Duluth Holdings (DLTH 18.58, +0.64, +3.57%) will report first quarter results
tomorrow morning and will host a conference call at 9:30 ET.
Duluth Trading is a growing lifestyle brand for the 'Modern, Self-Reliant American'. Based in Belleville, Wisconsin, the company offers high quality, solution-based workwear, casual wear, and accessories for men and women who lead hands-on lifestyles and who value a job well-done.
Duluth is expected to post a small net loss for Q1 with revenue up 20% to $100 mln.
The stock made a run in to the $30s in the year following the company’s November 2015 IPO, but the stock has seen little dramatic action over the last year.
Two quarters ago, the company missed on the top line for the first time as a public company. Management cited a continued decrease in shipping revenue, lower growth rates in new store markets, and warmer weather in September and October.
Duluth reported better than expected Q4 sales in March, but EPS beat by only a penny as gross margins fell 210 basis points to 53.3%. The stock got hit as earnings guidance for the year missed estimates by around 10%.
"Fiscal 2017 was a year of solid growth for the Duluth Trading brand as reflected by more than 25% top-line growth and 23% growth in total new customers. We opened 15 stores and continued to expand our retail store footprint into the Eastern and Western United States. Net sales in our men's business grew 22% and our women's business grew 37%, exceeding the $100 million milestone and accounting for almost a quarter of our total annual sales. This marks our 32nd consecutive quarter of increased net sales year-over-year," commented Stephanie Pugliese, Chief Executive Officer of Duluth Trading, at the close of the fiscal year ending January 28, 2018.
Duluth’s fiscal year outlook expects EPS of $0.79-0.84 on net sales of $555-575 mln with 15 new stores opening this year.
With a nearly $600 mln market cap, the stock trades at approximately 22x EPS, which is above the average retailer of closer to 17x EPS.
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