Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — ICR Investor Conference 2022
22 slides from Duluth's conference presentation, Jan 10, 2022
Slide 1: ICR Investor Conference January 11, 2022
ICR Investor Conference January 11, 2022 Exhibit 99.2
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation dated December 3, 2021 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 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 ICR Investor Conference, January 2022 Launch “Frist Layer Brand by Duluth Trading” as a solution-based, predominantly first layer brand. This will allow us to elevate our underwear
Slide 7: Financial Review
FINANCIAL REVIEW
Slide 8: Retail Stores
65 Retail Stores Currently designing next generation store model for future locations No new stores planned for 2022 Highly attractive pre-COVID unit economics $450 net sales per selling square feet in Year 1 Average 4-wall margin in mid-20’s percent Average payback < 2 years 3 Distribution Centers
Slide 9: Third Quarter Ended October 31, 2021 Financial Highlights
Third Quarter Ended October 31, 2021 Financial Highlights Q3 Net sales of $145.3M increased 7.2% compared to Q3 2020, and increased 21.3% compared to Q3 2019 Direct-to-consumer net sales of $85.2M decreased 1.4% compared to Q3 2020, and increased 38.4% compared to Q3 2019 Retail net sales of $60.1M
Slide 10: Three Months Ended October 31, 2021
Three Months Ended October 31, 2021 ICR Investor Conference, January 2022 ($ in millions) Net Sales ($ in millions) Gross Profit ($ in millions) Adjusted EBITDA 1 ($ in millions) Net Income2 7.2% Retail $135.5 $145.3 15.3% 8.4% 9.1% Margin 1 Adjusted to reflect the add-back of stock compensation exp
Slide 11: Net Sales and Adjusted EBITDA
Net Sales and Adjusted EBITDA Strong track record of 15% Net Sales and 14% Adjusted EBITDA growth Strategic investments and operating efficiencies support long-term objectives of accelerated earnings growth ICR Investor Conference, January 2022 *2021 reflects the full year guidance FY15-21 CAGR = 15
Slide 12: Long-Term Financial Targets
Long-Term Financial Targets ICR Investor Conference, January 2022 2017 2018 2019 2020 2021 Outlook 2025 Targets Net Sales $471.4 $568.1 $615.6 $638.8 $700 - $715 $1.0B Operating Margin % 7.9% 6.5% 4.6% 3.8% 5.7 - 5.8% 9 - 10% Adj. EBITDA % 9.8% 9.1% 8.4% 8.7% 10.4 -10.5% 14 - 15% Free Cash Flow ($16
Slide 13: Fiscal 2021 Updated Financial Guidance
Fiscal 2021 Updated Financial Guidance ICR Investor Conference, January 2022 1 2020 and 2021 include $4.1M and ~$5M, 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 Comp
Slide 14: 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 15: Big Dam Blueprint
BG DAM BLUEPRINT
Slide 16: Big Dam Blueprint Growth Strategies
“Big Dam Blueprint” Growth Strategies ICR Investor Conference, January 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/ Accel
Slide 17: 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 18: 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 19: 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.” Brands address our customer’s intended end use Focus on features, benefits, durability, innovation and a
Slide 20: 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 21: 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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