Core Points - Duluth Trading Company announced the retirement of Francesca M. Edwardson from its Board of Directors [1][2] - Ms. Edwardson has been a board member since September 2015 and will continue until the 2025 Annual Meeting of Shareholders [2] - Stephen L. Schlecht, Chairman of Duluth Holdings, expressed gratitude for Ms. Edwardson's contributions and highlighted her expertise in corporate governance [3] Company Overview - Duluth Trading is a lifestyle brand offering high-quality workwear, casual wear, and outdoor apparel for men and women [4] - The company is based in Mount Horeb, Wisconsin, and focuses on providing a unique customer experience through humor and storytelling in its marketing [4] - Duluth Trading emphasizes outstanding customer service with its "No Bull Guarantee," ensuring customer satisfaction [4]

Financial Performance - Net sales in fiscal 2024 decreased by $20.1 million, or 3.1%, to $626.6 million compared to $646.7 million in fiscal 2023[166] - Net loss in fiscal 2024 was ($43.6) million compared to a net loss of ($9.9) million in the prior year[153] - Adjusted EBITDA in fiscal 2024 decreased by $18.0 million to $14.6 million, representing 2.3% of net sales compared to 5.1% in fiscal 2023[176] - Gross profit decreased by $16.5 million, or 5.1%, to $308.5 million, with a gross margin of 49.2% in fiscal 2024 compared to 50.3% in fiscal 2023[168] - Selling, general and administrative expenses increased by $3.1 million, or 0.9%, to $337.6 million, representing 53.9% of net sales in fiscal 2024[169] - The decrease in net sales was primarily driven by lower average unit retail prices and processing delays at a legacy fulfillment center[166] - For the fiscal year ended February 2, 2025, Duluth Holdings Inc. reported a net loss of $43.6 million, compared to a net loss of $9.9 million for the previous fiscal year[240] - The operating loss for the fiscal year ended February 2, 2025, was $(36,861,000), compared to an operating loss of $(9,569,000) in the prior year[345] Cash Flow and Working Capital - Free cash flow decreased by $14.8 million to ($25.2) million in fiscal 2024 compared to ($10.4) million in fiscal 2023, primarily due to higher inventory levels[178] - Net cash used in operating activities was ($16.9) million for fiscal 2024, compared to $38.7 million provided in fiscal 2023[186] - As of February 2, 2025, working capital was $63.1 million, including cash and cash equivalents of $3.3 million[179] - The company expects cash flow from operating activities and credit availability to cover working capital and capital expenditure needs for the foreseeable future[181] Inventory and Assets - Inventory increased by $40.8 million in fiscal 2024, while trade accounts payable increased by $22.9 million[186] - Total current assets increased to $191,631 thousand as of February 2, 2025, compared to $180,974 thousand at the end of the previous fiscal year[229] - Inventory levels rose to $166,545 thousand, up from $125,757 thousand, suggesting potential overstock issues[229] - The inventory reserve for excess, obsolete items and shrinkage increased to $2.1 million as of February 2, 2025, from $1.4 million in the previous year[264] Expenses and Liabilities - Interest expense increased by $0.4 million to $4.6 million in fiscal 2024 due to higher interest rates on outstanding debt[171] - Income tax expense was $2.4 million in fiscal 2024 compared to an income tax benefit of $2.9 million in fiscal 2023[172] - Total liabilities increased slightly to $272,763 thousand from $271,460 thousand, indicating stable leverage[229] - Total accrued expenses and other current liabilities increased to $35.684 million as of February 2, 2025, from $34.111 million as of January 28, 2024[315] Capital Expenditures and Investments - Capital expenditures for fiscal 2024 were $17.4 million, with an expected increase to approximately $20.0 million in fiscal 2025[180] - Net cash used in investing activities was $8.1 million in fiscal 2024, down from $48.7 million in fiscal 2023[189] - The company has a credit facility with a revolving commitment of $100.0 million following amendments made in January 2025[194] Shareholder Equity and Stock - The company’s total shareholders' equity decreased to $179,679 thousand from $219,750 thousand, indicating a decline in net worth[229] - The weighted average shares of common stock outstanding increased to 33,368 thousand from 32,955 thousand, reflecting potential dilution[231] - Total stock compensation expense associated with restricted stock was $4.0 million for fiscal 2024, a decrease of 4.76% from $4.2 million in fiscal 2023[283] Tax and Valuation - Total income tax expense for the fiscal year ended February 2, 2025, was $2,370,000, compared to a tax benefit of $(2,862,000) for the previous year[330] - The company recognized a valuation allowance of $11.8 million against deferred tax assets as of February 2, 2025, due to cumulative losses over the past 36 months[332] Operational Metrics - Direct-to-consumer revenue for the fiscal year ended February 2, 2025, was $419.860 million, down from $425.562 million in the previous year[325] - Store revenue for the fiscal year ended February 2, 2025, was $206.769 million, a decline from $221.119 million in the prior year[327] - The company incurred advertising and catalog expenses of $67.5 million for fiscal 2024, down from $69.0 million in fiscal 2023, reflecting a decrease of approximately 2.2%[255] - Shipping and processing expenses were $43.7 million for fiscal 2024, compared to $47.2 million in fiscal 2023, indicating a reduction of about 9.4%[258]

