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Duluth Holdings Inc. (DLTH) has submitted its 10-Q filing for the quarterly period ended October 27, 2024.
The filing reports a decrease in net sales to $127.1 million for the third quarter of fiscal 2024, down from $138.2 million in the same quarter of the previous year. This decline was primarily attributed to lower web conversion rates and decreased store traffic.
Gross profit for the quarter was $66.4 million, a decrease from $69.4 million in the prior year. However, the gross margin increased to 52.3% from 50.2% due to sourcing initiatives.
Selling, general and administrative expenses increased slightly to $82.9 million from $81.8 million, representing 65.2% of net sales compared to 59.2% in the previous year. This increase was driven by higher advertising costs.
A restructuring expense of $6.2 million was recorded during the quarter, contributing to an operating loss of $22.6 million, compared to a loss of $12.4 million in the previous year.
Interest expense for the quarter was $1.3 million, consistent with the previous year's $1.2 million.
The company reported a net loss of $28.5 million for the quarter, compared to a net loss of $10.5 million in the same period last year. The increased loss was partly due to a $10.1 million valuation allowance on deferred tax assets.
For the nine months ended October 27, 2024, net sales decreased to $385.4 million from $401.1 million in the prior year. Gross profit for the period was $202.0 million, down from $206.5 million, with a gross margin increase to 52.4% from 51.5%.
Selling, general and administrative expenses for the nine-month period increased to $229.7 million from $224.9 million, including a $2.4 million non-recurring sales tax expense.
The company reported a net loss of $40.1 million for the nine-month period, compared to a net loss of $16.4 million in the prior year. The loss includes $7.7 million in restructuring expenses.
Cash used in operating activities for the nine months was $58.1 million, primarily due to increased inventory and trade accounts payable. Net cash used in investing activities was $5.7 million, while net cash provided by financing activities was $41.0 million.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Duluth Holdings Inc. quarterly 10-Q report dated December 6, 2024. To report an error, please email earnings@qz.com.