Duluth Holdings Inc. Announces Fourth Quarter and Fiscal 2024 Financial Results
Duluth Trading Company (NASDAQ: DLTH) reported its Q4 and fiscal 2024 results, showing a decline in performance. Q4 net sales decreased 1.8% to $241.3 million, with a net loss of $5.6 million. The company's adjusted net loss was $1.5 million, excluding software impairment and tax-related charges.
For fiscal 2024, total net sales were $626.6 million, down from $646.7 million in the previous year. The company reported a net loss of $43.6 million and adjusted net loss of $23.6 million. Q4 direct-to-consumer sales increased 0.4% to $172.9 million, while retail store sales decreased 6.9% to $68.4 million.
The company ended the quarter with $3.3 million in cash and no outstanding bank debt. For fiscal 2025, Duluth Trading projects net sales between $570-595 million and Adjusted EBITDA of $20-25 million.
Duluth Trading Company (NASDAQ: DLTH) ha riportato i risultati del quarto trimestre e dell'anno fiscale 2024, mostrando un calo delle performance. Le vendite nette del Q4 sono diminuite dell'1,8% a $241,3 milioni, con una perdita netta di $5,6 milioni. La perdita netta rettificata dell'azienda è stata di $1,5 milioni, escludendo le svalutazioni software e le spese fiscali.
Per l'anno fiscale 2024, le vendite nette totali sono state di $626,6 milioni, in calo rispetto ai $646,7 milioni dell'anno precedente. L'azienda ha riportato una perdita netta di $43,6 milioni e una perdita netta rettificata di $23,6 milioni. Le vendite dirette al consumatore del Q4 sono aumentate dello 0,4% a $172,9 milioni, mentre le vendite nei negozi al dettaglio sono diminuite del 6,9% a $68,4 milioni.
L'azienda ha concluso il trimestre con $3,3 milioni in contante e senza debiti bancari in sospeso. Per l'anno fiscale 2025, Duluth Trading prevede vendite nette tra $570-595 milioni e un EBITDA rettificato di $20-25 milioni.
Duluth Trading Company (NASDAQ: DLTH) reportó sus resultados del cuarto trimestre y del año fiscal 2024, mostrando una disminución en el rendimiento. Las ventas netas del Q4 disminuyeron un 1.8% a $241.3 millones, con una pérdida neta de $5.6 millones. La pérdida neta ajustada de la empresa fue de $1.5 millones, excluyendo la disminución de software y cargos relacionados con impuestos.
Para el año fiscal 2024, las ventas netas totales fueron de $626.6 millones, por debajo de los $646.7 millones del año anterior. La empresa reportó una pérdida neta de $43.6 millones y una pérdida neta ajustada de $23.6 millones. Las ventas directas al consumidor del Q4 aumentaron un 0.4% a $172.9 millones, mientras que las ventas en tiendas minoristas disminuyeron un 6.9% a $68.4 millones.
La empresa terminó el trimestre con $3.3 millones en efectivo y sin deudas bancarias pendientes. Para el año fiscal 2025, Duluth Trading proyecta ventas netas entre $570-595 millones y un EBITDA ajustado de $20-25 millones.
둘루스 트레이딩 컴퍼니 (NASDAQ: DLTH)는 2024 회계연도 4분기 및 연간 실적을 발표하며 성과가 감소했음을 보여주었습니다. 4분기 순매출은 $241.3 백만으로 1.8% 감소했으며, 순손실은 $5.6 백만에 달했습니다. 회사의 조정된 순손실은 소프트웨어 손상 및 세금 관련 비용을 제외하면 $1.5 백만이었습니다.
2024 회계연도 총 순매출은 $626.6 백만으로, 전년도 $646.7 백만에서 감소했습니다. 회사는 $43.6 백만의 순손실과 $23.6 백만의 조정된 순손실을 보고했습니다. 4분기 직접 소비자 판매는 $172.9 백만으로 0.4% 증가했으며, 소매점 판매는 $68.4 백만으로 6.9% 감소했습니다.
회사는 $3.3 백만의 현금으로 분기를 마감했으며, 미지급 은행 부채는 없습니다. 2025 회계연도에 대해 둘루스 트레이딩은 순매출이 $570-595 백만, 조정된 EBITDA가 $20-25 백만에 이를 것으로 예상하고 있습니다.
