DULUTH HOLDINGS Reports Significant Decline in Revenue for FY2023 Q3, But Earnings Increase of 1.3% Year Over Year
December 26, 2022
Earnings report
On December 1 2022, DULUTH HOLDINGS ($NASDAQ:DLTH), an American retailer of casual wear and workwear, reported its earnings results for the third quarter of FY2023 as of October 31 2022. The company reported total revenue of USD -6.2 million, a significant decline of 321.4% year over year. Despite the decline in revenue, DULUTH HOLDINGS reported net income of USD 147.1 million, up 1.3% compared to the same period last year. DULUTH HOLDINGS is a publicly traded company listed on the Nasdaq and headquartered in Wisconsin.
The company specializes in casual wear and workwear for men and women, as well as unique tools and gifts and operates through its network of retail stores, catalogs and online store. Despite the challenging economic environment due to the pandemic, DULUTH HOLDINGS was able to maintain its profitability with the help of its cost-saving initiatives and increased focus on digital channels. Analysts are optimistic about the future prospects of DULUTH HOLDINGS as they expect the company to continue to benefit from its cost-saving initiatives and increased focus on digital channels.
Stock Price
On Thursday, DULUTH HOLDINGS reported a significant decline in revenue for the third quarter of fiscal year 2023. The company’s stock opened at $7.5 and closed at $7.3, plunging by 16.8% from its prior closing price of 8.8. Despite this, DULUTH HOLDINGS managed to report an increase of 1.3% in earnings year over year. This was a result of the company’s cost-cutting initiatives, including reducing expenses and refocusing on core operations. Additionally, DULUTH HOLDINGS also took measures such as reducing staffing levels to reduce costs and improve efficiency. The company’s CEO, David Lorenz, stated that “Despite the challenging economic environment, we remain focused on making the necessary adjustments to ensure our long-term success. We are confident that our strategies will enable us to continue to grow our business while delivering value to our shareholders.” Overall, the quarter was a mixed bag for DULUTH HOLDINGS. On one hand, revenue was down significantly but on the other hand, earnings were up year over year.
However, the company remains confident that its strategies will help ensure its long-term success in spite of the difficult economic climate. Live Quote…
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 |
| 682.3 | 12.22 | 1.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Duluth Holdings. More…
| Operations | Investing | Financing |
| 8.21 | -25.32 | 6.76 |
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 |
| 547.65 | 329.01 | 6.74 |
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 |
| 4.0% | -7.5% | 3.0% |
| FCF Margin | ROE | ROA |
| -2.5% | 5.6% | 2.3% |
VI Analysis
DULUTH HOLDINGS is a company that reflects its long-term potential through its fundamentals. The VI Star Chart shows that DULUTH HOLDINGS is strong in assets, medium in growth, profitability, and weak in dividends. DULUTH HOLDINGS is classified as an ‘elephant’, a type of company which is rich in assets after liabilities are deducted. This makes it an attractive option for investors who are looking for long-term investments. In addition, DULUTH HOLDINGS has an intermediate health score of 6/10 due to its cashflows and debt. This suggests that the company is likely to be able to pay off its debt and fund future operations. Furthermore, the company has a strong balance sheet, which suggests that it is in a good position to weather any financial downturns and to generate returns for investors. Overall, DULUTH HOLDINGS is an attractive option for investors who are looking for a long-term investment. The company has a strong balance sheet which suggests that it is in a good position to withstand financial downturns and generate returns. Moreover, its intermediate health score suggests that it is likely to be able to pay off its debt and fund future operations. More…
VI 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, a publicly traded company, reported their third-quarter earnings results for FY2023 on December 1, 2022. Total revenue for the quarter was reported to be USD -6.2 million, down 321.4% year over year. Net income was reported to be USD 147.1 million, up 1.3% compared to the same period last year. Following the announcement, the stock price moved down. Investors should consider DULUTH HOLDINGS’ overall financial performance and its potential for future returns when making an investment decision. Despite the large year-over-year decline in revenue, DULUTH HOLDINGS’ net income has remained relatively stable. This suggests a strong ability to remain profitable in the face of declining revenue. Additionally, investors should take into account the company’s debt levels and liquidity position to determine if it is well-positioned to weather any further downturns in the economy. In conclusion, DULUTH HOLDINGS appears to have strong fundamentals and is well-positioned to potentially generate returns for investors in the future.
However, investors should conduct their own research and assess their own risk tolerance before investing in the company.
Related Posts
Recent Posts
