Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — Investor Presentation (December 2020)
21 slides from Duluth's investor presentation, Dec 7, 2020
Slide 1: Investor Presentation Third Quarter 2020
Investor Presentation Third Quarter 2020 December4, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements ‘This presentation dated December 4, 2020 includes “forwardooking 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 concernin
Slide 3: Introduction to Duluth Trading Co.
Introduction to Duluth Trading Co.
Slide 4: Workwear Heritage is the Foundation of our Authentic, Everyday Lifestyle Brand
= Workwear Heritage is the Foundation of our Authentic, Everyday Lifestyle Brand = Long History of Product Innovation and Solution-Based Design = Humorous and Distinctive Marketing = Outstanding and Engaging Customer Experience = Nationwide Omnichannel Presence with Controlled Distribution Duane Dec
Slide 5: Growing lifestyle brand with well-established direct business
Growing lifestyle brand with well-established direct business Multiple revenue growth opportunities > Build brand awareness to expand customer base > Expand retail presence with attractive unit economics >» Grow women’s business >» Broaden men’s assortment Strategic investments support long-term EBI
Slide 6: Strong track record of 18% Net Sales and Adjusted EBITDA growth
= Strong track record of 18% Net Sales and Adjusted EBITDA growth = Strategic investments support long-term objectives (Sin miltions) (Sin milions) 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 OREN December 42020
Slide 7: Growth Strategy
Growth Strategy
Slide 8: Growth Strategies
Growth Strategies 42020 3 Grow Women’s Business 4 Broaden Assortmentin Select Men's Product Categories
Slide 9: Brand Awareness
wey A : ‘Brand Awareness = Digital Advertising Paid-for search and banner ads » Social media (organic and sponsored) >» Targeted emails Se, oust | || fase WATCH @ TV ADS = TV Advertising > Strategically placed national ads >» Memorable, humorous ads = Catalog >» Captivating storytelling >» Productla
Slide 10: Identified markets with ~100 potential store locations
= Identified markets with ~100 potential store locations > Utilize direct segment data to determine markets with existing customer base » Focus on regions with demographic that aligns with target customer » Geographic diversity indicates significant white space opportunity " Highly attractive unit e
Slide 11: Stores Triple the Size of Markets and Revive Direct Growth Over Time
> Stores Triple the Size of Markets and Revive Direct Growth Over Time Direct sales growth accelerates in store Total Sales in a store market grow up markets 18 to 24 months to 3X with the presence of retail after opening, as evidenced by the higher growth rates in older store markets Average Increa
Slide 12: Retail Stores Attract New, More Valuable Customers
Retail Stores Attract New, More Valuable Customers Retail customers more likely to shop across channels, categories, and spend more Multi-Channel Buyers Multi-Category Buyers Sales Per Customer Retail Buyer Direct Segment Retail Buyer Direct Segment Retail Buyer Direct Segment Buyer Buyer Buyer 2 D
Slide 13: Grow Women's Business
Grow Women’s Business Net sales increased 17% in 2019 7 Continued customer acquisition through marketing investments and retail presence Expand product offering to address more of her lifestyle Plus sizes grew to 11% of women’s sales in Q3 2020 163 Net Sales (Sin millions) 144 110 81 61 2014 2015 20
Slide 14: Net sales increased 8% in 2019
Net sales increased 8% in 2019 Extend core products through color, fabric and size Increase penetration in spring and transitional product (rain, mid- weight jackets, etc.) Continue to introduce products that expand occasions for wear Expansion of closet share in sub- brands > Duluth-Built Business
Slide 15: Financial Review
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Slide 16: Third Quarter 2020 Financial Results
(in milions) m= Retail 119.8 ™ Direct $ le ie 3 mos. 2019 (11/3/2019) Adjusted EBITDA" (Gin milions) 3 mos. 2020 (11/1/2020) 3 mos. 2019 3 mos. 2020 (11/3/2019) (11/1/2020) Margin 6.1% 84% Gross Profit (Sin mitions) $65.4 3 mos. 2019 3 mos. 2020 (11/3/2019) (11/1/2020) Margin 54.6% 52.4% Net Income?
Slide 17: Year Ended February 2, 2020
Year Ended February 2, 2020 (in milions) " $615.6 Direct _ $568.1 8.4% $351 $350 2018 2019 (23/2019) (22/2020) Adjusted EBITDA" (Simmons) ‘6 2018 2019 (23/2019) (22/2020) Margin 9.1% 8.4% | Adlustedto reflectthe add-back of stock compensation expense. Dux aH Excudesneticone tube to nonconrong eet ea
Slide 18: Balance Sheet and Liquidity
As of ($ in millions) 2020 Cash $ 12.8 = $12.8 million of cash with $91.9 million . of debt outstanding’ Debt: ; * $150.5 million credit facility ($80 million Line of Credit 43.0 line of creditand $70.5 million of term Term Loan 48.9 loan capacity?) Total Debt 91.9 Total Shareholders’ Equity 168.8 T
Slide 19: Appendix
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Slide 20: Reconciliation to Adjusted EBITDA
Reconciliation to Adjusted EBITDA (Sin millions) Netincome (oss) () Depreciation and amortization (+) Interest expense (+) Amortization of build-to-suit leases captital contribution (/+) Income tax benefit (expense) () Stock based compensation Adjusted EBITDA ‘3 Months Ended 9 Months Ended Nov, Nov,
Slide 21: Announced Store Openings
Announced Store Openings Location Timing Gross Sq Ft Friendswood, TX Opened March 7, 2019 16,026 Katy, TX e Opened March 8)2019 16,000 Wichita,d§S: ‘Opened March 21, 2019 385 Spokaffle Valley, WA Opened April1, 2019° eo Jacksonville, FL Opened May 2, 201 16:557 ° Rogers, AR ‘Opened May 16, 20 ee eee
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