Work apparel retailer Duluth Holdings Inc. (DLTH, Financial) reported its performance for the second quarter after the market closed on Sept. 5.
The Belleville, Wisconsin-based company, which operates Duluth Trading Co., posted EPS of 13 cents per share, beating estimates of 10 cents. Revenue of $86.2 million beat expectations of $82.2 million and increased 31% from the prior-year quarter.
The stock, which closed at $19.75 on Tuesday, was up more than 5% on Wednesday morning.
The trend in the company’s revenue growth since 2014 is illustrated in the graph below.
CEO Stephanie Pugliese praised the company’s progress, saying it had recorded its 30th consecutive quarter of positive net sales growth.
“We drove a 35% increase in new customer acquisition year over year as we continue to invest in our omnichannel model and in growing our brand awareness with our direct marketing efforts and with geographical expansion of our retail stores,” she said.
During the quarter, Duluth opened three new stores. It plans to open six more locations throughout the remainder of the year, bringing the total to 15 new stores in fiscal 2017.
“We believe our retail strategy is working, as our new stores continue to attract new customers to the brand and are performing exceptionally well,” Pugliese said.
For the year, the company projects between $455 million and $465 million in revenue. EPS is expected to range from 66 cents to 71 cents per share. Adjusted EBITDA is forecasted to come in between $47 million and $49.5 million.
With 0.16% of outstanding shares, Jim Simons (Trades, Portfolio) is the company’s only guru shareholder. He established the holding in the second quarter. In contrast, Steven Cohen (Trades, Portfolio) and Chuck Akre (Trades, Portfolio) exited their positions.
Disclosure: I do not own the stock mentioned.
