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1Crocs Investor DaySeptember 30, 2015
Boston, MA
2Some information provided in this document will be forward-looking, and accordingly, are subject to the Safe Harbor provisions of the federal securities law. These statements include, but are not limited to, statements regarding future revenue and earnings, prospects and product pipeline. We caution you that these statements are subject to a number of risks and uncertainties described in the Risk Factors section on the Company's 2014 report on Form 10-K, filed on March 2, 2015 with the Securities and Exchange Commission. Accordingly, all actual results could differ materially from those described in this presentation. Those viewing this presentation are advised to refer to Crocs' Annual Report on Form 10-K, as well as other documents filed with the SEC for the additional discussions of these risk factors. Crocs is not obligated to update these forward-looking statements to reflect the impact on future events. The Company may refer to certain non-GAAP metrics in this presentation. Explanation of these metrics can be found in the footnotes of this presentation.
Forward Looking Statements
3 Revenue range $270 - $280M
This includes an estimated $4M currency erosion within the quarter
Additionally, expect approximately $6M of shipment holds in China
Q3 Guidance Update
4Objectives for Today
1. Provide an overview of the Company
2. Share our strategy, our initiatives and our progress to date
3. Convey confidence in our expectations for the future
1
2
3
5Crocs Leadership Team Members Presenting Today
Gregg Ribatt, CEO
Andrew Rees, President
Michelle Poole, SVP Global Product Creation & Merchandising
Terence Reilly, SVP Chief Marketing Officer
Mike Smith, SVP Finance (Interim CFO)
6Agenda
Topic Speaker
Continental Breakfast
Overview Gregg Ribatt, CEO
Crocs Strategy Andrew Rees, President
Product Overview Michelle Poole, SVP Global Product Creation & Merchandising
Break
Marketing Overview Terence Reilly, SVP Chief Marketing Officer
Financial Plans Mike Smith, SVP Finance (Interim CFO)
Recap Gregg Ribatt, CEO
Q&A Crocs Team
Lunch
7OverviewGregg Ribatt, CEO
8Crocs evolution entering 5th distinct phase since inception in 2002
Crocs Annual
Revenue($)
Introduction High growth Cost cuttingDoor growth / international
expansion
Strategic repositioning for sustainable growth
1 432 5
Crocs today is one of the 10 largest non-athletic footwear brands in the world
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1,200M
900M
600M
300M
0
9Crocs Is a Democratic Brand With a Broad Consumer Base
One of the 10 largest non-athletic footwear brands in the world
$1B+ annual sales across 90+ countries
Sold more than 55 M pairs last year
Appeals to the whole family
Consumers say Crocs are family oriented
61% of people who own Crocs have kids and 68% are married
Resonates around the world with high brand awareness
High brand awareness in key strategic markets: 76% in the U.S., 73% in the UK, 51% in Germany, 44% in China & Korea, and 68% in Japan
Reaches across broad socioeconomic groups from moderate to high income
Crocs appeals across all income brackets, especially to the large global middle class
10
A Unique Brand With Significant Growth Runway
Strong and growing Crocs ownership in casual footwear market Large considerer group with sizeable short-term growth opportunity Huge neutral group that represents significant mid-to-long term growth potential
Rejecters: stated they are not interested in purchasing Crocs brand
Owners / Considerers : ~1/3 of population either already owns or is considering purchasing Crocs in the next year
Neutrals: havent purchased Crocs in past two years, arent considering purchasing in next 12 months but dont reject Crocs brand
12% 18% 51% 19%
Neutrals RejectorsConsiderersOwners
Huge growth opportunity
Brand Strength Monitor: Conducted in US, UK, DE, CN, JP & KR 9,000 participants fielded in June 2015 General market study aligned to census
11
Opportunities to Evolve the Business Model
Focus on profitable growth over door expansion
Centralize critical functions
Add talent with industry experience in key functional areas
Focus on sustainable growth and sell-thru
SKU rationalization and globally consistent product range
Compelling product stories supported by powerful marketing
Optimize retail portfolio
Leverage partners in sub-scale international markets
Consistent global brand identity
Elimination of duplicative cost structures
Best-in-class, standard operating procedures
Invest in and leverage talent globally
Executive leadership
Product and Merchandising
