Business
Duluth Holdings Inc. Announces First Quarter Fiscal 2020 Financial Results
MOUNT HOREB, Wis., June 04, 2020 (GLOBE NEWSWIRE) -- Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth Trading” or the “Company”) (NASDAQ: DLTH), a
About this update from Duluth Holdings Inc.
[{"type":"text","content":"MOUNT HOREB, Wis., June 04, 2020 (GLOBE NEWSWIRE) -- Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth Trading” or the “Company”) (NASDAQ: DLTH), a lifestyle brand of men’s and women’s casual wear, workwear and accessories, today announced its financial results for the fiscal first quarter ended May 3, 2020.\n Highlights for the First Quarter Ended May 3, 2020 Net sales decreased 3.8% to $109.9 million compared to $114.2 million in the prior-year first quarterRetail store net sales decreased 51.8% due to the temporary closure of all stores for approximately seven weeks due to the COVID-19 pandemicWebsite and catalog net sales increased 31.7%, including a 69.0% increase in website and catalog sales since the stores closed on March 20, 2020 as compared to the same six-week period in the prior yearApril total net sales exceeded last year by 5.3%, while stores were closedGross margin decreased to 47.6% compared to 53.3% in the prior-year first quarterOperating loss of $19.0 million compared to operating loss of $9.7 million in the prior-year first quarterNet loss of $15.1 million, or $0.47 per diluted share, compared to a net loss of $7.6 million, or $0.23 per diluted share, in the prior-year first quarter. The current quarter net loss included $1.6 million, or $0.05 per diluted share of non-recurring COVID-19 related expensesAdjusted EBITDA1 of $(11.6) million compared to $(4.4) million in the prior-year first quarterThe Company opened one retail store in Short Pump (Richmond), VA adding approximately 17,000 gross square feetAll stores were closed March 20, 2020 and began to re-open May 3, 2020. As of June 4, 2020, we have re-opened 58 of our 62 retail stores in some capacity 1See Reconciliation of net loss to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables. Management Commentary “I am proud of our Duluth team’s resiliency and swift call to action during this major shock to the system from the COVID-19 pandemic. We were able to seamlessly pivot our resources to support the direct business and fill customer demand at levels we don’t typically see outside of the peak holiday season. As people sheltered in place, the surge we saw in online demand was significant and it drove direct product sales to increase 32% year-over-year in Q1. While our stores were closed during the month of April, total compa...