Deckers Outdoor Corporation · NYSE:DECK
Deckers Outdoor — ICR XChange 2014
40 slides from Deckers Outdoor's conference presentation, Jan 14, 2014
Slide 1: ICR XChange Investor Presentation
ICR XChange Investor Presentation JANUARY 14, 2014
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: Two Decades of Growth
TWO DECADES OF GROWTH 1993 2013 Revenue <20M 1.53B* Market Cap <20M 2.9B Employees <50 2,500 Americas, Geographies U.S. Europe, Asia Brands Deckers, UGG, Teva, Sanuk, Ahnu, Teva, Simple Hoka One One, Tsubo, MOZO * This revenue estimate was last provided on the Company’s 3Q13 earnings call on 10/24/1
Slide 4: Keys to Our Success
KEYS TO OUR SUCCESS + + M Unique culture of very creative and engaged people who work collaboratively to design and develop highly authentic footwear M History of developing niche footwear brands into lifestyle market leaders M Unconventional and distinct styles combined with quality materials have
Slide 5: Growth Strategy: 4 Primary Initiatives
GROWTH STRATEGY: 4 PRIMARY INITIATIVES 1 BUILD 2 EXPAND 3 INNOVATE 4 GROW Build UGG Expand direct Drive innovation Grow success globally to consumer across our mid-sized brands business business and evolve Omni-channel capabilities 5
Slide 6: The Power of UGG: 35 Years of Success
THE POWER OF UGG: 35 YEARS OF SUCCESS $85 BILLION 35 YEARS $1+ BILLION Market Size* Brand History Revenues * Source: 2012 GIA Global Footwear Report and Internal Estimates 6
Slide 7: Building on UGG Success
BUILDING ON UGG SUCCESS Align around a Infuse newness in single brand message: Women’s Heritage Feels Like Nothing Else Continue to expand Grow Women’s Casual and Men’s and Kids’ Fashion lines 7
Slide 8: Feels Like Nothing Else
FEELS LIKE NOTHING ELSE Captures the UGG promise, and what UGG products deliver Delivers a consistent message throughout UGG: from product and marketing to how we treat our customers and consumers Cross-functional, global collaboration across all mediums to achieve greatest impact, engagement and re
Slide 9: Infuse Newness in Women's Heritage
INFUSE NEWNESS IN WOMEN’S HERITAGE Newness provides a reason to buy each season: - Josette and Bailey Bow are examples of how Specialty Classics drive sales Slippers are a year round business: - Add newness for each quarter at retail 9
Slide 10: Expand Spring Women's Fashion & Casuals
EXPAND SPRING WOMEN’S FASHION & CASUALS Deliver exceptional products at more competitive price points Focus on $70 - $100 price range for casuals to boost Q2 and Q3 sales 10
Slide 11: Expand Fall Women's Fashion & Casuals
EXPAND FALL WOMEN’S FASHION & CASUALS Sharpen prices to $150 - $250 for Fall 2014 casual boots 11
Slide 12: Grow UGG for Men
GROW UGG FOR MEN Non-slipper business grew over 70% in the last 4 years Continue partnership with Tom Brady; increase in men’s sales demonstrates power of DTC men’s platform � 12
Slide 13: Continue Success in Kids'
CONTINUE SUCCESS IN KIDS’ Represents 15% of total UGG revenues Emerged as major player in category 13
Slide 14: Expand Handbags, Loungewear & Home
EXPAND HANDBAGS, LOUNGEWEAR & HOME 14
Slide 15: UGG Is One of the Most Well-Known Footwear Brands Among Women
UGG IS ONE OF THE MOST WELL-KNOWN FOOTWEAR BRANDS AMONG WOMEN 93% 78% 86% Source: 2012 GIA Global Footwear Report and Internal Estimates 15
Slide 16: Strong Awareness in China
STRONG AWARENESS IN CHINA Awareness among women is significantly higher than other international brands 50% 38% 30% Source: 2012 GIA Global Footwear Report and Internal Estimates 16
Slide 17: Direct to Consumer
[Pi i on ‘iil A ij DIRECT To CONSUMER
Slide 18: Honolulu Expansion
HONOLULU EXPANSION 18
Slide 19: Woodbury Outlet
WOODBURY OUTLET 19
Slide 20: Madison Avenue, New York
ae | Py | 1 | MADISON AVENUE, NEW YORK Tee 9
Slide 21: Direct-to-Consumer Captures Opportunity
DIRECT-TO-CONSUMER CAPTURES OPPORTUNITY M Operate 113 UGG Stores globally; opened 36 in 2013 including 24 in Asia M Strong retail store metrics M Generated strong growth in DTC sales M Developed new E-Commerce initiatives M Upgraded leadership in key markets M Expect to open 200 stores by 2015 21
