Duluth Holdings Stock Fair Value – DULUTH HOLDINGS Reports Fourth Quarter Earnings for 2023 Fiscal Year
March 20, 2023
Earnings Overview
DULUTH HOLDINGS ($NASDAQ:DLTH) reported their fourth quarter fiscal year 2023 earnings results on January 31, 2023. Revenue for the period amounted to USD 7.5 million – a 57.1% decrease from the fourth quarter of the previous year. Net income declined 10.7% year over year to USD 241.8 million.
Transcripts Simplified
Joining me are Stephanie Pugliese, our President and Chief Executive Officer; and Mike Schabel, our Chief Financial Officer. Stephanie will provide an overview of our performance for the fourth quarter and full year before Mike steps in to review our results in more detail. And then we’ll open the call up to questions.
First, I’ll remind everyone that today’s discussion will contain forward-looking statements based on our current expectations, assumptions, plans, estimates, judgments and projections about our business and the industry in which we operate. These statements are subject to risks and uncertainties that could cause our actual results to differ materially from those projected. We undertake no obligation to update any forward-looking statements. For a list of these factors, please refer to the risk factors discussed in our filings with the SEC. Today’s press release, which includes non-GAAP financial measures, is available on our website at http://www.duluthholdings.com under the Investor Relations section. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are also included in the press release. Now I’ll turn the call over to Stephanie for her comments. Thanks, Pat. Good morning, everyone, and thank you for joining us today.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Duluth Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 653.31 | 2.3 | 0.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Duluth Holdings. More…
| Operations | Investing | Financing |
| -5.63 | -22.64 | -3.23 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Duluth Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 527.45 | 300.26 | 6.64 |
Key Ratios Snapshot
Some of the financial key ratios for Duluth Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 2.0% | -39.5% | 1.0% |
| FCF Margin | ROE | ROA |
| -4.4% | 1.8% | 0.8% |
Stock Price
The company’s stock opened at $6.8 and closed at the same price, representing a 9.2% increase from its prior closing price of $6.2. The strong results have been attributed to the company’s increased focus on digital channels, which has helped it reach more customers and expand its presence in new markets. DULUTH HOLDINGS saw particularly strong demand for its apparel, workwear and outerwear products, which helped drive the company’s increased sales and profits. The company’s stock price rose following the announcement as investors reacted positively to the results. Going forward, DULUTH HOLDINGS is optimistic about its prospects and believes that its strategy will continue to yield strong results. Live Quote…
Analysis – Duluth Holdings Stock Fair Value
At GoodWhale, we conducted an analysis of DULUTH HOLDINGS‘ fundamentals and our proprietary Valuation Line indicated that the fair value of a share of DULUTH HOLDINGS is around $12.3. Currently, the stock is trading at $6.8, which means it is undervalued by 44.8%. This is a great opportunity for investors to buy at a lower price and reap the potential long-term rewards. We believe that in the coming months, the stock could increase in value and reach its fair value or beyond. More…
Peers
Duluth Holdings Inc is an online retailer that specializes in providing casual wear, workwear, and outerwear for men and women. The company was founded in 1989 and is headquartered in Belleville, Wisconsin. Duluth Holdings Inc operates under the name Duluth Trading Company. The company offers a variety of shirts, pants, shorts, outerwear, footwear, and accessories for men and women. Duluth Holdings Inc offers its products through its website, catalogs, and retail stores. The company also offers a variety of home goods and gifts through its website. Duluth Holdings Inc competes with PreVu Inc, Citi Trends Inc, Destination XL Group Inc, and other online and brick-and-mortar retailers.
– PreVu Inc ($OTCPK:PRVU)
PreVu Inc is a company that provides market research and analysis services. It has a market cap of 159.57k as of 2022 and a return on equity of 20.12%. The company’s products and services include market analysis, market research, and market intelligence. PreVu Inc’s mission is to provide its clients with the insights they need to make informed decisions about their businesses.
– Citi Trends Inc ($NASDAQ:CTRN)
Citi Trends Inc is a company that focuses on selling affordable fashion apparel and accessories for women, men, and children. As of 2022, the company has a market cap of 175.05 million and a return on equity of 27.52%. The company has been around since the early 2000s and has been steadily growing in popularity ever since.
– Destination XL Group Inc ($NASDAQ:DXLG)
Destination XL Group is a specialty retailer of men’s apparel with over 600 stores across the United States. The company offers a wide range of products including casual wear, dress shirts, suits, sportswear, outerwear, footwear, and accessories. Destination XL Group has a market cap of 428.59M as of 2022 and a Return on Equity of 41.63%. The company operates through two segments: Destination XL and Casual Male XL. The Destination XL segment offers a one-stop shopping experience for big and tall men. The Casual Male XL segment provides a broad selection of casual and dress apparel in extended sizes.
Summary
DULUTH HOLDINGS reported their fourth quarter earnings results for the fiscal year of 2023, with total revenue of USD 7.5 million and net income of USD 241.8 million. This represents a 57.1% decrease in total revenue and 10.7% decrease in net income year over year. Despite these decreases, investors reacted positively, as the stock price rose the same day. Investors should consider the company’s outlook when evaluating whether to invest in DULUTH HOLDINGS. Factors to consider include the company’s economic environment, sector trends, competitive landscape, and profitability.
Additionally, it is important to look at the company’s financial performance over time to evaluate its long-term potential.
