Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — Q1 2021 Earnings Presentation
22 slides from Duluth's earnings presentation, Jun 4, 2021
Slide 1: Investor Presentation First Quarter 2021
Investor Presentation First Quarter 2021 June 4, 2021 Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation dated June 4, 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 statements concerning D
Slide 3: Introduction to Duluth Trading Co.
Introduction to Duluth Trading Co.
Slide 4: Duluth Trading Co. at a Glance
Duluth Trading Co. at a Glance 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 D
Slide 5: Investment Highlights
Investment Highlights Growing lifestyle brand with well-established digitally-driven Omnichannel business Multiple revenue growth opportunities Evolving into a Portfolio of Distinct Brands within the Duluth Trading Co. Ecosystem Growing Sales in Existing Store and Non-Store Markets Strengthening the
Slide 6: First Quarter Ended May 2, 2021 Financial Highlights
First Quarter Ended May 2, 2021 Financial Highlights Net sales of $133.4M increased 21.4% compared to the prior year first quarter Direct-to-consumer net sales of $88.3M increased 2.1% compared to Q1 2020 Retail net sales of $45.1M increased 92.6% compared to Q1 2020 Adjusted EBITDA of $10.1M increa
Slide 7: Strong track record of 16% Net Sales and 10% Adjusted EBITDA growth
Strong track record of 16% Net Sales and 10% Adjusted EBITDA growth Strategic investments and operating efficiencies support long-term objectives of accelerated earnings growth Net Sales and Adjusted EBITDA Net Sales Adjusted EBITDA1 1 Adjusted to reflect the add-back of stock compensation expense.
Slide 8: Growth Strategy
Growth Strategy
Slide 9: Growth Strategies
Growth Strategies Evolve into a Portfolio of Distinct Brands within the Duluth Ecosystem Growing Sales in Existing Store and Non-Store Markets Growing our Women’s Duluth Brand Strengthening the Core Men’s Duluth Brand 1 2 3 4
Slide 10: Duluth Trading Co. Brand Platform
Duluth Trading Co. Brand Platform Our “can-do” customers Core line of innovative men’s and women’s workwear apparel Performance outdoor work apparel Tough, no-frills basics workwear line Premium hardgoods and apparel A store like no other enabling brand discovery, service and experience Product deve
Slide 11: Expanding & Refining our Retail Presence
Expanding & Refining our Retail Presence Design the next generation store model influenced by recent shifts in shopping behavior that still achieves attractive unit economics Utilize direct segment data to determine markets with existing customer base Focus on regions with demographic that aligns wi
Slide 12: Stores Triple the Size of Markets and Revive Direct Growth Over Time
Stores Triple the Size of Markets and Revive Direct Growth Over Time Total Sales in a store market grow up to 3X with the presence of retail Markets Grew 3X Direct sales growth accelerates in store markets 18 to 24 months after opening, as evidenced by the higher growth rates in older store markets
Slide 13: 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 Note: Data based on 2020 internal 12-month active buyer file. Multi-Channel Buyers Multi-Category Buyers Sales Per Customer 2
Slide 14: Strengthening the Core Men's Duluth Brand
Strengthening the Core Men’s Duluth Brand On a trailing twelve-month basis, Duluth brand men’s net sales increased 5% over the prior year period Selectively broaden our assortment in certain product categories Cement Duluth as the most innovative workwear destination. Extend core products through co
Slide 15: Growing the Women's Duluth Brand
Growing the Women’s Duluth Brand On a trailing twelve-month basis, Duluth women’s net sales increased 8% over the prior year period Continue customer acquisition through marketing investments and retail presence Expand product offering to address more of her lifestyle and appeal to wider range of fe
Slide 16: Financial Review
Financial Review
Slide 17: Three Months Ended May 2, 2021
Three Months Ended May 2, 2021 Net Sales Gross Profit Net Income 2 Adjusted EBITDA 1 ($ in millions) ($ in millions) ($ in millions) ($ in millions) Margin 47.6% (10.5)% Margin 21.4% 49.9% 7.6% 27.2% 1 Adjusted to reflect the add-back of stock compensation expense. 2 Excludes net (loss) income attri
Slide 18: Strong Balance Sheet and Liquidity
Strong Balance Sheet and Liquidity As of ($ in millions) May 2, 2021 Cash 26.1 $ Debt: Line of Credit 0.0 Total Debt 17.6 Total Shareholders' Equity 194.4 Total Capitalization 212.0 $ Debt to Capital ratio 8.3% 1 Balances do not include TRI Holding, LLC, a variable interest entity that is consolidat
Slide 19: Fiscal 2021 Updated Financial Guidance
Fiscal 2021 Updated Financial Guidance 2020 $638.8 $55.5 $0.42 $16.4 2021 Guidance $695 – $710 $68 – $71 $0.66 – $0.72 ~$15 – $16 Net Sales Adj. EBITDA EPS CAPEX (1) ($ in millions) Reconciliation to 2021 Forecasted Adj. EBITDA 1 2020 and 2021 include $4.1M and ~$5M, respectively, of additional inve
Slide 20: Long-Term Financial Targets
Long-Term Financial Targets 2019 $615.6 53.3% 48.7% 8.4% 2020 $638.8 51.9% 48.1% 8.7% LT Targets $1.0B 54 – 55% 45 – 44% 15 – 16% Net Sales Gross Profit % Total SG&A % Adj. EBITDA % 2018 $568.1 54.6% 48.1% 9.1% 2017 $471.4 55.4% 47.5% 9.8% ($ in millions)
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Slide 22: Reconciliation to Q1 2021 Adjusted EBITDA and Free Cash Flow
Reconciliation to Q1 2021 Adjusted EBITDA and Free Cash Flow Adjusted EBITDA Free Cash Flow