Zinger Key Points
- Q3 performance was hampered by lower traffic in both direct and retail channels.
- The company said it experienced a solid trend improvement in its business over the Black Friday through Cyber Monday period.
- Discover Fast-Growing Stocks Every Month
Duluth Holdings Inc. DLTH reported a third-quarter FY23 sales decline of 6.1% year-on-year to $138.21 million, missing the consensus of $141.47 million.
EPS loss of $(0.32) missed the analyst consensus of $(0.26) loss.
Retail store net sales decreased by 8.8% to $51.2 million due to slower store traffic, partially offset by a higher average transaction value during the quarter.
Gross margin decreased to 50.2% from 52.3%, and the gross profit decreased to $69.4 million from $76.9 million a year ago.
The decrease in gross profit margin rate was primarily due to a lower mix of full-price sales amidst the continued promotional retail environment.
The company ended the quarter with a cash balance of $8.2 million.
Outlook: Duluth Holdings expects FY23 net sales of $640 million-$655 million versus the $644.19 million estimate (prior view: $645 million-$660 million).
The company sees EPS of $(0.25)-$(0.15) versus $(0.11) estimate (prior view: $(0.15)-$(0.08)).
Price Action: DLTH shares are trading lower by 3.79% at $4.95 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
