF DTC Brand WHL Channel 49% 51% Crocs 79% International CROCS BRAND 43% SHARE OF Geography North America 57% 1. Trailing Twelve Month ratio 6
Slide 7: Driving Durable & Consistent Growth
Q2 2024 HIGHLIGHTS Driving Durable & Consistent Growth #2 #3 #1 Tier 1 Market Attract New Ignite Our Icons Share Gains Consumers through driving awareness through strategic through methodically and global relevance for investment behind talent, diversifying our product new and existing marketing, di
Slide 8: Crocs Brand Highlights
Q2 2024 HIGHLIGHTS Crocs Brand Highlights Q2 2024 Revenues $914M (1) year-over-year growth of +11% North America strength driven by at-once retail partner demand and solid DTC channel growth st 1 time as a top-ten overall fashion brand on T-Mall during the Mid- Summer Festival in China 1. Revenue gr
Slide 9: Crocs Brand | Our Product Franchises
Q2 2024 HIGHLIGHTS Crocs Brand | Our Product Franchises Brooklyn 4U Sandal Woven Brooklyn Sandal Crocs x Naruto Classic Clog & Sandal Miami Sandal Crocs x Salehe - Juniper Sneaker 9
Slide 10: Global Market Highlights
Q2 2024 HIGHLIGHTS Global Market Highlights Exceptional international growth from our Crocs brand, with international growing (1) +22% (1) China grew over 70% on top (1) of triple-digit growth in PY Double-digit growth in direct Western European markets led (1) by the U.K. and Germany Tier 1 Markets
Slide 11: HEYDUDE Brand Highlights
Q2 2024 HIGHLIGHTS HEYDUDE Brand Highlights Q2 2024 Revenues $198M year-over-year change of (17.5)% Established Wally and Wendy Icons through color, graphics, and height Opened 13 outlet locations, bringing YTD openings to 19 locations 11
Slide 12: HEYDUDE Brand | Our Product Franchises
Q2 2024 HIGHLIGHTS HEYDUDE Brand |Our Product Franchises Wendy Stretch Canvas Wendy Canvas Wally COMF Hudson Corona HeyMakerz Wally Stretch Canvas 12
Slide 13: HEYDUDE Brand | Distribution Strategy
Q2 2024 HIGHLIGHTS HEYDUDE Brand | Distribution Strategy Solidify long-term brand health through establishing the Wendy and Wally as iconic franchises for the consumer Maintain price integrity on digital, improve channel inventories and create more segmentation across wholesale partners Open approxi
Slide 14: Financial Highlights
Financial Highlights 14
Slide 15: Q2 2024 Financial Highlights
FINANCIAL HIGHLIGHTS (1) Q2 2024 Financial Highlights B/(W) ($M) Q2 vs. PY Revenues $1,112 +5% (2) Adjusted Gross Margin 61.4% +330 bp (2) Adjusted SG&A as % of Revenue 32.0% (420) bp 430 (2) Adjusted Operating Income $326 +0.4% (2) Adjusted Operating Margin 29.3% (100) bp (2) Adjusted Diluted EPS $
Slide 16: Q2 Adjusted Gross Margins
FINANCIAL HIGHLIGHTS (1,2) Q2 Adjusted Gross Margins 62.0% 64.1% 61.4% 58.1% 47.1% 49.1% Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 1. See reconciliation to GAAP equivalents in Appendix. 2. During the periods, there were no non-GAAP adjustments for the HEYDUDE brand. 16
Slide 17: Q2 Adjusted Operating Margin
FINANCIAL HIGHLIGHTS (1) Q2 Adjusted Operating Margin 30.3% 29.3% Q2'23 Q2'24 1. See reconciliation to GAAP equivalents in Appendix. 17
Slide 18: Q2 Inventory Levels
FINANCIAL HIGHLIGHTS Q2 Inventory Levels 14% YoY de crease $436M $377M Q2 '23 Q2 '24 18
Slide 19: 2024 Capital Allocation Priorities
FINANCIAL HIGHLIGHTS 2024 Capital Allocation Priorities Brand Growth Debt Return of Capital to Investment Paydown Shareholders 2024 is an investment year Repaid $200M of debt, with Repurchased 1.2M shares, supported by our best-in- total borrowings now $700M remaining on current class gross margins
Slide 20: Financial Outlook
Financial Outlook CROCS ine:
Slide 21: Guidance: Q3 and Full Year 2024
FINANCIAL OUTLOOK Guidance: Q3 and Full Year 2024 Q3 2024 FY 2024 Total Revenue Growth (1.5%) to 0.5% +3% to 5% Revenue Growth '+3% to 5% '+7% to 9% Revenue Growth (16)% to (14)% (10)% to (8)% (1,3) Adjusted Gross Margin Up vs. PY Up vs. PY (1,3) Adjusted Operating Margin ~24.5% Over 25% (1,3) Adjus
Slide 22: Appendix
Appendix 22
Slide 23: Non-GAAP Reconciliation
APPENDIX Non-GAAP Reconciliation 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 profit," “Non-GAAP gross margin,” “Non-GAAP gross margin by brand,” "Non-GAAP selling, general, a
Slide 24: Non-GAAP Reconciliation
APPENDIX Non-GAAP Reconciliation Non-GAAP Gross Profit and Gross Margin Reconciliation: Three Months Ended June 30, 2024 2023 (in thousands) GAAP revenues $ 1,111,502 $ 1,072,367 GAAP gross profit $ 681,916 $ 621,307 (1) Distribution centers — 1,586 Non-GAAP gross profit 681,916 622,893 GAAP gross m
Slide 25: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP Gross Margin Reconciliation by Brand: Three Months Ended June 30, 2024 2023 GAAP Crocs Brand gross margin 64.1 % 61.9 % Non-GAAP adjustments: (1) Distribution centers —% 0.1 % Non-GAAP Crocs Brand gross margin 64.1 % 62.0 % (1) Represents prior year
Slide 26: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP selling, general and administrative reconciliation: Three Months Ended June 30, 2024 2023 (in thousands) GAAP revenues $ 1,111,502 $ 1,072,367 GAAP selling, general and administrative expenses $ 356,178 $ 302,818 (1) Impairment related to informatio
Slide 27: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP Income from Operations and Operating Margin Reconciliation: Three Months Ended June 30, 2024 2023 (in thousands) GAAP revenues $ 1,111,502 $ 1,072,367 GAAP income from operations $ 325,738 $ 318,489 Non-GAAP gross profit adjustments (1) — 1,586 Non-
Slide 28: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP Income Tax Expense (Benefit) and Effective Tax Rate Reconciliation: Three Months Ended June 30, 2024 2023 (in thousands) GAAP income from operations $ 325,738 $ 318,489 GAAP income before income taxes 296,425 277,242 Non-GAAP income from operations
Slide 29: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Non-GAAP Earnings Per Share Reconciliation: Three Months Ended June 30, 2024 2023 (in thousands, except per share data) Numerator: GAAP net income $ 228,907 $ 212,412 Non-GAAP gross profit adjustments (1) — 1,586 Non-GAAP selling, general and administrative
Slide 30: Non-GAAP Reconciliation (Cont'd)
APPENDIX Non-GAAP Reconciliation (Cont'd) Reconciliation of GAAP to Non-GAAP Financial Guidance: Full Year 2024: Approximately: Non-GAAP operating margin and operating income reconciliation: GAAP operating margin Over 24% Non-GAAP adjustments, primarily related to IT system impairments (1) 1% Non-GA
Slide 31: Crocs, Inc.
CROCS inc: