News Alert: Duluth Holdings Inc. (NASDAQ: DLTH)
On Tuesday, Shares of Duluth Holdings Inc. (NASDAQ: DLTH) gained 0.93% to $32.48. The stock recorded $31.80 as its minimum price and hit the max level of $32.78, during its most recent trading session. It traded total volume of 113,687 shares lower than the average volume of 195.49K shares.
Duluth Holdings Inc. (DLTH), recently declared its financial results for the fiscal second quarter ended July 29, 2023.
Highlights for the Second Quarter Ended July 29, 2023:
- Net sales increased 28.3% to $110.70M contrast to $86.20M in the prior-year second quarter. Gross margin reduced 50 basis points to 56.2% contrast to 56.7% in the prior-year second quarter
- Operating income increased 33.9% to $9.90M contrast to operating income of $7.40M in the prior-year second quarter
- Net income increased 48.9% to $6.40M, or $0.20 per diluted share contrast to net income of $4.30M, or $0.13 per diluted share in the prior-year second quarter
- Adjusted EBITDA increased 38.6% to $13.10M contrast to $9.50M in the prior-year second quarter
- The Company opened six retail stores in Colorado Springs, CO; Lubbock, TX; Denton, TX; Portland, OR; Columbus, OH and Arlington, TX, totaling about 92.0K gross square feet. 34th successive quarter of increased net sales year-over-year
Operating Results for the Second Quarter Ended July 29, 2023:
Net sales increased 28.3% to $110.70M, contrast to $86.20M in the same period a year ago. The net sales increase was driven by a 5.5% growth in direct net sales and a 74.4% growth in retail net sales, with growth in virtually all product categories and in both men’s and women’s business. The increase in retail net sales was mainly because of having 16 more stores during the second quarter of 2018 as contrast to the same period a year ago.
Gross profit increased 27.2% to $62.20M, or 56.2% of net sales, contrast to $48.90M, or 56.7% of net sales, in the corresponding prior-year period. The 50 basis point decrease in gross margin was mainly attributable to a slight increase in product margin, which was more than offset by a decline in shipping revenues and a boost in freight cost.
Selling, general and administrative expenses increased 26.0% to $52.30M, contrast to $41.50M in the same period a year ago. As a percentage of net sales, selling, general and administrative expenses reduced 90 basis points to 47.3%, contrast to 48.2% in the corresponding prior-year period. As a percentage of net sales, advertising and marketing costs reduced 310 basis points to 14.3% contrast to 17.4% in the corresponding prior-year period, mainly because of a decrease in catalog expense because of a planned decrease in catalog spend as a percentage of net sales, coupled with leverage gained from a higher mix of retail sales. As a percentage of net sales, selling expenses increased 60 basis points to 14.7%, contrast to 14.1% in the corresponding prior-year period, mainly because of a boost in customer service expense as a result of growth in the number of retail stores, partially offset by leverage in shipping expenses because of increased retail net sales. As a percentage of net sales, general and administrative expenses increased 160 basis points to 18.3% contrast to 16.7% in the corresponding prior-year period, mainly because of depreciation and occupancy expenses because of growth in the business.
Balance Sheet and Liquidity:
The Company ended the quarter with a cash balance of about $2.40M, with net working capital of $73.90M, and $35.00M outstanding on its $80.00M revolving line of credit.
Fiscal 2018 Outlook:
The Company reiterated its formerly issued fiscal 2018 outlook. Its fiscal 2018 outlook is offered on a 53-week period, contrast to a 52-week period in fiscal 2017.
- Net sales in the range of $555.00M to $575.00M
- Adjusted EBITDA in the range of $51.00M to $54.00M
- EPS in the range of $0.79 to $0.84 per diluted share, with an effective tax rate of 26%
- Capital expenditures, net of proceeds from finance lease obligations, of $45.00M to $55.00M
- 15 new store openings, adding about 250.0K of additional gross square footage
DLTH has the market capitalization of $1.01B and its EPS growth ratio for the past five years was 54.63%. The return on assets ratio of the Company was 9.80% while its return on investment ratio stands at 14.40%. Price to sales ratio was 1.98 while 47.70% of the stock was owned by institutional investors.
