Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — Q2 2023 Earnings Presentation
22 slides from Duluth's earnings presentation, Aug 31, 2023
Slide 1: Investor Presentation Second Quarter 2023
Investor Presentation Second Quarter 2023 August 31, 2023 Exhibit 99.1
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation dated August 31, 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 statement
Slide 3: Introduction to Duluth Trading Co.
INTRODUCTION TO DULUTH TRADING CO.
Slide 4: 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 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: Three Months Ended July 30, 2023 Summary
Three Months Ended July 30, 2023 Summary Net sales of $139.1M compared to $141.5M in the prior year second quarter AKHG Sub-brand net sales increase 14.0% compared to prior year second quarter Inventory composition healthy and well managed, down 4.5% compared to prior year second quarter Adjusted EB
Slide 8: Three Months Ended July 30, 2023
Three Months Ended July 30, 2023 August 31, 2023 ($ in millions) Net Sales ($ in millions) Gross Profit ($ in millions) Adjusted EBITDA 1 ($ in millions) Net Loss2 Retail 9.4% 6.2% Margin 1 Adjusted to reflect the add-back of stock compensation expense. 2 Excludes net income (loss) attributable to n
Slide 9: Six Months Ended July 30, 2023
Six Months Ended July 30, 2023 August 31, 2023 ($ in millions) Net Sales ($ in millions) Gross Profit ($ in millions) Adjusted EBITDA 1 ($ in millions) Net Loss2 Retail 8.0% 5.3% Margin 1 Adjusted to reflect the add-back of stock compensation expense. 2 Excludes net income (loss) attributable to non
Slide 10: Strong Balance Sheet, Liquidity and FCF
Strong Balance Sheet, Liquidity and FCF August 31, 2023 Debt to Capital (1,2) ($ in millions) As of July 30, 2023 Cash $11.1 Debt: Line of Credit 0.0 Term Loan 0.0 Total Debt 0.0 Total Shareholders’ Equity $223.5 Total Capitalization $223.5 Debt to Capital ratio 0.0% Free Cash Flow 1 Debt balances d
Slide 11: Fiscal 2023 Financial Guidance
Fiscal 2023 Financial Guidance August 31, 2023 1 2022 and 2023 include $8.7M and ~$6M, respectively, of additional investments in implementation costs to enhance the value of hosting arrangements, which are included in Prepaid expenses & other current assets on the Company’s Consolidated Balance She
Slide 12: Net Sales and Adjusted EBITDA
Net Sales and Adjusted EBITDA August 31, 2023 ($ in millions) Net Sales 1 Adjusted to reflect the add-back of stock compensation expense. ($ in millions) Adjusted EBITDA1
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 Strong balance sheet and ample liquidity Au
Slide 14: Big Dam Blueprint
BG DAM BLUEPRINT
Slide 15: Big Dam Blueprint Growth Strategies
“Big Dam Blueprint” Growth Strategies August 31, 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 F
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 2023 Adjusted EBITDA and Free Cash Flow
Appendix Reconciliation to 2023 Adjusted EBITDA and Free Cash Flow Adjusted EBITDA Free Cash Flow 3 Months Ended 6 Months Ended ($ in millions) July 30, 2023 July 31, 2022 July 30, 2023 July 31, 2022 Net Income $(2.0) $2.3 $(5.9) $1.0 (+) Depreciation and amortization 7.5 7.9 14.9 15.4 (+) Amortizat