Duluth Trading Company (NASDAQ: DLTH) a annoncé ses résultats pour le quatrième trimestre et l'exercice fiscal 2024, montrant une baisse de performance. Les ventes nettes du Q4 ont diminué de 1,8 % pour atteindre $241,3 millions, avec une perte nette de $5,6 millions. La perte nette ajustée de l'entreprise était de $1,5 million, excluant les amortissements de logiciels et les charges fiscales.
Pour l'exercice fiscal 2024, les ventes nettes totales se sont élevées à $626,6 millions, en baisse par rapport aux $646,7 millions de l'année précédente. L'entreprise a déclaré une perte nette de $43,6 millions et une perte nette ajustée de $23,6 millions. Les ventes directes aux consommateurs du Q4 ont augmenté de 0,4 % pour atteindre $172,9 millions, tandis que les ventes en magasin ont diminué de 6,9 % pour atteindre $68,4 millions.
L'entreprise a terminé le trimestre avec $3,3 millions en liquidités et sans dettes bancaires en cours. Pour l'exercice fiscal 2025, Duluth Trading prévoit des ventes nettes entre $570-595 millions et un EBITDA ajusté de $20-25 millions.
Duluth Trading Company (NASDAQ: DLTH) hat seine Ergebnisse für das 4. Quartal und das Geschäftsjahr 2024 veröffentlicht, die einen Rückgang der Leistung zeigen. Die Nettoumsätze im 4. Quartal sanken um 1,8% auf $241,3 Millionen, mit einem Nettverlust von $5,6 Millionen. Der bereinigte Nettverlust des Unternehmens betrug $1,5 Millionen, ohne Berücksichtigung von Softwareabschreibungen und steuerlichen Belastungen.
Für das Geschäftsjahr 2024 lagen die gesamten Nettoumsätze bei $626,6 Millionen, ein Rückgang von $646,7 Millionen im Vorjahr. Das Unternehmen meldete einen Nettverlust von $43,6 Millionen und einen bereinigten Nettverlust von $23,6 Millionen. Die direkten Verbraucherumsätze im 4. Quartal stiegen um 0,4% auf $172,9 Millionen, während die Umsätze im Einzelhandel um 6,9% auf $68,4 Millionen sanken.
Das Unternehmen schloss das Quartal mit $3,3 Millionen in bar und ohne ausstehende Bankverbindlichkeiten ab. Für das Geschäftsjahr 2025 prognostiziert Duluth Trading Nettoumsätze zwischen $570-595 Millionen und ein bereinigtes EBITDA von $20-25 Millionen.
- No outstanding bank debt with $103.3 million in liquidity
- Direct-to-consumer sales showed slight growth of 0.4% in Q4
- New product launches and marketing initiatives planned for 2025
- Q4 net sales declined 1.8% to $241.3 million
- Q4 net loss of $5.6 million compared to $6.8 million profit last year
- Fiscal 2024 net loss of $43.6 million, significantly worse than prior year's $9.9 million loss
- Retail store sales decreased 6.9% in Q4
- Gross profit margin declined to 44.1% from 48.2% due to increased discounting
- 2025 revenue guidance suggests continued decline from 2024 levels
Insights
Duluth Holdings' Q4 and FY2024 results reveal concerning financial deterioration. Q4 net sales declined 1.8% to
The company's gross profit margin contracted significantly from
Full-year results show an expanded net loss of
The fulfillment center processing delays during peak holiday season reflect operational challenges beyond normal seasonal fluctuations. Management's decision to reduce promotional activity to manage order backlog likely protected margins somewhat but couldn't prevent the quarter's negative results. Their strategy to expand product lines in 2025 represents a necessary pivot, but execution risks remain high given recent operational struggles.
Duluth's operational execution issues during the critical holiday period highlight fundamental challenges in their fulfillment infrastructure. The company's acknowledgment of "delays in processing" that negatively impacted Q4 performance reveals a concerning inability to handle peak demand despite their "record-breaking order volume" during Black Friday and Cyber Monday.
The divergence between direct-to-consumer sales (up
Inventory management appears problematic - they've implemented a "pack-and-hold" strategy which typically indicates carrying unsold seasonal merchandise into future years. This approach ties up working capital and increases markdown risk if consumer preferences shift before items can be sold.
