Deckers Outdoor Corporation · NYSE:DECK

Deckers Outdoor — Investor Presentation (June 2011)

47 slides from Deckers Outdoor's investor presentation, June 2011

  1. Slide 1: Investor Presentation June 2011

    Investor Presentation June 2011

  2. Slide 2: Brand logos: UGG, Teva, MOZO, Simple, TSUBO, Ahnu

  3. Slide 3: Safe Harbor

    Safe Harbor We make forward-looking statements in this presentation which represent our expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and other sim

  4. Slide 4: Key Investment Highlights

    Key Investment Highlights § Operate 6 non-competing lifestyle brands – UGG® Australia / Teva® / Simple® Shoes / TSUBO® Ahnu® / MOZO® § Meaningful domestic growth opportunities § Significant untapped international potential ~ 40% of total sales by 2015 § Solid earnings, cash flow and strong balan

  5. Slide 5: Brand Development Platform

    Brand Development Platform “Beyond Great Products to Build Great Brands.” LTM Net Sales @ Brand 3/31/11 87% § Accessible luxury comfort 10% § Outdoor performance § Style & comfort , Outdoor lifestyle & 3% Sustainability with style

  6. Slide 6: Growth Strategy

    Growth Strategy § Continue to drive UGG Australia growth - transcend great products to grow a great brand § Accelerate international growth § Grow retail business § Continue to develop infrastructure to support growth § Cultivate developing brands § Explore cash usage - internal investment and

  7. Slide 7: 2015 Sales Goal Growth Targets

    2015 Sales Goal Growth Targets $2 billion ØUGG Australia: $1.65 Billion ØTeva: $200 Million ØSimple, TSUBO, Ahnu and MOZO: $150 Million

  8. Slide 8: UGG Brand: The Premier Brand in Luxury and Comfort

    UGG Brand The Premier Brand in Luxury and Comfort: Love of Life

  9. Slide 9: UGG Brand Performance – Explosive Growth

    UGG Brand Performance – Explosive Growth - Twelve consecutive years of double-digit growth - Guidance: Grow ~ 21% in 2011 Goal $1,650 $873 $712 $582 348 $172 212 $116 $37 2003 2004 2005 2006 2007 2008 2009 2010 2015 Note: Net sales in millions.

  10. Slide 10: UGG Brand Profile

    UGG Brand Profile § Lifestyle brand based on accessible comfort and affordable luxury – “Once you discover comfort you don’t go back to discomfort.” § Multiple collections of boots and casual footwear for women, men, and children § Year round consumer demand for product line § Strong retail rela

  11. Slide 11: UGG Brand Profile

    UGG Brand Profile UGG Is an integral part of a cultural shift toward a lifestyle that is both casual and stylish - Consumers are dressing more casually in all parts of their life, including the workplace - Demand for casual and yet stylish clothing continues to increase - UGG has become a “go to bra

  12. Slide 12: The UGG Brand Today

    The UGG Brand Today 23% 30% 18-34 yr olds 47% Lieberman Trial and Potential Study, US females 13-54, January 2010.

  13. Slide 13: The UGG Brand Today: High Loyalty

    The UGG Brand Today: High Loyalty § UGG loyalty is more than 2 times the industry average. § Specifically, 63% of UGG buyers (past 12 months) “used UGG most often” vs. an average rating among footwear brands tested of 31%.

  14. Slide 14: UGG Brand Growth Strategy

    UGG Brand Growth Strategy “Transcend Great Products to Grow a Great Brand” § Diversify product line on a foundation of multiple categories to keep the brand fresh & appeal to a broader audience § Increase retail penetration selectively at premium doors and Company-owned retail stores § Expand int

  15. Slide 15: UGG Brand Growth Strategy: Diversify Product Line

    UGG Brand Growth Strategy Diversify Product Line • Expand cold weather collection • Grow men’s & kids’ businesses • Continue to expand Spring business • Further develop apparel & accessories collections

  16. Slide 16: UGG Brand Growth Strategy: Increased Marketing Spend

    UGG Brand Growth Strategy Increased Marketing Spend § UGG is investing in an additional 1.5% of sales in strategic marketing initiatives § Aggressive Men’s Marketing Program § Prospect Outreach and Conversion Programs § Social Media Strategy and Management § Retail Marketing Initiatives

  17. Slide 17: The UGG Man

    The UGG Man UGG men are confident, stylish, worldly, accomplished, current, masculine, intelligent, strong...respectful and respected.

  18. Slide 18: Reason to Believe

    Reason to Believe §Fighter Pilots §Surfers §Fathers §Athletes §And...women. §Today, men spend more money on themselves than ever before in history

  19. Slide 19: Our Strategy and Plan

    Our Strategy §To portray the stylish confident lifestyle of the UGG man §To give him permission to embrace the things in life that he loves Our Plan §Aggressive multi-media campaign §Special product collaboration §Pilot program in the U.S. for 2011 launching in Q4 §Global program in 2012

  20. Slide 20: Our Key Player: Tom Brady

    Our Key Player Tom Brady –Icon of stylish confidence –Perfect face for the UGG brand –Multi-year partnership

  21. Slide 21: UGG Brand Growth Strategy: Diversify Product Line

    UGG Brand Growth Strategy Diversify Product Line

  22. Slide 22: Increase Retail Penetration – Wholesale

    UGG Brand Growth Strategy Increase Retail Penetration – Wholesale Harrods in London Aiden in New York •Expand shop-in-shops to showcase product range •Showcase ~ 100 styles vs. ~ 40 styles at typical account • Drives 35% to 50% increase in sales • ~ 380 total shop-in-shops worldwide in 2011 vs. 258

