Slide 1: Investor Presentation First Quarter 2023
Investor Presentation First Quarter 2023 June 1, 2023 Investor Presentation First Quarter 2023 June 1, 2023 Exhibit 99.1
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements This presentation dated June 1, 2023 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 c
Slide 3: Introduction to Duluth Trading Co.
INTRODUCTION TO DULUTH TRADING CO.
Slide 4: Our Greater Purpose and Mission Statement
OUR GREATER PURPOSE “Celebrating the can-do spirit by enabling anyone who takes on life with their own two hands.” OUR MISSION STATEMENT “We build high-quality, solution-based products for work, play and every day. We craft our raw materials – unique brands, durable products, standout customer servi
Slide 5: Secret Sauce
Secret Sauce Better Brands A brood of sub-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 thr
Slide 6: Financial Review
FINANCIAL REVIEW
Slide 7: Three Months Ended April 30, 2023 Highlights
Three Months Ended April 30, 2023 Highlights Net sales of $123.8M compared to $122.9M in the prior year first quarter Strength of the Women’s business continues with net sales growth of 14.4% over prior year first quarter Inventories well managed; down 4.8% compared to prior period first quarter and
Slide 8: Three Months Ended April 30, 2023
Three Months Ended April 30, 2023 June 1, 2023 ($ in millions) Net Sales ($ in millions) Gross Profit ($ in millions) Adjusted EBITDA 1 ($ in millions) Net Loss2 Retail 6.4% 4.3% Margin 1 Adjusted to reflect the add-back of stock compensation expense. 2 Excludes net income (loss) attributable to non
Slide 9: Strong Balance Sheet, Liquidity and FCF
Strong Balance Sheet, Liquidity and FCF June 1, 2023 Debt to Capital (1,2) ($ in millions) As of April 30, 2023 Cash $9.2 Debt: Line of Credit 0.0 Term Loan 0.0 Total Debt 0.0 Total Shareholders’ Equity $224.1 Total Capitalization $224.1 Debt to Capital ratio 0.0% Free Cash Flow 1 Debt balances do n
Slide 10: Fiscal 2023 Financial Guidance
Fiscal 2023 Financial Guidance June 1, 2023 1 2022 and 2023 include $8.7M and ~$6M, respectively, of additional investments in implementation costs to enhance the value of hosting arrangements, which are included in Prepaid expenses & other current assets on the Company’s Consolidated Balance Sheets
Slide 11: Net Sales and Adjusted EBITDA
Net Sales and Adjusted EBITDA June 1, 2023 ($ in millions) Net Sales 1 Adjusted to reflect the add-back of stock compensation expense. ($ in millions) Adjusted EBITDA1
Slide 12: Investment Highlights
Investment Highlights Growing lifestyle platform of sub-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
Slide 13: Big Dam Blueprint
B16 DAM BLUEPRINT
Slide 14: Big Dam Blueprint Growth Strategies
“Big Dam Blueprint” Growth Strategies June 1, 2023 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 Futu
Slide 15: 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 16: 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 17: 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 18: Test & Learn to Unlock Long-term Growth Potential
Test & Learn to Unlock Long-term Growth Potential Gain operational learnings to implement wholesale opportunities 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 prefer
Slide 19: 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 21: Reconciliation to Adjusted EBITDA and Free Cash Flow
Appendix Reconciliation to 2023 Adjusted EBITDA and Free Cash Flow Adjusted EBITDA Free Cash Flow 3 Months Ended ($ in millions) April 30, 2023 May 1, 2022 Net Income $(3.9) $(1.3) (+) Depreciation and amortization 7.4 7.5 (+) Amortization of internal-use software hosting subscription implementation