Business
Duluth Holdings Inc. Announces Third Quarter 2023 Financial Results
New highly automated fulfillment center fully operational for peak selling season Strong financial condition with $172 million of liquidity Updated Fiscal
About this update from Duluth Holdings Inc.
[{"type":"text","content":"New highly automated fulfillment center fully operational for peak selling season Strong financial condition with $172 million of liquidity Updated Fiscal 2023 Outlook for Net Sales, EPS and Adjusted EBITDA MOUNT HOREB, Wis., Nov. 30, 2023 (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 third quarter ended October 29, 2023. Summary of the Third Quarter Ended October 29, 2023 Net sales of $138.2 million compared to $147.1 million in the prior year third quarterWomen’s AKHG sub-brand net sales increase 19.0% compared to prior year third quarterInventory composition healthy and well managed, down 15.0% compared to prior year third quarterAdjusted EBITDA1 of ($1.6) million 1See Reconciliation of net loss to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables. Management Commentary President and CEO, Sam Sato commented, “Reflecting on what has remained a dynamic consumer environment in which we continued to see customers gravitating to value, our third quarter performance was hampered by lower traffic in both our direct and retail channels, as well as an underpenetrated position in spring-summer goods following strong unit sell throughs during the second quarter. That said, our overall inventory mix is strong with a significantly higher level of newness and 30% less clearance inventory. In addition to managing the business prudently on both the inventory and expense fronts, we strategically pulsed a higher than planned level of events combined with select pull forward of fall-winter receipts enabling us to maintain high levels of shopper conversion in-store, as well as improve our conversion and retention rates in our direct channel. We are not satisfied with our third quarter performance, however, I am pleased to report that we have experienced a solid trend improvement in our business over the Black Friday through Cyber Monday period. Our decisive actions to improve the business, including introducing more newness than we ever have, pulling forward select spring 2024 product, and chasing targeted best sellers to capitalize on winning products is paying off.” Sato concluded, “Looking forward,...