Deckers Outdoor Corporation · NYSE:DECK
Deckers Outdoor — Guggenheim Santa Monica Summit 2016
25 slides from Deckers Outdoor's conference presentation, Apr 5, 2016
Slide 1: Guggenheim Santa Monica Summit
GUGGENHEIM SANTA MONICA SUMMIT APRIL 5, 2016
Slide 2: Safe Harbor
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” and other sim
Slide 3: Who We Are
Who We Are Family of 5 Brands Multi-Channel: Wholesale Recognized Footwear & Distributor, Retail, Leader eCommerce and Partner Retail Multinational: Operate in 50+ Countries 3
Slide 4: Our Lifestyle Groups: Fashion & Performance
Our Lifestyle Groups: Fashion & Performance $1.5B+ Luxurious comfort brand known FASHION for sheepskin footwear Sub-$100 priced sheepskin/wool boot category attack brand Approaching $100M running brand PERFORMANCE known for oversized cushioning $100M+ Modern outdoor lifestyle brand known for sports
Slide 5: Our Evolution
Our Evolution Pre 2010: 2016 & Beyond: Explosive Leverage and Growth Scale 2010-2015: Investment in Infrastructure and Talent 5
Slide 6: Investing for Our Consumer Led Evolution (2010 – 2015)
Investing for Our Consumer Led Evolution (2010 – 2015) GOALS BENEFITS 1.Expand reach and deepen • Allows for more control by reducing reliance on one channel, region, and relationship through Direct-to- product category Consumer (DTC) • Improves knowledge of our end- consumer to help guide product 2
Slide 7: Developing DTC & Omni-Channel (2010 – 2015)
Developing DTC & Omni-Channel (2010 – 2015) OBJECTIVE Connecting directly with consumers and centering around their needs and desires ACTION 1) Established a global retail footprint with over 150 stores and 17 E-Commerce sites 2) Built an industry leading Omni-Channel platform that connects stores a
Slide 8: DTC Growth (2010 – FY16)
DTC Growth (2010 – FY16) 2010 $1.0B IN REVENUE 2016E* $1.86B IN REVENUE 22% 34% 11% CAGR 66% 78% Wholesale/Distributor DTC Wholesale/Distributor DTC * Figures represent guidance given on 2/4/16 8 earnings call. Not a reiteration of guidance.
Slide 9: Growing Internationally
Growing Internationally OBJECTIVE Establish global infrastructure to leverage across all brands ACTION 1) Converted distributors to subsidiaries: UK (2011), Benelux (2011), France (2011), Germany (2014) 2) Expanded into new markets: Western Europe, Japan, China 3) Established international regional
Slide 10: International Growth (2010 – FY16)
International Growth (2010 – FY16) 2010 $1.0B IN REVENUE 2016E* $1.86B IN REVENUE 24% 35% 11% CAGR 65% 76% US International US International * Figures represent guidance given on 2/4/16 10 earnings call. Not a reiteration of guidance.
Slide 11: Fashion Lifestyle Brands
Fashion Lifestyle Brands . @ KOOLABURRA 11
Slide 12: UGG: Objective, Action, Results
OBJECTIVE Transform from reliance on one product into diversified and complete lifestyle brand ACTION 1) Establish a direct relationship with consumers 2) Use relationship to expand and evolve the brand 3) Utilize DTC to inform wholesale RESULTS • 280% growth in Men’s* • 350% growth in Women’s non-c
Slide 13: Gender and Category Diversification
Gender and Category Diversification UGG REVENUE BY GENDER UGG REVENUE BY CATEGORY 5% 10-12% 25% 25% 10-12% 10% 72-75% 20% 20% Women's Men's Kid's Lifestyle Women's Core Classics Women's Non-core Classics Women's Casual/Weather/Fashion/Other Women's Slippers *Estimates as of December 31, 2015. 13 Men
Slide 14: Fashion Lifestyle Opportunities
Fashion Lifestyle Opportunities Evolve Classics Franchise Grow Women’s Non-Core UGG Attack Incremental Categories Segment & Optimize NA Wholesale Launch Koolaburra by UGG 14
Slide 15: Evolving the Classics UGG Franchise
Evolving the Classics UGG Franchise PRIOR FALL 2016 CLASSIC CLASSIC STREET LUXE CORE CLASSIC CLASSIC 2.0 S P E C I A LT Y S P E C I A LT Y CLASSICS CLASSIC CLASSICS SLIM 15
Slide 16: Grow Women's Non-Core
Grow Women’s Non-Core • Dominating all weather categories: from rain to snow • Infusing UGG comfort DNA into casuals • Developing compelling fashion product with great price and quality 16
Slide 17: Attacking Incremental Categories
Attacking Incremental Categories • Men’s is fastest growing category expanding beyond slippers and utilizing Treadlite technology • Kid’s remains healthy business with opportunity to diversify beyond Classics • Lifestyle is one of the biggest opportunities and creates a powerful brand story 17
Slide 18: UGG Wholesale Segmentation & Optimization
UGG Wholesale Segmentation & Optimization SEGMENTATION OPTIMIZATION Segmenting product based on Strengthening relationships with key customer reach, market position and NA partners that elevate brand position WHOLESALE brand experience Selectively exiting smaller partners Developing targeted marketi
Slide 19: Koolaburra by UGG launch in Fall 2016
• Strategically launching in Fall 2016 with a handful of SKUs in select doors • Sheepskin category attack brand priced under $100 • Sold in family channel: a separate distribution from UGG brand • Believe we can capture new consumer • Cautiously testing consumer reaction 19
Slide 20: Performance Lifestyle Opportunities
Performance Lifestyle Opportunities 20
Slide 21: HOKA ONE ONE: Authenticity in the running community
• Authenticity built in the running community: innovator of maximal cushioning with minimal weight category • Fastest growing brand in portfolio with long growth runway • Expanding doors and shelf space in specialty running and adding doors in specialty footwear • US building brand awareness for fut
Slide 22: Teva and Sanuk: Authentic legacy brands
• Authentic legacy brands with loyal followers • Teva: modern outdoor lifestyle • Sanuk: relaxed comfort sandal and casual shoes • Category attack brands • Both brands underpenetrated internationally • US distribution focused on DTC and wholesale growth • Digital marketing emphasis 22
Slide 23: Financials
Financials FOCUSED STRATEGY MARGIN ENHANCEMENT EXPENSE MANAGEMENT • Investment phase near complete • Strategic adjustments to create • Significant investments in place and focusing on improved efficiencies in supply chain profitability • Continuing to evaluate and • Optimizing SKU count, reducing st
Slide 24: Prepared for the Changing Retail Environment
Prepared for the Changing Retail Environment MULTI-CHANNEL GLOBAL ORGANIZATION STRONGER BRANDS WITH A DIRECT CONNECTION TO CONSUMERS IMPROVED INSIGHTS HEAVY INVESTMENTS COMPLETED PATHWAY TO MID-TEENS OPERATING MARGIN 24
Slide 25: Thank you!
Thank you! Questions? Contact: investor@deckers.com 25
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