Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth
Trading” or the “Company”) (NASDAQ: DLTH), a lifestyle brand of
men’s and women’s workwear, casual wear, outdoor apparel and
accessories, today announced its financial results for the fiscal
second quarter ended July 28, 2024.
Summary of the Second Quarter Ended July 28,
2024
- Net sales of 141.6 million increased 1.8% compared to the prior
year second quarter
- Net loss of $3.7 million and adjusted net loss1 of $0.6
million, compared to net loss of $2.0 million in the prior year
second quarter. Adjusted net loss of $0.6 million excludes $1.6
million of restructuring expense and a $2.4 million non-recurring
estimated sales tax expense accrual that is reflected in Selling,
general and administrative expenses
- EPS per diluted share of ($0.11); Adjusted EPS1 of ($0.02)
- Adjusted EBITDA2 increased $2.0 million from the prior year to
$10.6 million, representing 7.5% of net sales
1See Reconciliation of net loss to adjusted net loss and
adjusted net loss to adjusted EPS in the accompanying financial
tables.2See Reconciliation of net loss to EBITDA and EBITDA to
Adjusted EBITDA in the accompanying financial tables.
Management Commentary
President and CEO, Sam Sato commented, “We are pleased to have
returned to top-line growth in the second quarter, while also
expanding our gross margin as we begin to see the benefits of our
product development and sourcing initiatives. During the quarter we
saw a trend line improvement in both traffic and transactions with
healthy shopper conversion, fueling 1.8% year-over-year net sales
growth. The quarter strength was highlighted by product innovation
wins including Dry on the Fly, Armachillo and DuluthFlex Fire Hose
Sweat Management.
“We entered the third quarter with a strong lineup of newness
such as Duluth Reserve, Bullpen 3D and Souped up Sweats and we
expanded our Plus size assortment including our successful
Adjustabust, a bonded zip-front bra with a sleek silhouette and
criss-crossed back offering extra support and security. On August
10th we successfully hosted our second underwear trade-up event
engaging with existing and new customers throughout our local store
markets. The event generated a lot of buzz and resulted in a jump
in traffic, higher overall sales, and 40% of trade ups from our
female shoppers, which remains a key strategic growth opportunity
for Duluth.”
Sato concluded, “From a longer-term structural update, we have
successfully moved into phase two of our fulfillment center network
plan to maximize productivity and capacity. The tremendous success
we are seeing with our near fully automated fulfillment center in
Adairsville, Georgia, which processed 58% of total company volume
during the first of half of our fiscal year, allowed for the
planned exit of our Dubuque fulfillment center this October.
Importantly, we will begin to realize the SG&A benefits in
Q4.”
Operating Results for the Second Quarter Ended July 28,
2024
Net sales increased 1.8% to $141.6 million, compared to $139.1
million in the same period a year ago. Direct to-consumer net sales
increased by 5.6% to $91.7 million primarily driven by higher site
conversion compared to the prior year. Retail store net sales
decreased by 4.4% to $49.9 million due to slower store traffic,
partially offset by strong conversion rates.
Gross profit increased to $74.0 million, or 52.3% of net sales
up 90 basis points, compared to $71.5 million, or 51.4% of net
sales, in the corresponding prior year period driven by our
sourcing initiative.
Selling, general and administrative expenses increased 4.6% to
$76.3 million, compared to $72.9 million in the same period a year
ago. The increase included the $2.4 million non-recurring estimated
sales tax expense. Excluding this non-recurring expense, selling,
general and administrative expenses increased $1.0 million to $73.9
million, representing 52.2% of net sales and leveraging 20 basis
points compared to the prior year.
As part of the Company’s in-depth review of the retail portfolio
strategy, fulfillment center network, and benchmarking to identify
structural opportunities to improve operating margin, working
capital, and asset efficiency, in the second quarter of 2024, the
Company began phase two of the fulfillment center network plan to
maximize productivity and capacity. As a result, the Company
initiated a lease amendment for one of its legacy fulfillment
centers to accelerate the lease expiration date from September 2030
to October 2024.
The Company expects to incur total restructuring expenses
related to the lease amendment of $7.4 million during the second
and third quarters of 2024, $1.6 million of which was recognized
during the second quarter. The Company expects a total cash outlay
of approximately $4.4 million related to this initiative, including
$1.7 million to be paid in the current fiscal year.
