DLTH - Duluth sees strengthening Q1 gross margin amid omnichannel model efficiency

Duluth (NASDAQ:DLTH) saw a drop in Q1 net sales to $122.9M from $133.4M in prior year quarter with retail store net sales increased slightly by 0.4% to $45.2M. Direct-to-consumer net sales decreased by 12.1% to $77.7M led by heavier clearance sales, coupled with continued supply chain disruptions during the prior year. Direct-to-consumer net sales decreased 18.8% and 22.9% in fiscal February and March, respectively with April ending strong with direct-to-consumer net sales increasing 10.8% as its inventory position continues to improve. Net sales in store markets decreased 5.4% to $85.1M and in non-store markets decreased by 12.5%. Gross profit increased 0.8% to $67.1M while gross margin improved 470 basis points to 54.6% led by company's omnichannel model efficiency. Net loss stood at $1.3M or $0.04/share compared to net income of $0.5M or $0.02/share in year ago quarter; excluding the $3.9 million carryover of freight costs, net income would have been $1.6M, or $0.05/share.

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Duluth sees strengthening Q1 gross margin amid omnichannel model efficiency