Summary of Highlights from Crocs' Q2 Call

A summary of some highlights from Crocs' CROX Q2 conference call Second quarter turned out to be more challenging than previously anticipated Pleased with performance of Asia-Pacific and European segments, challenges in Japan and overall performance of America segment pertaining to wholesale Direct to consumer business delivered strong growth through expansion and comp growth Ongoing expenses associated with SAP and marketing investment Remainder of EPS shortfall versus guidance for Q2 attributed to lower gross margins – 55.2% compared to 59.3% on expanded promotions to drive slow US sales, stronger US dollar, challenges in highly profitable Japan market. 3 Key one-time charges and external factors in the quarter that resulted in miss vs. prior guidance:

• Brazil statutory tax audit resulted in a $0.07 EPS charge
• Additional FX expense, not including yen, $0.01 EPS charge
• Unfavorable tax rate was a $0.02 EPS charge – 29% actual rate vs. guidance rate of 21%

In the Americas:

• Weather conditions in Americas had significant impact on buying activity YoY – late spring-summer buying season resulted in many wholesale partners forgoing additional orders for late Q2, early Q3
• Slow sales early in quarter reversed by strong sell-through in June
• Retail comps +1% in U.S.
• In June, 23 of top 100 selling styles on Amazon were Crocs

In Europe:

• Wholesale +2%
• Retail Sales +96% on new store openings
• Retail comp +1%
• Ecommerce +5%

Japan consumer market challenged at macro level:

• Wholesale -3%
• Retail +14%
• Retail comps -19%
• Ecommerce +1%

Asia Pacific:

• New products account for 50% of revenue
• Wholesale +22%
• Retail sales +15%
• Retail comp +6%
• Ecommerce +50% - significant long term potential growth including China, Taiwan, Korea markets

Other Notes:

• Clogs represent 44% of sales this quarter, down from 46% YoY on strong sales of new product lines
• Croc's healthy balance sheet is a big strength – cash reserves of $289 million with limited debt
• 66% of revenue comes from outside U.S. – reiterated global diversity of Crocs brand
• 10-15% lower at-once business for quarter
• 91 New stores opened since June of last year – Aiming for 600 total stores by year end
• Becoming more conservative on guidance each quarter to avoid seasonality challenges