Slide 1: Investor Presentation
INVESTOR PRESENTATION October 21, 2021
Slide 2: 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 27A of the Securities Act of
Slide 3: Content
• Our Vision & Values CONTENT • Quarterly Highlights • Growth Framework • Financial Results • Appendix 3
Slide 4: Our Vision: Everyone comfortable in their own shoes
OUR VISION Everyone comfortable in their own shoes 4
Slide 5: Our Values: The Path We Choose to Walk
OUR VALUES The Path We Choose to Walk INHERENT DELIGHTFULLY PEOPLE-PURPOSED SIMPLICITY DEMOCRATIC DESIGN We know smart doesn’t have to We celebrate one-of-a-kinds We think people-first at every mean complicated. So we keep and stand together with all step. We design for everything things simple, lig
Slide 6: Quarterly Highlights
QUARTERLY HIGHLIGHTS “ Our third quarter was exceptional, underscored by 73% revenue growth over 2020 and industry-leading operating margin of 32%. Globally, our teams are managing through the supply chain disruptions to mitigate the impact on our business. Despite the temporary disruptions, we expe
Slide 7: Q3 Highlights
QUARTERLY HIGHLIGHTS Q3 Highlights • Revenues of $626M, +73% and +100% vs. PY and 2019, respectively ◦ Americas +95% vs. PY ◦ Asia Pacific +24% vs. PY ◦ EMEA +44% vs. PY ◦ DTC +60% vs. PY and 51% of revenues ◦ WHL +88% vs. PY and 49% of revenues • Digital sales grew 69% to represent 37% of revenues
Slide 8: Exceptional Third Quarter Results
QUARTERLY HIGHLIGHTS Exceptional Third Quarter Results '21 vs. '20 +73% +680bps +1,200bps +163% '21 vs. '19 +100% +1,060bps +1,860bps +333% Q3 2019 Q3 2020 Q3 2021 * Note: USD millions for Revenue. Revenue growth is on a reported basis. 8
Slide 9: Net Zero by 2030
QUARTERLY HIGHLIGHTS Net Zero by 2030 Sustainable Ingredients Packaging • Carbon footprint per pair of • 85% of all products were sold shoes produced is already low(1) without shoe boxes in 2020 • By the end of 2021 Crocs will be • Continuing exploration of a 100% vegan brand sustainable packaging •
Slide 10: Growth Framework
GROWTH FRAMEWORK PRODUCT & DIGITAL SANDALS ASIA MARKETING INNOVATION 10
Slide 11: Digital-First Approach
GROWTH FRAMEWORK Digital-First Approach Direct-to-consumer Wholesale Company-operated full-price Third-party e-tailers Distributors, multi- retail and outlet stores, Crocs.com marketplaces (e.g., Amazon, brand, and brick-and- kiosks, and store-in-store (e.g., Tmall) Zappos, Zalando) mortar retailers
Slide 12: Digital Sales to be 50%+ of Revenues by 2026E
GROWTH FRAMEWORK Digital Sales to be 50%+ of Revenues by 2026E • Digital commerce growth of 69% vs. PY • Digital sales represented 37% of total Q3 revenues Q3 Digital Penetration Q3 2019 Q3 2020 Q3 2021 Digital sales includes sales through our company-owned websites, third party marketplaces, and e-
Slide 13: 4X Revenue Growth in Sandals by 2026E
GROWTH FRAMEWORK 4X Revenue Growth in Sandals by 2026E • Fragmented $30bn casual market with no clear leader • Drive awareness through marketing • Convert existing customers and provide an additional gateway to our brand • Year-round digital opportunity • Win across 4 key sub-categories: icon, style
Slide 14: Largest Long-Term Growth Opportunity in Asia
GROWTH FRAMEWORK Largest Long-Term Growth Opportunity in Asia Asia: greatest opportunity long-term • Leverage tier 1 celebrities and influencers • Developing local-for-local production, marketing and collaborations • Strong digital growth supported by participation on key marketplace platforms • Chi
Slide 15: Marketing Innovation Fueling Brand Strength Globally
