Crocs Inc. Q2 2025 Investor Results

Crocs Inc. Q2 2025 Investor Results

• 1. Q2 2025 Investor Presentation

• 2. This presentation 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 our financial condition, brand and liquidity outlook, and expectations regarding our future financial results, share repurchases, our strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, statements regarding future 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 the 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 August  7, 2025. 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. Forward Looking Statement 2

• 3. 3 “We reported a solid second quarter with both our Crocs and HEYDUDE brands contributing to our performance, while delivering the highest ever gross profit quarter in company history. Our strong cash flow generation enabled us to return shareholder value through $133 million in share repurchases, and $105 million in debt paydown. While we are pleased by this performance, the current operating environment is uncertain and challenging to predict. Against this, we have chosen to focus on managing expenses including the $50 million in cost savings we have already implemented, reducing our inventory receipts, and pulling back on promotional activity to protect brand health in the marketplace. Although these actions will impact the topline of our business in the short term, they will position our business to win, drive margin dollars, and support continued cash flow generation longer term.” Andrew Rees, Chief Executive Officer Crocs, Inc. Reports Solid Q2 Results

• 4. Investment Thesis 4

• 5. Investment Thesis 1. Based on management estimates. 2 Diversified sources of growth across brands, categories, channels, and regions 3 Strong value proposition with assortments <$100 taking market share 5 4 Durable, profitable growth with top-tier margins and cash flow generation 5 Best-in-class management team with track record of delivering top-tier TSR 1 Global leader in casual footwear with two iconic brands and a $280B+ TAM(1)

• 6. We Have A Strong And Diversified Platform For Growth(1) 6 North America 53% International 47% DTC 50% WHL 50% Channel Geography SHARE OF ENTERPRISE SHARE OF CROCS BRAND 1. Trailing Twelve Month ratio Crocs 81% HEYDUDE 19% Brand

• 7. Crocs Inc. Growth Priorities Tier 1 Market Share Gains Attract New Consumers through strategic investment behind talent, marketing, digital and retail through methodically diversifying our product range and usage occasions through driving awareness and global relevance for new and existing customers Ignite Our Icons Within Crocs and HEYDUDE 7

• 8. 8 Crocs Brand Strategy Drive Brand Relevance through Icon Iterations Gain Market Share Outside of Clogs through New Wearing Occasions Gain Share in Markets around the World Fuel Disruptive and Authentic Social and Digital Marketing

• 9. Stabilize Then Accelerate North America, While Planting Seeds Internationally Scale Our Core, Then Add More Ignite Our Community Through HEYDUDE Country HEYDUDE Brand Strategy 9

• 10. Financial Outlook 10

• 11. Q3 2025(1) Total Revenue Growth Y/Y (11%) to (9%) Adjusted Operating Margin(2) 18% to 19% Guidance: Q3 and Full Year 2025 11 It is difficult to fully project the financial implications of changing global trade policies as well as predicting how consumer sentiment and purchasing patterns will evolve in the back-half of the year. As a result, we are not reinstating annual guidance at this time. We are, however, providing third quarter guidance. including estimated 170bps of tariff headwind 1. Reflects current currency rates as of 8/4/2025. 2. As of 8/7/2025, our forward-looking guidance for consolidated “adjusted operating margin” represents a non-GAAP financial measure that excludes or otherwise has been adjusted for special items from our U.S. GAAP financial statements. 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 forward-looking adjusted measures to their nearest U.S. GAAP measure quarter-by-quarter because we are unable to predict the timing of these adjustments with a reasonable degree of certainty. 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 this measure for the guidance related to the third quarter of 2025 without reasonable efforts.

• 12. Debt Paydown Repurchase Shares opportunistically repurchase shares under our remaining $1.1B buyback authorization maintain our net leverage target range of 1.0x to 1.5x(1) committed to redeploying bestin-class gross margins to accretive investments Invest in Our Brands Capital Allocation Priorities 12 1. Our forward-looking guidance for our net leverage target remains a non-GAAP financial measure that excludes or otherwise has been adjusted for special items from our U.S. GAAP financial statements. We are unable to reconcile forward-looking adjusted measures to their nearest U.S. GAAP measure quarter-by-quarter because we are unable to predict the timing of these adjustments with a reasonable degree of certainty. Therefore, we are unable to provide a reconciliation of this measure for the guidance related to the third quarter of 2025 without reasonable efforts.