Exiting the legacy facility is projected to reduce overhead
expenses by approximately $1.2 million during the fourth quarter of
the current fiscal year. The Company expects an expense reduction
of approximately $5.0 million and cash savings of $4.0 million
annually.
As previously mentioned, during the third quarter last year, the
Company went live with a highly automated fulfillment center in
Adairsville, Georgia which now processes 58% of all online orders
and replenishment volume. The Adairsville facility has shortened
delivery times while driving lower cost per unit to fulfill an
order, which was 32% of the cost of the three legacy fulfillment
centers over the first half of the year. The success and
productivity from the critical Adairsville facility investment has
allowed the Company to accelerate phase two of its overall
fulfillment center network plan.
Balance Sheet and Liquidity
The Company ended the quarter with $9.8 million of cash and cash
equivalents, net working capital of $79.8 million, no outstanding
debt on the Duluth Trading $200 million revolving line of credit
and $209.8 million of liquidity.
Fiscal 2024 Outlook
The Company reaffirmed its fiscal 2024 outlook, excluding
restructuring expense and sales tax expense accrual:
- Net sales of approximately $640 million
- Adjusted EPS1 of approximately ($0.22) per diluted share
- Adjusted EBITDA2 of approximately $39 million
- Capital expenditures, inclusive of software hosting
implementation costs, of approximately $25 million
1See Reconciliation of forecasted net loss to forecasted
adjusted net loss and forecasted adjusted net loss to forecasted
adjusted EPS in the accompanying financial tables.2See
Reconciliation of forecasted net loss to forecasted EBITDA and
forecasted EBITDA to forecasted Adjusted EBITDA in the accompanying
financial tables.
Conference Call Information
A conference call and audio webcast with analysts and investors
will be held on Thursday, August 29, 2024 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 September 5, 2024: 877-344-7529 (domestic)
or 412-317-0088 (international)
- Replay access code:
5705373
- Live and archived
webcast: ir.duluthtrading.com
Investors can pre-register for the earnings conference call to
expedite their entry into the call and avoid waiting for a live
operator. To pre-register for the call, please visit
https://dpregister.com/sreg/10191086/fd20abea22 and enter your
contact information. You will then be issued a personalized phone
number and pin to dial into the live conference call. Investors can
pre-register any time prior to the start of the conference
call.
About Duluth Trading
Duluth 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 are
available 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
http://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), adjusted net loss and
adjusted earnings per share (EPS). See attached table
“Reconciliation of Net Loss to EBITDA and EBITDA to Adjusted
EBITDA,” for a reconciliation of net loss to EBITDA and EBITDA to
Adjusted EBITDA for the three and six months ended July 28, 2024,
versus the three and six months ended July 30, 2023 and attached
table “Reconciliation of Net Loss to Adjusted Net Loss and Adjusted
Net Loss to Adjusted EPS,” for a reconciliation of net loss to
adjusted net loss and adjusted net loss to adjusted EPS for the
three and six months ended July 28, 2024.
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.
Adjusted Net Loss and Adjusted EPS is a metric used by
management and frequently used by the financial community, which
provides insight into the effectiveness of our business strategies
and to compare our performance against that of peer companies.
Adjusted Net Loss and Adjusted EPS excludes restructuring expenses
and a one-time estimated sales tax accrual that are 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, including statements
under the heading “Fiscal 2024 Outlook” 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 22, 2024 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: the impact of inflation and
measures to control inflation on our results of operations; the
prolonged effects of economic uncertainties on store and website
traffic and disruptions to our distribution network, supply chains
and operations; our ability to maintain and enhance a strong brand
and sub-brand image; adapting to declines in consumer confidence,
inflation and decreases in consumer spending; disruptions in our
e-commerce platform; effectively adapting to new challenges
associated with our expansion into new geographic markets; our
ability to meet customer delivery time expectations; natural
disasters, unusually adverse weather conditions, boycotts,
prolonged public health crises, epidemics or pandemics and
unanticipated events; generating adequate cash from our existing
stores and direct sales to support our growth; the impact of
changes in corporate tax regulations and sales tax; identifying and
responding to new and changing customer preferences; the success of
the locations in which our stores are located; effectively relying
on sources for merchandise located in foreign markets;
transportation delays and interruptions, including port congestion;
inability to timely and effectively obtain shipments of products
from our suppliers and deliver merchandise to our customers; the
inability to maintain the performance of a maturing store
portfolio; our inability to deploy marketing tactics to strengthen
brand awareness and attract new customers in a cost effective
manner; our ability to successfully open new stores; 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; the potential for
further increases in price and availability of raw materials; our
dependence on third-party vendors to provide us with sufficient
quantities of merchandise at acceptable prices; the susceptibility
of the price and availability of our merchandise to international
trade conditions; failure of our vendors and their manufacturing
sources to use acceptable labor or other practices; our dependence
upon key executive management or our inability to hire or retain
the talent required for our business; 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; disruptions in our supply chain and fulfillment
centers; our inability to protect our trademarks or other
intellectual property rights; infringement on the intellectual
property of third parties; acts of war, terrorism or civil unrest;
the impact of governmental laws and regulations and the outcomes of
legal proceedings; changes in U.S. and non-U.S. laws affecting the
importation and taxation of goods, including imposition of
unilateral tariffs on imported goods; our ability to secure the
personal and/or financial information of our customers and
employees; our ability to comply with the security standards for
the credit card industry; our failure to maintain adequate internal
controls over our financial and management systems; acquisition,
disposition, and development risks; 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.
