#1crocs TM Q1 2022 Investor Presentation cr CS cr CS CI 500 C May 2022 AC E e d ΠΙ JC G#2CS FORWARD-LOOKING STATEMENT This document includes estimates, projections, and statements relating to our plans, commitments, objectives, and expectations that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements regarding the potential impacts to our business related to our supply chain challenges, the COVID-19 pandemic, our financial condition, brand and liquidity outlook, and expectations regarding our future revenue, margins, non-GAAP adjustments, tax rate, earnings per share and capital expenditures, the acquisition of HEYDUDE and benefits thereof, Crocs' strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, statements regarding full year and second quarter 2022 financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to deliver sustained, highly profitable growth. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: our expectations regarding supply chain disruptions, the COVID-19 pandemic and related government, private sector, and individual consumer responsive actions; current global financial conditions, including economic impacts resulting from the COVID-19 pandemic; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenues; changing consumer preferences; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to successfully implement our strategic plans; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks and other factors described in our most recent Annual Report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission. All information in this document speaks as of May 5, 2022. We do not undertake any obligation to update publicly any forward-looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law. cr CS CI 500 C AC E e 2 JC 70#3cr CS cr C OC C MOM CONTENTS о BUSINESS & FINANCIAL HIGHLIGHTS о BRAND PERFORMANCE о FINANCIAL OUTLOOK о APPENDIX AC E e ล JC 70 3#4C იიიიიიი cr CS OUR VISION croc Everyone Comfortable In Their Own Shoes KAROL G x CROCS 4 JC 70 T HC E ИЕ#5OUR VALUES The Path We Choose to Walk AC DELIGHTFULLY DEMOCRATIC We celebrate one-of-a-kinds and stand together with all different kinds. PEOPLE-PURPOSED DESIGN We think people-first at every step. We design for everything you do and everywhere you go. INHERENT SIMPLICITY We know smart doesn't have to mean complicated. So we keep things simple, light and totally intuitive. E Cr IMAGINATIVE INNOVATION We stretch the possibilities of design and creative thinking so you can reach your highest. potential. UNAPOLOGETIC OPTIMISM We make a choice every day to have an open mind and look on the bright and colorful side. CONFIDENTLY COMFORTABLE We support comfort on every level, because when you're comfortable, you can do anything. CS cr CS CI 500 C JC 70 LO 5#6cr CS C C C Oc C OCE BUSINESS & FINANCIAL HIGHLIGHTS cre 6 AC E E T JC 70#7BUSINESS & FINANCIAL HIGHLIGHTS AC E e cr CS cr CS CI "Our first quarter revenue growth of 47% on a constant currency basis is a testament to the underlying strength of the Crocs and HEYDUDE brands. Consumer demand remains strong giving us the confidence to raise our full year outlook for revenues to approximately $3.5 billion, adjusted operating margin to 26% to 27%, and adjusted diluted earnings per share to $10.05 to $10.65." -Andrew Rees, CEO 500 C ล JC 70 7#8cr CS cr CS CI 500 C BUSINESS & FINANCIAL HIGHLIGHTS BROAD-BASED REVENUE GROWTH IN Q1 2022 $660M Revenues +44% / 47% CC $545M Crocs Revenues +19% / 22% CC $115M HEYDUDE Revenues AC E +17% Crocs DTC Comp Growth +23% Digital Sales Growth (Organic CC) 32% Digital Penetration JC 70 8#9cr CS cr CS CI BUSINESS & FINANCIAL HIGHLIGHTS Q1 REVENUE BREAKDOWN HEYDUDE 27% 123 500 C Brand (1) EMEALA 24% Crocs 73% Asia Pacific 18% Geography (2) North America 58% Digital Penetration (3) Channel Digital 32% DTC 35% O WHL 65% Revenues by brand are presented on a pro forma basis for HEYDUDE as if the acquisition had closed on January 1, 2022. Geography is for Crocs Brand only. Digital sales include Crocs.com, heydudeshoesusa.com, third-party market places (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando). 