Duluth Holdings Inc. (DLTH) has reported 89.05 percent plunge in profit for the quarter ended Apr. 30, 2017. The company has earned $0.36 million, or $0.01 a share in the quarter, compared with $3.24 million, or $0.10 a share for the same period last year. Revenue during the quarter grew 21.94 percent to $83.69 million from $68.63 million in the previous year period. Gross margin for the quarter expanded 29 basis points over the previous year period to 58.12 percent. Total expenses were 99.10 percent of quarterly revenues, up from 92.22 percent for the same period last year. That has resulted in a contraction of 689 basis points in operating margin to 0.90 percent.
Operating income for the quarter was $0.75 million, compared with $5.34 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.68 million compared with $6.56 million in the prior year period. At the same time, adjusted EBITDA margin contracted 635 basis points in the quarter to 3.20 percent from 9.56 percent in the last year period.
"I am pleased to report that net sales increased 22% over the prior year quarter, which marks our 29th consecutive quarter of increased sales year- over- year," said Stephanie Pugliese, chief executive officer of Duluth Trading.
Duluth Holdings Inc. projects revenue to be in the range of $455 million to $465 million for financial year 2017. For fiscal year 2017, Duluth Holdings Inc. expects net income to be in the range of $21.50 million to $23 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.66 to $0.71.
Operating cash flow remains negativeDuluth Holdings Inc. has spent $3.54 million cash to meet operating activities during the quarter as against cash outgo of $3.83 million in the last year period. The company has spent $7.69 million cash to meet investing activities during the quarter as against cash outgo of $3.48 million in the last year period.
Cash flow from financing activities was $0.77 million for the quarter as against cash outgo of $0.26 million in the last year period.
Cash and cash equivalents stood at $13.58 million as on Apr. 30, 2017, down 55.17 percent or $16.72 million from $30.30 million on May 01, 2016.
Working capital declines
Duluth Holdings Inc. has witnessed a decline in the working capital over the last year. It stood at $59.14 million as at Apr. 30, 2017, down 15.94 percent or $11.21 million from $70.35 million on May 01, 2016. Current ratio was at 2.61 as on Apr. 30, 2017, down from 4.09 on May 01, 2016.
Cash conversion cycle (CCC) has decreased to 71 days for the quarter from 151 days for the last year period. Days sales outstanding were almost stable at 1 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 98 days for the quarter compared with 179 days for the previous year period. At the same time, days payable outstanding was almost stable at 28 days for the quarter, when compared with the previous year period.
Debt moves up
Duluth Holdings Inc. has witnessed an increase in total debt over the last one year. It stood at $5.53 million as on Apr. 30, 2017, up 11.80 percent or $0.58 million from $4.95 million on May 01, 2016. Total debt was 3.46 percent of total assets as on Apr. 30, 2017, compared with 4.16 percent on May 01, 2016. Debt to equity ratio was almost stable at 0.05 as on Apr. 30, 2017, when compared with the last year. Interest coverage ratio deteriorated to 4.51 for the quarter from 140.55 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
