Fri, Jun 6, 4:00 PM (10 days ago)
**Duluth Holdings Inc. (DLTH) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $102.7 million, down 12% YoY due to decreased web traffic and slower promotional activity. - **Gross Profit:** $53.4 million, down 13.4% YoY, with a gross margin of 52%. - **Operating Loss:** $12.4 million, wider than the $8.97 million loss in Q1 2024. - **Net Loss:** $15.3 million, compared to $7.9 million in Q1 2024. - **Adjusted EBITDA:** $(3.8) million, down from $1.8 million in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $(56.5) million, primarily due to changes in working capital. - **Investing Cash Flow:** $(1.3) million, mainly for capital expenditures. - **Financing Cash Flow:** $63.0 million, primarily from borrowings under the revolving line of credit. **Profit Margins:** - **Gross Margin:** 52%, down from 52.8% in Q1 2024. - **Operating Margin:** -12%, compared to -7.7% in Q1 2024. **Earnings Changes:** - **EPS:** $(0.45), compared to $(0.24) in Q1 2024. **Trends & Uncertainties:** - **Economic Conditions:** Inflation, tariff concerns, and recessionary pressures impact consumer demand and store traffic. - **Inventory Management:** Focus on optimizing inventory levels and direct-to-factory sourcing. - **Seasonality:** Fourth quarter typically has the most significant impact on cash flow from operating activities. **Future Operations Impact:** - **Capital Expenditures:** Approximately $17.0 million expected in fiscal 2025, primarily for logistics optimization and IT investments. - **Liquidity:** Cash flow from operations and credit facility availability expected to cover working capital requirements and capital expenditures. **Management's Outlook:** - **Sales:** Decline in net sales driven by decreased web traffic and slower promotional activity. - **Cost Management:** Decrease in selling, general, and administrative expenses, partially offset by decreased net sales. - **Taxes:** Income tax expense impacted by a valuation allowance on deferred tax assets. **Ticker:** DLTH **Full Name:** Duluth Holdings Inc.