Holley (HLLY) 45th Annual William Blair Growth Stock Conference summary

Market overview and company positioning

• Serves a large U.S. enthusiast market of 70 million, surpassing golf and outdoor categories.

• Focuses on four verticals: domestic muscle, trucks/SUVs/CUVs, Euro & import, and safety & racing.

• Portfolio includes 70 brands, with emphasis on lifestyle and power brands for growth.

• Recent growth driven by trucks/SUVs/CUVs ($26B market), Euro & import ($14B), and global safety & racing ($10B).

• Company went public in 2021 and has since focused on operational effectiveness and infrastructure.

Financial performance and operational improvements

• Q1 core business grew 3.3% year-over-year, with B2B up 2.5% and D2C up over 10%.

• Third-party marketplace sales, especially on Amazon, increased by 50%.

• Product innovation and strategic pricing contributed $8.1M in Q1.

• Operational efficiencies yielded over $1M in savings for the quarter.

• Inventory and SKU rationalization cut SKUs by 45%, freeing up cash and reducing unproductive inventory.

Strategic initiatives and growth plans

• Strategic plan focuses on workplace culture, consumer journey, B2B partnerships, product innovation, global expansion, and M&A.

• Expansion into Mexico and adjacent markets underway, with early revenue contributions.

• Operational improvements and cost reductions continue to fund growth and shareholder returns.

• B2B and D2C initiatives delivered $2.5M and $3.3M respectively in Q1.

• Great Place to Work score improved to 60%, aiming for 65%.