Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Crocs, Inc. | d468510d8k.htm |
 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 |