9 AC E e JC πα#10cr CS cr CS CI OC C 500 BUSINESS & FINANCIAL HIGHLIGHTS Q1 2022 FINANCIAL HIGHLIGHTS AC Q1 B/(W) vs. PY(1) Revenues ($M) E $660 +47% (2) Gross Margin 49.2% (580) bp Adjusted Gross Margin (3) 53.9% (130) bp Adjusted SG&A as % of Revenue(3) 27.3% 60 bp Operating Margin 18.0% (910) bp Adjusted Operating Margin (3) 26.6% (70) bp Diluted EPS JC $1.19 (19)% 70 Adjusted Diluted EPS (3) $2.05 +38% 123 Inclusive of HEYDUDE acquisition for the period following the closing of the acquisition on February 17, 2022 through March 31, 2022. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. See reconciliation to GAAP equivalents in Appendix. 10#11cr CS C C C Oc C BRAND PERFORMANCE OCE cre 11 AC E E T JC 70#12BRAND PERFORMANCE CROCS BRAND Q1 HIGHLIGHTS • Crocs brand revenues +22% CC vs. PY • • • о о Digital revenue growth +23% CC vs. PY • DTC growth of +20% CC vs. PY о 。 North America DTC growth of +19% vs. PY Ranked #6 in Piper Sandler's Spring 2022 Taking Stock with Teens survey, up two spots from last year Launched innovative digital marketing campaigns with Karol G & Spotify Introduced Cozzzy lined two-strap sandal and Literide 360 become a Net Zero company by 2030 • Released ESG report reinforcing our commitment to Q1'2022 B/(W) vs. PY Revenues(1) $545M +21.7% Adj. Gross Margin (2) 54.9% (30) bp Cr Adj. SG&A as % of Revenue(2) 23.4% (200) bp CS cr Adj. Operating Margin (2) 31.6% (230) bp CS CI OC C 1. 2. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. See reconciliation to GAAP equivalents in Appendix. GO CS CS Cr scrocs crocs cr crocs crocs crocs crocs C crocs crocs croc rocs crocs crocs ocs crocs crocs ro rocs crocs#13Cr BRAND PERFORMANCE CROCS BRAND Q1 REVENUE BREAKDOWN CS cr CS CI * OC C EMEALA 24% Asia 18% Geography Americas 58% Digital Penetration* Channel Digital 33% Ο * O WHL 63% DTC 37% * Digital sales include Crocs.com, third-party market places (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando) CS CS Cr s crocs crocs cr crocs crocs crocs crocs C crocs crocs croc rocs crocs crocs ocs crocs crocs cro rocs crocs#14Cr CS cr CS CI OC ن C BRAND PERFORMANCE CROCS BRAND Q1 REVENUE GROWTH +20% +16% / 22% CC +18% / 27% CC Geography Americas Asia EMEALA Channel +23% Digital Sales CC Growth +17% DTC Comparable Growth +23% Wholesale CC Growth CS CS Cr crocs ocs cr crocs crocs crocs C crocs crocs croc rocs crocs crocs c ocs crocs crocs tro rocs crocs#15BRAND PERFORMANCE BUILDING CROCS BRAND TO $5B+ BY 2026E PLANNED GROWTH INITIATIVES . • • ● Invest in digital to be 50%+ of long-term Crocs brand revenues or $2.5B+ Grow Sandals revenues by 4x to $1.2B+ Double Jibbitz revenues Increase Asia region to become ~25% of long-term Crocs brand revenues Grow China from <5% of Crocs brand revenues to ~10% Cr CS . Continue to deliver innovative product & marketing cr CS CI OC C CS CS Cr s crocs crocs cr crocs crocs crocs crocs C crocs crocs croc rocs crocs crocs ocs crocs crocs cro rocs crocs#16JE JC פר L JUDDY ר ● • • • • BRAND PERFORMANCE HEYDUDE BRAND Q1 HIGHLIGHTS Closed acquisition on February 17, 2022 Q1 Revenues of $115M exceeded internal expectations • On a pro forma basis, Q1 revenues were $205M, +81% vs PY HEYDUDE ranked #9 in Piper Sandler's Spring 2022; in top 10 for the second consecutive survey о Strength in the Midwest and Southern US. Focus on building out the brand; increasing awareness and driving consideration Integration of the brand