LONDON, UK / ACCESSWIRE / April 24, 2018 / Active-Investors.com has just released a free earnings report on Duluth Holdings Inc. (NASDAQ: DLTH). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DLTH. Duluth reported its fourth quarter and fiscal 2017 operating and financial results on March 20, 2018. The clothing and tools supplier delivered its 32nd consecutive quarter of increased net sales on a y-o-y basis. Additionally, the Company provided guidance for the fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Duluth Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the fourth quarter ended January 28, 2018, Duluth's net sales surged 24.7% to $217.8 million compared to $174.7 million in Q4 2016, driven by an 8.5% growth in direct net sales and a 98.8% growth in retail net sales, with growth in all product categories and in both men's and women's business. The Company's reported numbers beat analysts' estimates of $208.7 million.
For the fiscal year 2017, Duluth's net sales rose 25.3% to $471.4 million compared to $376.1 million in FY16.
During Q4 2017, Duluth's gross profit increased 19.9% to $116.0 million, or 53.3% of net sales, compared to $96.8 million, or 55.4% of net sales, in the prior year's same period. The 210-basis point decrease in gross margin was primarily due to an increase in global promotional days and flash sales coupled with the continuing decline in shipping revenues.
For Q4 2017, Duluth's selling, general, and administrative (SG&A) expenses increased 17.0% to $86.5 million compared to $73.9 million in Q4 2016. As a percentage of net sales, the Company's SG&A expenses decreased 260 basis points to 39.7% in the reported quarter compared to 42.3% in the prior year's corresponding period. As a percentage of net sales, Duluth's advertising and marketing costs decreased 370 basis points to 16.4% compared to 20.1% in Q4 2016, primarily due to a planned decrease in catalog spend coupled with a decline in digital and television advertising as percentage of net sales.
During Q4 2017, Duluth's operating income surged 29.3% to $29.5 million, or 13.6% of net sales, compared to $22.9 million, or 13.1% of net sales, in Q4 2016.
Duluth's net income was $19.5 million, or $0.60 per diluted share, in Q4 2017 compared to $14.0 million, or $0.43 per diluted share, in Q4 2016. Excluding the impact of the US Tax Cuts and Jobs Act (Tax Act), the Company's reported quarter net income was $17.6 million, or $0.55 per diluted share. Duluth's earnings surpassed Wall Street's estimates of $0.54 per share.
For FY17, Duluth reported net income of $23.4 million, or $0.72 per diluted share, compared to $21.3 million, or $0.66 per diluted share, in FY16. Excluding the impact of the Tax Act, the Company's net income was $21.5 million, or $0.67 per share, in FY17.
Balance Sheet and Liquidity
Duluth ended Q4 2017 with a cash balance of approximately $2.9 million, with net working capital of $51.5 million, and no borrowings on its $60.0 million revolving line of credit.
During Q4 2017, Duluth opened five new retail stores, totaling approximately 75,000 gross square feet. In FY17, the Company opened 15 retail stores, totaling approximately 228,000 gross square feet, and ended the year with a total of 31 stores.
Fiscal 2018 Outlook
For fiscal 2018, Duluth is forecasting net sales in the range of $555.0 million to $575.0 million and earnings in the band of $0.79 to $0.84 per diluted share, with an effective tax rate of 26% based on the Company's provisional estimates from the impacts of the Tax Act.
For FY18, Duluth is projecting capital expenditures, net of proceeds from finance lease obligations of $45.0 million to $55.0 million. The Company is expecting 15 new store openings in FY18, adding 240,000 to 250,000 of additional gross square footage.
Stock Performance Snapshot
April 23, 2018 - At Monday's closing bell, Duluth's stock fell 2.30%, ending the trading session at $17.87.
Volume traded for the day: 162.85 thousand shares.
Stock performance in the last month – up 0.73%; and year-to-date – up 0.11%
After yesterday's close, Duluth's market cap was at $611.15 million.
Price to Earnings (P/E) ratio was at 26.40.
The stock is part of the Services sector, categorized under the Apparel Stores industry.
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