Sourcing
12
Strategic Repositioning: 3 Phases
Strategy Formulation Transformation Growth Platform
Phase 1 Phase 2 Phase 3
2014 2014/2015 2016 & Beyond
Deep diagnostic
Strategy development
Team enhancements
Phased restructuring
Product repositioning
Integrated marketing
Supply chain redesign
Growth realization
Focus on 6 major markets
Support from best-in-class partners
13
Crocs Strategic Priorities
Developing powerful product stories supported with effective marketing
Driving global cohesive brand positioning
Increasing working marketing spend
Enhancing engagement with key wholesale accounts
Gaining greater strategic and economic leverage from our direct-to-consumer assets
Prioritizing investment in larger-scale geographies
Streamlining the cost structure by reducing duplication and complexity across regional offices and the corporate center
Investing to drive Supply Chain effectiveness and reliability
1
2
3
4
5
6
7
8
The team will cover our efforts in greater detail over the course of the morning
14
Since June 2014, we have added significant experience in senior leadership across the organization
Name Title Experience
Gregg Ribatt CEO 20+ years
Andrew Rees President 20+ years
Michelle Poole SVP Global Product Creation & Merchandising 20+ years
Bob Munroe SVP GM Americas 30+ years
David Thomson SVP GM Asia 25+ years
Mike Smith SVP Finance (Interim CFO) 25+ years
Phil Blake SVP Sourcing 20+ years
Donna Flood SVP CIO 20+ years
BENNETT
BENNETT
15
Despite global headwinds, we are beginning to see the results of our efforts
* Constant currency basis
Global Headwinds Results
Strength of U.S. dollar
Operational challenges
Challenges in China
Modest core business growth* in Q2 (excluding closed stores and exited product lines)
DTC comp up 4% in the Americas in Q2 (vs -4% in Q1) and up 6% in EU in Q2 (vs +2% in Q1)
E-Commerce revenues up almost 30% globally* reflecting the benefit of marketing investment and operational improvements
16
8+%Annual sales
growth
Low 50sGM%
Low 40sSG&A%
10-12%EBIT
margins
Deliver Top Quartile Industry Performance
Mid-Term Potential of Crocs
17
StrategyAndrew Rees, President
18
Crocs Strategic Priorities
Developing powerful product stories supported with effective marketing
Driving global cohesive brand positioning
Increasing working marketing spend
Enhancing engagement with key wholesale accounts
Gaining greater strategic and economic leverage from our direct-to-consumer assets
Prioritizing investment in larger-scale geographies
Streamlining the cost structure by reducing duplication and complexity across regional offices and the corporate center
Investing to drive Supply Chain effectiveness and reliability
1
2
3
4
5
6
7
8
19
Overall Merchandising Strategies for Success
Consistent Global Product Strategy
Re-energize core molded footwear
Develop key casual platforms
Embrace the trends
Extend the Spring-Summer season
Effective SKU & lifecycle management
Consistent comfort delivery and storytelling
1
20
SS16 showing meaningful improvement based on improved product and extended season
Early customer orders support our expectation of high single digits wholesale growth consistent with qualitative feedback from key partners
Fastest wholesale growth coming from Americas and Asia
Encouraging Signs Based on Current SS16 Orders
Expected Full Season Wholesale Growth*
Americas Low double digits
Europe Flat to low single digits
Asia Low double digits
Total High single digits
1
* Assumes constant currency
21
Marketing Campaign Objectives
Reignite Excitement & Relevance For Crocs
Owners who purchased in past
6 months
Past owners considering
purchase
General population who have stated Crocs consideration or
are neutral
Associate our iconic clog to Crocs brand
Give Consumers Permission To Engage
Establish Crocs As A Modern Meaningful Icon
2
22
Marketing Campaign Objectives
Reignite Excitement & Relevance For Crocs
54%50%
Owners who purchased in past
6 months
Past owners considering
purchase
67%
General population who have stated Crocs consideration or
are neutral
68%
Associate our iconic clog to Crocs brand
Give Consumers Permission To Engage
Establish Crocs As A Modern Meaningful Icon
+11%+8% +3% +11%
2014*
2015**
2
Brand Strength Monitor Conducted in US, UK, DE, CN, JP & KR 9,000 participants fielded in June 2015 General market study aligned to census
* 2014 basis** YOY ppt. changes
23
+20%
Global Marketing Spend 2014 vs. 2015
20152014 2014 2015
Global Marketing Spend
~4% of sales
~6% of sales
3
+50%
Working Global Marketing Spend
24
Ad Engagement Impact
Brand Desirability
BrandPurchase Consideration
Consumers who recalled Crocs advertisementsvs.