(Tables Follow)***
DULUTH HOLDINGS INC.Condensed Consolidated
Balance Sheets(Unaudited)
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
July 28, 2024 |
|
January 28, 2024 |
|
July 30, 2023 |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
9,787 |
|
|
$ |
32,157 |
|
|
$ |
11,148 |
|
Receivables |
|
|
8,318 |
|
|
|
5,955 |
|
|
|
5,758 |
|
Income tax receivable |
|
|
313 |
|
|
|
617 |
|
|
|
140 |
|
Inventory, net |
|
|
168,718 |
|
|
|
125,757 |
|
|
|
157,126 |
|
Prepaid expenses & other current assets |
|
|
19,722 |
|
|
|
16,488 |
|
|
|
17,665 |
|
Total current assets |
|
|
206,858 |
|
|
|
180,974 |
|
|
|
191,837 |
|
Property and equipment, net |
|
|
121,148 |
|
|
|
132,718 |
|
|
|
125,970 |
|
Operating lease right-of-use assets |
|
|
107,799 |
|
|
|
121,430 |
|
|
|
126,132 |
|
Finance lease right-of-use assets, net |
|
|
34,646 |
|
|
|
40,315 |
|
|
|
45,742 |
|
Available-for-sale security |
|
|
4,877 |
|
|
|
4,986 |
|
|
|
5,254 |
|
Other assets, net |
|
|
8,961 |
|
|
|
9,020 |
|
|
|
7,853 |
|
Deferred tax assets |
|
|
4,306 |
|
|
|
1,010 |
|
|
|
353 |
|
Total assets |
|
$ |
488,595 |
|
|
$ |
490,453 |
|
|
$ |
503,141 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
Trade accounts payable |
|
$ |
77,600 |
|
|
$ |
51,122 |
|
|
$ |
59,259 |
|
Accrued expenses and other current liabilities |
|
|
30,069 |
|
|
|
30,930 |
|
|
|
28,215 |
|
Current portion of operating lease liabilities |
|
|
16,027 |
|
|
|
16,401 |
|
|
|
15,993 |
|
Current portion of finance lease liabilities |
|
|
2,450 |
|
|
|
3,149 |
|
|
|
2,964 |
|
Current maturities of TRI long-term debt1 |
|
|
888 |
|
|
|
847 |
|
|
|
807 |
|
Total current liabilities |
|
|
127,034 |
|
|
|
102,449 |
|
|
|
107,238 |
|
Operating lease liabilities, less current maturities |
|
|
92,275 |
|
|
|
106,413 |
|
|
|
110,999 |
|
Finance lease liabilities, less current maturities |
|
|
31,911 |
|
|
|
34,276 |
|
|
|
35,906 |
|
TRI
long-term debt, less current maturities1 |
|
|
24,723 |
|
|
|
25,141 |
|
|
|
25,538 |
|
Total liabilities |
|
|
275,943 |
|
|
|
268,279 |
|
|
|
279,681 |
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
Treasury stock |
|
|
(2,243 |
) |
|
|
(1,738 |
) |
|
|
(1,733 |
) |
Capital stock |
|
|
106,169 |
|
|
|
103,579 |
|
|
|
101,415 |
|
Retained earnings |
|
|
112,199 |
|
|
|
123,816 |
|
|
|
127,299 |
|
Accumulated other comprehensive loss, net |
|
|
(436 |
) |
|
|
(427 |
) |
|
|
(295 |
) |
Total shareholders' equity of Duluth Holdings Inc. |
|
|
215,689 |
|
|
|
225,230 |
|
|
|
226,686 |
|
Noncontrolling interest |
|
|
(3,037 |
) |
|
|
(3,056 |
) |
|
|
(3,226 |
) |
Total shareholders' equity |
|
|
212,652 |
|
|
|
222,174 |
|
|
|
223,460 |
|
Total liabilities and shareholders' equity |
|
$ |
488,595 |
|
|
$ |
490,453 |
|
|
$ |
503,141 |
|
1Represents debt of the variable interest entity, TRI Holdings,
LLC, that is consolidated in accordance with ASC 810,
Consolidation. Duluth Holdings Inc. is not the guarantor nor the
obligor of this debt.
