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06/07/2017

Specialty apparel retailer Q1 sales up 22%

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Duluth Trading Company continues to grow its sales and store footprint.



The retailer of men’s and women’s workwear, casual clothing, and accessories reported that net sales increased 21.9% to $83.7 million in the quarter ended April 30, up from $68.6 million in the prior-year first quarter. It was the company's 29th consecutive quarter of increased net sales year-over-year.



Net income fell to $0.4 million, or $0.01 per diluted share, compared to $3.2 million, or $0.10 per diluted share in the year-ago period.



“Our first quarter results were in-line with our expectations and we remain on track to deliver on our 2017 financial guidance,” said Stephanie Pugliese, CEO of Duluth Trading. “We made several investments in the business this quarter that impacted SG&A in the short term but will benefit us long term."



On the retail side of the business, the retailer said it continues to make "great progress" in expanding its geographical footprint and omnichannel presence.



"This quarter we opened four new stores to serve customers in the Indianapolis, Boston, Detroit and Providence markets, and these new stores are performing exceptionally well," Pugliese said. "In fiscal 2017, we now expect to open a total of 12 retail stores and one outlet store."



In addition to the expansion of retail, Duluth launched a women's TV advertising campaign in the first quarter as it continues to grow that part of its business.



The company reaffirmed its fiscal 2017 outlook, forecasting net sales in the range of $455.0 million to $465.0 million.



Duluth describes itself as a lifestyle brand for the modern, self-reliant American, offering high-quality, solution-based apparel for men and women who lead a hands-on lifestyle and value a job well-done. The company strives to offer customers an engaging and entertaining in-store experience.