DLTH - Duluth Holdings soars expands gross margin despite supply chain challenges

Duluth Holdings (DLTH +13.0%) shares trade up as the company reports a beat on both the top and bottom lines and raises its full-year guidance. Net sales increased 7.2% Y/Y to $145.3M and increased 21.3% when compared to the same period in 2019. Gross margin improved 520 bps to 57.6% compared to 52.4% in the prior year third quarter. As a percentage of net sales, selling, general and administrative expenses increased to 54.2%, compared to 50.3% in the corresponding prior year period, due to higher personnel costs and increased advertising expense. CEO Sam Sato: "Our third quarter results reflect continued strength in customer demand for our core product offering and strong operating performance in the face of supply chain disruptions. We are encouraged with the holiday selling trends to date and expect to end the year strong." Read the company's boosted full-year guidance here.

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Duluth Holdings soars, expands gross margin despite supply chain challenges