Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — Q4 2021 Earnings Presentation
24 slides from Duluth's earnings presentation, Mar 18, 2022
Slide 1: Investor Presentation Fourth Quarter 2021
Investor Presentation Fourth Quarter 2021 March 18, 2022 Exhibit 99.1
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation dated March 18, 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 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 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 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 through
Slide 6: Brand Positioning
Brand Positioning Common Brand Values Common Target Customers for Both Men and Women Unique Brands for Unique End Uses March 18, 2022 Launch “First Layer Brand by Duluth Trading” as a solution-based, predominantly first layer brand. This will allow us to elevate our underwear assortment and intensif
Slide 7: Financial Review
FINANCIAL REVIEW
Slide 8: Year Ended January 30, 2022 Financial Highlights
Year Ended January 30, 2022 Financial Highlights Net sales of $698.6M increased 9.4% compared to the prior year Direct-to-consumer net sales of $438.5M decreased 4.9% compared to the prior year Retail net sales of $260.1M increased 46.2% compared to the prior year Adjusted EBITDA of $77.4M increased
Slide 9: Three Months Ended January 30, 2022
Three Months Ended January 30, 2022 March 18, 2022 ($ in millions) Net Sales ($ in millions) Gross Profit ($ in millions) Adjusted EBITDA 1 ($ in millions) Net Income2 Retail 15.0% 12.2% Margin 1 Adjusted to reflect the add-back of stock compensation expense. 2 Excludes net (loss) income attributabl
Slide 10: Year Ended January 30, 2022
Year Ended January 30, 2022 March 18, 2022 ($ in millions) Net Sales ($ in millions) Gross Profit ($ in millions) Adjusted EBITDA 1 ($ in millions) Net Income2 Retail 8.6% 11.1% Margin 1 Adjusted to reflect the add-back of stock compensation expense. 2 Excludes net (loss) income attributable to nonc
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 March 18, 2022 *2021 reflects the full year guidance FY15-21 CAGR = 15% ($ in millions) Net S
Slide 12: Strong Balance Sheet, Liquidity and FCF
Strong Balance Sheet, Liquidity and FCF March 18, 2022 Debt to Capital (1,2) ($ in millions) As of January 30, 2022 Cash $77.3 Debt: Line of Credit 0.0 Term Loan 0.0 Total Debt 0.0 Total Shareholders’ Equity $225.9 Total Capitalization $225.9 Debt to Capital ratio $0.0 Free Cash Flow 1 Balances do n
Slide 13: Long-Term Financial Targets
Long-Term Financial Targets March 18, 2022 ($ in millions) 2018 2019 2020 2021 2022 Outlook 2025 Targets Net Sales $568.1 $615.6 $638.8 $698.6 $730 - $755 $1.0B Operating Margin % 6.5% 4.6% 3.8% 6.3% 6.3 – 6.6% 9 - 10% Adj. EBITDA % 9.1% 8.4% 8.6% 11.1% 11.5 -11.7% 14 - 15% Free Cash Flow ($21.9) ($
Slide 14: Fiscal 2022 Financial Guidance
Fiscal 2022 Financial Guidance March 18, 2022 1 2021 and 2022 include $4.7M 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 Shee
Slide 15: Investment Highlights
Investment Highlights Growing lifestyle platform of 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 bal
Slide 16: Big Dam Blueprint
BG DAM BLUEPRINT
Slide 17: "Big Dam Blueprint" Growth Strategies
“Big Dam Blueprint” Growth Strategies March 18, 2022 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 Fu
Slide 18: 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 19: 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 20: 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 21: Test & Learn to Unlock Long-term Growth Potential
Test & Learn to Unlock Long-term Growth Potential Gain operational learnings to implement whole 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 preferences Test the via
Slide 22: 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 24: Appendix: Reconciliation to 2021 Adjusted EBITDA and Free Cash Flow
March 18, 2022 Appendix Reconciliation to 2021 Adjusted EBITDA and Free Cash Flow Adjusted EBITDA Free Cash Flow 3 Months Ended Fiscal Year End ($ in millions) January 30, 2022 January 31, 2021 January 30, 2022 January 31, 2021 Net Income $17.3 $21.8 $29.6 $13.4 (+) Depreciation and amortization 7.4