Duluth Holdings Inc. (NASDAQ:DLTH) shares are trading lower on Thursday after the company reported first-quarter results.
The company reported quarterly earnings per share of 24 cents loss, missing the analyst consensus of 16 cents loss. Duluth Holdings reported net sales of $116.7 million compared to $123.8 million in the year-ago period. Sales missed the street view of $118.44 million.
Duluth Holdings’ quarter-end inventory composition fell 5.9% compared to the prior year’s first quarter.
“Our top-line quarter performance, at a decline of 5.7%, was hampered by challenging traffic and a sub-par in-stock position following stronger-than-expected unit selling late in the fourth quarter,” said President and CEO Sam Sato.
Direct-to-consumer net sales decreased by 5.1% to $75.4 million primarily driven by a decline in site visits compared to the prior year.
Retail store net sales decreased by 6.8% to $41.2 million due to slower store traffic.
“We took swift action to improve our in-stock position in core items, which improved throughout the quarter and into the second quarter to date,” Sato added.
First quarter gross profit decreased to $61.6 million from $65.7 million in the year-ago period. Gross margin contracted to 52.8% from 53.0% in the year-ago period.
Outlook: Duluth Holdings projects FY24 revenues of $640 million versus the $644.89 million estimate — prior view: $640 million-$660 million.
The company sees EPS of approximately $(0.22) versus $(0.20) estimate — prior view: $(0.22)-$(0.07).
DLTH Price Action: Duluth Holdings shares are trading lower by 4.10% to $3.86 at publication Thursday.
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