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 |