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Duluth Holdings Inc. (DLTH-1.66%) has submitted its Form 10-K filing for the fiscal year ended February 2, 2025.
The filing reports a decrease in net sales to $626.6 million, down 3.1% from $646.7 million in the previous year. The decline was attributed to lower average unit retail prices and processing delays at a legacy fulfillment center.
Gross profit for the year was $308.5 million, representing 49.2% of net sales, compared to 50.3% in the previous year. The decrease in gross margin was primarily due to a lower mix of full-price sales.
Selling, general, and administrative expenses increased slightly to $337.6 million from $334.5 million, accounting for 53.9% of net sales, up from 51.7% the previous year.
The company reported a net loss of $43.6 million, compared to a net loss of $9.9 million in the previous year. The increase in net loss was due to the factors affecting sales and gross profit.
Adjusted EBITDA decreased to $14.6 million from $32.7 million in the previous year, reflecting the impact of reduced sales and increased expenses.
Duluth Holdings operates 62 retail stores and three outlet stores as of the end of the fiscal year. The company continues to focus on its omnichannel strategy to integrate its sales channels.
The filing also notes the company's reliance on third-party vendors for merchandise manufacturing, with 43% of purchases coming from its largest supplier.
Duluth Holdings identified a material weakness in its internal controls over financial reporting related to its deferred tax assets.
The company does not anticipate paying cash dividends to common stockholders in the foreseeable future.
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. annual 10-K report dated March 24, 2025. To report an error, please email earnings@qz.com.