Business
Duluth Holdings Inc. Announces Second Quarter 2022 Financial Results
Net Sales of $141.5 million Gross Margin of 53.4% Net income of $2.4 million; Adjusted EBITDA of $13.2 million or 9.4% of net sales Updated Fiscal 2022
About this update from Duluth Holdings Inc.
[{"type":"text","content":"Net Sales of $141.5 million Gross Margin of 53.4% Net income of $2.4 million; Adjusted EBITDA of $13.2 million or 9.4% of net sales Updated Fiscal 2022 outlook for Net Sales, EPS and Adjusted EBITDA MOUNT HOREB, Wis., Sept. 01, 2022 (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 workwear, casual wear, outdoor apparel and accessories, today announced its financial results for the fiscal second quarter ended July 31, 2022. Highlights for the Second Quarter Ended July 31, 2022 Net sales of $141.5 million compared to $149.1 million in the prior year second quarterGross margin of 53.4%, compared to 54.6% in the prior year second quarter; excluding the non-recurring $1.3 million inventory write down, most of which came from product damaged in-transit, current quarter gross margin would have been 54.4%Net income of $2.4 million, or $0.07 per diluted share, compared to net income of $9.0 million, or $0.27 per diluted share in the prior year second quarterAdjusted EBITDA1 of $13.2 million, reflects 9.4% of net sales 1See Reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables. Management Commentary 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. Despite that backdrop, I am pleased with the underlying performance of our business and the progress we are making on our key strategic initiatives. We ended the second quarter with inventories up 22% compared to last year and 14% excluding in-transit goods. Importantly, nearly 90% of the inventory growth is in year-round evergreen goods. Simply stated, we are in a much healthier inventory position with improved flow of new, seasonal receipts and better in-stock positions to support overall sales growth. We continue to manage expenses well in the face of inflationary headwinds and our strong balance sheet allows us to remain committed to key investments in support of our Big Dam Blueprint to build out our infrastructure and technical skillsets, while also investing in our teams as we focus on the long term.” Sato concluded, “During ...