Crocs Investor Presentation Deck
APPENDIX
Non-GAAP Reconciliation
In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America ("GAAP"), we present
"Non-GAAP cost of sales," "Non-GAAP gross profit," "Non-GAAP gross margin," "Non-GAAP gross margin by brand," "Non-GAAP selling, general, and
administrative expenses," "Non-GAAP selling, general and administrative expenses as a percent of revenues," "Non-GAAP income from operations," "Non-
GAAP operating margin," "Non-GAAP income before income taxes," "Non-GAAP income tax expense (benefit)," "Non-GAAP effective tax rate," "Non-
GAAP net income," and "Non-GAAP basic and diluted net income per common share," which are non-GAAP financial measures. We also present future
period guidance for "Non-GAAP operating margin," "Non-GAAP operating income," "Non-GAAP effective tax rate," and "Non-GAAP diluted earnings per
share." Non-GAAP results exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed
consolidated financial statements in the periods presented.
We also present certain information related to our current period results of operations through "constant currency," which is a non-GAAP financial measure
and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents
current period results that have been retranslated using exchange rates used in the prior year comparative period to enhance the visibility of the underlying
business trends excluding the impact of foreign currency exchange rate fluctuations.
Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of
directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures, in addition to
corresponding GAAP measures, are useful to investors and other users of our condensed consolidated financial statements as an additional tool for
evaluating operating performance and trends. For the three and three and nine months ended September 30, 2023, management believes it is helpful to
evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP
measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Comparable store status, as included in the DTC comparable sales figures above, is determined on a monthly basis. Comparable store sales include the
revenues of stores that have been in operation for more than twelve months. Stores in which selling square footage has changed more than 15% as a result of
a remodel, expansion, or reduction are excluded until the thirteenth month in which they have comparable prior year sales. Temporarily closed stores are
excluded from the comparable store sales calculation during the month of closure and in the same month in the following year. Location closures in excess of
three months are excluded until the thirteenth month post re-opening. E-commerce comparable revenues are based on same site sales period over period.
E-commerce sites that are temporarily offline or unable to transact or fulfill orders ("site disruption") are excluded from the comparable sales calculation
during the month of site disruption and in the same month in the following year. E-commerce site disruptions in excess of three months are excluded until the
thirteenth month after the site has re-opened.
CROCS inc
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