Q3 2023 Investor Presentation

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Crocs logo
Crocs

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Consumer

Published

2023

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#1CROCS inc TM Q3 2023 Investor Presentation ON Ouch 05 125 Creo-chails SAAKS SIE 207 19 G OFTE#2Forward Looking Statement This document includes estimates, projections, and statements relating to our business plans, commitments, objectives, and expected operating results 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements regarding potential impacts to our business related to our supply chain challenges, cost inflation, our financial condition, brand and liquidity outlook, and expectations regarding our future revenue, margins, non-GAAP adjustments, tax rate, earnings per share, debt ratios and capital expenditures, share repurchases, 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 fourth quarter and full year 2023 financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to deliver sustained, highly profitable growth and create significant shareholder value. 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; cost inflation; 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 only as of November 2, 2023. 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. CROCS inc 2#3Contents Q3 Highlights Q3 Financial Review Appendix CROCS inc LITE#4Q3 Highlights CROCS inc 4#5Q3 HIGHLIGHTS CROCS inc We delivered a strong third quarter, exceeding the high-end of our guidance, led by double- digit revenue growth in our Crocs Brand supported by healthy full-price selling and industry-leading operating margins. Both our brands gained share during the back-to-school season. During the quarter, we took decisive action around HEYDUDE to accelerate our marketplace management strategy to ensure long-term brand health. As such, we are adjusting our full-year outlook to reflect this shift. - Andrew Rees, CEO LO 5#6Q3 HIGHLIGHTS Q3 2023 Highlights • Revenues of $1,046M, +6% CC(¹) O O Crocs Brand revenues of $799M, +11% CC (¹) Asia revenues up +29% CC¹); China >+90% CC North America revenues +8% CC(¹) driven by newer products such as Echo, Mega Crush DTC comparable sales growth +15% HEYDUDE Brand revenues of $247M, (9)% CC(¹) DTC growth of +15% CC(¹) Digital growth of +6% CC(¹) ■ Adjusted operating margin of 28.3% (2), +40 bps YoY Adjusted diluted EPS +9% to $3.25 per share(2) • Debt paydown of $90M; Repurchased $150M of shares • Gross leverage was 1.7x at quarter end 1. CROCS inc2 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. 6#7Q3 HIGHLIGHTS Diversifying the Crocs Clog Silhouette BAAD Echo CROCS inc Mega Siren 7#8Q3 HIGHLIGHTS Importance of Sandals to the Crocs Brand Sandals are a key strategic pillar in $30B global category Revenues +6% YoY on top of nearly 20% growth in 2022; +35% TTM Additional entry point for the Crocs Brand Crocs Brand sandal consideration is on par with that of clogs We expect sandal revenues to be ~$400M in 2023, up from ~$310M in 2022 CROCS inc CEO OF y 8#9Q3 HIGHLIGHTS Recent Crocs Product & Marketing Wins T CROCS inc Wildl SALEHE BEMBURY. 27183 WWW CUP at Gain 95 9

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