GROWTH FRAMEWORK Marketing Innovation Fueling Brand Strength Globally GLOBALLY LED Double-digit growth in brand metrics Brand desirability, brand relevance and brand consideration each rose DD for 2021 and over the past five years in our annual brand survey Top 10 Footwear Brand for U.S. Teens Numbe
Slide 16: Best in Class Marketing Collaborations
GROWTH FRAMEWORK Best in Class Marketing Collaborations Drive further brand heat and relevance with vast collaborations range Notable Q3 collaborations: • Benefit • Space Jam* • Free & Easy • Bretman Rock * Space Jam was a licensing arrangement. 16
Slide 17: Best in Class Marketing Activations
GROWTH FRAMEWORK Best in Class Marketing Activations Social Media User Generated Content Source: Instagram & TikTok 17
Slide 18: Q3 Financial Results
FINANCIAL RESULTS Q3 Financial Results Q3 vs. PY Revenues ($M) $625.9 +72%* Gross Margin 63.9% +670 bp Non-GAAP Gross Margin** 64.2% +680 bp Non-GAAP SG&A as % of 31.4% +520 bp Revenue** Operating Margin 32.4% +1,250 bp Non-GAAP Operating Margin** 32.8% +1,200 bp Diluted EPS $2.42 +166% Non-GAAP Dil
Slide 19: YTD Financial Results
YTD Financial Results Q3 YTD vs. PY Revenues ($M) $1,726.8 +74%* Gross Margin 60.7% +720 bp Non-GAAP Gross Margin** 60.9% +690 bp Non-GAAP SG&A as % of 30.4% +560 bp Revenue** Operating Margin 30.3% +1,500 bp Non-GAAP Operating Margin** 30.5% +1,250 bp Diluted EPS $8.79 +365% Non-GAAP Diluted EPS**
Slide 20: 2021E and 2022E Guidance
FINANCIAL RESULTS 2021E and 2022E Guidance FY 2021E FY 2022E Revenue Growth 62% - 65% 20%+ Non-GAAP Gross Margin Adj. $8 - $10M -- Non-GAAP Operating Margin ~28% ~28%(1) Non-GAAP Tax Rate ~23% -- Capital Expenditures ~$75M -- (1) Excludes incremental air-freight of $75 million 20 ** See reconciliati
Slide 21: Long-Term Financial Plan
FINANCIAL RESULTS Long-Term Financial Plan FY 2021E Long-Term Revenues $2.2B - $2.3B $5B+ Revenue Growth 62% - 65% 17%+ Non-GAAP Operating Margin ~28% 26%+ Non-GAAP Tax Rate ~23% ~25% Capital Expenditures ~$75M ~3% of Revenues * Long term defined as expectation for 2026E, refer to 2021 Investor Day
Slide 22: Appendix
APPENDIX 22
Slide 23: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Non-GAAP cost of sales, gross profit, and gross margin reconciliation: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) GAAP revenues $ 625,919 $ 361,736 $ 1,726,790 $ 974,445 GAAP cost of sales $ 226,123 $ 154,967 $ 678,594
Slide 24: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) GAAP revenues $ 625,919
Slide 25: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP income from operations and operating margin reconciliation: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) GAAP revenues $ 625,919 $ 361,736 $ 1,726,790 $ 974,445 GAAP income from operations $ 203,068 $ 72
Slide 26: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP income tax expense (benefit) and effective tax rate reconciliation: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands) GAAP income from operations $ 203,068 $ 72,086 $ 523,076 $ 149,493 GAAP income before inco
Slide 27: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Non-GAAP earnings per share reconciliation: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (in thousands, except per share data) Numerator: GAAP net income $ 153,489 $ 61,889 $ 570,841 $ 129,531 Non-GAAP cost of sales adjustments
Slide 28: Non-GAAP Reconciliation (cont'd)
NON-GAAP RECONCILIATION (cont’d) Reconciliation of GAAP to Non-GAAP Financial Guidance Full Year 2021: Approximately: Non-GAAP operating margin reconciliation: GAAP operating margin 27% Non-GAAP adjustments associated with distribution center investments 1% Non-GAAP operating margin 28% Non-GAAP eff
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