Consumers who havent seen Crocs advertisements
+27%+28%
3
Recall Crocs advertisement in past 6 months Absolute difference of consumer advertising recall versus non-aware
25
Enhanced Wholesale Engagement Model
Top to Top Strategic
Engagement
Real Prelines
Sell thru & Profitability
Sell In with Marketing
Support
Best in Class Delivery &
Service
Area of FocusEuropeU.S.
4
26
Drive Real Clarity on Channel Roles
Wholesale Retail E-Commerce Distributors
Main driver of future sales growth
Reach consumers in multi-brand environments
Leverage retail expertise of key partners
Showcase the Crocs Brand
Interact directly with and learn from consumers
Promote the breadth of our product in high-traffic, highly visible locations
Focus on outlet for growth
Fastest growing channel
Preeminent flagship DTC environment
Educate consumers about the product and the brand
Provide access to the full line
Drive distribution in key markets where:
Crocs lacks resources
Critical expertise is required
Understanding of market risks is crucial
Pathway for Growth
Drive economic leverage and brand engagement
Leverage best in class partners
5
27
Significant Accomplishments in DTC
Restructured fleet and e-commerce platform
Adam Michaels - Global E-Commerce Leader
Claire Conley Americas Retail Leader
Neil Parker Asia Retail and Global Franchise LeaderBrought in talent to lead key functions
Enhanced assortment strategies and brand story telling
Replenishment and in stocks
Consumer experience and service
Portfolio pruning
Focused on the nuts and bolts of an effective DTC business
Narrowed web site portfolio to grow scale and increase profitability
Invest in improved web capabilities and enhanced story telling
Targeted each region with 20% outlet penetration to keep inventories fresh
Anticipated growth in E-Commerce & Outlet
Closed 148 stores over the last 18 months
Closed 9 e-commerce websites
5
28
International Strategy
Crocs distributed in over 90 countries worldwide concentrated on 6 key countries for direct business
Americas APAC Europe
United States
China
Korea
Japan
United Kingdom
Germany
Best in class partners in rest of world
6
29
Significant challenges in China over the past 12 months
Fragmented distributor base with more than 40 partners, many of which are small with limited financial strength
Consumer demand and sales began to slow in 2014 after a 3 year period of rapid expansion
Distributor order patterns assumed continued market expansion
In 2015, we moderated sell-in during the first half to assist partners with sell thru and reduce inventories in the channel
Recent China market pressures have slowed the pace of turnaround
Despite these pressures, e-commerce continues to experience strong growth of over 20%
Addressing issues with partners to evolve to a more sustainable business model in the near-term
China challenges Recent developments
We continue to have confidence in the mid-term growth potential of China
6
30
Overview of Operations Improvements/Cost Initiatives
$11M
$15M
0
10
20
30
40
50
TotalInternationalCorporate / AmericasStore closures
SG&A Annualized Reductions$Millions U.S. Dollar
~$43M
Note: Offsetting $15-20M in certain additional variable expenses, including marketing and variable compensation, anticipated in 2016
7
$17M
31
Investing in Supply Chain Effectiveness and Reliability
Invest to improve process reliability
Elevate organizational capabilities
Better defined planning roles & responsibilities
Drive strategic advantage from direct manufacturing
Simplify and reduce costs
40% reduction in Global SKUs (SS16 vs. SS15)
Dramatic reduction in direct shipments
Stabilize and reduce lead times
Improved customer and consumer
satisfaction
+
8
32
Significant progress to date
Developing powerful product storiessupported with effective marketing
Driving global cohesive brand positioning
Increasing working marketing spend
Enhancing engagement with key wholesale accounts
SKU count for SS16 reduced by 40% vs. SS15
Encouraging signs from SS16 wholesale orders
2016 sell in accompanied by coherent marketing support
Centralized global marketing function
Integrated, # Find Your Fun campaign launched in 2015
Brand consideration up by 27%
Increased working media by 50% in 2015
~$15M of incremental marketing spend
Campaign awareness increased by 11%
Top-to-top meetings with 10 of the largest global accounts
Pre-lining process implemented with 20 of the largest global accounts
Key accounts are supporting Crocs despite 2015 service levels
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2
3
4
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Significant progress to date
Gaining greater strategic and economic leverage from our direct-to-consumer assets
Prioritizing investment in larger-scale geographies
Streamlining the cost structure by reducing duplication and complexity across regional offices and the corporate center
Investing to drive Supply Chain effectiveness and reliability
Closed 148 stores over the last 18 months
Opened selective stores, primarily outlets
Have hired significant new talent to lead DTC
Focus regional and management on 6 core markets
Leveraging best in class distributors in other market
Distributor upgrades in several markets (Indonesia, Philippines etc.)
