Duluth Holdings Inc. (NASDAQ: DLTH) reported Q1 EPS of ($0.02), $0.03 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $100.2 million versus the consensus estimate of $100.62 million.

Highlights for the First Quarter Ended April 29, 2018

• Net sales increased 19.7% to $100.2 million compared to $83.7 million in the prior-year first quarter
• Gross margin decreased 230 basis points to 55.8% compared to 58.1% in the prior-year first quarter
• Operating loss of $0.3 million compared to operating income of $0.7 million in the prior-year first quarter
• Net loss of $0.7 million, or $0.02 per diluted share compared to net income of $0.4 million, or $0.01 per diluted share in the prior year-first quarter
• Adjusted EBITDA1 of $2.6 million compared to $2.7 million in the prior-year first quarter
• The Company opened two retail stores in Anchorage, AK, and West Fargo, ND, totaling approximately 40,000 gross square feet
• 33rd consecutive quarter of increased net sales year-over-year
• 1See Reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables.

Management Commentary

“We achieved our 33rd consecutive quarter of increased net sales year-over-year. Our 20% top-line growth was driven by new stores, growth in the women’s business, and direct segment growth, with direct sales in established omnichannel markets growing more than double the Company average of 4%,” said Stephanie Pugliese, Chief Executive Officer of Duluth Trading. “While the late arrival of spring in several regions of the country did have a slight impact on quarterly sales, we were able to control expenses and our bottom line results were in-line with our expectations. We expect to deliver on our 2018 financial guidance.”

“During the first quarter, we opened two retail stores in new markets, Anchorage and West Fargo and both stores are performing above our expectations. We continue to attract new customers to our brand through retail stores, and during the quarter, new customers acquired through retail were up 56% as compared to the prior year.”

“I am pleased to report that our order management system, which has been a key technology project for the past two years, went live on May 21 and provides us the foundation to further enhance our omnichannel customer experience in 2018 and beyond.”

GUIDANCE:

Duluth Holdings Inc. sees FY2018 EPS of $0.79-$0.84. Duluth Holdings Inc. sees FY2018 revenue of $555-575 million.

For earnings history and earnings-related data on Duluth Holdings Inc. (DLTH) click here.