Their planned product expansions in Women's Heirloom and Garden collection, Men's Backyard, and Armachillo cooling technology represent attempts to revitalize the product assortment. However, the marketing plan's heavy reliance on promotions like "Underwear TradeUp" suggests continued dependence on discounting to drive traffic rather than organic brand strength.
The FY2025 guidance projecting further revenue contraction signals management's recognition that near-term recovery is unlikely, and the structural improvements mentioned will take time to implement and yield results.
Duluth Holdings' Q4 and FY2024 results reveal concerning financial deterioration. Q4 net sales declined 1.8% to
The company's gross profit margin contracted significantly from
Full-year results show an expanded net loss of
The fulfillment center processing delays during peak holiday season reflect operational challenges beyond normal seasonal fluctuations. Management's decision to reduce promotional activity to manage order backlog likely protected margins somewhat but couldn't prevent the quarter's negative results. Their strategy to expand product lines in 2025 represents a necessary pivot, but execution risks remain high given recent operational struggles.
Duluth's operational execution issues during the critical holiday period highlight fundamental challenges in their fulfillment infrastructure. The company's acknowledgment of "delays in processing" that negatively impacted Q4 performance reveals a concerning inability to handle peak demand despite their "record-breaking order volume" during Black Friday and Cyber Monday.
The divergence between direct-to-consumer sales (up
Inventory management appears problematic - they've implemented a "pack-and-hold" strategy which typically indicates carrying unsold seasonal merchandise into future years. This approach ties up working capital and increases markdown risk if consumer preferences shift before items can be sold.
Their planned product expansions in Women's Heirloom and Garden collection, Men's Backyard, and Armachillo cooling technology represent attempts to revitalize the product assortment. However, the marketing plan's heavy reliance on promotions like "Underwear TradeUp" suggests continued dependence on discounting to drive traffic rather than organic brand strength.
The FY2025 guidance projecting further revenue contraction signals management's recognition that near-term recovery is unlikely, though the projected EBITDA improvement to
Net Sales of
Liquidity of
MOUNT HOREB, Wis., March 13, 2025 (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 fourth quarter and fiscal year ended February 2, 2025.
Summary for the Fourth Quarter Ended February 2, 2025
- Net sales decreased to
$241.3 million compared to$245.6 million in the prior year fourth quarter - Net loss of
$5.6 million and adjusted net loss1 of$1.5 million , compared to net income of$6.8 million in prior-year fourth quarter. Adjusted net loss of$1.5 million excludes software impairment of$3.0 million and$1.8 million valuation allowance on our deferred tax assets - EPS of (
$0.17) and Adjusted EPS1 of ($0.04) - Adjusted EBITDA2 of
$8.5 million compared to$20.9 million in the prior year
Summary for the Fiscal Year Ended February 2, 2025
- Net sales of
$626.6 million compared to$646.7 million in the prior year - Net loss of
$43.6 million and adjusted net loss1 of$23.6 million , compared to net loss of$9.9 million in prior-year. Adjusted net loss of$23.6 million excludes$7.7 million of restructuring expense,$11.8 million valuation allowance on our deferred tax assets and$3.0 million of software impairment - EPS of (
$1.31) and Adjusted EPS1 of ($0.71) - Adjusted EBITDA2 of
$14.6 million ; reflects2.3% of net sales
1See Reconciliation of net loss to adjusted net loss and adjusted net loss to adjusted EPS in the accompanying financial tables.
2See Reconciliation of net loss to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables.
Management Commentary
President and CEO, Sam Sato commented, “Delays in processing at our legacy fulfillment center adversely affected our ability to meet our fourth quarter expectations, driven by record-breaking order volume during Black Friday week and Cyber Monday. To fulfill the backlog of orders and preserve higher quality sales for the remainder of the quarter we adjusted our promotional depth and frequency lower.
“While total inventory increased compared to last year, the higher unit velocity between Black Friday and Cyber Monday and our pack-and-hold strategy reduced fall / winter seasonal and clearance inventory since the start of the quarter.
“Looking ahead, we will expand our Duluth Women's Heirloom and Garden collection, and introduce Men's Backyard for Him, which will feature an assortment of new products, including a collaboration with Leinenkugels for all his favorite backyard activities. We are also introducing new Armachillo cooling technology products, including Men's Flex pants and Double-flex denim.
