|Over a month ago|
Duluth Holdings 'unable to provide' earnings guidance » 08:3306/0406/04/20
Given the unpredictability of the effects of the COVID-19 pandemic on, among other things, consumer behavior, store traffic, store closings, production capabilities, timing of deliveries, our people, economic activity and the market generally in the coming weeks and months, the Company is unable to provide specific earnings guidance at this time. In response to expected impacts to sales plans, the Company has reduced its planned capital spend levels by 50% to approximately $15M primarily by decreasing fiscal 2020 new store openings to four and deferring certain technology and infrastructure projects, as well as continuing to focus on managing expense, extending payment terms and adjusting inventory receipt plans.
Duluth Holdings reopens 58 of 62 retail stores in some capacity as of June 4 08:3306/0406/04/20
Duluth Holdings reports Q1 EPS (47c), consensus (42c) » 08:3206/0406/04/20
Reports Q1 revenue…
Reports Q1 revenue $109.9M, consensus $91.94M. Retail store net sales decreased 51.8% due to the temporary closure of all stores for approximately seven weeks due to the COVID-19 pandemic. "I am proud of our Duluth team's resiliency and swift call to action during this major shock to the system from the COVID-19 pandemic. We were able to seamlessly pivot our resources to support the direct business and fill customer demand at levels we don't typically see outside of the peak holiday season. As people sheltered in place, the surge we saw in online demand was significant and it drove direct product sales to increase 32% year-over-year in Q1. While our stores were closed during the month of April, total company sales for April exceeded last year by over 5%," said Steve Schlecht, Executive Chairman and Chief Executive Officer of Duluth Trading. "Our stores are now open for business with health and safety precautions in place for customers and employees. Given the success we've seen in our omnichannel sales during this time, we have high conviction in the strength of the Duluth Trading brand and are excited about our future."
Duluth Holdings cuts FY20 capex plan in half to about $15M » 17:5005/0405/04/20
The company negotiated an…
The company negotiated an incremental delayed draw term loan of $20.5M that will be available to be drawn before April 29, 2021 and also amended its loan covenants to allow for greater flexibility during its peak borrowing periods this year. Measures to manage cash flows and other expenses that were previously disclosed in our April 10th press release have been implemented and are expected to lead to cost savings and a sizable reduction in our cash burn due to the temporary store closures. The company's liquidity position as of May 4, 2020 has improved since April 10 with $85M outstanding on its line of credit, $7M of cash on its balance sheet and an additional $20.5M of borrowings now available on its $150M credit facility. The company's capital expenditure plans for 2020 have been cut in half and are expected to be close to $15M.
Duluth Holdings to reconvene Annual Meeting of Shareholders to July 13 » 08:1204/2404/24/20
Duluth Holdings announced…
Duluth Holdings announced the Company plans to reconvene its 2020 Annual Meeting of Shareholders to July 13, 2020 to reflect public health concerns relating to the COVID-19 pandemic as well as recent government actions, including the 'Safer at Home' order extended until May 26, 2020 in the state of Wisconsin, where the Company is domiciled. In accordance with the Company's bylaws and Wisconsin law, the Chairman of Duluth Trading intends to convene and immediately adjourn the Annual Meeting initially scheduled for May 21, 2020. There will be no further business conducted on May 21, 2020. The Chairman will then formally reconvene the Annual Meeting on July 13, 2020.
Duluth announces permanent 10% staff reduction amid COVID-19 pandemic » 09:2804/1204/12/20
Duluth Holdings announced…
Duluth Holdings announced "additional measures to ensure its business and financial resiliency during the rapidly escalating impact of the COVID-19 pandemic." As previously reported, the company closed its stores on March 20 to protect its employees and customers. As a result, hourly store employees were temporarily laid off and provided with two weeks of pay. They will have the opportunity to be re-hired as soon as the retail stores are safe to re-open in accordance with state and local regulations. Duluth said it continues to serve its customers through its online business, and its distribution centers remain fully operational. On April 6, the company provided staff at its distribution centers with a $2.50 hourly premium while Duluth Trading stores remain closed. Additional measures to ensure business and financial resiliency include: Six-month pay reduction for senior leadership ranging from 10 to 20 percent; CEO Steve Schlecht will waive all cash compensation for the balance of fiscal 2020; The Board of Directors will forego cash retainers for the second and third quarters; Furloughs of varying lengths with benefits intact for 68% of salaried staff; A permanent 10 percent reduction in corporate staff; All operating expenses are under review including price concessions with vendors and reductions in lease expense for its fleet of retail stores; To curtail capital expenditures, the Company now plans to open four stores in fiscal year 2020, reducing its previously disclosed plan by one store. The company's liquidity position as of April 10 is $85M outstanding on its $130M line of credit and $13M in cash balance.
|Over a quarter ago|
Duluth Holdings closing remaining stores amid COVID-19 outbreak » 12:5103/2203/22/20
Duluth Holdings announced…
Duluth Holdings announced a business update related to COVID-19. Steve Schlecht, Executive Chairman and Chief Executive Officer of Duluth Trading said that, "The health and safety of our employees and customers is of utmost importance. What's clear to me is that we are just at the threshold of the COVID-19 virus working its way through our society and economy. Under the guidance of local governments, we recently closed eight stores. Today we made the decision to temporarily close our remaining stores beginning tonight at 6:00 p.m. local time. Under the circumstances, there is no timeline for reopening our Duluth Trading stores, but we will do so as soon as conditions allow. Until then, please exercise every precaution for the well-being of your family, friends and neighbors." The company will close its stores nationwide and will reopen as soon as conditions allow. The company will support sales associates with two calendar weeks of pay. Approximately 50% of Duluth Trading's sales are generated through its website and shipped directly to customers from its distribution centers. The company plans to keep these mission-critical facilities open with heightened concern for employee health and safety.
Fly Intel: Pre-market Movers » 09:0603/2003/20/20
UAL, HTZ, CAR, HIBB, CRWD, OLLI, DLTH
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Duluth Holdings downgraded to Neutral, Baird says bull case no longer present » 08:3703/2003/20/20
Baird analyst Jonathan…
Baird analyst Jonathan Komp downgraded Duluth Holdings to Neutral from Outperform as he believes its upside case is no longer present. The analyst was disappointed with its soft Q4 results as sales/margins headwinds remain persistent. He believes the brand retains long-run value and is trading well below takeout norms, but he sees a difficult near-term road ahead given reduce financial flexibility while trying to manage expenses. Komp lowered his price target to $5 from $17 on Duluth Holdings shares.
Duluth Holdings downgraded to Neutral from Outperform at Baird » 06:1403/2003/20/20
Baird analyst Jonathan…
Baird analyst Jonathan Komp downgraded Duluth Holdings to Neutral from Outperform with a $5 price target.