is on track Q1'2022 Revenue A $115M Adj. Gross Margin (1) 49.9% SG&A as % of Revenue (2) 12.0% Adj. Operating Margin (1) 37.9% 1. e 2. See reconciliation to GAAP equivalents in Appendix Non-GAAP SG&A adjustments were not made within the HEYDUDE brand 2 JUC de h Que heчdy heчdud 16 нече 10. E E AC#17누무 BRAND PERFORMANCE JE JC פר BUILDING HEYDUDE REVENUES TO $1B+ BY 2024 L PLANNED GROWTH INITIATIVES ● Invest in industry-leading marketing to build brand awareness • Enhance digital capabilities to further accelerate digital e 2 70 A ● ● ● Leverage Crocs strong wholesale relationships to enhance distribution Leverage Crocs distribution for global growth Invest to scale supply chain and gain efficiencies Test selective retail footprint for enhanced brand awareness e 부민 40 2 JUC de h de heчdy heчdudh 17 heyc 10. E e AC#18cr CS C C C Oc C FINANCIAL OUTLOOK OCE cre 18 AC E E T JC 70#19FINANCIAL OUTLOOK 2022E GUIDANCE (numbers on reported basis, unless otherwise noted) Q2 2022E Total Revenues $918 to $957M crocs™ HEYDUDEⓇ $718 to $737M (1) +17% to 20% CC' $200 to $220M Adjusted Operating Margin (3) Adjusted One Time Costs (3) Adjusted Tax Rate (3) Adjusted Diluted EPS (3) -26%(4) -$65M(6) FY 2022E ~$3.5B 20%+ $750 to $800M(2) ~26% to 27% (5) -$135(7) ~22% $10.05 to $10.65 $170 to $200M 1. Crocs Brand expected revenue growth of approximately 17% to 20% on a constant currency basis implies 12% to 15% growth on a reported basis and expected revenues of approximately $718 to $737M on a reported basis. Including the period of time prior to the closing of the acquisition, HEYDUDE 2022E revenues expected to be approximately $840 to $890M. See reconciliation to GAAP equivalents in Appendix. Capital Expenditures Cr CS cr C$ 123456 2. 3. 4. 5. Includes an expected incremental $75M of air freight embedded in gross margin for full year 2022. CI 6. OC C 500 7. Includes an expected approximately $50M impact from air freight embedded in gross margin. Non-GAAP adjustments include an expected: $20M in SG&A costs, primarily associated with the HEYDUDE acquisition, and an additional $45M of non-cash costs in cost of sales, primarily related to the write up of HEYDUDE inventory costs to fair market value at the close of the acquisition. Non-GAAP adjustments include an expected: $60M in SG&A costs, primarily associated with the HEYDUDE acquisition, and an additional $75M of non-cash costs in cost of sales, primarily related to the write up of HEYDUDE inventory costs to fair market value at the close of acquisition. 19 AC E e ล JC 70#20FINANCIAL OUTLOOK LONG TERM GUIDANCE* Revenues cr CS cr CS CI OC 00 C Revenue Growth Adjusted Operating Margin Adjusted Tax Rate Capital Expenditures AC crocs™ E HEYDUDEⓇ Crocs, Inc. e $5B+ $1B+ $6B+ 17%+ 20%+ 26%+ 26%+ 26%+ -25% ~3% of revenues * Crocs long-term guidance provided here is on a pre-acquisition standalone basis. Long term for Crocs and Crocs, Inc. defined as 2026E and for HEYDUDE defined as 2024E. Please refer to Appendix for definitions and Non-GAAP reconciliations. ล JC 70 20 20#21cr CS cr CS CI 500 C FINANCIAL OUTLOOK CAPITAL ALLOCATION PRIORITIES Business Investment Deleverage to <2.0x Gross Leverage Shareholder Returns AC E e Invest to support long-term, profitable growth Committed to working towards deleveraging quickly Share repurchases on hold until gross leverage is <2.0x, which we do not expect to occur in 2022 JC 70 21#22FINANCIAL OUTLOOK LEVERAGE OUTLOOK о Finished 2021 with net leverage <1x Committed to quickly deleveraging and now targeting to be below 2.0x gross leverage by mid-year 2023 Share repurchases on hold until gross leverage is <2.0x, which we do not expect to occur in 2022 Net Debt / Adjusted EBITDA Outlook 0.8x 2.9x ≤ 2.0x AC E E cr JC CS cr CS YE 2021 CI C 500 PF YE 