Duluth (DLTH)

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Duluth Holdings Inc. Announces Fourth Quarter and Fiscal 2024 Financial Results
Globenewswire· 2025-03-13 09:45
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]
Duluth Holdings Inc. to Report Fourth Quarter and Fiscal Year 2024 Financial Results on March 13
Globenewswire· 2025-02-27 10:45
Company Overview - Duluth Holdings Inc. operates under the brand name Duluth Trading Company, focusing on lifestyle apparel for men and women, including casual wear, workwear, and accessories [1][2] - The company is based in Mount Horeb, Wisconsin, and targets the modern, self-reliant American consumer [2] Financial Reporting - Duluth Trading will report its fourth quarter 2024 financial results on March 13, 2025, before the market opens [1] - A conference call and audio webcast for analysts and investors will take place on the same day at 9:30 am Eastern Time to discuss the results [1] Conference Call Details - The live conference call can be accessed domestically at 1-844-875-6915 and internationally at 1-412-317-6711 [2] - A replay of the conference call will be available until March 20, 2025, with domestic access at 1-877-344-7529 and international access at 1-412-317-0088 [2] - Investors can pre-register for the call to expedite entry and receive a personalized phone number and pin [3]
Duluth (DLTH) - 2025 Q3 - Quarterly Report
2024-12-06 18:04
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].
Duluth Holdings: Q3 Was Bad, And Q4 May Show Challenging Financials
Seeking Alpha· 2024-12-05 20:42
Group 1 - The core investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective, rather than market-driven dynamics [1] - The articles emphasize understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations will be holds, indicating a cautious approach to investment opportunities, with only a small fraction of companies deemed suitable for buying at any given time [1] Group 2 - The articles aim to provide important information for future investors and introduce a healthy skepticism towards a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, highlighting the need for readers to conduct their own due diligence [2][3]
Duluth (DLTH) - 2024 Q3 - Earnings Call Transcript
2024-12-05 16:38
Financial Data and Key Metrics Changes - The company reported a net sales decline of 8.1% for Q3 2024, with net sales totaling $127.1 million [41][34] - Gross margin expanded by 210 basis points to 52.3% compared to the previous year [34][45] - Adjusted EPS loss was $0.41, compared to a net loss of $10.5 million or $0.32 per diluted share last year [49][41] - Inventory levels increased by 33%, approximately $57 million, with 97% of inventory in current products [50][49] Business Line Data and Key Metrics Changes - Women's business declined by 4%, but the first layer category grew by 22% and the heirloom garden collection increased by nearly 70% [44][20] - Men's business saw a decline of 10%, primarily due to unseasonably warm weather affecting seasonal categories [44][24] - The company experienced a double-digit increase in average order value and digital traffic, although transactions contracted year-over-year [7][8] Market Data and Key Metrics Changes - Direct channel sales declined by 8.3%, while retail store sales decreased by 7.8% due to traffic decline [43][34] - Mobile penetration for site visits and sales increased, with 71% of visits and 57% of sales coming from mobile devices [15][28] Company Strategy and Development Direction - The company is focused on enhancing its assortment and inventory management through strategic initiatives and partnerships [10][54] - Plans to open two new stores in priority markets in the second half of 2025, while evaluating closures or relocations of underperforming stores [18][39] - The company is committed to improving operational effectiveness and financial performance through structural improvements and enterprise planning initiatives [10][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of a highly promotional environment and warm weather on sales, but noted improvements in top-line trends leading into the holiday season [7][9] - The company is focused on ending the fiscal year with clean inventory levels and maximizing returns from strategic investments [57][58] - Future gross margin is projected to decrease by approximately 125 basis points due to higher promotional activity [54][56] Other Important Information - The company completed the closure of its Dubuque fulfillment center, incurring restructuring expenses of $7.7 million [38][41] - Capital expenditures for the quarter were $5 million, significantly lower than the previous year's $9.9 million [51][41] - The company ended the quarter with $165 million in liquidity and $44 million in outstanding debt [52][32] Q&A Session Summary Question: What falls under the new threshold for store closures? - Management is assessing stores on a case-by-case basis as they approach renewal dates, focusing on profitability and potential closures or relocations [61] Question: What is the primary driver to improve SG&A? - Management highlighted the progress on key initiatives and the benefits from logistics strategies, which are expected to improve SG&A over the next few years [62][65] Question: Can unsold cool weather gear be packed away or must it be cleared by year-end? - Management confirmed that some seasonal items can be packed away for future sales, while others will be marked down to avoid impacting margins [77][75]