Slide 22: DTC Management Team
DTC MANAGEMENT TEAM PRESIDENT DAVE POWERS (Converse, Timberland, GAP) REGIONAL LEADERSHIP DIRECTOR DTC JAPAN VP N.A. RETAIL VP DTC CHINA GARY FUKUMOTO GERARD MARCEDA MICHAEL WELLMAN (Gap, Coach, Nike) (Gap, Williams Sonoma) (Nike, Adidas, NB, Disney) FUNCTIONAL TOP TALENT VP DTC GLOBAL DIRECTOR MERC
Slide 23: Compelling Store Economics
COMPELLING STORE ECONOMICS M Average store is approximately 2,700 square feet M Sales per square foot on trailing twelve month basis was in excess of $1400 M Average store investment = approximately $1MM M Average 1 year payback period M Going forward: Smaller stores and lower CapEx investment 23
Slide 24: Evolving the UGG Store Experience
EVOLVING THE UGG STORE EXPERIENCE Elevated In-Store Digital Store Window Presentation Infinite UGG 24
Slide 25: E-Commerce 2013 Accomplishments
E-COMMERCE 2013 ACCOMPLISHMENTS M UGG a top Google search fashion item on Black Friday M Successful digital marketing campaigns for seasonal product offerings M Launched local language site in China M Increased customization through UGG By You M Developed Infinite UGG 25
Slide 26: DTC 360
DTC 360 Putting the consumer at the center of our organization and elevating the experience through relevant Omni-channel capabilities LOYALTY CRM PROGRAM SYSTEM DIGITAL ALIGNMENT EXPERTISE 26
Slide 27: DTC Path to Growth
DTC PATH TO GROWTH Drive sustainable growth and profit through elevated experiences, financial discipline and global expansion KEY INITIATIVES M Build the foundation through investments in talent and operational capabilities M Deepen the relationship with our consumers KEY GROWTH AREAS M Ignite E-Co
Slide 28: Piccadilly
deckers OUTDOOR CORPORATION
Slide 29: EMEA 2013 Progress Report
EMEA 2013 PROGRESS REPORT M 2013 sales up in total for the region which includes wholly owned markets UK, Benelux and France M DTC sales accelerating, driven by new stores, improving comps and E-Commerce M Selectively expanding store base in key continental cities M Broadening merchandise assortment
Slide 30: Shibuya Concept Store
SHIBUYA CONCEPT STORE 30
Slide 31: APAC 2013 Progress Report
APAC 2013 PROGRESS REPORT M Fastest growing region led by China and Japan M UGG retail the major driver of recent success M Organizational investments yielding positive returns M Significant untapped opportunities across brands and channels 31
Slide 32: Significant Growth Opportunity
SIGNFICANT GROWTH OPPORTUNY Outdoor / Lifestyle Active Lifestyle / Running Brand Brand Casuals Brand Key Competitors: Key Competitors: Key Competitors: 32
Slide 33: Teva
TEVA 33
Slide 34: Growth Strategy: Teva
GROWTH STRATEGY: TEVA M Appointed industry veteran Jeff Bua as new brand President M Strengthening core product strategy through the Originals sandal collection and casual canvas line M Originals named on Vogue’s Hit List for 2014; featured in Urban Outfitter doors M Developing new performance colle
Slide 35: Sanuk
SANUK 35
Slide 36: Growth Strategy: Sanuk
GROWTH STRATEGY: SANUK M Consistent strong performer in the Action Sports Surf category M Focusing on developing global year-round brand through casual sneakers in Men’s and casual canvas and ballets in Women’s M Continue to build on our casual sandal position with the Yoga Sling franchise M Expand
Slide 37: Hoka One One
x Q INS Lig Lh HOKA ONE ONE deckers OUTDOOR CORPORATION
Slide 38: Growth Strategy: Hoka One One
GROWTH STRATEGY: HOKA ONE ONE M Created new category in specialty running; the oversize running shoe M Leveraging authenticity in ultra-marathon community and attracting key influencers to enter new segments M Numerous running/outdoor awards has increased visibility M Launching E-Commerce site to gr
Slide 39: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS M Driving growth through our direct-to-consumer business M Investing in management and Omni-channel strategy M Leveraging our brands across multiple consumer segments M Innovating product across our brands M Significant international potential M Business model generates str
Slide 40: Thank You
THANK YOU visit www.deckers.com/investors for more info