Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth
Trading” or the “Company”) (NASDAQ: DLTH), a lifestyle brand of
men’s and women’s casual wear, workwear and accessories, today
announced its financial results for the fiscal third quarter ended
October 28, 2018.
Highlights for the Third Quarter Ended October 28,
2018
- Net sales increased 27.4% to $106.7 million compared to $83.7
million in the prior-year third quarter
- Gross margin increased 50 basis points to 57.1% compared to
56.6% in the prior-year third quarter
- Operating loss of $2.6 million compared to operating loss of
$0.6 million in the prior-year third quarter
- Net loss of $3.2 million, or $0.10 per diluted share, compared
to net loss of $0.8 million, or $0.03 per diluted share, in the
prior-year third quarter
- Adjusted EBITDA1 of $1.0 million compared to $1.9 million in
the prior-year third quarter
- The Company opened four retail stores in Golden, CO; Ramsey,
NJ; Canton, OH and Greensboro, NC, totaling approximately 79,000
gross square feet
- 35th consecutive quarter of increased net sales
year-over-year
1See Reconciliation of net income to EBITDA and EBITDA to
Adjusted EBITDA in the accompanying financial tables.
Management Commentary
“We are pleased with our third quarter results, which were
in-line with our expectations and also marked our 35th consecutive
quarter of increased net sales year-over-year. We continue to see
strong contribution from our new stores and growth from our Women’s
business,” said Stephanie Pugliese, Chief Executive Officer of
Duluth Trading.
“Throughout the year, our team worked tirelessly and our results
year-to-date put us in a strong position heading into the holiday
season. We expect to deliver on our fiscal 2018 guidance. We have
made significant investments during the year that strengthen our
competitive position and enable us to provide an outstanding
customer experience, including:
- improvements in the e-commerce and mobile experience;
- buy-online-pickup-in-store and ship-from-store in seven of our
stores;
- mini-distribution center in our Greensboro retail store;
- electronic gift cards;
- launch of our Women’s plus line;
- 15 new store locations to touch and experience our products;
and
- upgrades to our Belleville distribution center.”
Operating Results for the Third Quarter Ended
October 28, 2018
Net sales increased 27.4% to $106.7 million, compared to $83.7
million in the same period a year ago. The net sales increase was
driven by a 10.5% growth in direct net sales, or 6.6% after
adjustment for the change in revenue recognition standards, and a
58.4% growth in retail net sales, with increases in both the men’s
and women’s businesses. The increase in retail net sales was
primarily due to having 43 stores in the third quarter of 2018 as
compared to 26 stores in the same period a year ago.
Gross profit increased 28.6% to $61.0 million, or 57.1% of net
sales, compared to $47.4 million, or 56.6% of net sales, in the
corresponding prior-year period. The 50-basis point increase in
gross margin was primarily attributable to an increase in product
margin, partially offset by a decline in shipping revenues.
Selling, general and administrative expenses increased 32.3% to
$63.5 million, compared to $48.0 million in the same period a year
ago. As a percentage of net sales, selling, general and
administrative expenses increased 210 basis points to 59.5%,
compared to 57.4% in the corresponding prior-year period. As a
percentage of net sales, advertising and marketing costs increased
20 basis points to 20.4% compared to 20.2% in the corresponding
prior-year period, primarily due to an increase in women’s
television advertising to fuel the growth in the women’s business,
offset by a decrease in catalog expense due to a planned decrease
in catalog spend as a percentage of net sales. As a percentage of
net sales, selling expenses increased 70 basis points to 16.5%,
compared to 15.8% in the corresponding prior-year period, primarily
due to an increase in customer service expense as a result of the
growth in retail stores, partially offset by a decrease in shipping
expenses due to leverage from an increase in the proportion of
retail net sales. As a percentage of net sales, general and
administrative expenses increased 120 basis points to 22.6%
compared to 21.4% in the corresponding prior-year period, primarily
due to an increase in information technology support and outside
services and an increase in depreciation as a result of more
stores.
Balance Sheet and Liquidity
The Company ended the quarter with a cash balance of $2.5
million, with net working capital of $85.1 million, and $65.0
million outstanding on its $80.0 million revolving line of
credit.