Centralized core corporate functions
Reduced global salaried headcount by 20% over the last 18 months
Annualized reduction of SG&A by >$40M
Hired dedicated supply chain leadership
Implemented SAP ERP globally
Simplifying the path to market for improved reliability
5
6
7
8
34
Product OverviewMichelle Poole, SVP Global Product Creation & Merchandising
35
Inconsistent Global Product Strategy
Lack of focus on molded product & core icon
Low awareness of global trends
Poor SKU management & heavy SKU proliferation
Lack of strong global product stories / launches
36
Overall Merchandising Strategies for Success
Consistent Global Product Strategy
Re-energize core molded footwear
Develop key casual platforms
Embrace the trends
Extend the Spring-Summer season
Effective SKU & lifecycle management
Consistent comfort delivery and storytelling
1
2
3
4
5
6
7
37
Consistent Global Product Strategy
Our customers expect our products to have certain key attributes that are consistent globally
Colorful
Relaxed
Comfortable
Distinctive
Fun
Maximize our globally-common product assortments with consistent Crocs DNA
1
38
Build Out Core2
39
Develop Key Casual Platforms3
40
Elevate Style
Global Markets
Seoul
Los Angeles
London
Tokyo
New York
Paris
Miami
Berlin
Shanghai
Trend Agency Trade Shows &
Publications
4
41
Extend our Spring-Summer Season to 8 months
12/1 & 1/1
Delivery 1
Where to Play
Core refreshTransition items &Spring
Spring into Summer items
High Summer &
Early transition items
2/1 & 3/1
Delivery 2
4/1
Delivery 3
5/1, 6/1 & 7/1
Delivery 4
Historical Spring Season
New Spring season
5
42
Effective SKU Management
How do we do more with less?
Americas
EuropeAPAC
SS15 SS16
Americas
EuropeAPAC
2,000 SKUs at GTM;1,296 in production
28% Global SKU Alignment
1,150 SKUs (with extra 2 months of deliveries)-40% vs SS15 GTM
65% Global SKU Alignment
Achieving more disciplined LCM will allow us to focus on and drive growth with our new styles while gaining operational efficiencies
6
43
Significant Improvement in SKU Productivity
Key Benefits:
Focused story telling Globally-aligned key
collections
Planning and Forecast Accuracy
Fit and Quality Improvements
Lower tooling costs
6
Line management results in significant SKU productivity improvements
44
Comfort Storytelling7
45
Comfort Storytelling7
46
Product OverviewBuilding a product framework for success
47
Core Evolution
Classic clog Freesail clog
Kadee flat Sienna flat
Core EvolvedConsistent Crocs DNA
48
Franchise Development Citilane
Womens molded flat
Roka fully molded
Cut & sewlace up Cut & sew
twin gore
Fabric wrap clog
KidsCut & sewFlip
UnisexMolded clog
49
Franchise Development Swiftwater
Hybridsandal
Molded clog
Leather clog
Flip Casual moc
Casual hiker
Kids' clog
50
Product OverviewSS16 Seasonal Big Ideas
51
Consumer Facing Seasonal Big Ideas
UNI
52
Womens & Girls Isabella Collection
Isabella Mini Wedge Isabella Flat Sandal
Isabella FlatIsabella Sandal
53
Womens Sienna Flat
Sienna Flat
Sienna Leopard Shiny Flat
54
Womens Wedges Leigh II and A-leigh II
A-leigh Crisscross Wedge
Leigh II 2-Strap Wedge
A-leigh Wedge
55
Womens & Girls Karin Clog
Girls Karin Clog
56
Unisex Citilane Collection
CitiLane Rka Slip On
CitiLane Clog
CitiLane Canvas Clog
CitiLane Flip
57
Mens & Kids' Swiftwater Collection
Swiftwater Flip
Swiftwater Leather Clog
Swiftwater Clog
