The following is a summary of the Duluth Holdings Inc. (DLTH) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Duluth reported Q4 net sales growth of approximately 2% and full-year net sales of $646.7 million, a decrease of 1%.

• Q4 sales grew by 1.6% to $245.6 million and EPS was $0.21. For the full year 2023, the EPS was negative $0.28.

• Gross margin for the full year 2023 contracted 230 basis points to 50.3%, and 48.2% in the fourth quarter.

• SG&A for the full year was at 51.6% of sales, a decrease of 1%, totaling $333.8 million.

• The company experienced a net loss of $9.4 million or negative $0.28 per diluted share. The balance sheet shows $32.2 million in cash with no outstanding debt.

Business Progress:

• Duluth's strategic initiatives led to operational improvements, focusing on cost control, managing inventories, expanding new product pipeline, optimizing marketing mix, and improving gross margins.

• New additions to leadership include Heena as Senior VP and CFO, with experience in global finance accounting and M&A.

• Duluth introduced several new products with positive initial market reception, expanded categories and initiated its first-ever fitness apparel under AKHG Fitness.

• Investments in marketing have led to an 11% increase in reactivated customers in Q4. Investment in digital platform, such as website replatforming, led to a high single-digit growth.

• Duluth continues its focus on its Big Dam Blueprint strategy which includes leading with a digital mindset and strategic future investments.

• Duluth foresees net sales for 2024 to be between $640 million and $660 million with increased gross margin by 200 basis points and reduced capital expenditure to approximately $25 million.

More details: Duluth Holdings IR

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