2021 for HEYDUDE 70 PF Mid-Year 2023E* * Assumes excess free cash flow used to repay borrowings. Net Debt / EBITDA calculated as: (Total Debt - Cash and Cash Equivalents) / TTM EBITDA 22#23cr CS C C C Oc C APPENDIX OCE cre AC E E 23 23 T JC 70 ــال#24APPENDIX NON-GAAP RECONCILIATION Non-GAAP Cost of Sales, Gross Profit, and Gross Margin Reconciliation: GAAP revenues GAAP cost of sales Distribution centers (1) HEYDUDE inventory fair value adjustment (2) Inventory reserve in Russia (3) Total adjustments Non-GAAP cost of sales GAAP gross profit GAAP gross margin Non-GAAP gross profit Non-GAAP gross margin SA Three Months Ended March 31, 2022 2021 (in thousands) 660,148 $ 335,224 (1,191) 460,098 206,879 (985) (27,927) (1,800) (30,918) (985) $ 304,306 $ 205,894 EA 324,924 $ 253,219 49.2 % 55.0 % EA 355,842 $ 254,204 53.9 % 55.2% Cr CS cr CS (1) Represents expenses, including expansion costs and duplicate rent costs, related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands. (2) Represents a write-up of HEYDUDE inventory costs to fair value upon the close of the acquisition on February 17, 2022. CI (3) Represents an inventory reserve expense in our EMEALA segment associated with our pause of certain operations in Russia. OC C 500 AC E e ล JC 70 24#25APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Selling, General and Administrative Expenses Reconciliation: GAAP revenues GAAP selling, general and administrative expenses HEYDUDE acquisition-related costs (1) Bad debt impact in Russia (2) Total adjustments Non-GAAP selling, general and administrative expenses (3) GAAP selling, general and administrative expenses as a percent of revenues AC Three Months Ended March 31, 2022 E 2021 e (in thousands) 660,148 $ 460,098 206,247 128,533 (20,601) (5,267) (25,868) 180,379 128,533 31.2 % 27.9 % Non-GAAP selling, general and administrative expenses as a percent of revenues 27.3 % 27.9 % Cr CS cr C$ (1) Represents costs related to the Acquisition, including legal, professional, and transaction fees. CI OC 500 C (2) Represents bad debt expense associated with the impact of the war between Russia and Ukraine on wholesale partners in Russia. (3) Non-GAAP selling, general and administrative expenses are presented gross of tax. 25 55 ล JC 70#26APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Income from Operations and Operating Margin Reconciliation: Three Months Ended March 31, GAAP revenues GAAP income from operations Non-GAAP cost of sales adjustments (1) Non-GAAP selling, general and administrative expenses adjustments(2) Non-GAAP income from operations GAAP operating margin Non-GAAP operating margin 2022 2021 (in thousands) 660,148 460,098 EA 118,677 124,686 30,918 985 25,868 $ 175,463 $ 125,671 18.0 % 26.6 % 27.1 % 27.3 % Cr CS cr CS (1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more details. CI OC 00 (2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more details. AC E e ล JC 26 26 70#27CS APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Income Tax Expense (Benefit) and Effective Tax Rate Reconciliation: GAAP income from operations GAAP income before income taxes Non-GAAP income from operations (1) GAAP non-operating income (expenses): Foreign currency gains (losses), net Interest income Interest expense Other income (expense), net Non-GAAP income before income taxes GAAP income tax expense Tax effect of non-GAAP operating adjustments Impact of intra-entity IP transfers (2) Non-GAAP income tax expense GAAP effective income tax rate Non-GAAP effective income tax rate AC Three Months Ended March 31, 2022 E 2021 (in thousands) 118,677 99,060 e $ 124,686 122,588 175,463 125,671 480 102 (504) 27 (19,252) (1,632) (947) 11 $ 155,846 123,573 26,300 24,190 7,622 249 (3,107) (352) $ 30,815 $ 24,087 26.5 % 19.8 % 19.7 % 19.5 % cr (1) See 'Non-GAAP income from operations and operating margin reconciliation' above for more details. CS C OC 00 C (2) In the fourth quarter of 2020, and subsequently in the fourth quarter of 2021, we made changes to our international legal structure, including an intra-entity transfer of certain intellectual property rights, primarily to align with current and future international operations. The transfers resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of these transfers. 