Duluth Holdings (DLTH) has been beaten down lately with too much selling pressure. While the stock has lost 26.3% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator t ...

Duluth (DLTH) Q4 2025 Earnings Call March 13, 2025 04:52 PM ET Company Participants Nitza McKee - Senior Associate - IRSam Sato - President, CEO & DirectorHeena Agrawal - Senior VP & CFOStephen Schlecht - Chairman & Founder Operator Good morning, and welcome to the Duluth Holdings Fourth Quarter twenty twenty four Financial Results Conference Call. All participants will be in listen only mode. Please note that there will not be a Q and A session following this presentation. Please note this event is being r ...

Duluth Holdings Inc. (NASDAQ:DLTH) Q4 2024 Results Conference Call March 13, 2025 9:30 AM ET Company Participants Nitza McKee - Senior Associate, IR, ICR Sam Sato - President and Chief Executive Officer Heena Agrawal - Senior Vice President and Chief Financial Officer Stephen Schlecht - Founder and Chairman Operator Good morning, and welcome to the Duluth Holdings Fourth Quarter 2024 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that the ...

Financial Performance - Net sales for the fourth quarter decreased by 1.8% to $241.3 million compared to $245.6 million in the prior year[5] - The company reported a net loss of $5.6 million for the fourth quarter, compared to a net income of $6.8 million in the prior year[5] - Adjusted EBITDA for the fourth quarter was $8.5 million, down from $20.9 million in the prior year[5] - For the full fiscal year, net sales were $626.6 million, a decrease from $646.7 million in the prior year[5] - The company experienced a net loss of $43.6 million for the full fiscal year, compared to a net loss of $9.9 million in the prior year[5] - Adjusted EBITDA for the fiscal year ended February 2, 2025, was $14.62 million, down from $32.67 million in the previous fiscal year[36] - The company forecasts a net loss between $26.80 million and $21.50 million for the fiscal year ending February 1, 2026[43] - Free cash flow for the fiscal year ended February 2, 2025, was $(25.25) million, compared to $(10.41) million in the previous year[38] Sales Breakdown - Direct-to-consumer net sales increased by 0.4% to $172.9 million in the fourth quarter, while retail store net sales decreased by 6.9% to $68.4 million[9] - Net sales for the three months ended February 2, 2025, were $241.27 million, a decrease of 1.4% from $245.61 million for the same period last year[32] Profitability Metrics - The gross profit margin decreased to 44.1% of net sales, down from 48.2% in the prior year, primarily due to increased discounting[10] - Gross profit for the fiscal year ended February 2, 2025, was $308.51 million, down 5.1% from $324.97 million in the previous fiscal year[32] Liquidity and Debt - The company ended the quarter with a liquidity of $103.3 million and no debt on the credit facility[1] - Cash and cash equivalents at the end of the period were $3.34 million, a significant decrease from $32.16 million at the beginning of the period[34] - Total assets decreased to $452.44 million as of February 2, 2025, from $491.21 million as of January 28, 2024[29] - Total current liabilities increased to $128.55 million as of February 2, 2025, compared to $105.63 million in the previous year[29] Strategic Initiatives - The company plans to expand its Duluth Women's Heirloom and Garden collection and introduce new products featuring Armachillo cooling technology[7] Future Outlook - Fiscal 2025 outlook includes net sales projected in the range of $570 million to $595 million and adjusted EBITDA in the range of $20 million to $25 million[18] - The company incurred restructuring expenses of $7.75 million during the fiscal year ended February 2, 2025[32]