“Our key Marketing and Brand Tent Pole moments will be centered on the Gardens Gone Wild campaign and our 3rd Underwear TradeUp event with 360º media support. Additionally, we will have Always On Product Stories, Social-Only campaigns, and in-store activations.”
Sato concluded, “As the management team looks ahead to 2025, it remains committed to building upon the progress of our strategic initiatives, including making meaningful structural improvements combined with a sharp focus on improving operational execution.”
Operating Results for the Fourth Quarter Ended February 2, 2025
Net sales decreased
Gross profit decreased
Selling, general and administrative expenses increased
As a percentage of net sales, selling, general and administrative expenses increased to
The effective tax rate related to controlling interest was
Balance Sheet and Liquidity
The Company ended the quarter with a cash balance of approximately
Fiscal 2025 Outlook
The Company provided the following fiscal 2025 outlook:
- Net sales in the range of
$570 million to$595 million - Adjusted EBITDA1 in the range of
$20 million to$25 million - Capital expenditures, inclusive of software hosting implementation costs, of approximately
$20 million
1See Reconciliation of forecasted net income to forecasted EBITDA and forecasted EBITDA to forecasted Adjusted EBITDA in the accompanying financial tables.
Conference Call Information
A conference call and audio webcast with analysts and investors will be held on Thursday, March 13, 2025 at 9:30 am, Eastern Time, to discuss the results.
- Live conference call: 844-875-6915 (domestic) or 412-317-6711 (international)
- Conference call replay available through March 20, 2025: 877-344-7529 (domestic) or 412-317-0088 (international)
- Replay access code: 6076354
- Live and archived webcast: ir.duluthtrading.com
Investors can pre-register for the earnings conference call to expedite their entry into the call and avoid waiting for a live operator. To pre-register for the call, please visit https://dpregister.com/sreg/10196414/fe66458f12 and enter your contact information. You will then be issued a personalized phone number and pin to dial into the live conference call. Investors can pre-register any time prior to the start of the conference call.
About Duluth Trading
Duluth Trading is a lifestyle brand for the Modern, Self-Reliant American. Based in Mount Horeb, Wisconsin, we offer high quality, solution-based casual wear, workwear, outdoor apparel and accessories for men and women who lead a hands-on lifestyle and who value a job well-done. We provide our customers an engaging and entertaining experience. Our marketing incorporates humor and storytelling that conveys the uniqueness of our products in a distinctive, fun way, and our products are sold exclusively through our content-rich website, catalogs, and “store like no other” retail locations. We are committed to outstanding customer service backed by our “No Bull Guarantee” - if it’s not right, we’ll fix it. Visit our website at http://www.duluthtrading.com/.
Non-GAAP Measurements
Management believes that non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Within this release, including the tables attached hereto, reference is made to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), Free Cash Flow and Forecasted Adjusted EBITDA. See attached table “Reconciliation of Net (Loss) Income to EBITDA and EBITDA to Adjusted EBITDA,” for a reconciliation of net (loss) income to EBITDA and EBITDA to Adjusted EBITDA for the three months and fiscal year ended February 2, 2025, versus the three months and fiscal year ended January 28, 2024, “Free Cash Flow” as a liquidity measure for the fiscal years ended February 2, 2025 and January 28, 2024, “Reconciliation of Net Loss to Adjusted Net Loss and Adjusted Net Loss to Adjusted EPS” for a reconciliation of net loss to adjusted net loss and adjusted net loss to adjusted EPS for the three months and fiscal year ended February 2, 2025, and “Reconciliation of Forecasted Net Income to Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA” for a forecasted reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA for the fiscal year ended February 2, 2025.
Adjusted EBITDA is a metric used by management and frequently used by the financial community, which provides insight into an organization’s operating trends and facilitates comparisons between peer companies, since interest, taxes, depreciation and amortization can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA excludes certain items that are unusual in nature or not comparable from period to period.
Management believes Free Cash Flow is a useful measure of performance as an indication of an organization’s financial strength and provides additional perspective on the ability to efficiently use capital in executing growth strategies. Free Cash Flow is used to facilitate a comparison of operating performance on a consistent basis from period-to-period and the ability to generate cash. Free Cash Flow is defined as net cash provided by operating activities less purchase of property and equipment.