Duluth Holdings (DLTH) Reports Q3 Loss, Lags Revenue Estimates
ZACKS· 2024-12-05 13:05
Core Viewpoint - Duluth Holdings reported a quarterly loss of $0.41 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.28, marking an earnings surprise of -46.43% [1] - The company’s revenues for the quarter were $127.06 million, missing the Zacks Consensus Estimate by 6.85% and down from $138.21 million a year ago [2] Financial Performance - Over the last four quarters, Duluth Holdings has surpassed consensus EPS estimates only once [2] - The company has experienced a significant decline in share price, losing about 30.9% since the beginning of the year, while the S&P 500 has gained 27.6% [3] Future Outlook - The future performance of Duluth Holdings' stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - Current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $245.6 million, and for the current fiscal year, it is -$0.16 on revenues of $640.3 million [7] Industry Context - The Textile - Apparel industry, to which Duluth Holdings belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]
Duluth (DLTH) - 2025 Q3 - Quarterly Results
2024-12-05 13:01
Financial Performance - Net sales for the third quarter decreased by 8.1% to $127.1 million, down from $138.2 million in the same period last year[5] - The company reported a net loss of $28.5 million, with an adjusted net loss of $13.8 million, compared to a net loss of $10.5 million in the prior year[3] - Direct-to-consumer net sales decreased by 8.3% to $79.8 million, primarily due to lower site conversion rates[5] - Net sales for the three months ended October 27, 2024, were $127,056, a decrease of 8.3% compared to $138,210 for the same period in 2023[24] - The company reported a net loss of $28,524 for the three months ended October 27, 2024, compared to a net loss of $10,474 for the same period in 2023, representing a significant increase in losses[24] - Net loss for the three months ended October 27, 2024, was $(28,524) thousand, compared to $(10,474) thousand for the same period in 2023, representing a 172% increase in losses[28] - Adjusted net loss attributable to controlling interest for the three months ended October 27, 2024, was $(13,751) thousand, translating to an adjusted EPS of $(0.41)[30] Profitability Metrics - Gross profit margin increased by 210 basis points to 52.3%, driven by successful sourcing initiatives[6] - Gross profit for the nine months ended October 27, 2024, was $202,031, down from $206,538 in the prior year, reflecting a decrease of 2.4%[24] - Adjusted EBITDA for the nine months ended October 27, 2024, was $5,662 thousand, down from $12,270 thousand in the same period of 2023, indicating a decline of 53.8%[28] - EBITDA for the three months ended October 27, 2024, was $(13,907) thousand, a significant decrease from $(2,588) thousand in the prior year[28] Expenses and Liabilities - Selling, general and administrative expenses rose by 1.2% to $82.9 million, resulting in a deleveraged SG&A as a percentage of net sales to 65.2%[7] - The company incurred restructuring expenses of $6,152 during the three months ended October 27, 2024, which were not present in the same period last year[24] - Restructuring expenses related to lease amendments totaled $7.7 million, with projected annual savings of approximately $5.0 million[10] - Total liabilities rose to $347,994 as of October 27, 2024, compared to $312,139 a year prior, indicating an increase of 11.5%[21] Cash Flow and Liquidity - The company ended the quarter with approximately $165 million in liquidity and $9.3 million in cash and cash equivalents[11] - Cash and cash equivalents decreased to $9,335 at the end of the period from $32,157 at the beginning, reflecting a decline of 71%[26] - The company reported a net cash used in operating activities of $58,125 for the nine months ended October 27, 2024, compared to $31,006 for the same period in 2023, indicating a worsening cash flow situation[26] - Net borrowings on the line of credit amounted to $44,000 during the nine months ended October 27, 2024, compared to $36,000 in the prior year, showing an increase in reliance on credit[26] Strategic Initiatives - The company is focused on enhancing operational and financial performance through strategic initiatives and improved inventory management[4] - The Adairsville fulfillment center processed over 65% of total network volume, significantly reducing fulfillment costs to 27% of the legacy centers' costs[9] Future Outlook - For fiscal 2024, the company expects net sales of approximately $640 million and a gross margin reduction of about 125 basis points compared to the prior year[12]
