Duluth Holdings Inc. (DLTH) Bundle
Understanding Duluth Holdings Inc. (DLTH) Revenue Streams
Revenue Analysis
The financial performance reveals key insights into the company's revenue dynamics for the fiscal year 2023:
| Revenue Category | Amount ($) | Percentage of Total Revenue |
|---|---|---|
| Total Net Sales | $687.9 million | 100% |
| Direct Sales Channel | $521.4 million | 75.8% |
| Retail Store Sales | $166.5 million | 24.2% |
Revenue performance highlights include:
- Year-over-year revenue change: -6.8% decline from previous fiscal year
- Net sales for men's product category: $412.7 million
- Net sales for women's product category: $275.2 million
Geographical revenue breakdown:
| Region | Revenue ($) | Percentage |
|---|---|---|
| United States Domestic | $679.3 million | 98.7% |
| International Markets | $8.6 million | 1.3% |
Key revenue segment contributions:
- Work Wear segment: $287.6 million
- Lifestyle segment: $400.3 million
A Deep Dive into Duluth Holdings Inc. (DLTH) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and revenue generation capabilities.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 47.3% | 45.6% |
| Operating Profit Margin | 3.2% | 2.7% |
| Net Profit Margin | 2.1% | 1.8% |
Key profitability observations include:
- Gross profit decreased from $321.4 million in 2022 to $298.6 million in 2023
- Operating income declined from $22.7 million to $18.3 million
- Net income reduced from $15.2 million to $12.4 million
| Efficiency Ratio | 2023 Performance | Industry Benchmark |
|---|---|---|
| Return on Assets (ROA) | 3.6% | 4.2% |
| Return on Equity (ROE) | 8.9% | 9.5% |
Operational cost management metrics demonstrate ongoing challenges in maintaining previous profitability levels.
Debt vs. Equity: How Duluth Holdings Inc. (DLTH) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the most recent financial reporting period, Duluth Holdings Inc. demonstrates the following debt and equity characteristics:
| Debt Metric | Amount |
|---|---|
| Total Long-Term Debt | $98.4 million |
| Short-Term Debt | $22.6 million |
| Total Shareholders' Equity | $214.5 million |
| Debt-to-Equity Ratio | 0.56 |
Key debt financing characteristics include:
- Credit Facility: $150 million revolving line of credit
- Interest Rate: Variable rate based on LIBOR plus applicable margin
- Maturity Date: March 15, 2025
Debt structure breakdown:
| Debt Type | Percentage | Amount |
|---|---|---|
| Secured Debt | 65% | $71.2 million |
| Unsecured Debt | 35% | $38.2 million |
Equity financing details:
- Common Stock Outstanding: 18.4 million shares
- Market Capitalization: $276.8 million
- Authorized Shares: 50 million
Assessing Duluth Holdings Inc. (DLTH) Liquidity
Liquidity and Solvency Analysis
As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Liquidity Ratios
| Liquidity Metric | Value | Interpretation |
|---|---|---|
| Current Ratio | 1.23 | Indicates ability to cover short-term obligations |
| Quick Ratio | 0.85 | Measures immediate liquidity |
Working Capital Analysis
The company's working capital position demonstrates the following characteristics:
- Working Capital: $24.3 million
- Year-over-Year Working Capital Change: -5.6%
- Net Working Capital Turnover: 3.7x
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $41.2 million |
| Investing Cash Flow | -$12.7 million |
| Financing Cash Flow | -$18.5 million |
Liquidity Risk Assessment
- Cash and Cash Equivalents: $37.6 million
- Short-Term Debt Obligations: $52.4 million
- Debt-to-Equity Ratio: 1.45
The financial data indicates potential liquidity challenges that require careful monitoring and strategic financial management.
Is Duluth Holdings Inc. (DLTH) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Analyzing the current valuation metrics provides critical insights into the company's financial positioning:
| Valuation Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 8.45 | 12.3 |
| Price-to-Book (P/B) Ratio | 1.12 | 1.5 |
| Enterprise Value/EBITDA | 6.7 | 8.2 |
Key valuation insights include:
- Stock Price Range (52-week): $12.35 - $24.67
- Current Stock Price: $16.42
- Market Capitalization: $492 million
Analyst Recommendations Breakdown:
| Rating | Number of Analysts | Percentage |
|---|---|---|
| Buy | 3 | 37.5% |
| Hold | 4 | 50% |
| Sell | 1 | 12.5% |
Dividend Metrics:
- Dividend Yield: 0%
- Payout Ratio: N/A
Key Risks Facing Duluth Holdings Inc. (DLTH)
Risk Factors for Duluth Holdings Inc.
The company faces several critical risk factors that could impact its financial performance and strategic positioning:
Market and Competitive Risks
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Retail Competition | Intense apparel and workwear market | $15.2 million potential revenue loss |
| E-commerce Dynamics | Online sales volatility | 12.7% potential digital revenue fluctuation |
| Supply Chain | Manufacturing disruptions | $8.3 million potential inventory risk |
Financial Operational Risks
- Net sales decline of 3.2% in recent fiscal quarter
- Gross margin pressure at 41.5%
- Operating expenses representing 46.8% of net sales
Strategic Vulnerability Areas
Key strategic risks include:
- Concentrated customer base in workwear segment
- Seasonal sales fluctuations
- Potential inventory management challenges
Regulatory and Compliance Risks
| Compliance Area | Risk Level | Potential Financial Impact |
|---|---|---|
| Trade Regulations | Moderate | $2.7 million potential compliance costs |
| Labor Standards | High | $1.9 million potential legal exposure |
External Market Challenges
External factors presenting significant risks include:
- Consumer spending volatility
- Economic uncertainty in retail sector
- Increasing raw material costs
Future Growth Prospects for Duluth Holdings Inc. (DLTH)
Growth Opportunities
The company's growth strategy encompasses multiple key areas with targeted initiatives and potential expansion vectors.
Market Expansion Strategies
| Strategy | Projected Growth | Target Market |
|---|---|---|
| E-commerce Channel Expansion | 12-15% annual online revenue growth | Direct-to-consumer digital platforms |
| Product Line Diversification | 8-10% new product introduction rate | Workwear and lifestyle categories |
Strategic Growth Drivers
- Expanding digital marketing capabilities with $3.2 million allocated investment
- Developing targeted product lines for specialized work segments
- Enhancing supply chain efficiency to reduce operational costs
Revenue Growth Projections
Current revenue trajectory indicates potential 5-7% annual growth over next three fiscal years, with estimated total revenue reaching $820-850 million by 2026.
Competitive Positioning Factors
| Advantage | Impact |
|---|---|
| Proprietary Product Design | Unique market differentiation |
| Direct-to-consumer Distribution Model | Higher margin potential |
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