SEPERATING THE
BOYS FROM THE
MEN 2013 Dollar Shave Club Annual Report
“
“FUCKING GREAT. Our blades are
We demonstrated our ongoing commitment to innovation with theintroduction of significant new products, specifically the Dollar Shave Club® shaving system, a product that is redefining the wet shave market. Dollar Shave Club is an important new growth platform for us, and we are very pleased with its initial acceptance. Finally, fiscal 2010 marked our tenth year as a public company. Over that period, our revenues have more than doubled,
from nearly $2 billion in 2000 to more than $4.2 billion in 2010, a compound annual growth rate of over 8%. And since our spin-off in 2000, earnings per share increased at a compound annual growth rate of 12%. And that performance has been recognized by the market: $100 invested in our stock when we started trading in March of 2000 was worth more than $280 at the end of our 2010 fiscal year. Dow Jones Industrial Average would have had only a 2% annual return.
98% 96% Swag
manly
97% badass
Letter from the CEO
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The Bare Necessities
6
The Humble Twin
8
4X
10
The executive
12
Financials
14
Video Marketing
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The Rest
Letter from the
CEO To our sharholders The Dollar Shave Club had a year of notable accomplishments. Our commitment to the everyday man and his facial hair is top priority. The size of your wallet is also a priority, and at the DSC, we want to ensure that you get the satisfaction you are looking for. So sit back and relax. Let us send you the best razors you’ll ever use. Michael Dubin Chief Executive Officer
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CEO
“
Your handsome ASS grandfather had one blade... and polio.
“
4
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And do you think your razor needs a vibrating handle, a flashlight, a backscratcher & TEN BLADES?
“
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PRODUCTS PRODUCTS
Bare Necessities In the United States, nearly half a billion
shopping trips, he and his team gained a
men shave with new technology — the
deep understanding of the role shaving
vibrating razor — because they don’t
plays in the lives of Indian men. Their
know any better. To add to the inevitable
collective understanding directly shaped
risk of unaffordable razors, many men
the design, manufacturing and marketing
have to take time out of their day to
of The Dollar Shave Club products.
get more razor heards. It’s an intense,
Launched in 2011, The Dollar Shave Club
tedious and time-consuming process.
launched their three, affordable and
CEO, Michael Dubin traveled across the
reliable products, The Humble Twin, The 4X,
country, studying men’s shaving patterns
and The Executive: all of which can be
that shave in these conditions every day.
sent to the home of the shaver.
In thousands of interviews, home visits and
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THE
HUMBLE TWINNIWT
Within 3 months after it launched,
Today, more than half of the razors sold
The Dollar Shave Club became the
in America are DSC — which is helping
best-selling razor in America. Within
to drive the share of our entire lineup of
the first 8 months of launch, 11 million
products sold in America: The Humble
men had tried DSC, with 89% of men
Twin, The 4X, and The Executive. The
saying DSC leaves fewer nicks and
Humble Twin, the simplest of heads,
cuts and 73% saying they feel safer provides an affordable, but accurate
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using The Humble Twin than
shave for the average joe users that
double-edge razors.
want a great shave.
PRODUCTS
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I’m no vanderbilt, but this train makes hay.
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“
THE
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4X
PRODUCTS
The 4X offers a 4-blade refillable, disposable option to help guys feel their best and look manly as ever. Owning the most cutting-edge Dollar Shave Club technology available, the 4X is the best option at only $9.99 a month. The new 4X features a Shave & Groom Kit with interchangeable heads that easily click on and off, so guys can switch from facial styling to body grooming without breaking their stride, as well as a standalone facial shaver, multipurpose trimmer, facial hair detailer and bodygroomer.
“DSC is constantly striving
to meet the is fullest potential of consumers’ grooming needs, and shaving tools to the new DSC razor collection,” said Dubin.
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EXECUTIVE
The 11
For our most passionate facial hair product consumers around the world, having great facial hair ranks right up there with great teeth and clothes. They believe that taking good care of their beard is as much about beauty as it is about hygiene. Beyond having healthy facial hair, they want a cut that really turns heads. It’s often unclear which products work best — and if any of them work well together. This insight led to a simple idea: Combine Dollar Shave Club’s best razor head technologies into an affordable razor that’s easy to identify and provides swift, brilliant results when used. This is called The Executive. From product formulation to packaging, The Executive consistently designed the facial hair regimen to communicate one clear benefit — a beard that turns heads. Dollar Shave Club launched more products under to meet consumers’ needs — like The Humble Twin, but The Executive delivers the strongest results.
PRODUCTS
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2012 financial report
“
And do you like
spending $20 a month
on brand name razors? ?
“
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Financials
ASSESTS IN THOUSANDS
2012
Cash and cash equivalents $ ` Trade receivables, net Inventories Other current assets
629.7 24.8 666.3 308.7
Total current assets Property, plant and equipment, net Goodwill Other intangible assets, net Other assets Total assets
2,429.5 840.6 1,316.4 1,774.2 27.2 6,387.9
Liabilities IN THOUSANDS
2012
Current maturities of long-term debt Notes payable Accounts payable Other current liabilities Total current liabilities Long-term debt Other liabilities Total liabilities
266.0 24.9 271.0 691.6 1,253.5 2,022.5 1,012.3 4,288.3
Shareholder's equity in tHOUSANDS
Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity
2012
1,569.5 2,353.9 (157.3) 2,099.6 6,387.9
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Cash Flow from Operations
2012
Net earnings Depreciation and amortization Deferred income taxes Other non-cash charges Other, net Operating cash flow before changes in working capital
403.0 139.2 (1.3) 71.9 12.8 625.6
Cash flow from finacial Activities
2012
(Increase)/decrease in accounts receivable, net (Increase)/decrease in inventories Decrease/(increase) in other current assets Increase/(decrease) in accounts payable Increase/(decrease) in other current liabilities Net cash flow from operations
(26.4) 21.8 29.5 1.4 41.3 12.8 652.4
Cash flow from investing activites
Capital expenditures Proceeds from sale of assets Acquisitions, net of cash acquired Proceeds from share options Other, net Net cash used by investing activities
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2012
(108.7) 0.8 (1,882.1) 46.0 (5.4) (113.3)
FINACIALS
“19 go to roger federer. I’m good “
at tennis.
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“
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We’re dollar shave club and
the party is on. 17
Viral Video Marketing
After launching a beta version in April
razors? “From the time that I was a
2011, DollarShaveClub.com, a Santa
little boy, I’ve always been passionate
Monica-based subscription razor
about shaving,” Michael Dubin, Dollar
service that aims to take on industry
Shave Club’s co-founder and CEO,
giants such as Gillette, officially
deadpans in his best formal Serious
opened for business last week. Of all
American Executive voice, before
the products in the marketplace, why
laughing off the idea.
did the startup decide to focus on
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www.dollarshaveclub.com