Adjusted Net Loss and Adjusted EPS is a metric used by management and frequently used by the financial community, which provides insight into the effectiveness of our business strategies and to compare our performance against that of peer companies. Adjusted Net Loss and Adjusted EPS exclude restructuring expenses, impairment expenses, and a valuation allowance that are not comparable from period to period.
The Company provides this information to investors to assist in comparisons of past, present and future operating results and to assist in highlighting the results of on-going operations. While the Company’s management believes that non-GAAP measurements are useful supplemental information, such measurements are not intended to replace the Company’s GAAP financial results and should be read in conjunction with those GAAP results.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts included in this press release, including statements concerning Duluth Trading’s plans, objectives, goals, beliefs, business strategies, future events, business conditions, its results of operations, financial position and its business outlook, business trends and certain other information herein, including statements under the heading “Fiscal 2025 Outlook” are forward-looking statements. You can identify forward looking statements by the use of words such as “may,” ”might,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “believe,” “estimate,” “project,” “target,” “predict,” “intend,” “future,” “budget,” “goals,” “potential,” “continue,” “design,” “objective,” “forecasted,” “would” and other similar expressions. The forward-looking statements are not historical facts, and are based upon Duluth Trading’s current expectations, beliefs, estimates, and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond Duluth Trading’s control. Duluth Trading’s expectations, beliefs and projections are expressed in good faith, and Duluth Trading believes there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, estimates, and projections will be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements, including, among others, the risks, uncertainties, and factors set forth under Part 1, Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on March 22, 2024 and other factors as may be periodically described in Duluth Trading’s subsequent filings with the SEC. These risks and uncertainties include, but are not limited to, the following: the impact of inflation and measures to control inflation on our results of operations; the prolonged effects of economic uncertainties on store and website traffic; disruptions to our distribution network, supply chains and operations; failure to effectively manage inventory levels; our ability to maintain and enhance a strong brand and sub-brand image; adapting to declines in consumer confidence, inflation and decreases in consumer spending; disruptions to our e-commerce platform; our ability to meet customer delivery time expectations; our ability to properly allocate inventory throughout our distribution network to fulfill customer demand; our failure to meet our debt covenant ratios; natural disasters, unusually adverse weather conditions, boycotts, prolonged public health crises, epidemics or pandemics and unanticipated events; generating adequate cash from our existing stores and direct sales to support our growth; the impact of changes in corporate tax regulations and sales tax; identifying and responding to new and changing customer preferences; the success of the locations in which our stores are located; effectively relying on sources for merchandise located in foreign markets; transportation delays and interruptions, including port congestion; our inability to timely and effectively obtain shipments of products from our suppliers and deliver merchandise to our customers; the inability to maintain the performance of our maturing store portfolio; our inability to deploy marketing tactics to strengthen brand awareness and attract new customers in a cost effective manner; our ability to successfully open new stores; effectively adapting to new challenges associated with our expansion into new geographic markets; competing effectively in an environment of intense competition or elevated promotions; our ability to adapt to significant changes in sales due to the seasonality of our business; price reductions or inventory shortages resulting from failure to purchase the appropriate amount of inventory in advance of the season in which it will be sold; the potential for further increases in price and lack of availability of raw materials; our dependence on third-party vendors to provide us with sufficient quantities of merchandise at acceptable prices; the susceptibility of the price and availability of our merchandise to international trade conditions including tariffs; failure of our vendors and their manufacturing sources to use acceptable labor or other practices; our dependence upon key executive management or our inability to hire or retain the talent required for our business; increases in costs of fuel or other energy, transportation or utility costs and in the costs of labor and employment; failure of our information technology systems to support our current and growing business, before and after our planned upgrades; disruptions in our supply chain and fulfillment centers; our inability to protect our trademarks or other intellectual property rights; infringement on the intellectual property of third parties; acts of war, terrorism or civil unrest; the impact of governmental laws and regulations and the outcomes of legal proceedings; changes in U.S. and non-U.S. laws affecting the importation and taxation of goods, including imposition of unilateral tariffs on imported goods; our ability to secure the personal and/or financial information of our customers and employees; failure to comply with data privacy regulation; our ability to comply with the security standards for the credit card industry; our failure to maintain adequate internal controls over our financial and management systems; acquisition, disposition, and development risks; and other factors that may be disclosed in our SEC filings or otherwise. Forward-looking statements speak only as of the date the statements are made. Duluth Trading assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances or other changes affecting forward-looking information except to the extent required by applicable securities laws.
