Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — Investor Presentation (October 2016)
19 slides from Duluth's investor presentation, Oct 14, 2016
Slide 1: Investor Presentation
Diesel Investor Presentation October 14, 2016
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation dated October 14, 2016 includes “forward-ooking 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: One Tough Fire Hose Work Pants
ONE TOUGH le FIRE HOSE: SON OF A... } WORK PANTS
Slide 4: The Modern, Self-Reliant American Lifestyle
The Modern, Self-Reliant American Lifestyle Men and women who are hands-on, value a job well done and are often outdoors for work and hobbies October 14,2016
Slide 5: Company history and launches
Launches Invents The Establishes frst Lunes Introduces ‘Opens frststorein ‘Opens frst outlet in ‘Opens Ankeny, Bucket Boss headquarters—a heroically tough Mount Horeb, WI Belevile, WI Wstore underthe refurbished dredge yetsoftFire company name bargein Duluth, Es Hoset workwear “Portable MN on Lake =
Slide 6: Direct Segment
Direct Segment fone e-Commerce (83%)\") Catalog (17%) Duane (1) Basedon point of transaction. (2) AsofOctober 14, 2016. includes two outlet stores. October 14,2016 y Presentour brand in a consistent manner v |mplementcontrolled pricing strategy y Own the relationship with our customers v Capture the
Slide 7: Nationwide customer base
ie Nationw U.S. Population v Nationwide customer base aligned geographically with U.S. population v Unique ability to know where our customers are through our direct sales channel Top Three Markets #1~= California #2 Texas ca Nae LN #3 = New York October 14,2016
Slide 8: Build Brand Awareness to Continue Customer Acquisition
eS Sa uN Build Brand Awareness to Continue Customer Acquisition | DPESTH | carharrt @Columbiy LLBean TERY Coblalles vaxos env e CetutBoue TY 36% of respondents were aware of the Duluth Trading brand but have never purchased our product 99% 98% 95% 94% 92% 89% 83% 72% "Purchased "Aware but Never Purc
Slide 9: Key Purchase Influencers
Influencer in . i % - 85Y Key PurchaseInfluencers aropearcinthe US 3 “oof bought at brick-and-mortar“ Everyday Casual Wear = Our customers’ purchasing decisions are heavily influenced by the availability of productin retail stores Availabilty in retail stores TV ads Online ads = Increased retail pre
Slide 10: Expanding Retail Footprint
Expanding Retail Footprint Retail stores designedto bring our brand to life with engaging and entertaining elements DuancH October 14,2016 Mt. Horeb, WI (2010) Belleville, WI (Outlet) (2012) Port Washington, WI (2012) Bloomington, MN (2013) Duluth, MN (2014) Fridley, MN (2014) Ankeny, 1A (2015) Oshk
Slide 11: Addition of retail has tripled net sales in Minneapolis-St. Paul area
Addition of retail has tripled the volume of total net sales in the Minneapolis-St. Paul area 2012: 2013 / 2014: Minneapolis-St. Paul Metro Area 2014: ‘October 14,2016 Strong market presence in Minneapolis- St. Paul in direct business ¥ Opened stores in Bloomington (2013) and Fridley (2014) Total ma
Slide 12: Significant white space opportunity to grow our U.S. retail presence
| Significant white space opportunity to grow our U.S. retail presence = Existing stores profitable in both metropolitan and rural locations across ~100 multiple markets Ret Store Footpri = Identified markets with ~100 locations that have attractive customer and population density metrics 16 = High
Slide 13: Select specific site based on
= Select specific site based on: - Current customer recommendations Access to freeway High visibility - Ample parking = Opportunity across urban and rural markets, including the ability to open multiple stores in local areas within major MSAs = Flexibility in store format and size based on market ne
Slide 14: Retail Store Locations Informed By Extensive Data
{ Retail Store Locations Informed By Extensive Data Catalog/online data is supplemented with US Census and E-Site demographic and psychographic data for an informed decision. Frc corp ener ] HBBBBOOE October 14,2016
Slide 15: Retail Store Strategy: Build to Suit and Renovations
rategy Build to Suit Renovations BI ony =i shies IP = Hoffman Estates, IL = Ankeny, IA = Duluth, MN = Independence, MO* = Bloomington, MN = LaCrosse, WI = Noblesville, IN* = Downers Grove, IL = Mt. Horeb, WI = Fridley, MN = Port Washington, WI = King of Prussia, PA* = Sioux Falls, SD = Manassas, VA*
Slide 16: Model for New Stores
Model for New Stores 7,000 to 12,000 selling square feet Average payback of less than two years $2.0 million to $2.6 million in capital expenditures and starting inventory to open anew store Plan to open seven stores in 2016 and accelerate the rate of new store openings over the coming years October
Slide 17: Retail store expansion plan phases openings in geographic clusters
Retail store expansion plan reflects strategy to phase openings in geographic clusters 2017 Signed Leases = Burlington, MA = West Chester, OH = Noblesville, IN = Wamick, RI LU DRE : ‘October 14,2016
Slide 18: Ability to furnish stores from any distribution center
Ability to furnish stores from any distribution center supports retail expansion = Distribution centers are located across the U.S. to minimize transit times = Own distribution center in Belleville, Wisconsin = Opened first 3PL facility in Sparks, Nevada in 2014 = Opened second 3PL facility in Hebro
Slide 19: Long-term growth targets
Net Sales Growth: 20% Adjusted EBITDA Growth: 25% Net Income Growth: 25% that managements projections wilbe achieved, and actualresuts may vary materialy from whatis indicated by ial targets. October 14,2016
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