Free Post Earnings Research Report: Duluth’s Net Sales Jumped 19.7%; Beat Earnings Estimates

LONDON, UK / ACCESSWIRE / July 5, 2018 / If you want access to our free earnings report on Duluth Holdings Inc. (NASDAQ: DLTH) (“Duluth”), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DLTH. The Company reported its first quarter fiscal 2018 operating and financial results on June 06, 2018. The clothing and tools supplier recorded a 33rd consecutive quarter of increased net sales on a y-o-y basis. Additionally, the Company re-affirmed its guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Duluth Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the first quarter ended April 29, 2018, Duluth’s net sales increased 19.7% to $100.2 million compared to $83.7 million in Q1 FY17, driven by a 3.8% growth in direct net sales and a 70.7% growth in retail net sales, with growths in virtually all product categories and in both men’s and women’s business. The Company’s revenue numbers lagged analysts’ estimates of $101.3 million.

During Q1 FY18, Duluth’s gross profit increased 15.0% to $55.9 million, or 55.8% of net sales, compared to $48.6 million, or 58.1% of net sales, in Q1 FY17. The 230-basis point (bps) decrease in gross margin was primarily attributable to a decrease in product margins due to end of winter clearance; an increase in inventory reserves; and a higher freight cost as a result of retail expansion, coupled with a slight decline in shipping revenues.

For Q1 FY18, Duluth’s selling, general, and administrative expenses (SG&A) increased 17.3% to $56.2 million compared to $47.9 million in Q1 FY17. As a percentage of net sales, the Company’s SG&A fell 110 bps to 56.1% compared to 57.2% in the year earlier same quarter. Duluth’s advertising and marketing costs as a percentage of net sales decreased 360 bps to 21.6% compared to 25.2% in Q1 FY17, primarily due to a decrease in catalog expenses as a result of the adoption of the new revenue standard and a planned decrease in catalog spend as a percentage of net sales, coupled with leverage gained from a higher mix of retail sales.

Duluth reported an operating loss of $0.3 million in Q1 FY18 compared to an operating income of $0.7 million in Q1 FY17.

For Q1 FY18, Duluth recorded a net loss of $0.7 million, or $0.02 loss per diluted share, compared to a net income of $0.4 million, or $0.01 per diluted share, in Q1 FY17. The Company’s revenue numbers were better than Wall Street’s estimates of $0.05 per share.

Store Update

During Q1 FY18, Duluth opened 2 retail stores in Anchorage, Alaska, and West Fargo, North Dakota, totaling approximately 40,000 gross square feet.

Duluth plans 15 new store openings, adding approximately 255,000 of additional gross square footage in FY18.

Cash Matters

As of April 29, 2018, Duluth had a cash balance of approximately $1.2 million, with a net working capital of $40.0 million, and $21.3 million outstanding on its $60.0 million revolving line of credit. Effective May 17, 2018, the Company terminated its $60 million revolving line of credit and entered into a new credit agreement. The new credit agreement provides for borrowings of up to $80.0 million in revolving credit and additional borrowings of $50.0 million in a delayed draw term loan, for a total credit facility of $130.0 million.

Outlook

For the full fiscal year 2018, Duluth is forecasting net sales to be in the range of $555.0 million to $575.0 million. The Company is expecting adjusted EBITDA to be in the band of $51.0 million to $54.0 million, and earnings per diluted share to be in the range of $0.79 to $0.84, with an effective tax rate of 26%.

Stock Performance Snapshot

July 02, 2018 – At Monday’s closing bell, Duluth’s stock ended the trading session flat at $24.80.

Volume traded for the day: 193.78 thousand shares.

Stock performance in the last month – up 29.64%; previous three-month period – up 27.44%; past twelve-month period – up 35.89%; and year-to-date – up 38.94%

After last Monday’s close, Duluth’s market cap was at $766.07 million.

Price to Earnings (P/E) ratio was at 38.51.

The stock is part of the Services sector, categorized under the Apparel Stores industry.

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