Breaking Down Duluth Holdings Inc. (DLTH) Financial Health: Key Insights for Investors

Breaking Down Duluth Holdings Inc. (DLTH) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Apparel - Retail | NASDAQ

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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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