The Company revised its prior period financial statements for an accounting correction related to sales tax collections to the Company's Condensed Consolidated Balance Sheets that are primarily related to accrued expenses and other current liabilities, deferred taxes and retained earnings, as well as corresponding impacts to the Company's other Consolidated Financial Statements. The impacts of these revisions were not material to the Company's previously filed financial statements. These revisions relate to immaterial corrections that were identified by management and when accumulated, required a correction to the Company's previously filed financial statements.
(Tables Follow)
| DULUTH HOLDINGS INC. Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands) | |||||||
| February 2, 2025 | January 28, 2024 | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 3,335 | $ | 32,157 | |||
| Receivables | 3,970 | 5,955 | |||||
| Income taxes receivable | — | 617 | |||||
| Inventory, net | 166,545 | 125,757 | |||||
| Prepaid expenses & other current assets | 17,781 | 16,488 | |||||
| Total current assets | 191,631 | 180,974 | |||||
| Property and equipment, net | 111,560 | 132,718 | |||||
| Operating lease right-of-use assets | 102,663 | 121,430 | |||||
| Finance lease right-of-use assets, net | 32,957 | 40,315 | |||||
| Available-for-sale security | 4,491 | 4,986 | |||||
| Other assets, net | 9,140 | 9,020 | |||||
| Deferred tax assets | — | 1,767 | |||||
| Total assets | $ | 452,442 | $ | 491,210 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Trade accounts payable | $ | 73,882 | $ | 51,122 | |||
| Accrued expenses and other current liabilities | 35,596 | 34,111 | |||||
| Income tax payable | 65 | — | |||||
| Current portion of operating lease liabilities | 15,534 | 16,401 | |||||
| Current portion of finance lease liabilities | 2,541 | 3,149 | |||||
| Current maturities of TRI long-term debt1 | 931 | 847 | |||||
| Total current liabilities | 128,549 | 105,630 | |||||
| Operating lease liabilities, less current portion | 89,222 | 106,413 | |||||
| Finance lease liabilities, less current portion | 30,621 | 34,276 | |||||
| TRI long-term debt, less current maturities1 | 24,283 | 25,141 | |||||
| Deferred tax liabilities | 88 | — | |||||
| Total liabilities | 272,763 | 271,460 | |||||
| Treasury stock | (2,332 | ) | (1,738 | ) | |||
| Capital stock | 108,009 | 103,579 | |||||
| Retained earnings | 77,721 | 121,392 | |||||
| Accumulated other comprehensive income | (722 | ) | (427 | ) | |||
| Total shareholders' equity of Duluth Holdings Inc. | 182,676 | 222,806 | |||||
| Noncontrolling interest | (2,997 | ) | (3,056 | ) | |||
| Total shareholders' equity | 179,679 | 219,750 | |||||
| Total liabilities and shareholders' equity | $ | 452,442 | $ | 491,210 | |||
1Represents debt of the variable interest entity, TRI Holdings, LLC, that is consolidated in accordance with ASC 810, Consolidation. Duluth Trading Company is not the guarantor nor the obligor of this debt.