Fiscal 2018 Outlook
The Company’s fiscal 2018 outlook is provided on a 53-week
period, compared to a 52-week period in fiscal 2017. The Company
reaffirmed its fiscal 2018 outlook as follows:
- Net sales in the range of $555.0 million to $575.0 million
- EPS in the range of $0.79 to $0.84 per diluted share, with an
effective tax rate of 26%
- The Company has completed its plan of opening 15 new stores,
which added approximately 250,000 of additional gross square
footage
The Company updated its fiscal 2018 outlook as follows:
- Adjusted EBITDA1 in the range of $53.0 million to $56.0
million, up from previous guidance of $51.0 million to $54.0
million
- Capital expenditures, net of proceeds from finance lease
obligations, of $50.0 million to $55.0 million2
1See Reconciliation of forecasted net income to forecasted
EBITDA and forecasted EBITDA to forecasted Adjusted EBITDA in the
accompanying financial tables.
2Fiscal 2018 capital expenditures primarily include the opening
of 15 retail stores, investments in technology and infrastructure
improvements.
The table below recaps the Company’s fiscal 2018 stores opened
and signed new store leases and the anticipated opening
timeframe.
|
|
|
|
Gross |
Location |
|
Timing |
|
Square Footage |
Anchorage, AK1 |
|
Opened March 1,
2018 |
|
25,409 |
West Fargo, ND |
|
Opened March 22,
2018 |
|
14,557 |
Colorado Springs,
CO |
|
Opened May 3, 2018 |
|
12,410 |
Lubbock, TX |
|
Opened May 10,
2018 |
|
15,536 |
Denton, TX |
|
Opened May 17,
2018 |
|
14,557 |
Portland, OR |
|
Opened May 24,
2018 |
|
19,075 |
Columbus, OH |
|
Opened June 7,
2018 |
|
14,749 |
Arlington, TX |
|
Opened July 12,
2018 |
|
15,536 |
Golden, CO |
|
Opened September 13,
2018 |
|
20,415 |
Ramsey, NJ |
|
Opened September 27,
2018 |
|
13,300 |
Canton, OH |
|
Opened October 11,
2018 |
|
14,557 |
Greensboro, NC1 |
|
Opened October 25,
2018 |
|
30,508 |
Oklahoma City, OK |
|
Opened November 1,
2018 |
|
15,536 |
South Portland, ME |
|
Opened November 8,
2018 |
|
12,964 |
Cary, NC |
|
Opened November 15,
2018 |
|
11,164 |
Friendswood, TX |
|
First half Fiscal
2019 |
|
16,026 |
Katy, TX |
|
First half Fiscal
2019 |
|
16,000 |
Wichita, KS |
|
First half Fiscal
2019 |
|
15,385 |
Spokane Valley, WA |
|
First half Fiscal
2019 |
|
15,656 |
Jacksonville, FL |
|
First half Fiscal
2019 |
|
14,557 |
Rogers, AR |
|
First half Fiscal
2019 |
|
15,656 |
Danbury, CT |
|
First half Fiscal
2019 |
|
9,792 |
Madison, AL |
|
First half Fiscal
2019 |
|
15,656 |
Round Rock, TX |
|
Second half Fiscal
2019 |
|
15,536 |
1Gross
square footage includes space used for direct-to-customer
fulfillment |
Conference Call Information
A conference call and audio webcast with analysts and investors
will be held on Thursday, December 6, 2018 at 9:30 am Eastern
Time, to discuss the results and answer questions.
- Live conference call: 844-875-6915 (domestic) or 412-317-6711
(international)
- Conference call replay available through December 20, 2018:
877-344-7529 (domestic) or 412-317-0088 (international)
- Replay access code: 10126364
- Live and archived webcast: ir.duluthtrading.com
The Company is enabling investors to pre-register for the
earnings conference call so that they can expedite their entry into
the call and avoid the need to wait for a live operator. In order
to pre-register for the call, investors can visit
http://dpregister.com/10126364 and enter in their contact
information. Investors will then be issued a personalized phone
number and pin to dial into the live conference call. Individuals
can pre-register any time prior to the start of the conference
call.
