Duluth (US:DLTH)2023-06-01 16:00Financial Performance - Net sales increased by $0.9 million, or 0.7%, to $123.8 million in the first quarter of fiscal 2023 compared to $122.9 million in the same period of fiscal 2022[108] - Net loss attributable to controlling interest was $3.9 million in the first quarter of fiscal 2023, compared to a net loss of $1.3 million in the same period of fiscal 2022[114] - Adjusted EBITDA decreased to $5.3 million in the first quarter of fiscal 2023, down from $7.9 million in the same period of fiscal 2022[102] - Gross profit decreased by $1.4 million, or 2.1%, to $65.7 million in the first quarter of fiscal 2023, with a gross margin of 53.0% compared to 54.6% in the prior year[110] - Selling, general and administrative expenses increased by $2.2 million, or 3.2%, to $70.2 million in the first quarter of fiscal 2023, representing 56.7% of net sales[111] - Adjusted EBITDA decreased by $2.6 million to $5.3 million for the three months ended April 30, 2023, compared to $7.9 million for the same period in 2022, representing a decline from 6.4% to 4.3% of net sales[117] - Net loss for the three months ended April 30, 2023, was $3.9 million, compared to a net loss of $1.3 million for the same period in 2022[116] Sales Performance - Store market net sales increased by $0.3 million, or 0.3%, to $85.4 million in the first quarter of fiscal 2023[109] - Non-store market net sales increased by $0.6 million, or 1.7%, to $37.4 million in the first quarter of fiscal 2023[109] Tax and Working Capital - The effective tax rate related to controlling interest was 27% for the first quarter of fiscal 2023, compared to 25% for the same period in fiscal 2022[113] - As of April 30, 2023, the company's net working capital was $88.7 million, including $9.2 million in cash and cash equivalents[118] Cash Flow and Investments - Net cash used in operating activities was $14.0 million for the three months ended April 30, 2023, down from $31.7 million in the same period in 2022[122] - Net cash used in investing activities increased to $21.3 million for the three months ended April 30, 2023, compared to $3.8 million for the same period in 2022, primarily due to investments in the fulfillment network and information technology[126] - The company expects to spend approximately $55.0 million on capital expenditures in fiscal 2023, focusing on logistics optimization and information technology[119] - Cash flow from operating activities is anticipated to be sufficient to cover working capital requirements and capital expenditures for the foreseeable future[120] - Net cash used in financing activities was $1.0 million for the three months ended April 30, 2023, similar to $1.1 million in the same period in 2022[128] Inventory and Payables - The company experienced a $21.1 million decrease in trade accounts payable during the three months ended April 30, 2023[124] - The company reported a $10.0 million decrease in inventory for the three months ended April 30, 2023[124] Operational Outlook - The company anticipates continued high inflation impacting operational and financial performance in the near term[98] - The company operated 62 retail stores and three outlet stores as of April 30, 2023[93]