| DULUTH HOLDING INC. Consolidated Statements of Operations (Unaudited) (Amounts in thousands, except per share figures) | ||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||
| February 2, 2025 | January 28, 2024 | February 2, 2025 | January 28, 2024 | |||||||||||
| Net sales | $ | 241,270 | $ | 245,613 | $ | 626,629 | $ | 646,681 | ||||||
| Cost of goods sold (excluding depreciation and amortization) | 134,791 | 127,180 | 318,119 | 321,710 | ||||||||||
| Gross profit | 106,479 | 118,433 | 308,510 | 324,971 | ||||||||||
| Selling, general and administrative expenses | 110,720 | 109,110 | 337,623 | 334,540 | ||||||||||
| Restructuring expense | — | — | 7,748 | — | ||||||||||
| Operating income (loss) | (4,241 | ) | 9,323 | (36,861 | ) | (9,569 | ) | |||||||
| Interest expense | 1,322 | 1,123 | 4,554 | 4,156 | ||||||||||
| Other income, net | 6 | 619 | 173 | 923 | ||||||||||
| Income (loss) before income taxes | (5,557 | ) | 8,819 | (41,242 | ) | (12,802 | ) | |||||||
| Income tax expense (benefit) | 4 | 2,033 | 2,370 | (2,862 | ) | |||||||||
| Net income (loss) | (5,561 | ) | 6,786 | (43,612 | ) | (9,940 | ) | |||||||
| Less: Net income (loss) attributable to noncontrolling interest | 25 | 7 | 59 | (17 | ) | |||||||||
| Net income (loss) attributable to controlling interest | $ | (5,586 | ) | $ | 6,779 | $ | (43,671 | ) | $ | (9,923 | ) | |||
| Basic earnings per share (Class A and Class B): | ||||||||||||||
| Weighted average shares of common stock outstanding | 33,510 | 33,007 | 33,368 | 32,955 | ||||||||||
| Net income (loss) per share attributable to controlling interest | $ | (0.17 | ) | $ | 0.21 | $ | (1.31 | ) | $ | (0.30 | ) | |||
| Diluted earnings per share (Class A and Class B): | ||||||||||||||
| Weighted average shares and equivalents outstanding | 33,510 | 33,007 | 33,368 | 32,955 | ||||||||||
| Net income (loss) per share attributable to controlling interest | $ | (0.17 | ) | $ | 0.21 | $ | (1.31 | ) | $ | (0.30 | ) | |||
| DULUTH HOLDINGS INC. Consolidated Statements of Cash Flows (Unaudited) (Amounts in thousands) | |||||||
| Fiscal Year Ended | |||||||
| February 2, 2025 | January 28, 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (43,612 | ) | $ | (9,940 | ) | |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 32,282 | 32,159 | |||||
| Stock-based compensation | 4,046 | 4,195 | |||||
| Deferred income taxes | 1,855 | (2,335 | ) | ||||
| Loss on disposal of property and equipment | 473 | 130 | |||||
| Changes in operating assets and liabilities: | |||||||
| Receivables | 1,985 | 86 | |||||
| Income taxes receivable | 617 | (617 | ) | ||||
| Inventory | (40,788 | ) | 29,165 | ||||
| Prepaid expense & other assets | 1,085 | (1,675 | ) | ||||
| Software hosting implementation costs, net | (3,171 | ) | (216 | ) | |||
| Deferred catalog costs | — | — | |||||
| Trade accounts payable | 22,863 | (5,449 | ) | ||||
| Income taxes payable | 65 | (1,761 | ) | ||||
| Accrued expenses and deferred rent obligations | 1,971 | (4,405 | ) | ||||
| Other | 473 | 58 | |||||
| Noncash lease impacts | 2,939 | (722 | ) | ||||
| Net cash (used in) provided by operating activities | (16,917 | ) | 38,673 | ||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (8,329 | ) | (49,086 | ) | |||
| Principal receipts from available-for-sale security | 200 | 181 | |||||
| Change in other assets | — | 16 | |||||
| Changes in the TRI Holdings, LLC consolidation | — | 171 | |||||
| Net cash used in investing activities | (8,129 | ) | (48,718 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds on line of credit | 83,500 | 56,000 | |||||
| Payments on line of credit | (83,500 | ) | (56,000 | ) | |||
| Payments on TRI long term debt | (846 | ) | (767 | ) | |||
| Payments on finance lease obligations | (2,721 | ) | (2,842 | ) | |||
| Shares withheld for tax payments on vested restricted stock | (594 | ) | (279 | ) | |||