• 13. Financial Results 13

• 14. 14 Q2 2025 Financial Results Crocs, Inc. Crocs Brand HEYDUDE Brand Revenues(1) $1,149M $960M $190M +3% vs. LY +4% vs. LY (4%) vs. LY Adjusted Gross Margin(2) 61.7% 64.1% 50.2% +30bps vs. LY Flat vs. LY +110bps vs. LY Adjusted SG&A as % of Revenue(3) 34.7% +270bps vs. LY Adjusted Operating Income(3) $309M (5%) vs. LY Adjusted Operating Margin(3) 26.9% (240bps) vs. LY Adjusted Diluted EPS(3) $4.23 +5% vs. LY 1. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. 2. For the period ended June 30, 2025, there were no Non-GAAP gross profit adjustments. 3. See reconciliation to GAAP equivalents in Appendix.

• 15. Q2 Revenues $960M year-over-year growth of +4% North America $457M (6%) vs. LY Direct-to-Consumer $495M +3% vs. LY Crocs Brand Highlights: Q2(1) Wholesale $465M +6% vs. LY International $502M +16% vs. LY • International grew 16% in the quarter, representing more than half of revenue mix including China, up >30% versus prior year • Saw strong double-digit growth in India, driven by outsized consumer demand across Classic Clog and Sandal Franchises — partnered with Rashmika Mandanna as first Brand Ambassador in region • Clog iterations and emerging franchises led growth within the Clog category, driven by Echo, Bae, and InMotion, indicating that new innovation resonates with our consumers • Sandals continued to deliver strong results, driven by style franchises such as the Brooklyn, Getaway, and Miami • Remained #1 footwear brand on TikTok Shop in the U.S., and outperformed on T-Mall and Douyin during Mid-Season Festival 1. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. 15

• 16. Q2 Revenues $190M year-over-year declines of (4%) Direct-toConsumer $90M +7% vs. LY HEYDUDE Brand Highlights: Q2(1) Wholesale $100M (13%) vs. LY 1. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. 16 • Launched the ‘HEYDUDE Country’ campaign which will feature several brand affinities including music, pre- and post-sport, and travel • HEYDUDE aided awareness improved to 35% in North America alongside better consideration and purchase intent • Leveraged Icons to release HEYDUDE x Pabst Blue Ribbon and partnered with Margaritaville to release a HEY2O collection, speaking to the core HEYDUDE consumer • Grew direct-to-consumer 7% in the quarter, supported by new stores and strong performance on TikTok Shop

• 17. Appendix 17

• 18. APPENDIX Non-GAAP Reconciliation 18 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 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,” “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 effective tax rate,” “Non-GAAP diluted earnings per share,” and “Free cash flow.” We also present a long-term target for ‘Net leverage.’ 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 nonGAAP 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 by providing meaningful information about operations compared to our peers by excluding the impacts of various differences. The calculation of our non-GAAP financial metrics may vary from company to company. As a result, our calculation of these metrics may not be comparable to similarly titled metrics used by other companies. Management believes Non-GAAP gross profit, Non-GAAP gross margin, and Non-GAAP gross margin by brand are useful performance measures for investors because they provide investors with a means of comparing these measures between periods without the impact of certain expenses that we believe are not indicative of our routine cost of sales. Our routine cost of sales includes core product costs and distribution expenses primarily related to receiving, inspecting, warehousing, and packaging product and transportation costs associated with delivering products from distribution centers. Costs not indicative of our routine cost of sales may or may not be recurring in nature and include costs to expand and transition to new distribution centers. Management believes Non-GAAP selling, general and administrative expenses and Non-GAAP selling, general and administrative expenses as a percent of revenues are useful performance measures for investors because they provide a more meaningful comparison to prior periods and may be indicative of the level of such expenses to be incurred in future periods. These measures exclude the impact of certain expenses not related to our normal operations that are expected to be non-recurring in nature, such as impairment charges. Non-GAAP income from operations and Non-GAAP operating margin reflect the impact of Non-GAAP gross profit and Non-GAAP selling, general, and administrative expenses, as discussed above. We believe these are useful performance measures for investors because they provide a basis to compare performance in the period to prior periods. Non-GAAP income before income taxes reflects the impact of Non-GAAP income from operations, as discussed above. We believe this is a useful performance measure for investors because it provides a basis to compare performance in the period to prior periods. Management believes Non-GAAP income tax expense is a useful performance measure for investors because it provides a basis to compare our tax rates to historical tax rates, and because the adjustment is necessary in order to calculate Non-GAAP net income. Management believes Non-GAAP effective tax rate is a useful performance measure for investors because it provides an ongoing effective tax rate that they can use for historical comparisons and forecasting. Management believes Non-GAAP net income is a useful performance measure for investors because it focuses on underlying operating results and trends and improves the comparability of our results to prior periods. This measure reflects the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above. Management believes Non-GAAP basic and diluted net income per common share are useful performance measures for investors because they focus on underlying operating results and trends and improve the comparability of our results to prior periods. These measures reflect the impact of Non-GAAP gross profit, Non-GAAP selling, general, and administrative expenses, and Non-GAAP income tax expense, as described above. Management believes Net leverage is a useful performance measure for investors because it provides a measure of our financial strength and liquidity. Free cash flow is calculated as ‘Cash provided by operating activities’ less ‘Purchases of property, equipment, and software.’ Management believes free cash flow is useful for investors because it provides a clear measure of our ability to generate cash for discretionary uses such as funding growth opportunities, repurchasing shares, and reducing debt. For the three months ended June 30, 2025, 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.

