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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