| Other | 385 | 542 | |||||
| Net cash used in financing activities | (3,776 | ) | (3,346 | ) | |||
| Decrease in cash and cash equivalents | (28,822 | ) | (13,391 | ) | |||
| Cash and cash equivalents at beginning of period | 32,157 | 45,548 | |||||
| Cash and cash equivalents at end of period | $ | 3,335 | $ | 32,157 | |||
| DULUTH HOLDINGS INC. Reconciliation of Net (Loss) Income to EBITDA and EBITDA to Adjusted EBITDA (Unaudited) (Amounts in thousands) | ||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||
| February 2, 2025 | January 28, 2024 | February 2, 2025 | January 28, 2024 | |||||||||||
| Net (loss) income | $ | (5,561 | ) | $ | 6,786 | $ | (43,612 | ) | $ | (9,940 | ) | |||
| Depreciation and amortization | 7,552 | 8,725 | 31,133 | 32,159 | ||||||||||
| Amortization of internal-use software hosting subscription implementation costs | 1,425 | 1,314 | 5,281 | 4,961 | ||||||||||
| Interest expense | 1,322 | 1,123 | 4,554 | 4,156 | ||||||||||
| Income tax expense (benefit) | 4 | 2,033 | 2,370 | (2,862 | ) | |||||||||
| EBITDA (non-GAAP) | $ | 4,742 | $ | 19,981 | $ | (274 | ) | $ | 28,474 | |||||
| Long-term incentive expense1 | 800 | 890 | 4,152 | 4,195 | ||||||||||
| Restructuring expense | — | — | 7,748 | — | ||||||||||
| Impairment expenses | 2,998 | — | 2,998 | — | ||||||||||
| Adjusted EBITDA (non-GAAP) | $ | 8,540 | $ | 20,871 | $ | 14,624 | $ | 32,669 | ||||||
1Represents long-term incentives from stock and cash compensation
| DULUTH HOLDINGS INC. Free Cash Flow (Unaudited) (Amounts in thousands) | |||||||
| Fiscal Year Ended | |||||||
| February 2, 2025 | January 28, 2024 | ||||||
| (in thousands) | |||||||
| Net cash (used in) provided by operating activities | $ | (16,917 | ) | $ | 38,673 | ||
| Purchases of property and equipment | (8,329 | ) | (49,086 | ) | |||
| Free Cash Flow (non-GAAP) | $ | (25,246 | ) | $ | (10,413 | ) | |
| DULUTH HOLDINGS INC. Reconciliation of Net Loss to Adjusted Net Loss and Adjusted Net Loss to Adjusted EPS (Unaudited) (Amounts in thousands) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| February 2, 2025 | February 2, 2025 | ||||||||||||||
| (in thousands, except per share amounts) | Amount | Per share | Amount | Per share | |||||||||||
| Net loss attributable to controlling interest | $ | (5,586 | ) | $ | (0.17 | ) | $ | (43,671 | ) | $ | (1.31 | ) | |||
| Plus: Restructuring expenses | - | - | 7,748 | 0.23 | |||||||||||
| Plus: Impairment expenses | 2,998 | 0.09 | 2,998 | 0.09 | |||||||||||
| Income tax effect of adjustments to net loss | (690 | ) | (0.02 | ) | (2,472 | ) | (0.07 | ) | |||||||
| Adjusted net loss before valuation allowance | (3,278 | ) | (0.10 | ) | (35,397 | ) | (1.06 | ) | |||||||
| Plus: Valuation allowance | 1,796 | 0.05 | 11,847 | 0.36 | |||||||||||
| Adjusted net loss attributable to controlling interest | $ | (1,482 | ) | $ | (0.04 | ) | $ | (23,550 | ) | $ | (0.71 | ) | |||
| DULUTH HOLDINGS INC. Reconciliation of Forecasted Net Loss to Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA For the Fiscal Year Ended February 1, 2026 (Unaudited) (Amounts in thousands) | |||||||
| Low | High | ||||||
| Forecasted | |||||||
| Net loss | $ | (26,800 | ) | $ | (21,500 | ) | |
| Depreciation and amortization | 30,300 | 30,300 | |||||
| Amortization of internal-use software hosting subscription implementation costs | 5,000 | 5,000 | |||||
| Interest expense | 6,000 | 5,700 | |||||
| Income tax expense | 800 | 800 | |||||
| EBITDA (non-GAAP) | $ | 15,300 | $ | 20,300 | |||
| Long-term incentive expense | 4,700 | 4,700 | |||||
| Adjusted EBITDA (non-GAAP) | $ | 20,000 | $ | 25,000 | |||
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f0d853cf-98d1-4885-be6f-c3b4b2c5cb3a
Investor Contacts: ICR, Inc. (646) 277-1200 DuluthIR@icrinc.com
FAQ
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