Duluth Stock Soars On Q3 Earnings Beat, Raised FY21 EPS Outlook

Duluth Holdings Inc DLTH reported third-quarter FY21 sales growth of 7.2% year-on-year, to $145.28 million, beating the analyst consensus of $142.52 million. Net sales rose 21.3% versus 3Q19.
Retail store net sales improved by 22.3% to $60.1 million, while Direct-to-consumer net sales decreased by 1.4% to $85.2 million.
Men's apparel net sales increased 7.5% Y/Y, and women's apparel sales rose 5.6%.
EPS of $0.09 beat the analyst consensus of $(0.19).
The gross profit margin expanded 520 basis points Y/Y to 57.6%, and the gross profit increased 17.8% to $83.6 million.
The operating margin was 3.3%, and operating income for the quarter rose 70% to $4.86 million.
Adjusted EBITDA increased 15.3% to $13.2 million.
The company held $20.4 million in cash and equivalents as of October 31, 2021.
Outlook: Duluth Holdings raised FY21 EPS guidance to $0.81 - $0.86 (prior view $0.71 - $0.76), versus the consensus of $0.82.
The company's FY21 sales outlook is unchanged at $700 million - $715 million, versus the consensus of $712.35 million.
Price Action: DLTH shares are trading higher by 15.2% at $15.66 on the last check Thursday.

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