Duluth Holdings Inc. | $DLTH Stock | Shares Fall as Company Reports Lower than Expected Earning

Duluth Holdings Inc.

Duluth Holdings Inc. (NASDAQ :DLTH)



Duluth Holdings Inc. (DLTH), a national company that sells casual wear, workwear, and accessories yesterday  reported their fiscal first quarter financial results. Duluth reported a first quarter earnings of $355,000.

Duluth reported first quarter earnings of $0.01 per share which fell short of analyst expectations of  $0.06 per share. Duluth reported first quarter revenues of $83.7 million which beat analyst expectations of $82.9 million.


Duluth Holdings Inc. CEO’s  Comments

“We made several investments in the business this quarter that impacted SG&A in the short term but will benefit us long term.  On the retail side of the business, we continue to make great progress in expanding our geographical footprint and omni-channel presence. This quarter we opened four new stores to serve customers in the Indianapolis, Boston, Detroit and Providence markets, and these new stores are performing exceptionally well.  In fiscal 2017, we now expect to open a total of 12 retail stores and one outlet store.  In addition to the expansion of retail, we invested in the growth of our women’s business through incremental spend in women’s TV advertising, continuing to grow that part of the business and bringing new brand fans to the customer base”  Globe Newswire


DLTH Technical Analysis

Duluth Holdings Inc

DLTH opened trading yesterday at $20.70 which was up from the previous day’s trading close of $20.63. DLTH closed trading yesterday at $20.57 and crashed down after market to $18.34, equivalent to a 11% decrease from the closing price. Taking a look at the daily chart we can see the last time DLTH traded below these levels we have to go back to March 16th when it traded at lows of $18.25.

Taking a closer look at the daily chart we can see that before the spike down DLTH had already been in an overall downward trend dating back to December 8th, 2016 when it traded at $37.04. DLTH has a float of 9.55 million shares and traded 2.39 times the normal daily trading volume on Tuesday.

For day trading purposes, I would like to see DLTH open trading on Wednesday below $19.15 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.


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 April 27, 2017, it operated 20 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