About Duluth Trading
Duluth Trading is a rapidly growing lifestyle brand for the
Modern, Self-Reliant American. Based in Mount Horeb, Wisconsin, we
offer high quality, solution-based casual wear, workwear 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 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). See attached Table
“Reconciliation of Net Income to EBITDA and EBITDA to Adjusted
EBITDA,” for a reconciliation of net income to EBITDA and EBITDA to
Adjusted EBITDA for the three and nine months ended
October 28, 2018, versus the three and nine months ended
October 29, 2017. See also attached Table “Reconciliation of
Forecasted Net Income to Forecasted EBITDA and Forecasted EBITDA to
Forecasted Adjusted EBITDA,” for a reconciliation of forecasted net
income to forecasted EBITDA and forecasted EBITDA to forecasted
adjusted EBITDA for the fiscal year ending February 3, 2019.
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. 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
adjusted results 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 are forward-looking
statements, including statements regarding Duluth Trading’s ability
to execute on its growth strategies, statements under the heading
“Fiscal 2018 Outlook” and the forecasted results of operations in
the Table “Reconciliation of Forecasted Net Income to Forecasted
EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA.” 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 21, 2018, 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: our ability to maintain and enhance a strong brand
image; our ability to successfully open new stores; effectively
adapting to new challenges associated with our expansion into new
geographic markets; generating adequate cash from our existing
stores to support our growth; the impact of changes in corporate
tax regulations; identifying and responding to new and changing
customer preferences; the success of the locations in which our
stores are located; our ability to attract and retain customers in
the various retail venues and locations in which our stores are
located; competing effectively in an environment of intense
competition; 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; 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; 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.
Investor Contacts:Donni Case (310)
622-8224Michael Wilson (310) 622-8240Financial Profiles,
Inc.Duluth@finprofiles.com
(Tables Follow)
DULUTH HOLDINGS
INC.Condensed Consolidated Balance
Sheets(Unaudited) (Amounts
in thousands)
|
|
October 28, 2018 |
|
January 28, 2018 |
ASSETS |
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
Cash |
|
$ |
2,500 |
|
|
$ |
2,865 |
|
Accounts
receivable |
|
|
339 |
|
|
|
52 |
|
Other
receivables |
|
|
2,827 |
|
|
|
273 |
|
Inventory, net |
|
|
131,448 |
|
|
|
89,548 |
|
Prepaid
expenses & other current assets |
|
|
11,975 |
|
|
|
7,642 |
|
Deferred
catalog costs |
|
|
1,137 |
|
|
|
1,446 |
|
Total
current assets |
|
|
150,226 |
|
|
|
101,826 |
|
Property and equipment,
net |
|
|
165,885 |
|
|
|
109,705 |
|
Restricted cash |
|
|
693 |
|
|
|
4,218 |
|
Available-for-sale
security |
|
|
