Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — William Blair 43rd Annual Growth Stock Conference 2023
20 slides from Duluth's conference presentation, Jun 8, 2023
Slide 1: William Blair 43rd Annual Growth Stock Conference
William Blair 43rd Annual Growth Stock Conference June 8, 2023 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation 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 concerning Duluth Ho
Slide 3: 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.” “We build high-quality, solution-based products for work, play and every day. We craft our raw materials – unique brands, durable products, standout customer service, and a No Bull Guar
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS GROWING LIFESTYLE PLATFORM OF SUB-BRANDS WITH A WELL- ESTABLISHED DIGITALLY-LED OMNICHANNEL BUSINESS MULTIPLE REVENUE GROWTH OPPORTUNITIES LED THROUGH FIVE STRATEGIC PILLARS AS OUTLINED IN THE “BIG DAM BLUEPRINT” STRATEGIC INVESTMENTS SUPPORT LONG-TERM EBITDA MARGIN EXPANSION S
Slide 5: What We Stand For
WHAT WE STAND FOR INNOVATION PERFORMANCE UNIQUE, FIRST-TO-MARKET FABRICATIONS & FEATURES UP YOUR GAME ON THE JOB SITE, TRAIL, OR IN THE GARDEN PROBLEM-SOLUTION SOLVING FOR PROBLEMS YOU DIDN’T EVEN KNOW YOU HAD DURABILITY BUILT TO TAKE A BEATING DAY AFTER DAY, WASH AFTER WASH UNDERPINNED BY STRONG PR
Slide 6: Unique Brand Positioning
UNIQUE BRAND POSITIONING OUTDOOR REC BRAND FOR THOSE WHO LIVE TO BE OUTSIDE AND INVEST IN OUTDOOR EXPERIENCES WORKWEAR BRAND FOR THE FINE TUNERS, FIXERS, & TINKERERS WHO ENJOY THE LIFESTYLE OF WORK “LIVE LIFE LESS SOFT”
Slide 7: Big Dam Blueprint
LEAD WITH A DIGITAL-FIRST MINDSET INTENSIFY EFFORTS TO OPTIMIZE OWNED DTC CHANNELS EVOLVE OUR MULTI-BRAND PLATFORM AS A NEW PATHWAY TO GROW THE BUSINESS INCREASE OR ACCELERATE INVESTMENTS TO FUTURE PROOF THE BUSINESS 1 TEST & LEARN TO UNLOCK LONG-TERM GROWTH POTENTIAL 5 4 2 3 BIG DAM BLUEPRINT
Slide 8: Current Customer Profile
CURRENT CUSTOMER PROFILE AVERAGE HOUSEHOLD INCOME = $117K AVERAGE AGE = 55 YEARS OLD MALE BUYERS ~ 50% FEMALE BUYERS ~ 50% ON AVERAGE CUSTOMERS SHOP TWO TIMES PER YEAR AVERAGE SPEND PER VISIT OF $101
Slide 9: Target Customer
TARGET CUSTOMER CUSTOMER ATTRIBUTES 40 TO 50 YEAR-OLD MEN AND WOMEN, WHO ARE PREDOMINANTLY DIGITAL FIRST CAN-DO ATTITUDE IN WORK, PLAY AND LIFE LEAVES TIME TO ENJOY THE SIMPLE THINGS, FAMILY, AND OUTDOORS PRACTICAL & SELF-SUFFICIENT APPRECIATES CRAFTSMANSHIP & WELL-MADE GOODS HOMEOWNERS WITH A RURAL
Slide 10: Media Consumption
MEDIA CONSUMPTION (40 TO 50 YEAR-OLD) HEAVY ONLINE RESEARCH HEAVY SOCIAL MEDIA USAGE HEAVY STREAMING AUDIO, PODCAST AND VIDEO CONSUMPTION 6-8 HOURS PER DAY < 1 HOUR PER DAY SOCIAL MEDIA, STREAMING TV & VIDEO, STREAMING AUDIO & PODCASTS STREAM SUBSCRIPTION SERVICES MULTIPLE STREAMING PLATFORMS AND DE
Slide 11: Unparalleled Marketing Approach
UNPARALLED MARKETING APPROACH HUMOROUS DISTINCTIVE AUTHENTIC
Slide 12: Holistic Engagement Strategy
HOLISTIC ENGAGEMENT STRATEGY PERSONALIZED PRODUCT RECOMMENDATIONS EMAIL & TEXT MESSAGING AFFILIATE PARTNERS RETARGETING CABLE TV & STREAMING ONLINE VIDEO STREAMING AUDIO SOCIAL INFLUENCERS PAID SEARCH & SOCIAL TARGETED DISPLAY BANNERS PRODUCT INFORMATION PRODUCT RATINGS & REVIEWS
Slide 13: Net Sales Mix by Channel
NET SALES MIX BY CHANNEL DIRECT-TO-CONSUMER SALES = 63% MOBILE DEVICE TRAFFIC = 67% OF TOTAL DIRECT TRAFFIC MOBILE DEVICE SALES = 51% OF TOTAL DIRECT SALES RETAIL STORE SALES = 37%
Slide 14: Nationwide Retail Store Presence
NATIONWIDE RETAIL STORE PRESENCE OUTLET STORE FULL LINE STORE HIGHLY ATTRACTIVE UNIT ECONOMICS AVERAGE 4-WALL EBITDA MARGIN IN THE MID 20’S PERCENT AVERAGE PAYBACK < 2 YEARS 65 RETAIL STORES AS OF 2022 YEAR-END
Slide 15: Net Sales Mix by Brand & Division
NET SALES MIX BY BRAND & DIVISION DULUTH ~90% AKHG + BEST MADE ~10% MEN’S ~65% WOMEN’S ~30% HARDGOODS ~5% BY BRAND BY DIVISION
Slide 16: Net Sales and Adjusted EBITDA
NET SALES ADJUSTED EBITDA 1 2016 - 2019 2020 - 2022 2023 2016 - 2019 2020 - 2022 2023 1 ADJUSTED TO REFLECT THE ADD-BACK OF STOCK COMPENSATION EXPENSE.
Slide 17: Fiscal 2022 Highlights
$653.3M $45M OF CASH AT YEAR-END WITH $200M EXPANDED LINE OF CREDIT SUCCESSFUL RE-PLATFORM OF DESKTOP & MOBILE SITES NEW, FULLY AUTOMATED FULFILLMENT CENTER COMING IN Q3 2023 FISCAL 2022 HIGHLIGHTS NET SALES +12% AKHG SALES GROWTH $43.5M ADJUSTED EBITDA
Slide 18: Three Months Ended April 30, 2023
THREE MONTHS ENDED APRIL 30, 2023 ($ IN MILLIONS) NET SALES ($ IN MILLIONS) GROSS PROFIT ($ IN MILLIONS) ADJUSTED EBITDA 1 ($ IN MILLIONS) NET LOSS 2 RETAIL 6.4% 4.3% MARGIN 1 ADJUSTED TO REFLECT THE ADD-BACK OF STOCK COMPENSATION EXPENSE. 2 EXCLUDES NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING
Slide 19: Fiscal 2023 Financial Guidance
$645M – $660M FISCAL 2023 FINANCIAL GUIDANCE NET SALES $47M – $49M ADJUSTED EBITDA (1.3%) +1.0% +8.0% +12.6% $0.02 – $0.08 EPS ~$55M CAPEX
Slide 20: Thank You
THANK YOU
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