Leadership Transition - Samuel M. Sato plans to retire as President and CEO of Duluth Trading effective April 25, 2025, and will also step down from the Board [2] - Stephen L. Schlecht, the Chairman of the Board and founder, will assume day-to-day leadership during the transition period with Mr. Sato's assistance [2][3] - The Board of Directors is conducting a search for a new CEO to replace Mr. Sato [2] Company Commitment - Mr. Schlecht expressed a deep commitment to the ongoing success of Duluth Trading and aims to ensure continuity in vision and strategy execution during the leadership transition [3] - The company has a talented senior leadership team that is committed to maintaining business operations without disruption [3] Company Overview - Duluth Trading is a lifestyle brand offering high-quality workwear, casual wear, and outdoor apparel for men and women [4] - The company emphasizes customer engagement through humor and storytelling in its marketing, and it operates through a content-rich website, catalogs, and unique retail locations [4] - Duluth Trading is dedicated to outstanding customer service, backed by its "No Bull Guarantee" [4]

Core Insights - Duluth Holdings Inc. reported net sales of $241.3 million for the fourth quarter and $626.6 million for the full fiscal year, reflecting a decrease from the previous year [1][6] - The company experienced a net loss of $5.6 million in the fourth quarter and $43.6 million for the full fiscal year, compared to a net income of $6.8 million in the prior-year fourth quarter [6][10] - Duluth Trading ended the quarter with liquidity of $103.3 million and no debt on its credit facility [1] Financial Performance - Fourth quarter net sales decreased by 1.8% to $241.3 million from $245.6 million in the same period last year [10] - Direct-to-consumer net sales increased by 0.4% to $172.9 million, while retail store net sales decreased by 6.9% to $68.4 million [10] - Gross profit for the fourth quarter decreased by 10.1% to $106.5 million, representing 44.1% of net sales, down from 48.2% in the prior year [11] - Selling, general and administrative expenses increased by 1.5% to $110.7 million, with a notable increase in expenses as a percentage of net sales [12] Adjusted Metrics - Adjusted net loss for the fourth quarter was $1.5 million, excluding software impairment and deferred tax asset valuation allowance [6] - Adjusted EBITDA for the fourth quarter was $8.5 million, down from $20.9 million in the prior year [6] - For the full fiscal year, adjusted net loss was $23.6 million, with adjusted EBITDA of $14.6 million, reflecting 2.3% of net sales [6] Inventory and Operational Strategy - Total inventory increased compared to last year, but a higher unit velocity during peak sales periods helped reduce seasonal and clearance inventory [7] - The company plans to expand its product offerings, including new collections and collaborations, to enhance its market presence [8][9] Future Outlook - Duluth Trading provided a fiscal 2025 outlook with projected net sales in the range of $570 million to $595 million and adjusted EBITDA between $20 million and $25 million [20] - The company aims to focus on strategic initiatives and operational improvements to enhance performance in the upcoming year [9]

MOUNT HOREB, Wis., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth Trading”) (NASDAQ: DLTH), a lifestyle brand of men’s and women’s casual wear, workwear and accessories, today announced that it will report fourth quarter 2024 financial results before market on Thursday, March 13, 2025. A conference call and audio webcast with analysts and investors will be held on Thursday, March 13, 2025 at 9:30 am Eastern Time, to discuss the results and answer questions. Liv ...

