Duluth Holdings Inc. (DLTH) Tops Q3 EPS by 5c, Revenues Beat; Offers FY19 EPS/Revenue Guidance

Duluth Holdings Inc. (NASDAQ: DLTH) reported Q3 EPS of $0.01, $0.05 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $119.8 million versus the consensus estimate of $114.97 million.

Highlights for the Third Quarter Ended November 3, 2019

• Net sales increased 12.2% to $119.8 million compared to $106.7 million in the prior-year third quarter
• Gross margin decreased 250 basis points to 54.6% compared to 57.1% in the prior-year third quarter
• Operating income of $1.3 million compared to operating loss of $2.6 million in the prior-year third quarter
• Net income of $0.2 million, or $0.01 per diluted share, compared to a net loss of $3.2 million, or $0.10 per diluted share, in the prior-year third quarter
• Adjusted EBITDA1 of $7.3 million compared to $1.0 million in the prior-year third quarter
• The Company opened three retail stores in Round Rock, TX; Hoover, AL; and Sandy, UT totaling approximately 47,000 gross square feet
• 39th consecutive quarter of increased net sales year-over-year

Management Commentary

“We are pleased to report healthy top-line growth of 12% and improved third-quarter operating margin and earnings growth on a year-over-year basis,” said Stephen L. Schlecht, Founder and Chief Executive Officer of Duluth Trading. “Our entire team has been hard at work to set the stage for the all-important holiday shopping season and I believe we entered the fourth quarter better prepared to serve our customers than any time in the last two years.”

GUIDANCE:

Duluth Holdings Inc. sees FY2019 EPS of $0.60-$0.66, versus the consensus of $0.60. Duluth Holdings Inc. sees FY2019 revenue of $610-620 million, versus the consensus of $615.35 million.

The Company reaffirmed its fiscal 2019 outlook as follows:

• Net sales in the range of $610.0 million to $620.0 million
• Adjusted EBITDA1 in the range of $51.0 million to $55.0 million
• EPS in the range of $0.60 to $0.66 per diluted share
• Capital expenditures of approximately $38.0 million2
• 15 new store openings, adding approximately 215,000 of additional gross square footage

For earnings history and earnings-related data on Duluth Holdings Inc. (DLTH) click here.

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