Duluth Holdings misses earnings and revenue expectations in Q2
September 2, 2022
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Duluth($NASDAQ:DLTH) Holdings reported earnings and revenue that missed expectations in the second quarter. The company attributed the miss to lower than expected sales in its direct-to-consumer and retail businesses. Duluth also announced that it would be closing its retail store in Duluth, Minnesota. The earnings miss and news of the store closure sent Duluth’s stock prices tumbling in after-hours trading. It remains to be seen how the company will fare in the long-term, but the short-term outlook is not looking good.
Duluth Holdings Inc
Get Report stock opened at $7.60 on Thursday and closed at $8.60 after the company reported lower-than-expected earnings and revenue for the second quarter. The company blamed the miss on lower-than-expected sales of its men’s and women’s apparel, as well as higher than expected costs. Duluth Holdings said it is taking steps to improve its operations and boost sales, including closing underperforming stores and investing in its e-commerce business.
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“We are disappointed with our second quarter results as we did not meet our expectations,” said Stephanie Pugliese, President and CEO of Duluth Holdings. “While our sales growth was in line with our guidance, our earnings were below our expectations due to gross margin pressure and higher than planned investments in marketing and technology. We are taking actions to improve our gross margin and control expenses going forward.”.
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