Financial Performance - Net sales decreased by 8.1% year-over-year in Q3 fiscal 2024 to $127.1 million, and decreased by 3.9% to $385.4 million for the first nine months of fiscal 2024 [108]. - Net loss for Q3 fiscal 2024 was $28.5 million, compared to a net loss of $10.5 million in Q3 fiscal 2023, with a total net loss of $40.1 million for the first nine months of fiscal 2024 compared to $16.4 million in the same period last year [108]. - Adjusted EBITDA for Q3 fiscal 2024 decreased to ($6.8) million from ($1.6) million in Q3 fiscal 2023, and for the first nine months of fiscal 2024, it decreased to $5.7 million from $12.3 million [108]. - The operating loss for Q3 fiscal 2024 was $22.6 million, compared to an operating loss of $12.4 million in Q3 fiscal 2023, with a total operating loss of $35.4 million for the first nine months of fiscal 2024 compared to $18.4 million in the same period last year [118]. - Net loss attributable to controlling interest was $28.5 million for the three months ended October 27, 2024, compared to a net loss of $10.5 million for the same period in 2023 [126]. - For the nine months ended October 27, 2024, net sales decreased by $15.7 million, or 3.9%, to $385.4 million compared to $401.1 million for the same period in 2023 [128]. - Net loss attributable to controlling interest for the nine months ended October 27, 2024, was $40.2 million, compared to a net loss of $16.3 million for the same period in 2023 [136]. Expenses and Costs - Selling, general and administrative expenses increased to $82.9 million in Q3 fiscal 2024 from $81.8 million in Q3 fiscal 2023, and totaled $229.7 million for the first nine months of fiscal 2024 compared to $225.0 million in the prior year [118]. - Selling, general and administrative expenses increased by $1.0 million, or 1.2%, to $82.9 million, with expenses as a percentage of net sales rising to 65.2% from 59.2% [123]. - Restructuring expenses amounted to $6.2 million in Q3 fiscal 2024, indicating ongoing adjustments within the company [118]. - Income tax expense was $4.7 million for the three months ended October 27, 2024, compared to an income tax benefit of $3.1 million for the same period in 2023 [125]. Cash Flow and Investments - Net cash used in operating activities was $58.1 million for the nine months ended October 27, 2024, primarily due to a $105.7 million increase in inventory [146]. - Net cash used in investing activities for the nine months ended October 27, 2024, was $5.7 million, a decrease from $39.8 million for the same period in 2023 [149]. - Net cash used in financing activities for the nine months ended October 27, 2024, was $41.0 million, compared to $33.5 million in the prior year [150]. - The company expects to spend approximately $23.0 million on capital expenditures in fiscal 2024, focusing on logistics optimization and information technology [141]. Market and Operational Context - The macroeconomic environment is characterized by inflation and recessionary concerns, impacting store traffic and consumer demand [111]. - The company anticipates challenges in maintaining inventory levels and adapting to changing consumer preferences amid economic uncertainties [111]. - The company operated 62 retail stores and three outlet stores as of October 27, 2024, reflecting its ongoing expansion strategy [105]. - The company continues to focus on innovative product offerings, including Longtail T shirts and Buck Naked underwear, to enhance brand appeal and customer loyalty [106]. Accounting and Compliance - There have been no significant changes to contractual obligations as described in the Annual Report on Form 10-K for the fiscal year ended January 28, 2024 [151]. - The company is not a party to any material off-balance sheet arrangements [152]. - There have been no significant changes in critical accounting policies and estimates as described in the 2023 Form 10-K [154]. - There have been no significant changes in market risks as described in the 2023 Form 10-K [156].