Duluth Holdings Q1: Earnings Beat, Reaffirmed FY23 Outlook & More

Duluth Holdings Inc DLTH reported first-quarter FY23 sales growth of 0.7% year-on-year to $123.76 million, beating the consensus of $118.66 million.
Retail store net sales fell by 2.1% to $44.3 million, while Direct-to-consumer net sales increased by 2.3% to $79.5 million.
EPS of $(0.12) beat the analyst consensus of $(0.13).
Gross profit margin contracted 160 basis points Y/Y to 53%, and the gross profit decreased 2.1% to $65.7 million.
Operating loss for the quarter was $(4.5) million versus a loss of $(0.93) million last year. Adjusted EBITDA fell 33.1% to $5.3 million.
The company held $9.2 million in cash and equivalents as of Apr. 30, 2023. Inventory was $145 million.
President and CEO, Sam Sato commented, "While consumers remain selective in their discretionary spend, we are meeting their demands with much improved in-stock positions and higher sell-through rates than last year."
"We are also excited to see progress that is on-track for our strategic investment in a new automated fulfillment center in Adairsville, GA."
Outlook: Duluth Holdings reaffirmed its FY23 EPS outlook of $0.02 - $0.08 versus the consensus of $(0.04).
The company still expects FY23 sales of $645 million - $660 million against the Street view of $646.45 million.
Price Action: DLTH shares are trading higher by 0.93% at $5.45 in premarket on the last check Thursday.

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