Duluth Holdings Inc. (NASDAQ: DLTH) reported Q4 EPS of $0.75, $0.03 worse than the analyst estimate of $0.78. Revenue for the quarter came in at $259.65 million versus the consensus estimate of $262.68 million.

Highlights for the Fourth Quarter Ended February 2, 2020 (13 weeks compared to 14 weeks last year)

• Net sales increased 3.6% to $259.6 million compared to $250.5 million in the prior-year fourth quarter, which included $7.7 million of net sales from the 14th week
• Gross margin increased to 52.8% compared to 52.4% in the prior-year fourth quarter
• Operating income increased 10.1% to $33.1 million, or 12.8% of net sales, compared to $30.1 million, or 12.0% of net sales in the prior-year fourth quarter
• Net income was $24.4 million, or $0.75 per diluted share, compared to $20.6 million, or $0.64 per diluted share in the prior-year fourth quarter
• Adjusted EBITDA1 increased 13.7% to $39.9 million compared to $35.1 million in the prior-year fourth quarter
• The Company opened three new retail stores in Bloomington, MN; Franklin, TN and Knoxville, TN, totaling approximately 29,000 gross square feet
• 40th consecutive quarter of increased net sales year-over-year

Management Commentary

“We entered the fourth quarter well prepared to serve our customers during the peak holiday season, yet like many retailers, significant headwinds of a shortened holiday shopping season and unseasonably warm weather limited our fourth quarter potential. Net sales grew 7% on a comparable 13-week basis and due to our intense focus on managing expenses, reported operating margin improved 80 basis points year-over-year,” said Stephen L. Schlecht, Founder and Chief Executive Officer of Duluth Trading.

Fiscal 2020 Outlook

Given the unpredictability of the effects of the coronavirus on, among other things, consumer behavior, store traffic, store closings, production capabilities, timing of deliveries, our people, economic activity and the market generally in the coming weeks and months, the Company is unable to provide specific earnings guidance at this time.

In response to expected impacts to sales plans, the Company is focusing on managing expense and capital spending levels by reducing new store openings; deferring certain technology and infrastructure projects; adjusting inventory receipt plans, and evaluating its bank line of credit to confirm access to the maximum capacity and commitment available.

The table below recaps the Company’s fiscal 2019 stores and signed new store leases along with the opening timeframe.

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