Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth
Trading” or “Company”) (NASDAQ: DLTH), a lifestyle brand of men’s
and women’s casual wear, workwear and accessories, today provided a
business update and announced a partnership with American Red
Cross:
- Partnership with American Red Cross to donate portion of
proceeds on key apparel items
- Re-opening of 20 retail stores today where COVID-19
restrictions have been lifted and preparing to re-open the balance
as other states lift their pandemic mandates
- Launched new women’s campaign celebrating “forge their way”
inspirational women
- Amended and expanded line of credit closed on April 30
- Partnered with landlords, suppliers and vendors to materially
reduce costs, extend payment terms and cancel merchandise receipts
to improve projected cash flow
“Since the beginning of the COVID-19 pandemic, we were proactive
in taking difficult actions to safeguard the long-term health of
our Company. First and foremost, we protected the health and
well-being of our employees, customers and suppliers, and also took
measures to ensure our financial resiliency. As announced on March
20, we closed our 62 retail stores nationwide in compliance with
state and local COVID-19 regulations. Today, we are re-opening 20
retail stores to customers in states that have lifted mandates on
store closures. In addition to taking extra precautions for our
staff and customers, most of our stores are free-standing with
ample parking, which will help us diligently maintain local health
and safety guidelines,” said Steve Schlecht, Executive Chairman and
Chief Executive Officer of Duluth Trading.
Schlecht added, “With our omnichannel model, we are fortunate to
have a strong on-line presence where we can provide uninterrupted
and outstanding service to our customers. We continue to fulfill
online orders from both warehouse and store inventory through our
ship from store process as well as contactless curbside pickup at
certain store locations. Finally, we are proud to partner with the
American Red Cross, an outstanding organization that is always on
the front line of every crisis.”
American Red CrossDuluth Trading is proud to
announce a new partnership with American Red Cross for the month of
May. To help the American Red Cross continue to deliver its
lifesaving mission nationwide due to the COVID-19 public health
emergency, the Company has selected key products to donate 5% of
the purchase price to the humanitarian organization through May 31,
2020. Donations designated to the Coronavirus
Outbreak will be used to help the American Red Cross maintain
a sufficient supply of blood as well as supplies to equip
volunteers and staff with protective equipment, food, shelter and
relief supplies as they respond to people in need.
New Women’s CampaignNew products are key to the
long-term growth of Duluth Trading. To that end, the Company
recently launched its new women’s campaign celebrating the
achievements of real-life women who “forge their way.” The
inaugural campaign is led by a new brand anthem video ringing in
the powerful stories of inspirational women – tattoo artists,
pilots, dirt bikers, potters, ranchers, and more. Filmed by a
majority of female creative and production crew, the campaign
reinforces Duluth Trading’s overall philosophy of creating apparel
that stands up to any challenge and prioritizes freedom of
movement, durability and performance of two of our bestselling
products, Fire Hose Pants and No Yank Tanks.
Liquidity UpdateThe Company negotiated an
incremental delayed draw term loan of $20.5 million that will be
available to be drawn before April 29, 2021 and also amended its
loan covenants to allow for greater flexibility during its peak
borrowing periods this year. Measures to manage cash flows and
other expenses that were previously disclosed in our April
10th press release have been implemented and are expected to
lead to cost savings and a sizable reduction in our cash burn due
to the temporary store closures. The Company’s liquidity position
as of May 4, 2020 has improved since April 10 with $85 million
outstanding on its line of credit, $7 million of cash on its
balance sheet and an additional $20.5 million of borrowings now
available on its $150 million credit facility. The Company’s
capital expenditure plans for 2020 have been cut in half and are
expected to be close to $15 million.
About Duluth TradingDuluth Trading is a
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.
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. 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 20, 2020, and other factors as may be periodically
described in Duluth Trading’s subsequent filings with the SEC.
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 and Media Contact:Donni Case (310)
622-8224Margaret Boyce (310) 622-8247Duluth@finprofiles.com
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