Duluth Holdings Inc. | $DLTH Stock | Shares Fall On Lower Than Expected Revenue Numbers


Duluth Holdings Inc. (NASDAQ: DLTH)



Duluth Holdings Inc. (DLTH), a national casual wear, workwear, and accessories for men and women company yesterday reported their fiscal third quarter 2016 financial results. Duluth reported third quarter earnings of $0.01 per share which beat analyst expectations of break even. Duluth reported third quarter revenues of $67 million which fell short of analyst expectations of $69 million.


Duluth Holdings Inc. CEO’s Comments

“While we have achieved 27 consecutive quarters of increased net sales year-over-year, third-quarter net sales fell short of our expectations. In the latter part of September and through the quarter end in October, we experienced unusually warm weather that extended across the country and this had an impact on our total net sales for the third quarter. This unseasonable weather, coupled with a highly promotional environment, continued into early fourth quarter. As a result, we are revising our 2016 fiscal full-year guidance and now expect net sales in the range of $360 million to $370 million, with corresponding revisions to our EPS and Adjusted EBITDA,” said Stephanie Pugliese, Chief Executive Officer of Duluth Trading.

“Despite the challenging environment we are experiencing right now, our entire team has been operating at the highest level to ensure customer satisfaction and brand integrity. I am especially proud of our team’s execution on opening seven new stores during fiscal 2016, which exceeded our original expectation of three to five new stores this year. In the third quarter we opened three new stores and recently opened two more during the fourth quarter, one in Manassas, Virginia, a suburb of Washington D.C., and the other in Independence, Missouri, a suburb of Kansas City, which brings our total store count to 16. Retail expansion is one of the key drivers of our growth strategy and this year we have successfully expanded our retail presence into large metro markets, as well as establishing a foothold in the Eastern U.S. market where we have a sizable concentration of Duluth customers. We have a proven business model and a strong foundation for growth that makes us confident in delivering our long-term financial goals. ”   Globe Newswire


DLTH Technical Analysis

Duluth Holdings

DLTH opened trading yesterday at $34.14 which was up from the previous day’s trading close of $33.95. DLTH closed trading yesterday at $37.04 and crashed down after market to $31.76, equivalent to a 14% decrease from the closing price. Taking a look at the daily chart we can see that the last time DLTH traded below these levels we have to go back to November 11th when it traded at  $30.38. Taking a closer look at the daily chart we can see that before the spike down DLTH had been in an overall upward trend dating back to November 8th when it traded at $26.86. DLTH has a float of 9.45 million shares and traded 2.73 times the normal daily trading volume on Thursday. For trading purposes, I would like to see DLTH open trading on Friday below $33.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.35 from my entry position fearing anything more than that and the stock would start to fill in the gap down. My friend Ross over at Warrior Trading is applying his Day Trading Strategies to these types of stocks and calling them out in his day trading chat room.


Company Profile

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Bucket Master, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Company, Duluthflex, Fire Hose, Longtail T, No Polo Shirt, Wild Boar Mocs, and Buck Naked. Duluth Holdings Inc. markets its products through its Website, catalogs, and retail stores. As of November 3, 2016, it operated 15 retail stores. The company was formerly known as GEMPLER’S, Inc. and changed its name to Duluth Holdings Inc. Duluth Holdings Inc. was founded in 1989 and is headquartered in Belleville, Wisconsin.  Yahoo Finance