27 ล JC 70#28APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Earnings Per Share Reconciliation: Three Months Ended March 31, 2022 2021 (in thousands, except per share data) Numerator: GAAP net income Non-GAAP cost of sales adjustments (1) Non-GAAP selling, general and administrative expenses adjustments (2) Tax effect of non-GAAP adjustments Non-GAAP net income 72,760 $ 30,918 98,398 985 25,868 (4,515) 103 125,031 $ 99,486 Denominator: GAAP weighted average common shares outstanding - basic 59,823 65,458 Plus: GAAP dilutive effect of stock options and unvested restricted stock units GAAP weighted average common shares outstanding - diluted 1,073 60,896 1,390 66,848 GAAP net income per common share: Basic Diluted Non-GAAP net income per common share: Basic Cr Diluted CS cr C$ CI OC C $ 1.22 $ 1.50 1.19 1.47 $ 2.09 $ 1.52 $ 2.05 1.49 (1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more information. (2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more information. 28 88 AC E e ล JC 70#29CS cr C CI OC 00 APPENDIX NON-GAAP RECONCILIATION (CONT'D) Reconciliation of GAAP to Non-GAAP Financial Guidance: Second Quarter 2022: Non-GAAP operating margin reconciliation: GAAP operating margin Non-GAAP adjustments, primarily associated with the HEYDUDE acquisition (1) Non-GAAP operating margin Full Year 2022: Non-GAAP operating margin reconciliation: GAAP operating margin Non-GAAP adjustments, primarily associated with the HEYDUDE acquisition (1) Non-GAAP operating margin Non-GAAP effective tax rate reconciliation: GAAP effective tax rate Non-GAAP adjustments associated with amortization of intellectual property(2) Non-GAAP effective tax rate Non-GAAP diluted earnings per share reconciliation: GAAP diluted earnings per share AC Approximately: E 19% 7% e 26% Approximately: 22% to 23% 4% 26% to 27% 25% (3)% 22% Non-GAAP adjustments, primarily associated with the HEYDUDE acquisition and amortization of intellectual property Non-GAAP diluted earnings per share $7.95 to $8.55 $2.10 $10.05 to $10.65 (1) In the second quarter of 2022, we expect to incur $20 million in SG&A costs, primarily associated with the HEYDUDE acquisition, and an additional $45 million of non-cash costs in cost of sales, primarily related to the amortization of the write up of HEYDUDE inventory costs to fair market value at the close of the Acquisition. For the full year 2022, we expect to incur $60 million in SG&A costs, primarily associated with the HEYDUDE acquisition, and a total $75 million of non-cash costs in cost of sales, primarily related to the write up of HEYDUDE inventory costs to fair market value at the close of acquisition. (2) In the fourth quarter of 2020, and subsequently in the fourth quarter of 2021, we made changes to our international legal structure, including an intra-entity transfer of certain intellectual property rights, primarily to align with current and future international operations. This adjustment represents the amortization of the deferred tax asset related to these intellectual property rights in this period and the tax impact of cost of sales and SG&A non-GAAP adjustments. Our long-term guidance for "Non-GAAP Operating Margin" is a non-GAAP financial measure that excludes or otherwise has been adjusted for special items from our U.S. GAAP financial statements, such as inventory write-offs, duplicate rent costs, bad debt expense, and the HEYDUDE acquisition. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment. We are unable to reconcile Crocs 2026E and HEYDUDE 2024E non-GAAP operating margin guidance measures to their nearest U.S. GAAP measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of the special and other non-core items. By their very nature, special and other non-core items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures. 29 29 TU JC 70#30APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Cost of Sales, Gross Profit, and Gross Margin Reconciliation by Brand: Three Months Ended March 31, Crocs Brand GAAP revenues 2022 2021 (in thousands) 545,225 460,098 HEYDUDE Brand GAAP revenues 2022 Three Months Ended March 31, 2021 (in thousands) 114,923 $ GAAP cost of sales 248,617 206,879 GAAP cost of sales 85,458 Distribution centers (1) (1,191) (985) Inventory reserve in Russia (3) (1,800) HEYDUDE inventory fair value adjustment (2) Total adjustments (27,927) (27,927) Total adjustments (2,991) (985) Non-GAAP cost of sales 57,531 Non-GAAP cost of sales 245,626 205,894 GAAP gross profit 29,465 | | | | | GAAP gross profit 296,608 253,219 GAAP gross margin as a percent of revenues 25.6 % - % GAAP gross margin as a percent of revenues 54.4 % 55.0 % Non-GAAP gross profit 57,392 Non-GAAP gross profit 299,599 Non-GAAP gross margin as a percent of revenues 54.9 % 254,204 55.2 % Non-GAAP gross margin as a percent of revenues 49.9 % - % Cr CS cr CS (1) Represents expenses, including expansion costs and duplicate rent costs, related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands. (2) Represents a write-up of HEYDUDE inventory costs to fair value upon the close of the acquisition on February 17, 2022. CI (3) Represents an inventory reserve expense in our EMEALA segment associated with our pause of certain operations in Russia. OC C 500 30 30 10. JE JC 70 AC#31cr CS cr C$ CI OC C 500 APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Selling, General and Administrative Expenses Reconciliation by Brand: Three Months Ended March 31, Crocs Brand GAAP revenues GAAP selling, general and administrative expenses Bad debt impact in Russia (1) Total adjustments Non-GAAP selling, general and administrative expenses GAAP selling, general and administrative expenses as a percent of revenues Non-GAAP selling, general and administrative expenses as a percent of revenues 2022 2021 (in thousands) 545,225 $ 460,098 132,673 (5,267) (5,267) 127,406 98,573 - 98,573 24.3 % 23.4 % 21.4 % 21.4 % (1) Represents bad debt expense associated with the impact of the war between Russia and Ukraine on wholesale partners in Russia. 31 AC E e ล JC 70#32APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Income from Operations and Operating Margin Reconciliation by Brand: Three Months Ended March 31, 2022 2021 (in thousands) Crocs Brand GAAP income from operations 163,935 154,819 Non-GAAP cost of sales adjustments (1) 2,991 985 Non-GAAP selling, general and administrative expenses adjustments(2) 5,267 Non-GAAP income from operations $ 172,193 $ 155,804 GAAP operating margin Non-GAAP operating margin HEYDUDE Brand GAAP income from operations Non-GAAP cost of sales adjustments (1) Non-GAAP income from operations 30.1 % 31.6 % 33.6 % 33.9 % Three Months Ended March 31, 2022 (in thousands) 15,658 $ 27,927 43,585 2021 13.6 % - % 37.9 % - % 1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more information. (2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more information. GAAP operating margin Cr Non-GAAP operating margin CS cr C CI 00 OC AC E e ล JC 70 32 32#33SK8 *** T crocs 4 ZAP! x+990**** **29*90266A