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Investor Presentaiton

APPENDIX 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
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