DULUTH HOLDING INC.Consolidated Statements
of Operations(Unaudited)(Amounts
in thousands, except per share figures) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
July 28, 2024 |
|
July 30, 2023 |
|
July 28, 2024 |
|
July 30, 2023 |
Net sales |
|
$ |
141,619 |
|
|
$ |
139,099 |
|
|
$ |
258,303 |
|
|
$ |
262,858 |
|
Cost of goods sold (excluding depreciation and amortization) |
|
|
67,623 |
|
|
|
67,616 |
|
|
|
122,683 |
|
|
|
125,724 |
|
Gross profit |
|
|
73,996 |
|
|
|
71,483 |
|
|
|
135,620 |
|
|
|
137,134 |
|
Selling, general and administrative expenses1 |
|
|
76,286 |
|
|
|
72,926 |
|
|
|
146,881 |
|
|
|
143,126 |
|
Restructuring expense |
|
|
1,596 |
|
|
|
— |
|
|
|
1,596 |
|
|
|
— |
|
Operating loss |
|
|
(3,886 |
) |
|
|
(1,443 |
) |
|
|
(12,857 |
) |
|
|
(5,992 |
) |
Interest expense |
|
|
988 |
|
|
|
880 |
|
|
|
1,981 |
|
|
|
1,814 |
|
Other income, net |
|
|
145 |
|
|
|
109 |
|
|
|
161 |
|
|
|
257 |
|
Loss before income taxes |
|
|
(4,729 |
) |
|
|
(2,214 |
) |
|
|
(14,677 |
) |
|
|
(7,549 |
) |
Income tax benefit |
|
|
(996 |
) |
|
|
(202 |
) |
|
|
(3,079 |
) |
|
|
(1,660 |
) |
Net
loss |
|
|
(3,733 |
) |
|
|
(2,012 |
) |
|
|
(11,598 |
) |
|
|
(5,889 |
) |
Less: Net income (loss) attributable to noncontrolling
interest |
|
|
11 |
|
|
|
(8 |
) |
|
|
19 |
|
|
|
(16 |
) |
Net
loss attributable to controlling interest |
|
$ |
(3,744 |
) |
|
$ |
(2,004 |
) |
|
$ |
(11,617 |
) |
|
$ |
(5,873 |
) |
Basic earnings per share (Class A and Class
B): |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares of common stock outstanding |
|
|
33,367 |
|
|
|
32,952 |
|
|
|
33,247 |
|
|
|
32,912 |
|
Net
loss per share attributable to controlling interest |
|
$ |
(0.11 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.18 |
) |
Diluted earnings per share (Class A and Class
B): |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and equivalents outstanding |
|
|
33,367 |
|
|
|
32,952 |
|
|
|
33,247 |
|
|
|
32,912 |
|
Net
loss per share attributable to controlling interest |
|
$ |
(0.11 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.18 |
) |
1In conjunction with ongoing state sales tax audits the Company
began a review of its sales tax positions. As a result of the
review, the Company recorded an estimated sales tax expense accrual
of $2.4M that is reflected in Selling, general and administrative
expenses.