6,323 |
|
|
|
6,323 |
|
Goodwill |
|
|
402 |
|
|
|
402 |
|
Other assets, net |
|
|
988 |
|
|
|
628 |
|
Total
assets |
|
$ |
324,517 |
|
|
$ |
223,102 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Trade
accounts payable |
|
$ |
34,200 |
|
|
$ |
17,320 |
|
Accrued
expenses and other current liabilities |
|
|
30,715 |
|
|
|
25,261 |
|
Income
taxes payable |
|
|
— |
|
|
|
7,631 |
|
Current
maturities of capital lease obligations |
|
|
165 |
|
|
|
4 |
|
Current
maturities of long-term debt |
|
|
80 |
|
|
|
80 |
|
Total
current liabilities |
|
|
65,160 |
|
|
|
50,296 |
|
Long-term line of
credit |
|
|
65,000 |
|
|
|
— |
|
Capitalized lease
obligations, less current maturities |
|
|
27,578 |
|
|
|
31 |
|
Finance lease
obligations under build-to-suit leases |
|
|
17,330 |
|
|
|
26,578 |
|
Deferred rent
obligations, less current maturities |
|
|
3,892 |
|
|
|
3,355 |
|
Deferred tax
liabilities |
|
|
1,573 |
|
|
|
2,100 |
|
Long-term debt, less
current maturities |
|
|
1,333 |
|
|
|
1,393 |
|
Total
liabilities |
|
|
181,866 |
|
|
|
83,753 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Shareholders'
equity: |
|
|
|
|
|
|
Treasury stock |
|
|
(92 |
) |
|
|
(57 |
) |
Capital stock |
|
|
89,335 |
|
|
|
88,043 |
|
Retained earnings |
|
|
49,972 |
|
|
|
48,084 |
|
Total
shareholders' equity of Duluth Holdings Inc. |
|
|
139,215 |
|
|
|
136,070 |
|
Noncontrolling
interest |
|
|
3,436 |
|
|
|
3,279 |
|
Total
shareholders' equity |
|
|
142,651 |
|
|
|
139,349 |
|
Total
liabilities and shareholders' equity |
|
$ |
324,517 |
|
|
$ |
223,102 |
|
DULUTH HOLDING
INC.Consolidated Statements of
Operations(Unaudited)(Amounts in
thousands, except per share figures)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
October 28, 2018 |
|
October 29, 2017 |
|
October 28, 2018 |
|
October 29, 2017 |
Net sales |
|
$ |
106,701 |
|
|
$ |
83,729 |
|
|
$ |
317,561 |
|
$ |
253,642 |
Cost of goods sold
(excluding depreciation and amortization) |
|
|
45,730 |
|
|
|
36,302 |
|
|
|
138,410 |
|
|
108,649 |
Gross profit |
|
|
60,971 |
|
|
|
47,427 |
|
|
|
179,151 |
|
|
144,993 |
Selling, general and
administrative expenses |
|
|
63,534 |
|
|
|
48,039 |
|
|
|
172,075 |
|
|
137,467 |
Operating (loss)
income |
|
|
(2,563 |
) |
|
|
(612 |
) |
|
|
7,076 |
|
|
7,526 |
Interest expense |
|
|
1,583 |
|
|
|
661 |
|
|
|
3,638 |
|
|
1,199 |
Other income, net |
|
|
3 |
|
|
|
73 |
|
|
|
168 |
|
|
175 |
(Loss) income before
income taxes |
|
|
(4,143 |
) |
|
|
(1,200 |
) |
|
|
3,606 |
|
|
6,502 |
Income tax (benefit)
expense |
|
|
(1,067 |
) |
|
|
(454 |
) |
|
|
913 |
|
|
2,480 |
Net (loss) income |
|
|
(3,076 |
) |
|
|
(746 |
) |
|
|
2,693 |
|
|
4,022 |
Less: Net income
attributable to noncontrolling interest |
|
|
74 |
|
|
|
70 |
|
|
|
157 |
|
|
199 |
Net (loss) income
attributable to controlling interest |
|
$ |
(3,150 |
) |
|
$ |
(816 |
) |
|
$ |
2,536 |
|
$ |
3,823 |
Basic earnings
per share (Class A and Class B): |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
of common stock outstanding |
|
|
32,098 |
|
|
|
31,861 |
|
|
|
32,065 |
|
|
31,837 |
Net (loss) income per
share attributable to controlling interest |
|
$ |
(0.10 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.08 |
