Fri, Aug 30, 6:26 PM (137 days ago)
Duluth Holdings Inc. reported a challenging second quarter for fiscal 2024, ending July 28, with net sales of $141.6 million, a 1.8% increase year-over-year, but a decline of 1.7% in the first half to $258.3 million. The company incurred a net loss of $3.7 million in Q2, worsening from a $2.0 million loss in the previous year, while the six-month loss rose to $11.6 million from $5.9 million. Gross profit improved to $74.0 million, with a gross margin of 52.3%, attributed to sourcing initiatives. Selling, general, and administrative expenses rose by 4.6% to $76.3 million, influenced by a non-recurring $2.4 million sales tax expense. Adjusted EBITDA increased to $10.6 million, reflecting operational efficiencies despite a decrease in overall profitability. Liquidity concerns are evident, with net cash used in operating activities at $17.1 million, primarily due to a significant inventory increase. The company maintains a credit facility to support future operations, but economic uncertainties and inflation remain key risks impacting performance.