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Feb 02
Duluth Trading Co. Q4 2024 Earnings Report
Duluth Trading reported a revenue decline and an adjusted net loss for Q4 2024.
Key Takeaways
Duluth Trading's Q4 2024 revenue decreased by 1.8% year-over-year to $241.3 million, with a decline in retail store sales offsetting a slight increase in direct-to-consumer sales. The company posted a net loss of $5.6 million, driven by lower margins and a $3.0 million software impairment. Adjusted EBITDA was significantly lower than the prior year due to increased discounting and operational inefficiencies.
Total revenue declined 1.8% YoY to $241.3 million.
Gross profit margin fell to 44.1%, down from 48.2% in Q4 2023.
Net loss of $5.6 million, compared to net income of $6.8 million last year.
Adjusted EBITDA decreased to $8.5 million from $20.9 million in Q4 2023.
Duluth Trading Co.
Duluth Trading Co.
Duluth Trading Co. Revenue by Segment
Revenue by Segment
DTC Net Sales Revenue
CapyFin.comRetail Store Sales Revenue
CapyFin.com Forward Guidance
Duluth Trading anticipates continued revenue pressures in 2025 but remains focused on strategic product expansion and operational improvements.
Positive Outlook
- Projected net sales between $570 million and $595 million in FY25.
- Expansion of Duluth Women's Heirloom and Men's Backyard collections.
- Growth in direct-to-consumer sales via mobile and digital channels.
- Ongoing store optimizations and inventory management improvements.
- Expected adjusted EBITDA between $20 million and $25 million in FY25.
Challenges Ahead
- Retail store sales continue to face headwinds.
- Gross margin pressures from discounting and higher costs.
- Operational inefficiencies impacted Q4 fulfillment performance.
- Increased software-related impairments affected bottom-line results.
- Uncertain macroeconomic conditions may affect consumer demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income