Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — ICR Investor Conference January 2023
23 slides from Duluth's conference presentation, Jan 9, 2023
Slide 1: ICR Investor Conference January 2023
Exhibit 99.2 ICR Investor Conference January 2023
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation dated December 1, 2022 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 statemen
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 to be found. 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 you
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: Q4 Quarter to Date – Fiscal 2022 Financial Highlights
Q4 Quarter to Date – Fiscal 2022 Financial Highlights ● Q4 QTD Net sales of $198.2M compared to $224.3M in the prior year ● Direct net sales of $127.0M compared to $145.3M in the prior year ● Retail net sales of $71.2M compared to $79.0M in the prior year January 2023 7
Slide 8: Three Months Ended October 30, 2022 Financial Highlights
Three Months Ended October 30, 2022 Financial Highlights ● Net sales increase 1.3% to $147.1M compared to $145.3M in the prior year third quarter ● AKHG sub-brand registers 44% year-over-year growth led Women’s ● Total company Women’s sales increase 10% ● Inventories well managed; strategically posi
Slide 9: Three Months Ended October 30, 2022
Three Months Ended October 30, 2022 1.3% $145.3 $147.1 (8.0)% $56 $60 $84 $77 (86.5)% $91 $85 $13 $2.8 $(6.2) $2 2021 2022 2021 2022 2021 2022 2021 2022 (10/31/2021) (10/30/2022) (10/31/2021) (10/30/2022) (10/31/2021) (10/30/2022) (10/31/2021) (10/30/2022) Retail Direct 1 2 Net Sales Gross Profit Ad
Slide 10: Nine Months Ended October 30, 2022
Nine Months Ended October 30, 2022 (3.8)% (5.2)% $427.8 $411.5 (48.4)% $169 $232 $158 $12.3 $44 $220 $259 $254 $23 $(5.1) 2021 2022 2021 2022 2021 2022 2021 2022 (10/31/2021) (10/30/2022) (10/31/2021) (10/30/2022) (10/31/2021) (10/30/2022) (10/31/2021) (10/30/2022) Retail Direct 1 2 Net Sales Gross
Slide 11: Net Sales and Adjusted EBITDA
Net Sales and Adjusted EBITDA ● Strong track record of 15% Net Sales and 15% Adjusted EBITDA growth ● Strategic investments and operating efficiencies support long-term objectives of accelerated earnings growth 699 77 639 616 568 55 471 52 52 46 376 41 304 34 2015 2016 2017 2018 2019 2020 2021 2015
Slide 12: Strong Balance Sheet, Liquidity and FCF
Strong Balance Sheet, Liquidity and FCF (1,2) Debt to Capital Free Cash Flow ($ in millions) As of October 30, 2022 Cash $9.4 $23.7 Debt: Line of Credit 10.0 Term Loan 0.0 Total Debt 10.0 Total Shareholders’ Equity $218.6 Total Capitalization $228.6 $(75.3) 2021 2022 Debt to Capital ratio 4.4% (Octo
Slide 13: Fiscal 2022 Financial Guidance
Fiscal 2022 Financial Guidance ($ in millions) 2021 2022 Guidance Reconciliation to 2022 Forecasted Adj. EBITDA Fiscal Year Ended January 29, 2023 Net Sales $698.6 $650 to $680 Forcasted ($ in millions) Low High -7.0% to -2.7% Net Income $1.5 $6.7 (+) Depreciation and amortization 30.0 30.2 Adj. $77
Slide 14: 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
Slide 15: Big Dam Blueprint
BG DAM BLUEPRINT
Slide 16: "Big Dam Blueprint" Growth Strategies
“Big Dam Blueprint” Growth Strategies 1 2 3 4 5 Increase/ Intensify Efforts to Evolve Our Multi- Lead With a Test & Learn to Accelerate Optimize Our Brand Platform as Digital-First Unlock Long-Term Investments to Owned DTC a New Pathway to Mindset Growth Potential Future Proof the Channels Grow the
Slide 17: Lead With a Digital-First Mindset
1 2 3 4 5 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 ho
Slide 18: Intensify Efforts to Optimize Our Owned DTC Channels
1 2 3 4 5 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 touc
Slide 19: Evolve our Multi-brand Platform as a New Pathway to Grow the Business
1 2 3 4 5 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 ● Prior
Slide 20: Test & Learn to Unlock Long-term Growth Potential
1 2 3 4 5 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 cus
Slide 21: Increase and Accelerate Investments to Future Proof the Business
1 2 3 4 5 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
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Slide 23: Appendix: 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 9 Months Ended 9 Months Ended October October October October October October ($ in millions) ($ in millions) 30, 2022 31, 2021 30, 2022 31, 2021 30, 2022 31, 2021 Net cash provided by op
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