Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — Q4 2022 Earnings Presentation
22 slides from Duluth's earnings presentation, Mar 9, 2023
Slide 1: Investor Presentation Fourth Quarter 2022
Investor Presentation Fourth Quarter 2022 March 9, 2023 Exhibit 99.1
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation dated March 9, 2023 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 presentation, including statements
Slide 3: Introduction to Duluth Trading Co.
INTRODUCTION TO DULUTH TRADING CO.
Slide 4: There's Always Gotta Be a Better Way
THERE’S ALWAYS GOTTA BE A BETTER WAY Duluth Trading Co. was founded on the belief that there’s always a better way. A better way to solve. A better way to make. A better way to be. We’re on a mission to build better, harder-working apparel and gear that helps enable everyone from the young — to the
Slide 5: 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 6: Financial Review
FINANCIAL REVIEW
Slide 7: Year Ended January 29, 2023 Highlights
Year Ended January 29, 2023 Highlights Net sales of $653.3M compared to $698.6M in the prior year AKHG sub-brand continues to expand with the introduction of Women’s collection Strategic investment to re-platform website with next generation of e-commerce architecture Healthy balance sheet and incre
Slide 8: Three Months Ended January 29, 2023
Three Months Ended January 29, 2023 March 9, 2023 ($ in millions) Net Sales ($ in millions) Gross Profit ($ in millions) Adjusted EBITDA 1 ($ in millions) Net Income2 Retail 12.2% 8.5% Margin 1 Adjusted to reflect the add-back of stock compensation expense. 2 Excludes net income attributable to nonc
Slide 9: Twelve Months Ended January 29, 2023
Twelve Months Ended January 29, 2023 March 9, 2023 ($ in millions) Net Sales ($ in millions) Gross Profit ($ in millions) Adjusted EBITDA 1 ($ in millions) Net Income2 Retail 11.1% 6.7% Margin 1 Adjusted to reflect the add-back of stock compensation expense. 2 Excludes net income attributable to non
Slide 10: Net Sales and Adjusted EBITDA
Net Sales and Adjusted EBITDA March 9, 2023 ($ in millions) Net Sales 1 Adjusted to reflect the add-back of stock compensation expense. ($ in millions) Adjusted EBITDA1
Slide 11: Strong Balance Sheet, Liquidity and FCF
Strong Balance Sheet, Liquidity and FCF March 9, 2023 Debt to Capital (1,2) ($ in millions) As of January 29, 2023 Cash $45.5 Debt: Line of Credit 0.0 Term Loan 0.0 Total Debt 0.0 Total Shareholders’ Equity $227.2 Total Capitalization $272.7 Debt to Capital ratio 0.0% Free Cash Flow 1 Debt balances
Slide 12: Fiscal 2023 Financial Guidance
Fiscal 2023 Financial Guidance March 9, 2023 1 2022 and 2023 include $8.7M and ~$6M, respectively, of additional investments in implementation costs to enhance the value of hosting arrangements, which are included in Prepaid expenses & other current assets on the Company’s Consolidated Balance Sheet
Slide 13: Investment Highlights
Investment Highlights Growing lifestyle platform of sub-brands with well-established digitally-led omnichannel business Multiple revenue growth opportunities led through five strategic pillars Strategic investments support long-term EBITDA margin expansion Generating positive cash flow with a strong
Slide 14: Big Dam Blueprint
B16 DAM BLUEPRINT
Slide 15: Big Dam Blueprint Growth Strategies
“Big Dam Blueprint” Growth Strategies March 9, 2023 Lead With a Digital-First Mindset 1 Intensify Efforts to Optimize Our Owned DTC Channels Evolve Our Multi-Brand Platform as a New Pathway to Grow the Business Test & Learn to Unlock Long-Term Growth Potential Increase/ Accelerate Investments to Fut
Slide 16: Lead With a Digital-First Mindset
Lead With a Digital-First Mindset Transform Duluth into a digitally-led organization integrating data and digital technology into all areas of our business, fundamentally changing how we operate and deliver value to customers Our digital transformation will provide the structure for how we prioritiz
Slide 17: Intensify Efforts to Optimize Our Owned DTC Channels
Intensify Efforts to Optimize Our Owned DTC Channels Increase our focus and investments in our direct channel as our primary growth vehicle Our customer places a high value on our stores and they will continue to serve as a critical piece of the omnichannel ecosystem: Convenient touchpoint for servi
Slide 18: Evolve our Multi-brand Platform as a New Pathway to Grow
Evolve our Multi-brand Platform as a New Pathway to Grow the Business Ladder to the Greater Purpose: “Celebrating the can-do spirit by enabling anyone who takes on life with their own two hands.” Focus on features, benefits, durability, innovation and a strong value proposition Prioritize size inclu
Slide 19: Test & Learn to Unlock Long-term Growth Potential
Test & Learn to Unlock Long-term Growth Potential Gain operational learnings to implement wholesale opportunities including logistics, systems and people needed to scale efficiently Gain direct-from-manufacturer operational learnings to offer unique and customized products based on customer’s prefer
Slide 20: Increase and Accelerate Investments to Future Proof the Business
Increase and, in Some Areas, Accelerate Investments to Future Proof the Business Analyze and identify investments that will allow us to scale more easily and effectively, as well as deliver on ever-evolving customer expectations: Increased investments in automation across our logistics network to st
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Slide 22: Reconciliation to 2022 Adjusted EBITDA and Free Cash Flow
Appendix Reconciliation to 2022 Adjusted EBITDA and Free Cash Flow Adjusted EBITDA Free Cash Flow 3 Months Ended 12 Months Ended ($ in millions) January 29, 2023 January 30, 2022 January 29, 2023 January 30, 2022 Net Income $7.5 $17.3 $2.2 $29.6 (+) Depreciation and amortization 7.9 7.4 30.8 29.2 (+