MOUNT HOREB, Wis. - Duluth Holdings Inc . (NASDAQ:DLTH), a lifestyle brand of men's and women's apparel and accessories, announced its financial results for the fourth quarter ended January 28, 2024, with net sales showing a modest increase of 1.6% to $245.6 million from the same quarter last year.
This performance exceeded Wall Street's expectations, with the company reporting a revenue beat against the consensus estimate of $243 million. However, diluted earnings per share (EPS) of $0.21 fell short of the analyst estimate of $0.27.
The women's business was a significant contributor to the quarter's success, showcasing a robust 12% sales growth across both Duluth and AKHG brands. Despite the overall challenging fiscal year due to cautious consumer discretionary spending, the company's fourth quarter marked a notable achievement with its Black Friday sales reaching record heights.
According to President and CEO Sam Sato, the quarter's results were driven by the strength of the company's brands and consumer demand for their innovative products.
The company's stock responded positively to the news, rising 3.18% as investors reacted favorably to the revenue beat and the company's guidance for the upcoming fiscal year. Duluth Holdings provided an optimistic outlook for fiscal 2024, projecting net sales in the range of $640 million to $660 million, which is above the analyst consensus of $643.6 million. The EPS guidance for the year is forecasted to be between -$0.22 and -$0.07 per diluted share.
Sato expressed confidence in the company's strategic initiatives, highlighting the successful launch of a new highly automated fulfillment center and advancements in sourcing and product innovation functions. These measures are expected to yield benefits in 2024 and contribute to the company's scalable, long-term profitable growth.
Duluth Holdings ended the quarter with a strong financial position, boasting $232.2 million in liquidity and no outstanding bank debt. The company's healthy inventory composition, with a 30% decrease in clearance items, positions it well for the coming year.
Investors and analysts will be closely monitoring Duluth Holdings' performance as it continues to navigate the retail landscape and deliver on its commitment to innovative and high-quality products for its customers.
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