  23. Slide 23: Increase Retail Penetration – Company owned stores

    UGG Brand Growth Strategy Increase Retail Penetration – Company owned stores § Currently operate worldwide18 full price stores and 9 outlets– all profitable with accretive margins, fast paybacks and strong sales per square foot § Planning to add ~15 stores in 2011 § Premium locations in major met

  24. Slide 24: Expand International Presence

    UGG Brand Growth Strategy Expand International Presence § Establish subsidiaries in key developed markets § Establish/maintain third party distributor relationships in less developed markets § Continue to develop subsidiary infrastructure platforms in Europe and Asia § Expand Company owned retai

  25. Slide 25: 2010 Anti-Counterfeit Initiatives

    2010 Anti-Counterfeit Initiatives Increased Investment supports UGG Brand Growth § Worldwide customs seized 155K pairs of counterfeit shoes, 245% > 2009 § Closed 4,783 counterfeit-dedicated websites, 190% > 2009 § Took down 30,444 eBay and other auction sites selling counterfeit UGG® Australia pr

  26. Slide 26: Teva Brand Growth Strategy

    Teva Brand Growth Strategy Live Better Stories § Re-positioned as an iconic adventure water brand for those who seek performance, camaraderie and adventure – Younger, more active consumer – Year-round product line with superior wet weather technology – Diversified distribution strategy – More targe

  27. Slide 27: Teva Brand Truths

    Teva Brand Truths Walk on, around or in Water Inspire Community Through Adventure PERFORMANCE CAMARADERIE WATER FREEDOM Lve Beller Startes

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  30. Slide 30: Simple Brand Growth Strategy: Less is More

    Simple Brand Growth Strategy Less is More § Consumers no longer have to choose style over sustainability § Target consumer is youthful and looking for ways to live a simpler and more genuine life § Brand will be more human, playful, optimistic and engaging § Environmental benefits remain as part

  31. Slide 31: Simple: shoes for a happy planet

    Simple} shoes for happy planet™

  32. Slide 32: TSUBO Brand Growth Strategy: Art + Craft

    TSUBO Brand Growth Strategy Art + Craft §Tsubo will reinforce it’s heritage as innovators § Pioneering styling and construction inspired from the world of fashion, architecture, furniture and automobiles § Pioneering marketing that shares the joy of creation and the pride of craftsmanship § Sele

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  34. Slide 34: TSUBO footwear

  35. Slide 35: Ahnu Brand Growth Strategy

    Ahnu Brand Growth Strategy Blurring the Lines between Performance and Lifestyle § Ahnu is a fresh and modern interpretation of outdoor footwear § Focused on active women who seek a balanced lifestyle between work and play § Lightweight and versatile enough to transition from trail to pavement §

  36. Slide 36: Ahnu hiking boot

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  38. Slide 38: MOZO Brand Growth Strategy

    MOZO Brand Growth Strategy Intersection of food and culture § MOZO recognizes that culinary professionals are creative performers, not servants – and their footwear choices should reflect that § High-performing, best-in-class work shoes with the spirit and style of the people who wear them § Part

  39. Slide 39: MOZO design and chef collaboration

  40. Slide 40: MOZO chef shoe collection

  41. Slide 41: Financial Performance

    FINANCIAL PERFORMANCE

  42. Slide 42: Deckers Sales Performance

    Deckers Sales Performance Guidance: Grow ~ 21% in 2011 $2.0 B $2,000 Other Brands $1,750 Teva $1,500 UGG $1,250 $1.0 B $1,000 $813 $750 $690 $500 $449 $304 $215 $265 $250 $121 $- 2003 2004 2005 2006 2007 2008 2009 2010 2015 Note: Net sales in millions.

  43. Slide 43: Margin Performance

    Margin Performance 60% 50.2% 50% 46.4% 46.2% 45.6% 44.3% 42.1% 42.1% 40% 30% 24.9% 22.1% 23.5% 22.2% 22.4% 19.8% 19.7% 20% Gross Margin 10% Op Margin 0% 2004 (1) 2005 (1) 2006 (1) 2007 2008 (1) 2009 (1) 2010 1) Operating income results are pro forma, adjusted to exclude litigation expenses, impairme

  44. Slide 44: Peer Group Performance – Margins

    Peer Group Performance – Margins 60% Gross Margin Oper Margin 50% 40% 30% 20% 10% 0% -10% -20% -30%

  45. Slide 45: EPS Performance

    EPS Performance Guidance: Grow ~ 13% for 2011 $4.03 $2.98 $2.42 $1.69 $1.10 $0.83 $0.70 2004 (1) 2005 (1) 2006 (1) 2007 2008 (1) 2009 (1) 2010 1) Operating income results are pro forma, adjusted to exclude litigation expenses, impairment losses and before restatements. 2) Note for all years mentione

  46. Slide 46: Balance Sheet & Cash Flow Highlights

    Balance Sheet & Cash Flow Highlights: Twelve Months Ending 12/31/2008 12/31/2009 12/31/2010 3/31/2011 Cash and short-term investments $195 $342 $445 $438 Total debt $- $- $- $- Total equity $385 $492 $653 $672 Total capitalization $385 $492 $653 $672 Cash flow from operations $53 $185 $142 $122 Capi

  47. Slide 47: Key Investment Highlights

    Key Investment Highlights § Operate 6 non-competing lifestyle brands § Meaningful domestic growth opportunities § Significant untapped international potential ~ 40% of total sales by 2015 § Solid earnings, cash flow and strong balance sheet § Seasoned management team with strong track record of

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