Duluth Holdings Inc. Announces Third Quarter 2024 Financial Results
GlobeNewswire News Room· 2024-12-05 10:45
Core Insights - Duluth Trading Company reported a net sales of $127.1 million for the third quarter ended October 27, 2024, a decrease of 8.1% compared to $138.2 million in the same period last year [2][5] - The company experienced a net loss of $28.5 million, with an adjusted net loss of $13.8 million, which excludes restructuring expenses and a valuation allowance on deferred tax assets [2][10] - Gross margin improved by 210 basis points to 52.3%, driven by successful sourcing initiatives, although gross profit decreased to $66.4 million from $69.4 million year-over-year [6][2] - Selling, general and administrative expenses increased by 1.2% to $82.9 million, leading to a deleveraging effect as a percentage of net sales [7][2] - The company ended the quarter with approximately $165 million in liquidity, including $9.3 million in cash and cash equivalents [11][2] Financial Performance - Direct-to-consumer net sales fell by 8.3% to $79.8 million, primarily due to lower site conversion rates, while retail store net sales decreased by 7.8% to $47.2 million [5][2] - Adjusted EBITDA decreased by $5.2 million from the prior year to $(6.8) million [2][24] - The company expects net sales for fiscal 2024 to be approximately $640 million, with a projected gross margin reduction of about 125 basis points compared to the previous year [12][2] Management Commentary - The CEO noted that the third quarter performance was impacted by an uncertain macro environment and unseasonably warm weather, but there was growth in average order value and digital traffic [4][2] - The company is focused on improving inventory management and operational performance, with plans to enhance assortment and inventory management through strategic initiatives [4][2] - The fulfillment center in Adairsville, Georgia, processed over 65% of total network volume, significantly reducing costs and improving delivery times [9][2] Restructuring and Cost Management - The company incurred restructuring expenses of $6.2 million during the third quarter, related to lease amendments aimed at reducing overhead costs [10][2] - The exit from a legacy facility is projected to save approximately $1.2 million in overhead expenses during the fourth quarter [10][2] - The company is implementing phase two of its fulfillment center network plan to maximize productivity and capacity [8][2]
Georgia's Prominent Injury Law Firm, Monge & Associates, Extends Reach to Wrongful Death and Catastrophic Injury Victims in Duluth, East Point, and Warner Robins
Newsfile· 2024-12-01 14:08
Atlanta, Georgia--(Newsfile Corp. - December 1, 2024) - Atlanta-based injury law firm Monge & Associates is extending its services to include comprehensive legal representation for wrongful death and catastrophic injury victims in Duluth, East Point, and Warner Robins. Recognized for its winning strategies in personal injury law, the firm is committed to providing top-tier legal support for families and individuals affected by severe injuries or the tragic loss of loved ones due to negligence. Monge & Asso ...
Duluth Holdings Inc. to Report Third Quarter 2024 Financial Results on December 5
GlobeNewswire News Room· 2024-11-21 10:45
Earnings Announcement - Duluth Holdings Inc will report its third quarter 2024 financial results before the market opens on Thursday December 5 2024 [1] - A conference call and audio webcast with analysts and investors will be held on the same day at 9:30 am Eastern Time to discuss the results and answer questions [1] Conference Call Details - Live conference call numbers are 1-844-875-6915 (domestic) and 1-412-317-6711 (international) [2] - Conference call replay will be available through December 12 2024 with numbers 1-877-344-7529 (domestic) and 1-412-317-0088 (international) and access code 2540359 [2] - Live and archived webcast will be available at ir duluthtrading com [2] - Investors can pre-register at https://dpregister com/sreg/10193192/fda17fd748 to receive a personalized phone number and pin for expedited entry into the call [2] Company Overview - Duluth Trading is a growing lifestyle brand for the Modern Self-Reliant American based in Mount Horeb Wisconsin [3] - The company offers high quality solution-based casual wear workwear and accessories for men and women who lead a hands-on lifestyle [3] - Products are sold exclusively through the company's content-rich website catalogs and unique retail locations [3] - The company is known for its engaging and entertaining marketing approach incorporating humor and storytelling to convey product uniqueness [3] - Duluth Trading is committed to outstanding customer service backed by its "No Bull Guarantee" [3]