EX-99.1 2 d468510dex991.htm PRESENTATION MATERIALS TO BE USED BY MEMBERS OF MANAGEMENT OF CROCS, INC. Presentation materials to be used by members of management of Crocs, Inc.
Exhibit 99.1


Regarding Forward-Looking Statements
2


Investment Highlights
Global Multi Channel Casual Lifestyle
Footwear Brand
Focus on the Consumer
Balanced, International Long-Term
Sales Growth
Strong Balance Sheet
Strong Free Cash Flow
Rewarding Investors Through
Reinvestment of Cash
3


Fourth
Quarter
Update


Revenue expected to be in line with previous guidance of $220mm
Difficult holiday retail sales environment similar to other brands / retailers
New products were well accepted in most markets
Global opportunities and challenges remain
Backlog for
first
half
2013
is estimated to be up
15%
on
a
nominal
basis
from prior year
Key Observations on Q4 2012
5
1.
Guidance last provided on October 24, 2012.  Other than with respect to revenue nothing herein updates or reaffirms
such prior guidance.
1


Strong Quarterly and YOY Revenue Growth
6
First Half growth of 16%, Second half growth of 8%
2012 Revenue Growth of Approximately 12%
On a Constant Currency Basis –
Annualized Growth of Approximately 15%
* Based on October 24, 2012 Q412 revenue guidance of $220mm



Long-Term Organic Growth Drivers
Product-Driven
New Consumers
Multi-Channel, Global Business Model
Wholesale Channel Expansion
8


Global Sustained Revenue Growth
9
2010
2011
2012E*
CAGR
Asia
Wholesale
$
200
$
259
$
297
14%
Retail
77
112
143
23
Internet
8
11
16
26
Total
285
382
456
Europe
Wholesale
$
96
$
125
$
110
5%
Retail
15
20
35
33
Internet
17
26
23
11
Total
128
171
168
Americas
Wholesale
$
183
$
214
$
235
9%
Retail
143
175
196
11
Internet
51
59
63
7
Total
377
448
494
Global Long-Term Multi Channel Growth
Asia: 17%
Europe: 9%
Americas: 9%
* Based on October 24, 2012 Q412 revenue guidance of $220mm


Expanding
Product Line


Focus on Comfort
11


Product Road Map –
All Year Growth
12


Product Stories –
2013
13
Compelling Line up of All Season Products
Launched Year-Round


Product Stories –
SS13
14


Easy on | off
Lightw
eight
Purpose Built
Stylish
Product Stories –
FH13
15
Crocband
Boot
Airy Flat



Engaging New Consumers
17
Emerging Lifestyle Brand
-
Engage New Consumers
-
Innovative Products
-
Retain Crocs loyalists
Multi-Channel Approach of
print /outdoor /social media
Consumer Marketing Investment
will Increase Going Forward
Expanding Consumer Awareness is
Key to Crocs Strategy


Engaging New Consumers
18
Multi-Channel
Global Message
Around
Lifestyle
Imaging
Fun, Cool,
Colorful,
Casual,
Comfort



SAP Implementation through 2013
-
$0.04 per share FY 2013 impact
due to accelerated depreciation
-
$0.04 -
$0.06 per share FY 2013
impact due to increased op ex
Expected launch in 1H 2014
2013 SAP Investment
20
* SAP expenses are excluded from normalized operating income results
Total FY 2013 SAP Impact of
$0.08 -
$0.10 per share*


Credit Agreement –
Key Terms
Capital Allocation –
Credit Agreement
21
Renegotiated credit agreement in December 2012
Credit line increased to $100mm
Up to $50mm per quarter –
$150mm per year -
can now be used towards share
repurchases


Share Repurchase
*Share repurchase totals are as of market close December 31, 2012
Capital Allocation –
Share Repurchase
22
Since
November
2012,
approximately
1.9
million
shares
have
been
repurchased
at
an
average
price
of
$13.25
-
~$25.0mm*
Shares
are
being
repurchased
under
the
2007
Share
Repurchase
authorization
which
has
3.4
million
shares
remaining


2013 Planned Retail Store Growth
23
2013 Global Retail Store Growth of Approximately 70 -
95 Net Stores
Estimated 600 -
625 Retail Locations Globally by YE 2013


New Retail Investment Metrics
Location, Location, Location
Focus on High Traffic, Outlet Locations
Avg Store Size –
US
Avg Store Size -
Asia
1500 –
1800 sqft
650 –
1500 sqft
Avg. Store Cost –
US
Avg. Store Cost –
Asia
$240K
$140K
Avg. Store Sales
Operating Income (OI)
$750K-$800K
>20%
ROI
Payback Period
>35%
1-3 years
(3 year maximum)
24


Engaging with the Consumer through
Core and New Innovative Products
Growing Wholesale with Key Partners
Retail and Internet Expansion to
Connect with Core and New Consumers
Focus on Retail Excellence
Increased Investment in Marketing
Creating Leverage
First Half Drivers –
Building on A Solid Base
25


Benefit from our Global Footprint
Growing our Back to School Business in US
Market, Licensing Products, Fall and Winter
Products
Increased Marketing of New, Comfortable
Products
Expansion into Contraseasonal Markets –
Latin / South America, Middle East, Asia
Pacific
Managing Fixed Costs
Back Half Drivers –
A Slow Methodical Journey
26



Investment Summary
28
Global Multi Channel Casual Lifestyle
Footwear Brand
Focus on the Consumer
Balanced, International Long-Term
Sales Growth
Strong Balance Sheet
Strong Free Cash Flow
Rewarding Investors Through
Reinvestment of Cash


Thank You