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Duluth Holdings Inc. ((DLTH - Free Report) ) is a workwear-centric lifestyle brand hit by slowing consumer spending and other headwinds.
Duluth’s earnings outlook has tumbled for 2024 and 2025, helping send DLTH stock down 30% YTD. Duluth’s recent disappointing performance is part of an 80% drop over the past three years.
Duluth Basics
Duluth is a lifestyle brand designed for the ‘modern, self-reliant American.’ The Wisconsin-based firm sells quality, solution-based workwear and casual wear, alongside accessories for men and women. Duluth sells everything from rain jackets and vests to flannels and underwear. Duluth also sells supplies such as toolboxes and much more.
Duluth posted a nice stretch of growth between its IPO in late 2015 through 2019. DLTH still posted solid top-line expansion for a few years after that run. But DLTH has faded recently, with sales down 6.5% in 2022 and 1% lower in FY23. The company also tumbled from adjusted earnings of +$0.07 a share in FY22 to a loss of -$0.28 per share last year.
Image Source: Zacks Investment Research
Duluth posted an adjusted loss of -$0.24 per share in the first quarter of FY24, falling well short of our -$0.14 estimate. “Despite some key quarter wins, we are not satisfied with our first quarter results which fell short of our internal expectations,” CEO Sam Sato said in prepared remarks.
“Our top-line quarter performance, at a decline of 5.7%, was hampered by challenging traffic and a sub-par in-stock position following stronger than expected unit selling late in the fourth quarter. We took swift action to improve our in-stock position in core items, which improved throughout the quarter and into the second quarter to date.”
Duluth’s FY24 earnings outlook has tumbled from +$0.20 a share a year ago to -$0.23 per share today. On top of that, DLTH’s FY25 estimate has dropped from +$0.05 as recently as April to -$0.05 today.
Bottom Line
Duluth’s downward earnings revisions help it land a Zacks Rank #5 (Strong Sell) right now. Duluth stock has fallen 80% over the past three years to trade near its Covid selloff lows.
DLTH stock is trading below its 50-day and 200-day moving averages, and its Textile – Apparel industry is in the bottom 22% of over 250 Zacks industries. Therefore, it might be best to stay away from Duluth right now.
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Bear of the Day: Duluth Holdings Inc. (DLTH)
Duluth Holdings Inc. ((DLTH - Free Report) ) is a workwear-centric lifestyle brand hit by slowing consumer spending and other headwinds.
Duluth’s earnings outlook has tumbled for 2024 and 2025, helping send DLTH stock down 30% YTD. Duluth’s recent disappointing performance is part of an 80% drop over the past three years.
Duluth Basics
Duluth is a lifestyle brand designed for the ‘modern, self-reliant American.’ The Wisconsin-based firm sells quality, solution-based workwear and casual wear, alongside accessories for men and women. Duluth sells everything from rain jackets and vests to flannels and underwear. Duluth also sells supplies such as toolboxes and much more.
Duluth posted a nice stretch of growth between its IPO in late 2015 through 2019. DLTH still posted solid top-line expansion for a few years after that run. But DLTH has faded recently, with sales down 6.5% in 2022 and 1% lower in FY23. The company also tumbled from adjusted earnings of +$0.07 a share in FY22 to a loss of -$0.28 per share last year.
Image Source: Zacks Investment Research
Duluth posted an adjusted loss of -$0.24 per share in the first quarter of FY24, falling well short of our -$0.14 estimate. “Despite some key quarter wins, we are not satisfied with our first quarter results which fell short of our internal expectations,” CEO Sam Sato said in prepared remarks.
“Our top-line quarter performance, at a decline of 5.7%, was hampered by challenging traffic and a sub-par in-stock position following stronger than expected unit selling late in the fourth quarter. We took swift action to improve our in-stock position in core items, which improved throughout the quarter and into the second quarter to date.”
Duluth’s FY24 earnings outlook has tumbled from +$0.20 a share a year ago to -$0.23 per share today. On top of that, DLTH’s FY25 estimate has dropped from +$0.05 as recently as April to -$0.05 today.
Bottom Line
Duluth’s downward earnings revisions help it land a Zacks Rank #5 (Strong Sell) right now. Duluth stock has fallen 80% over the past three years to trade near its Covid selloff lows.
DLTH stock is trading below its 50-day and 200-day moving averages, and its Textile – Apparel industry is in the bottom 22% of over 250 Zacks industries. Therefore, it might be best to stay away from Duluth right now.