Swiftwater Sandal
58
Summer Core Molded Flips
Kadee Flip
Classic Flip
59
Kids Bump It Collection
Bump It Clog
Bump It Sandal
Bump It Shoe
60
Kids Licensed Star Wars, Frozen & Finding Dory
SW Millenium Falcon Bump It Shoe
Frozen Fever Elsa Sandal
Finding Dory Lights Up Clog
61
Fall 2016
62
Rain
Casual / Active Shoes & Boots
Building a Year Round Business: Fall
Fun & Stylish
Functional Boots
Licensed
Core & Core Lined
Resort
Focused assortment & story telling
New luxe clog
Bliss boot leopardBump it boot
Kinsale chukka
Fun & StylishFunctional Boots
Licensed* Resort
*licensed covers all 4 categories
63
Product transformation is well underway
64
Marketing OverviewTerence Reilly, SVP Chief Marketing Officer
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Crocs in The News
2015 Marketing Campaign
2016 Sneak Peek
Agenda
66
Marketing OverviewCrocs in The News
67
Crocs in the News
68
Crocs in the News
69
Crocs in the News
70
Marketing Overview2015 Marketing Campaign
71
Reignite Excitement & Relevance For
Crocs
Marketing Campaign Objectives
54%
50%Owners who havent
purchased in past 6 months
Considerers who have owned Crocs but havent purchased
in over 2 years
67%General population who
have stated Crocs consideration or are neutral
68%Associate our iconic clog to Crocs brand
Give Consumers Permission To Engage
Establish Crocs As A Modern Meaningful
Icon
72
First. A Quiz.
73
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75
76
77
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Celebrate our icon.
79
At Crocs, we believe our clog is an iconic symbol for having fun.
We see the fun in almost anything and believe you can turn
anything you do into something fun. So lets celebrate the fun
we see in everything and encourage you to go find your fun.
Creating Fun = Selling Crocs
80
81
2015 Marketing Campaign
Crocs largest media campaign in brand history
Broad and impactful target consumer reach
Magnifying integration across TV, digital, OOH, social, store presentation
6.8BIMPRESSIONS!!!
Global Media Breakdown
40%
43%
16%
TV Digital OOH
82
Global Marketing Spend
South Korea
U.K.6%
Germany
China
Japan
U.S.
Spend by Country Percent
83
360 Degree Campaign
Strong connectivity across all touch points
DIGITAL OOH E-COMSOCIALBROADCAST STORE ENVIRONMENT
84
Compelling Creative
85
New York City
86
One Piccadilly, London
87
Beijing Guomao Station
88
Digital
89
Digital
89
90
Robust Channel Integration
91
Social Media
Iconic Clog Crocs Thoughts Style Features Seasonal Influencers
Fans of Fun Events, Holidays, Seasons Fun Facts Retail
92
Television
93
Spring Summer Television
94
Spring Summer Television
95
Spring Summer Television
96
Marketing Campaign Objectives
Reignite Excitement & Relevance For Crocs
54%50%
Owners who purchased in past
6 months
Past owners considering
purchase
67%
General population who have stated Crocs consideration or
are neutral
68%
Associate our iconic clog to Crocs brand
Give Consumers Permission To Engage
Establish Crocs As A Modern Meaningful Icon
+11%+8% +3% +11%
2014*
2015**
2
Brand Strength Monitor Conducted in US, UK, DE, CN, JP & KR 9,000 participants fielded in June 2015 General market study aligned to census
* 2014 basis** YOY ppt. changes
97
Ad Engagement Impact
Brand Desirability
BrandPurchase Consideration
Consumers who recalled Crocs advertisementsvs.