DULUTH HOLDINGS INC.Consolidated
Statements of Cash
Flows(Unaudited)(Amounts in
thousands) |
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
July 28, 2024 |
|
July 30, 2023 |
Cash flows from operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(11,598 |
) |
|
$ |
(5,889 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
16,297 |
|
|
|
14,868 |
|
Stock based compensation |
|
|
2,383 |
|
|
|
2,284 |
|
Deferred income taxes |
|
|
(3,293 |
) |
|
|
(1,553 |
) |
Loss on disposal of property and equipment |
|
|
77 |
|
|
|
16 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Receivables |
|
|
(2,363 |
) |
|
|
283 |
|
Income taxes receivable |
|
|
304 |
|
|
|
(140 |
) |
Inventory |
|
|
(42,961 |
) |
|
|
(2,204 |
) |
Prepaid expense & other current assets |
|
|
130 |
|
|
|
(1,351 |
) |
Software hosting implementation costs, net |
|
|
(3,406 |
) |
|
|
(370 |
) |
Trade accounts payable |
|
|
26,623 |
|
|
|
2,716 |
|
Income taxes payable |
|
|
— |
|
|
|
(1,761 |
) |
Accrued expenses and deferred rent obligations |
|
|
(591 |
) |
|
|
(7,343 |
) |
Other assets |
|
|
(2 |
) |
|
|
(20 |
) |
Noncash lease impacts |
|
|
1,348 |
|
|
|
(785 |
) |
Net
cash used in operating activities |
|
|
(17,052 |
) |
|
|
(1,249 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(3,183 |
) |
|
|
(31,483 |
) |
Principal receipts from available-for-sale security |
|
|
97 |
|
|
|
88 |
|
Net
cash used in investing activities |
|
|
(3,086 |
) |
|
|
(31,395 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
Proceeds from line of credit |
|
|
40,500 |
|
|
|
10,000 |
|
Payments on line of credit |
|
|
(40,500 |
) |
|
|
(10,000 |
) |
Payments on TRI long term debt |
|
|
(412 |
) |
|
|
(373 |
) |
Payments on finance lease obligations |
|
|
(1,521 |
) |
|
|
(1,397 |
) |
Payments of tax withholding on vested restricted shares |
|
|
(505 |
) |
|
|
(274 |
) |
Other |
|
|
206 |
|
|
|
288 |
|
Net
cash used in financing activities |
|
|
(2,232 |
) |
|
|
(1,756 |
) |
Decrease in cash and cash equivalents |
|
|
(22,370 |
) |
|
|
(34,400 |
) |
Cash and cash equivalents at beginning of period |
|
|
32,157 |
|
|
|
45,548 |
|
Cash and cash equivalents at end of period |
|
$ |
9,787 |
|
|
$ |
11,148 |
|
Supplemental disclosure of cash flow
information: |
|
|
|
|
|
|
Interest paid |
|
$ |
1,981 |
|
|
$ |
1,814 |
|
Income taxes paid |
|
$ |
125 |
|
|
$ |
1,795 |
|
Supplemental disclosure of non-cash
information: |
|
|
|
|
|
|
Unpaid liability to acquire property and equipment |
|
$ |
1,459 |
|
|
$ |
1,336 |
|
DULUTH HOLDINGS INC.Reconciliation of Net
Loss to EBITDA and EBITDA to Adjusted EBITDAFor
the Fiscal Quarter and Six Months Ended July 28, 2024 and July 30,
2023(Unaudited)(Amounts in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
July 28, 2024 |
|
July 30, 2023 |
|
July 28, 2024 |
|
July 30, 2023 |
(in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(3,733 |
) |
|
$ |
(2,012 |
) |
|
$ |
(11,598 |
) |
|
$ |
(5,889 |
) |
Depreciation and amortization |
|
|
8,046 |
|
|
|
7,455 |
|
|
|
16,297 |
|
|
|
14,868 |
|
Amortization of internal-use software hosting |
|
|
|
|
|
|
|
|
|
|
|
|
subscription implementation costs |
|
|
1,292 |
|
|
|
1,150 |
|
|
|
2,462 |
|
|
|
2,420 |
|
Interest expense |
|
|
988 |
|
|
|
880 |
|
|
|
1,981 |
|
|
|
1,814 |
|
Income tax benefit |
|
|
(996 |
) |
|
|
(202 |
) |
|
|
(3,079 |
) |
|
|
(1,660 |
