Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — Q3 2024 Earnings Presentation
19 slides from Duluth's earnings presentation, Dec 5, 2024
Slide 1: Investor Presentation Third Quarter 2024
Investor Presentation Third Quarter 2024 December 5, 2024
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation dated December 5, 2024 includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts included in this press release, including stateme
Slide 3: Disclaimer: Non-GAAP Measurements
Disclaimer Non-GAAP Measurements Management believes that non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Within this presentation, reference is made to adjusted earnings befor
Slide 4: Introduction to Duluth Trading Co.
INTRODUCTION TO DULUTH TRADING CO.
Slide 5: Our Greater Purpose and Mission Statement
OUR GREATER PURPOSE “Celebrating the can-do spirit by enabling anyone who takes on life with their own two hands.” OUR MISSION STATEMENT “We build high-quality, solution-based products for work, play and every day. We craft our raw materials – unique brands, durable products, standout customer servi
Slide 6: Secret Sauce
Secret Sauce Better Brands A brood of sub-brands all bonded by the belief that you can accomplish anything that you put your own mind and own two hands to Better Innovation Long, colorful history of product innovation and solution-based design Better Marketing Distinctive marketing made to break thr
Slide 7: Financial Review
FINANCIAL REVIEW
Slide 8: Three Months Ended October 27, 2024
Three Months Ended October 27, 2024 Summary ● Net sales of $127.1M ● Net loss of $28.5M and adjusted net loss1 of $13.8M, compared to net loss of $10.5M in the prior year third quarter. Adjusted net loss of $13.8M excludes $6.2M of restructuring expense and $10.1M valuation allowance on our deferred
Slide 9: Three Months Ended October 27, 2024
Three Months Ended October 27, 2024 (8.1%) $138.2 (4.3%) $127.1 $51 $69 $66 $47 $87 $(10) $80 $(2) $(14) $(7) 2023 2024 2023 2024 2023 2024 2023 2024 (10/29/2023) (10/27/2024) (10/29/2023) (10/27/2024) (10/29/2023) (10/27/2024) (10/29/2023) (10/27/2024) Retail Direct Net Sales Gross Profit Adjusted
Slide 10: Nine Months Ended October 27, 2024
Nine Months Ended October 27, 2024 (3.9%) $401.1 $385.4 (2.2%) (53.9)% $148 $138 $207 $12 $202 $253 $247 $(16) $6 $(22) 2023 2024 2023 2024 2023 2024 2023 2024 (10/29/2023) (10/27/2024) (10/29/2023) (10/27/2024) (10/29/2023) (10/27/2024) (10/29/2023) (10/27/2024) Retail Direct Net Sales Gross Profit
Slide 11: Strong Balance Sheet, Liquidity and Free Cash Flow
Strong Balance Sheet, Liquidity and Free Cash Flow Debt to Capital 1,2 Free Cash Flow (Nine Months Ended)3 ($ in millions) As of October 27, 2024 Cash $9.3 Debt: Line of Credit 44.0 Term Loan 0.0 Total Debt 44.0 Total Shareholders’ Equity $185.1 $(63.9) $(71.0) Total Capitalization $229.1 2023 2024
Slide 12: Fiscal 2024 Year to Date and Financial Guidance
Fiscal 2024 Year to Date and Financial Guidance Year to Date (9 Months Ended) Full Year Guidance ($ in millions) 2023 YTD 2024 YTD ($ in millions) 2023 2024 Guidance Net Sales $401.1 $385.4 Net Sales $646.7 $640 (3.9)% (1.0)% Gross 51.5% 52.4% Gross 50.3% 49.0% Margin % +90 bps Margin % (125) bps SG
Slide 13: Net Sales and Adjusted EBITDA
Net Sales and Adjusted EBITDA Net Sales Adjusted EBITDA1 ($ in millions) ($ in millions) 77 699 639 653 647 616 55 568 52 52 44 33 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 1 Adjusted to reflect the add-back of stock compensation expense. December 5, 2024 13
Slide 14: Capital Expenditures
Capital Expenditures $53M $53M Capital Expenditures $31M $32M $23M $16M $15M 2018 2019 2020 2021 2022 2023 2024 Outlook 15 New 15 New 4 New Salt Lake Initiatives Adairsville FC Stores Stores Stores City FC Website re- Belleville FC 1 New Store Technology Roadmap platform December 5, 2024 14
Slide 15: Big Dam Blueprint
1b DAM BLUEPRINT
Slide 16: Big Dam Blueprint Growth Drivers
Big Dam Blueprint Growth Drivers 1. Lead With a Digital Mindset 2. Intensify Our Efforts to Optimize Our Owned DTC Channels 3. Evolve the Company’s Platform to Grow Into a Multi-brand and Multi-channel Business 4. Prioritize Test and Learn to Unlock Long-term Growth 5. Future Proof the Business Thro
Slide 17: Thank You
THANK YOU
Slide 18: Reconciliation to 2024 Adjusted EBITDA and Free Cash Flow
Appendix Reconciliation to 2024 Adjusted EBITDA and Free Cash Flow Adjusted EBITDA Free Cash Flow 3 Months Ended 9 Months Ended 9 Months Ended Oct 27, Oct 29, Oct 27, Oct 29, Oct 27, Oct 29, ($ in millions) ($ in millions) 2024 2023 2024 2023 2024 2023 Net cash used in operating Net loss $(28.5) $(1
Slide 19: Reconciliation to 2024 Adjusted Net Loss
Appendix Reconciliation to 2024 Adjusted Net Loss Adjusted Net Loss 3 Months Ended 9 Months Ended ($ in millions) October 27, 2024 October 27, 2024 Amount Per share Amount Per share Net loss $(28.5) $(0.85) $(40.2) $(1.21) (+) Restructuring expenses 6.2 0.18 7.7 0.24 (+) Sales tax expense accrual —