Consumers who havent seen Crocs advertisements
+27%+28% Recall Crocs advertisement in past 6 months Absolute difference of consumer advertising recall versus non-aware
98
Marketing Overview2016 Sneak Peak
99
2016 Campaign Evolution
LEVERAGE FUN TO CREATE A DEEPER EMOTIONAL INVESTMENT
1. CREATE AND FACILITATE FUN by inspiring and amplifying fun experiences
2. TELL 2016 PRODUCT STORIES and demonstrate how wearing Crocs shoes helps people find their
own fun
3. SUPPORT WHOLESALE PARTNERS through fun Crocs activations to drive additional traffic and sales
during key periods
Increase working marketing dollars in excess of 20% to achieve 2016 objectives
100
101
Financial PlansMike Smith, SVP Finance (Interim CFO)
102
Crocs Financials: Key Points
Crocs is going through a significant transition, not only in its organizational structure and leadership, but in its business model
We have been making this transition in the face of significant headwinds: currency, China, and operational challenges
We have accomplished much in the past 12 months towards this transition and are making meaningful progress
When complete, we are confident Crocs can return to a 10-12% EBIT business in the mid-term future
103
The Evolving Business and Financial Model
Sales
Annual Growth
Adj. GM%*
Adj. SG&A%*
Adj. EBIT%*
Stores
Comments
2011
$1.0B
27%
53.6%
40.5%
13.1%
430
Weak U.S. dollar results in high Gross Margins
Balanced wholesale and retail growth
2014
$1.2B
0.5%
50.5%
45.1%
5.4%
624 (peak)
Strong U.S. dollar drives down Gross Margins
Retail door growth drives SG&A increases
Mid-Term Model
8%+
Low 50s
Low 40s
1012%
~550
Product mix and supply chain offset strong dollar
SG&A lowered through completed restructuring, store closures and leveraging future sales growth
* Adjusted for restructuring, special and other non-recurring charges; Please refer to the companys 2014 10-k filed on March 7, 2015 and other filings for full reconciliation of GAAP to Adjusted financial results
104
Significant Challenges from US Dollar Exchange Rates
* Through June 30th
100%
102%
104%
106%
108%
110%
112%
114%
116%
2011 2012 2013 2014 2015
Crocs Basket of Currency vs. USDCurrencies having the greatest impact:
Currency2011-15 %
depreciation vs. USD
Japan 33%
EUR 19%
Russia 57%
Brazil R$ 60%
Korea 6%*
6%
14%
In 2014, approximately 35% of Revenue and 65% of costs were in U.S. dollars
105
Effects on Gross Margin from US Dollar Exchange Rates
Gross Margin % F/X rates depressed local purchasing power and impacted gross margins for the company
Total impact on gross margin from peak is about 400 basis points
Gross Margin constant currency in 2015 comparable with that of the peak
Assuming current currency rates, we anticipate gross margin to be in the low 50s in the mid-term
2011 2012 2013 2014 2015
At constant 2015 FX rates
As reported
106
Overview of Operations Improvements/Cost Initiatives
$11M
$15M
0
10
20
30
40
50
TotalInternationalCorporate / AmericasStore closures
SG&A Annualized Reductions$Millions U.S. Dollar
~$43M
Note: Offsetting $15-20M in certain additional variable expenses, including marketing and variable compensation, anticipated in 2016
$17M
107
To Realize Our Potential, We are Focused on
Near term Mid-term
Spring Summer 2016 deliveries
Wholesale growth driven by product, marketing, and operational improvements
Broad based growth in e-commerce
Enhanced retail execution
Cost control of SG&A expenses
8%+ revenue growth driven by Wholesale and e-commerce
Primary growth from Asia and Americas
Return China to sustained growth
Stabilized margin based on mix and COGS efficiencies to overcome currency and channel shift
Continued investment in marketing to support sales growth
Limit SG&A expense by leveraging existing talent and infrastructure
108
8% +Annually
Low 50s
Low 40s
10-12%
Mid-Term Potential2018+
Sales Growth*
GM %
SG&A %
EBIT %
Mid-Term Potential
*Organic growth at current exchange rates
109
Mid-Term Expectations Are Realistic
Constant currency core business growth in Q2 (excluding closed stores and exited product lines) up low single digits
Wholesale orders continue to support expectations of high single digit wholesale growth and are consistent with qualitative feedback from key retail partners
Improved consumer connectivity evidenced by e-commerce results and digital engagement
Enhanced product margin helping to offset currency headwinds
Annualized cost reductions are over $40M
110
SummaryGregg Ribatt, CEO
111
Crocs is in the midst of a significant turnaround with the goal of creating one of the worlds leading casual footwear brands
The initial priority was to strengthen the management team, ensure the smooth implementation of the SAP ERP system, and drive significant cost savings through simplification and focus
Concurrently, we have been focused on driving profitability and growth through elevating consumer connections including improved product and marketing execution
The full impact of our efforts will begin to be realized with the shipment and sell through of our Spring/ Summer 2016 linethe first developed by our new team
Nonetheless, we are beginning to see the early results of our efforts
Recap
112
8+%Annual sales
growth
Low 50sGM%
Low 40sSG&A%
10-12%EBIT
margins
Deliver Top Quartile Industry Performance
Mid-Term Potential of Crocs
113
Q&A
114
Thank you!