DULUTH (DLTH) has reported 20.22 percent fall in profit for the quarter ended Jan. 29, 2017. The company has earned $13.99 million, or $0.43 a share in the quarter, compared with $17.54 million, or $0.58 a share for the same period last year.
Revenue during the quarter grew 24.42 percent to $174.65 million from $140.38 million in the previous year period. Gross margin for the quarter contracted 71 basis points over the previous year period to 55.42 percent. Total expenses were 86.91 percent of quarterly revenues, up from 86.47 percent for the same period last year. That has resulted in a contraction of 45 basis points in operating margin to 13.09 percent.
Operating income for the quarter was $22.86 million, compared with $19 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $24.68 million compared with $20.12 million in the prior year period. At the same time, adjusted EBITDA margin contracted 20 basis points in the quarter to 14.13 percent from 14.33 percent in the last year period.
"I am pleased to report that net sales increased 24% with adjusted EBITDA up 21% and GAAP diluted earnings per share at $0.66 for the full year. While we experienced unseasonably warm weather early in the fourth quarter, we had a very positive customer response when the weather turned in late December and the holiday season arrived. I am extremely proud of how well our team delivered an outstanding Duluth omnichannel experience to our customers," said Stephanie Pugliese, chief executive officer of Duluth Trading.
For financial year 2017, DULUTH projects revenue to be in the range of $455 million to $465 million. The company forecasts diluted earnings per share to be in the range of $0.66 to $0.71.
Operating cash flow improves significantlyDULUTH has generated cash of $20.25 million from operating activities during the year, up 42.49 percent or $6.04 million, when compared with the last year. The company has spent $30.34 million cash to meet investing activities during the year as against cash outgo of $7.36 million in the last year.
The company has spent $3.74 million cash to carry out financing activities during the year as against cash inflow of $23.14 million in the last year period.
Cash and cash equivalents stood at $24.04 million as on Jan. 29, 2017, down 36.52 percent or $13.83 million from $37.87 million on Jan. 31, 2016.
Working capital declines
DULUTH has witnessed a decline in the working capital over the last year. It stood at $66.13 million as at Jan. 29, 2017, down 10.28 percent or $7.57 million from $73.70 million on Jan. 31, 2016. Current ratio was at 2.88 as on Jan. 29, 2017, down from 3.99 on Jan. 31, 2016.
Cash conversion cycle (CCC) has increased to 36 days for the quarter from 33 days for the last year period.
Days inventory outstanding was almost stable at 41 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 5 days for the quarter from 8 for the same period last year.
Debt comes down significantlyDULUTH has recorded a decline in total debt over the last one year. It stood at $0.78 million as on Jan. 29, 2017, down 84.53 percent or $4.25 million from $5.02 million on Jan. 31, 2016. Total debt was 0.50 percent of total assets as on Jan. 29, 2017, compared with 4.16 percent on Jan. 31, 2016. Debt to equity ratio was at 0.01 as on Jan. 29, 2017, down from 0.06 as on Jan. 31, 2016. Interest coverage ratio improved to 265.76 for the quarter from 237.44 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
