Duluth Shares Slide On Q2 Earnings Miss, FY22 Outlook Cut

Duluth Holdings Inc DLTH reported a second-quarter FY22 sales decline of 5.1% year-on-year to $141.51 million, missing the consensus of $156.21 million.
Retail store net sales fell by 12% to $56.2 million, while Direct-to-consumer net sales increased by 0.1% to $85.3 million.
EPS of $0.07 missed the analyst consensus of $0.15.
Gross profit margin contracted 120 basis points Y/Y to 53.4%, and the gross profit decreased 7.1% to $75.6 million.
Operating margin for the quarter was 2.7%, and the operating income declined 70.4% to $3.8 million.
Adjusted EBITDA decreased 38.2% to $13.2 million.
The company held $15.4 million in cash and equivalents as of July 31, 2022. Inventory was $164.5 million.
President and CEO, Sam Sato commented, "During the second quarter we were not immune to the heightened level of macro uncertainty and inflationary pressures impacting discretionary spending. As a result, we have prudently revised our full year guidance."
Outlook: Duluth Holdings sees FY22 EPS of $0.61 - $0.71 (previously $0.93 - $1.02) versus the consensus of $0.82.
The company expects FY22 sales of $680 million - $705 million (previously $730 million - $755 million) against the Street view of $729.30 million.
Price Action: DLTH shares are trading lower by 3.21% at $8.59 on the last check Thursday.

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