EPS loss of $(0.32) missed the analyst consensus of $(0.26) loss.

Retail store net sales decreased by 8.8% to $51.2 million due to slower store traffic, partially offset by a higher average transaction value during the quarter.

Gross margin decreased to 50.2% from 52.3%, and the gross profit decreased to $69.4 million from $76.9 million a year ago.

The decrease in gross profit margin rate was primarily due to a lower mix of full-price sales amidst the continued promotional retail environment.

The company ended the quarter with a cash balance of $8.2 million.

The company sees EPS of $(0.25)-$(0.15) versus $(0.11) estimate (prior view: $(0.15)-$(0.08)).

Price Action: DLTH shares are trading lower by 3.79% at $4.95 on the last check Thursday.