Duluth Holdings DLTH reported a fourth-quarter FY23 sales increase of 1.6% Y/Y to $245.6 million, beating the consensus of $242.5 million.
Revenue benefitted from higher conversion rates and greater mobile penetration. Retail store net sales decreased by 12.2% Y/Y to $73.4 million, and Mobile net sales grew 20.0% Y/Y in the quarter. Women’s apparel net sales rose 12.4% Y/Y on double-digit growth across Duluth and AKHG brands.
Gross margin decreased to 48.2% from 51.2%, and the gross profit fell 4.4% to $118.4 million, primarily due to a lower mix of full-price sales. EPS of $0.21 missed the analyst consensus of $0.27.
The company ended the quarter with a cash balance of $32.2 million and no outstanding Duluth Trading bank debt.
President and CEO Sam Sato said, “We went live with our new highly automated fulfillment center and are achieving our ramp-up plan to process up to 60% of all online orders and store replenishment volume through this facility. We also meaningfully advanced our sourcing and product innovation functions and expect benefits from this initiative to materialize in 2024 and continue to build over time.”
Outlook: Duluth Holdings expects FY24 net sales of $640 million-$660 million versus the $643.57 million estimate and EPS of $(0.22)-$(0.07) versus $(0.21) estimate.
Price Action: DLTH shares are trading higher by 0.34% at $4.415 on the last check Thursday.
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