|
$ |
0.12 |
Diluted
earnings per share (Class A and Class B): |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
and equivalents outstanding |
|
|
32,098 |
|
|
|
31,861 |
|
|
|
32,402 |
|
|
32,297 |
Net (loss) income per
share attributable to controlling interest |
|
$ |
(0.10 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.08 |
|
$ |
0.12 |
DULUTH HOLDINGS
INC.Consolidated Statements of Cash
Flows(Unaudited)(Amounts in
thousands)
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
October 28, 2018 |
|
October 29, 2017 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net income |
|
$ |
2,693 |
|
|
$ |
4,022 |
|
Adjustments to
reconcile net income to net cash used in operating activities: |
|
|
|
|
|
|
Depreciation and
amortization |
|
|
8,187 |
|
|
|
5,104 |
|
Stock based
compensation |
|
|
1,305 |
|
|
|
1,186 |
|
Deferred income
taxes |
|
|
(150 |
) |
|
|
(60 |
) |
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
|
(287 |
) |
|
|
(17 |
) |
Other
receivables |
|
|
(2,554 |
) |
|
|
(1,320 |
) |
Inventory |
|
|
(44,776 |
) |
|
|
(57,020 |
) |
Prepaid
expense & other current assets |
|
|
(4,951 |
) |
|
|
(3,136 |
) |
Deferred
catalog costs |
|
|
(1,416 |
) |
|
|
(1,006 |
) |
Trade
accounts payable |
|
|
19,126 |
|
|
|
18,665 |
|
Income
taxes payable |
|
|
(7,780 |
) |
|
|
(5,225 |
) |
Accrued
expenses and deferred rent obligations |
|
|
7,101 |
|
|
|
3,850 |
|
Net cash used in
operating activities |
|
|
(23,502 |
) |
|
|
(34,957 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchases of property
and equipment |
|
|
(45,878 |
) |
|
|
(37,501 |
) |
Change in other
assets |
|
|
(439 |
) |
|
|
(6,323 |
) |
Purchases of other
assets |
|
|
— |
|
|
|
(85 |
) |
Net cash used in
investing activities |
|
|
(46,317 |
) |
|
|
(43,909 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
Proceeds from line of
credit |
|
|
100,982 |
|
|
|
76,476 |
|
Payments on line of
credit |
|
|
(35,982 |
) |
|
|
(26,375 |
) |
Proceeds from long term
debt |
|
|
— |
|
|
|
800 |
|
Payments on long term
debt |
|
|
(60 |
) |
|
|
(34 |
) |
Payments on capital
lease obligations |
|
|
(4 |
) |
|
|
(14 |
) |
Change in bank
overdrafts |
|
|
— |
|
|
|
2,930 |
|
Distributions to
holders of noncontrolling interest in variable interest entity |
|
|
— |
|
|
|
(400 |
) |
Proceeds from finance
lease obligations |
|
|
941 |
|
|
|
2,358 |
|
Capital contributions
to variable interest entity |
|
|
— |
|
|
|
794 |
|
Shares withheld for tax
payments on vested restricted shares |
|
|
(35 |
) |
|
|
(57 |
) |
Other |
|
|
87 |
|
|
|
38 |
|
Net cash provided by
financing activities |
|
|
65,929 |
|
|
|
56,516 |
|
Decrease in cash and
restricted cash |
|
|
(3,890 |
) |
|
|
(22,350 |
) |
Cash and restricted
cash at beginning of period |
|
|
7,083 |
|
|
|
25,477 |
|
Cash and restricted
cash at end of period |
|
$ |
3,193 |
|
|
$ |
3,127 |
|
Supplemental
disclosure of cash flow information: |
|
|
|
|
|
|
Interest paid |
|
$ |
3,362 |
|
|
$ |
947 |
|
Income taxes paid |
|
$ |
10,055 |
|
|
$ |
8,950 |
|
Supplemental
disclosure of non-cash information: |
|
|
|
|
|
|
Property and equipment
acquired through capital lease |
|
$ |
