Duluth Holdings Inc (NASDAQ:DLTH) reported downbeat results for its fourth quarter and issued weak FY19 earnings forecast.
The Mount Horeb, Wisconsin-based company, a lifestyle brand of men’s and women’s casual wear, workwear and accessories, today announced net sales increased 15.0% to $250.5 million compared to $217.8 million in the prior-year fourth quarter, includes $7.7 million of net sales from 53rd week.
It’s the company’s 36th consecutive quarter of increased net sales year-over-year. The increase was driven by a 5.4% growth in direct net sales and a 38.9% growth in retail net sales, with growth in virtually all product categories and in both men’s and women’s business.
Operating income increased 2.6% to $30.3 million, or 12.1% of net sales, compared to $29.5 million, or 13.6% of net sales in the prior-year fourth quarter. Net income was $20.8 million, or $0.64 per diluted share, compared to $19.5 million, or $0.60 per diluted share in the prior-year fourth quarter
And DLTH has been busy of late, opening three new retail stores in Oklahoma City, South Portland, Maine and Cary, North Carolina, totaling approximately 40,000 gross square feet
Said CEO Stephanie Pugliese, "We began 2018 with several objectives including revenue growth and implementation of key infrastructure improvements that will support continued expansion of the Duluth Trading brand.
"While we achieved solid growth in 2018 and marked our 36th consecutive quarter of increased net sales year-over-year, we faced some challenges in the fourth quarter that pressured our full year results."
Shares were battered, losing $4.27, or 18.1%, to $19.27
