Core Insights - Duluth Trading Company reported a net loss of $15.3 million for the fiscal first quarter ended May 4, 2025, compared to a net loss of $7.9 million in the same period last year, indicating a significant decline in profitability [7][28] - The company is focusing on business simplification and enhancing brand awareness to drive shareholder value and return to profitable growth [8][5] Financial Performance - Net sales decreased by 12.0% to $102.7 million from $116.7 million in the prior year [9] - Direct-to-consumer net sales fell by 17.1% to $62.6 million, while retail store net sales decreased by 2.6% to $40.2 million [9] - Adjusted EBITDA decreased by $5.6 million to $(3.8) million, representing (3.7%) of net sales [7] - Gross profit margin decreased by 80 basis points to 52.0%, with gross profit declining to $53.4 million from $61.6 million [10] Cost Management - Selling, general and administrative expenses decreased by 6.9% to $65.7 million, but as a percentage of net sales, these expenses increased to 64.0% from 60.5% [11] - The company has initiated expense savings measures to right-size its business [7] Balance Sheet and Liquidity - The company ended the quarter with cash and cash equivalents of $8.6 million and net liquidity of $44.6 million [12] - Total current liabilities increased to $156.9 million from $128.6 million in the prior year [26] Management Strategy - The new CEO, Stephanie Pugliese, emphasized the need for decisive actions to simplify the business and focus on core strengths, including product innovation and customer service [8] - The company is committed to optimizing its product sourcing and fulfillment center network [8] Fiscal Outlook - Duluth Trading is maintaining its previously issued fiscal 2025 financial guidance, with updates to be provided as the macroeconomic environment changes [13]