Duluth Holdings Inc. · NASDAQ:DLTH
Duluth — Q4 2023 Earnings Presentation
18 slides from Duluth's earnings presentation, Mar 7, 2024
Slide 1: Investor Presentation Fourth Quarter 2023
Investor Presentation Fourth Quarter 2023 March 7, 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation dated March 7, 2024 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
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: Year Ended January 28, 2024
Year Ended January 28, 2024 Summary ● Net sales of $646.7M compared to $653.3M in the prior year ● Net loss of ($9.4M); diluted EPS of ($0.28) ● Adjusted EBITDA of $33.4M reflects 5.2% of sales ● Healthy inventory composition with 90% in current products and a 30% decrease in clearance items March 7
Slide 8: Three Months Ended January 28, 2024
Three Months Ended January 28, 2024 (4.4)% 1.6% $245.6 $241.8 $124 2.4% $84 $73 $118 $21 $21 $7 $172 $7 $158 2022 2023 2022 2023 2022 2023 2022 2023 (1/29/2023) (1/28/2024) (1/29/2023) (1/28/2024) (1/29/2023) (1/28/2024) (1/29/2023) (1/28/2024) Retail Direct Net Sales Gross Profit Adjusted EBITDA 1
Slide 9: Twelve Months Ended January 28, 2024
Twelve Months Ended January 28, 2024 (5.4)% (1.0)% $653.3 $646.7 $343 (23.2)% $44 $2 $325 $241 $221 $33 $412 $426 $(9) 2022 2023 2022 2023 2022 2023 2022 2023 (1/29/2023) (1/28/2024) (1/29/2023) (1/28/2024) (1/29/2023) (1/28/2024) (1/29/2023) (1/28/2024) Retail Direct Net Sales Gross Profit Adjusted
Slide 10: Strong Balance Sheet, Liquidity and FCF
Strong Balance Sheet, Liquidity and FCF Debt to Capital (1,2) Free Cash Flow ($ in millions) As of January 28, 2024 Cash $32.2 Debt: Line of Credit 0.0 $(10.4) Term Loan 0.0 Total Debt 0.0 Total Shareholders’ Equity $225.2 $(28.5) Total Capitalization $257.4 2022 2023 Debt to Capital ratio 0.0% (Jan
Slide 11: Fiscal 2024 Financial Guidance
Fiscal 2024 Financial Guidance ($ in millions) 2023 2024 Guidance Reconciliation to 2024 Forecasted Adj. EBITDA Fiscal Year Ended February 2, 2025 Net Sales $646.7 $640 to $660 (1.0)% to 2.1% Forecasted ($ in millions) Low High Net Loss $(7.4) $(2.3) (+) Depreciation and amortization 34.0 34.0 Adj.
Slide 12: Net Sales and Adjusted EBITDA
Net Sales and Adjusted EBITDA Net Sales Adjusted EBITDA1 ($ in millions) ($ in millions) 77 699 639 653 647 616 55 568 52 52 44 33 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 1 Adjusted to reflect the add-back of stock compensation expense. March 7, 2024 12
Slide 13: 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 ● Strong balance sheet and ample liqu
Slide 14: Capital Expenditures
Capital Expenditures $53M $53M Capital Expenditures $31M $32M $25M $16M $15M 2018 2019 2020 2021 2022 2023 2024 Outlook 15 New 15 New 4 New Salt Lake Initiatives Adairsville FC Stores Stores Stores City FC Website re- Belleville FC 1 New Store Technology Roadmap platform March 7, 2024 14
Slide 15: Big Dam Blueprint
1b DAM BLUEPRINT
Slide 16: Big Dam Blueprint Growth Drivers
Big Dam Blueprint Growth Drivers 1. Lead With a Digital Mindset 2. Intensify Our Efforts to Optimize Our Owned DTC Channels 3. Evolve the Company’s Platform to Grow Into a Multi-brand and Multi-channel Business 4. Prioritize Test and Learn to Unlock Long-term Growth 5. Future Proof the Business Thro
Slide 17: Thank You
THANK YOU
Slide 18: Appendix: Reconciliation to 2023 Adjusted EBITDA and Free Cash Flow
Appendix Reconciliation to 2023 Adjusted EBITDA and Free Cash Flow Adjusted EBITDA Free Cash Flow 3 Months Ended 12 Months Ended 12 Months Ended January January January January January January ($ in millions) ($ in millions) 28, 2024 29, 2023 28, 2024 29, 2023 28, 2024 29, 2023 Net cash provided by