27,711 |
|
|
$ |
— |
|
Property and equipment
acquired under build-to-suit leases |
|
$ |
3,583 |
|
|
$ |
12,739 |
|
Unpaid liability to
acquire property and equipment |
|
$ |
3,001 |
|
|
$ |
4,144 |
|
DULUTH HOLDINGS
INC.Reconciliation of Net Income to EBITDA and
EBITDA to Adjusted
EBITDA(Unaudited)(Amounts in
thousands)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
October 28, 2018 |
|
October 29, 2017 |
|
October 28, 2018 |
|
October 29, 2017 |
Net (loss) income |
|
$ |
(3,076 |
) |
|
$ |
(746 |
) |
|
$ |
2,693 |
|
$ |
4,022 |
Depreciation and amortization |
|
|
3,118 |
|
|
|
1,824 |
|
|
|
8,187 |
|
|
5,104 |
Interest
expense |
|
|
1,583 |
|
|
|
661 |
|
|
|
3,638 |
|
|
1,199 |
Income
tax (benefit) expense |
|
|
(1,067 |
) |
|
|
(454 |
) |
|
|
913 |
|
|
2,480 |
EBITDA |
|
$ |
558 |
|
|
$ |
1,285 |
|
|
$ |
15,431 |
|
$ |
12,805 |
Non-cash
stock based compensation |
|
|
447 |
|
|
|
569 |
|
|
|
1,305 |
|
|
1,186 |
Adjusted EBITDA |
|
$ |
1,005 |
|
|
$ |
1,854 |
|
|
$ |
16,736 |
|
$ |
13,991 |
DULUTH HOLDINGS
INC.Segment
Information(Unaudited)(Amounts in
thousands)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
October 28, 2018 |
|
October 29, 2017 |
|
October 28, 2018 |
|
October 29, 2017 |
Net
sales |
|
|
|
|
|
|
|
|
|
|
|
|
Direct |
|
$ |
59,827 |
|
|
$ |
54,146 |
|
|
$ |
186,872 |
|
|
$ |
175,588 |
Retail |
|
|
46,874 |
|
|
|
29,583 |
|
|
|
130,689 |
|
|
|
78,054 |
Total net
sales |
|
$ |
106,701 |
|
|
$ |
83,729 |
|
|
$ |
317,561 |
|
|
$ |
253,642 |
Operating
(loss) income |
|
|
|
|
|
|
|
|
|
|
|
|
Direct |
|
$ |
(8,357 |
) |
|
$ |
(2,738 |
) |
|
$ |
(9,362 |
) |
|
$ |
230 |
Retail |
|
|
5,794 |
|
|
|
2,126 |
|
|
|
16,438 |
|
|
|
7,296 |
Total
operating (loss) income |
|
|
(2,563 |
) |
|
|
(612 |
) |
|
|
7,076 |
|
|
|
7,526 |
Interest expense |
|
|
1,583 |
|
|
|
661 |
|
|
|
3,638 |
|
|
|
1,199 |
Other income, net |
|
|
3 |
|
|
|
73 |
|
|
|
168 |
|
|
|
175 |
(Loss) income
before income taxes |
|
$ |
(4,143 |
) |
|
$ |
(1,200 |
) |
|
$ |
3,606 |
|
|
$ |
6,502 |
DULUTH HOLDINGS INC.Net
Sales by
Business(Unaudited)(Amounts in
thousands)
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
October 28, 2018 |
|
October 29, 2017 |
|
October 28, 2018 |
|
October 29, 2017 |
Net
sales |
|
|
|
|
|
|
|
|
|
|
|
|
Men's |
|
$ |
72,789 |
|
$ |
58,186 |
|
$ |
216,143 |
|
$ |
176,692 |
Women's |
|
|
28,459 |
|
|
21,068 |
|
|
85,244 |
|
|
63,431 |
Hard goods/other |
|
|
5,453 |
|
|
4,475 |
|
|
16,174 |
|
|
13,519 |
Total net
sales |
|
$ |
106,701 |
|
$ |
83,729 |
|
$ |
317,561 |
|
$ |
253,642 |
DULUTH HOLDINGS
INC.Reconciliation of Forecasted Net Income to
Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted
EBITDAFor the Fiscal Year Ending February 3,
2019(Unaudited)(Amounts in
thousands)
|
|
Low |
|
High |
Forecasted |
|
|
|
|
|
|
Net income |
|
$ |
26,000 |
|
$ |
27,500 |
Depreciation and amortization |
|
|
12,100 |
|
|
12,500 |
Interest
expense |
|
|
4,450 |
|
|
4,950 |
Income
tax expense |
|
|
9,000 |
|
|
9,550 |
EBITDA |
|
$ |
51,550 |
|
$ |
54,500 |
Non-cash
stock based compensation |
|
|
1,450 |
|
|
1,500 |
Adjusted EBITDA |
|
$ |
53,000 |
|
$ |
56,000 |
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