Workwear And Accessories Company Duluth Lowers FY23 Outlook As Slower Store Traffic Hits Q3 Results
Portfolio Pulse from Nabaparna Bhattacharya
Duluth Holdings Inc. (NASDAQ:DLTH) reported a decrease in Q3 FY23 sales by 6.1% to $138.21 million, missing estimates. The EPS loss of $(0.32) also missed expectations. Retail store sales dropped by 8.8% due to slower traffic, although average transaction value was higher. Gross margin and profit decreased, attributed to a lower mix of full-price sales. The company revised its FY23 outlook downwards for net sales and EPS, expecting $640 million-$655 million in sales and an EPS of $(0.25)-$(0.15). DLTH shares fell by 3.79% to $4.95.
November 30, 2023 | 5:43 pm
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Duluth Holdings Inc. reported lower Q3 sales and earnings, missed estimates, and reduced FY23 guidance, leading to a 3.79% drop in share price.
The reported earnings miss and lowered future guidance are strong indicators of potential continued underperformance in the short term. The immediate negative reaction in stock price reflects investor concerns over the company's reduced sales and profitability outlook.
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