Retail store net sales also dropped by 6.8 per cent to $41.2 million, attributed to slower store traffic, although this was partially offset by strong conversion rates, the company said in a media release.
Duluth Holdings reported a 5.7 per cent decline in Q1 FY24 net sales to $116.7 million, with direct-to-consumer sales down 5.1 per cent and retail store sales down 6.8 per cent.
Gross profit fell to $61.6 million.
The company’s net loss was $7.9 million and adjusted EBITDA was $1.8 million.
Selling, general, and administrative expenses rose 0.6 per cent.
Gross profit decreased to $61.6 million, or 52.8 per cent of net sales, compared to $65.7 million, or 53 per cent of net sales, in the same period last year. The company reported a net loss of $7.9 million for the quarter and an adjusted EBITDA of $1.8 million.
Selling, general, and administrative expenses increased slightly by 0.6 per cent to $70.6 million, compared to $70.2 million in the same period a year ago. As a percentage of net sales, selling, general, and administrative expenses deleveraged to 60.5 per cent, up from 56.7 per cent in the prior year period.
“Despite some key quarter wins, we are not satisfied with our first quarter results which fell short of our internal expectations. Our top-line quarter performance, at a decline of 5.7 per cent, was hampered by challenging traffic and a sub-par in-stock position following stronger than expected unit selling late in the fourth quarter. We took swift action to improve our in-stock position in core items, which improved throughout the quarter and into the second quarter to date,” said president and CEO, Sam Sato.
Fibre2Fashion News Desk (DP)