) |
EBITDA |
|
$ |
5,597 |
|
|
$ |
7,271 |
|
|
$ |
6,063 |
|
|
$ |
11,553 |
|
Stock based compensation |
|
|
1,011 |
|
|
|
1,294 |
|
|
|
2,383 |
|
|
|
2,284 |
|
Restructuring expense |
|
|
1,596 |
|
|
|
— |
|
|
|
1,596 |
|
|
|
— |
|
Sales tax expense accrual |
|
|
2,406 |
|
|
|
— |
|
|
|
2,406 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
10,610 |
|
|
$ |
8,565 |
|
|
$ |
12,448 |
|
|
$ |
13,837 |
|
DULUTH HOLDINGS INC.Reconciliation of
Forecasted Net Loss to Forecasted EBITDA and Forecasted EBITDA to
Forecasted Adjusted EBITDAFor the Fiscal Year
Ending February 2,
2025(Unaudited)(Amounts in
thousands) |
|
|
|
|
Forecasted |
|
|
|
Net loss |
|
$ |
(14,800 |
) |
Depreciation and amortization |
|
|
33,200 |
|
Amortization of internal-use software hosting subscription
implementation costs |
|
|
5,000 |
|
Interest expense |
|
|
5,450 |
|
Income tax benefit |
|
|
(4,350 |
) |
EBITDA |
|
$ |
24,500 |
|
Stock based compensation |
|
|
4,694 |
|
Restructuring expense |
|
|
7,400 |
|
Sales tax expense accrual |
|
|
2,406 |
|
Adjusted EBITDA |
|
$ |
39,000 |
|
DULUTH HOLDINGS INC.Reconciliation of
Forecasted Net Loss to Forecasted Adjusted Net Loss and Forecasted
Adjusted Net Loss to Forecasted Adjusted EPSFor
the Fiscal Year Ending February 2,
2025(Unaudited)(Amounts in
thousands) |
|
|
|
|
|
|
|
Forecasted |
|
|
|
|
|
|
(in
thousands, except per share amounts) |
|
|
Amount |
|
|
Per share |
Forecasted Net Loss |
|
$ |
(14,800 |
) |
|
$ |
(0.45 |
) |
Plus: Forecasted income tax benefit |
|
|
(4,350 |
) |
|
|
(0.13 |
) |
Forecasted Net loss before income taxes |
|
$ |
(19,150 |
) |
|
$ |
(0.58 |
) |
Plus: Forecasted restructuring expenses |
|
|
7,400 |
|
|
|
0.22 |
|
Plus: Sales tax expense accrual |
|
|
2,406 |
|
|
|
0.07 |
|
Forecasted Adjusted loss before income taxes |
|
$ |
(9,344 |
) |
|
$ |
(0.28 |
) |
Forecasted Adjusted estimated income tax benefit |
|
|
(1,944 |
) |
|
|
(0.06 |
) |
Forecasted Adjusted net loss |
|
$ |
(7,400 |
) |
|
$ |
(0.22 |
) |
DULUTH HOLDINGS INC.Reconciliation of Net
Loss to Adjusted Net Loss and Adjusted Net Loss to Adjusted
EPSFor the Fiscal Quarter and Six Months Ended
July 28, 2024(Unaudited)(Amounts
in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
July 28, 2024 |
|
|
July 28, 2024 |
(in
thousands, except per share amounts) |
|
Amount |
|
|
Per share |
|
|
|
Amount |
|
|
Per share |
Net Loss |
$ |
(3,733 |
) |
|
$ |
(0.11 |
) |
|
|
$ |
(11,598 |
) |
|
$ |
(0.35 |
) |
Plus: Income tax benefit |
|
(996 |
) |
|
|
(0.03 |
) |
|
|
|
(3,079 |
) |
|
|
(0.09 |
) |
Net
loss before income taxes |
$ |
(4,729 |
) |
|
$ |
(0.14 |
) |
|
|
$ |
(14,677 |
) |
|
$ |
(0.44 |
) |
Plus: Restructuring expenses |
|
1,596 |
|
|
|
0.05 |
|
|
|
|
1,596 |
|
|
|
0.05 |
|
Plus: Sales tax expense accrual |
|
2,406 |
|
|
|
0.07 |
|
|
|
|
2,406 |
|
|
|
0.07 |
|
Adjusted loss before income taxes |
$ |
(727 |
) |
|
$ |
(0.02 |
) |
|
|
$ |
(10,675 |
) |
|
$ |
(0.32 |
) |
Adjusted estimated income tax benefit |
|
(159 |
) |
|
|
(0.00 |
) |
|
|
|
(2,242 |
) |
|
|
(0.07 |
) |
Adjusted net loss |
$ |
(568 |
) |
|
$ |
(0.02 |
) |
|
|
$ |
(8,433 |
) |
|
$ |
(0.25 |
) |
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/258f8294-62c0-412d-b897-efc33dd32268
Investor Contacts:
Tom Filandro
ICR, Inc.
(646) 277-1200
DuluthIR@icrinc.com
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