• 19. (1) Represents an impairment of the HEYDUDE indefinite-lived trademark. (2) Represents an impairment of the HEYDUDE Brand reporting unit goodwill. (3) Non-GAAP selling, general and administrative expenses are presented gross of tax. Non-GAAP Selling, General and Administrative Reconciliation: Non-GAAP Reconciliation (Cont'd) APPENDIX Three Months Ended June 30, 2025 2024 (in thousands) GAAP revenues $ 1,149,373 $ 1,111,502 GAAP selling, general and administrative expenses $ 1,136,352 $ 356,178 Impairment of indefinite-lived trademark (1) $ (430,000) — Impairment of goodwill (2) $ (307,000) — Total adjustments (737,000) — Non-GAAP selling, general and administrative expenses (3) $ 399,352 $ 356,178 GAAP selling, general and administrative expenses as a percent of revenues 98.9 % 32.0 % Non-GAAP selling, general and administrative expenses as a percent of revenues 34.7 % 32.0 % 19

• 20. Non-GAAP Income from Operations and Operating Margin Reconciliation: (1) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more details. Three Months Ended June 30, 2025 2024 (in thousands) GAAP revenues $ 1,149,373 $ 1,111,502 GAAP income from operations $ (427,516) $ 325,738 Non-GAAP selling, general and administrative expenses adjustments (1) 737,000 — Non-GAAP income from operations $ 309,484 $ 325,738 GAAP operating margin (37.2) % 29.3 % Non-GAAP operating margin 26.9 % 29.3 % Non-GAAP Reconciliation (Cont'd) APPENDIX 20

• 21. Non-GAAP Income Tax Expense (Benefit) and Effective Tax Rate Reconciliation: Three Months Ended June 30, 2025 2024 (in thousands) GAAP income from operations $ (427,516) $ 325,738 GAAP income before income taxes (448,607) 296,425 Non-GAAP income from operations (1) $ 309,484 $ 325,738 GAAP non-operating income (expenses): Foreign currency losses, net 434 (1,323) Interest income 371 1,126 Interest expense (22,523) (29,161) Other income, net 627 45 Non-GAAP income before income taxes $ 288,393 $ 296,425 GAAP income tax expense $ 43,675 $ 67,518 Tax effect of non-GAAP operating adjustments 29,942 — Impact of intra-entity IP transactions (2) (22,701) (14,729) Non-GAAP income tax expense $ 50,916 $ 52,789 GAAP effective income tax rate (9.7) % 22.8 % Non-GAAP effective income tax rate 17.7 % 17.8 % Non-GAAP Reconciliation (Cont'd) APPENDIX 21 (1) See ‘Non-GAAP income from operations and operating margin reconciliation’ above for more details. (2) In the fourth quarter of 2024, and previously in 2023, 2021 and 2020, we made changes to our international legal structure, including an intra-entity transaction related to certain intellectual property rights, primarily to align with current and future international operations. The transactions 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 transactions.

• 22. Non-GAAP Earnings Per Share Reconciliation: Non-GAAP Reconciliation (Cont'd) APPENDIX Three Months Ended June 30, 2025 2024 (in thousands, except per share data) Numerator: GAAP net income $ (492,282) $ 228,907 Non-GAAP selling, general and administrative expenses adjustments (1) 737,000 — Tax effect of non-GAAP adjustments (2) (7,241) 14,729 Non-GAAP net income $ 237,477 $ 243,636 Denominator: GAAP weighted average common shares outstanding - basic 55,783 60,320 Plus: GAAP dilutive effect of stock options and unvested restricted stock units — 446 GAAP weighted average common shares outstanding - diluted 55,783 60,766 GAAP net income per common share: Basic $ (8.82) $ 3.79 Diluted $ (8.82) $ 3.77 Non-GAAP net income per common share: Basic $ 4.26 $ 4.04 Diluted $ 4.23 $ 4.01 22 (1) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for (more information. (2) See ‘Non-GAAP income tax expense (benefit) and effective tax rate reconciliation’ above for more information.

• 23. Free Cash Flow Reconciliation APPENDIX 23 Three Months Ended June 30, 2025 2024 (in thousands) Cash provided by operating activities $ 285,800 $ 401,236 Purchases of property, equipment, and software (16,571) (17,056) Free cash flow $ 269,229 $ 384,180 Non-GAAP Reconciliation (Cont'd)