Duluth Holdings (NASDAQ:DLTH) is limping through the day with shares bottoming out at a 4-year low as first-quarter results disappointed Wall Street, while pessimistic forecasts for FY24 accelerated the decline on Thursday. Shares fell as much as 11% before recovering. some losses to trade with a 4% drop in afternoon trading.
The company, which makes men's and women's work and casual clothing, doubled its 2024 loss to $0.24 per share, missing 9 cents the Street consensus for a 5.7% drop in revenue, also below of expectations.
“Despite some key quarterly wins, we are not satisfied with the first quarter results, which did not meet our internal expectations,” said CEO Sam Sato. The company's quarterly revenue performance was hampered by challenging traffic, Sato added. Net sales decreased 5.7%, while a drop in visits to the company's website resulted in a 5.1% decline in DTC sales. Gross profit as a percentage of sales fell from 53% to 52.8%.
On the balance sheet, cash and cash equivalents fell 26% to $6.9 million, while long-term debt fell fractionally to $24.9 million.
For this year, Duluth now expects a loss of $0.22 per share, which is bullish guidance. This is 2 cents worse than the street expects. Net sales guidance was also adjusted from a range of $640 million to $660 million to just $640 million, $5 million below expectations.
