MOUNT HOREB – Mount Horeb-based Duluth Holdings Inc. on Thursday reported a loss in its fiscal second quarter and forecast it would be losing money for all of 2023.
The Mount Horeb-based clothing and tool supplier reported a loss of $3.7 million, or 11 cents per share, on revenue of $141.6 million in its second fiscal quarter.
The loss, adjusted for one-time gains and costs, amounted to 2 cents per share.
During the same period last year, Duluth Holdings reported a loss of $2 million, or 6 cents per share, on revenue of $139.1 million.
Duluth Holdings, which does business as Duluth Trading, expects a full-year loss of 22 cents per share. Revenue is expected to be $640 million, in line with the forecast made when it announced first-quarter results.
“We are pleased to return to revenue growth in the second quarter while increasing our gross margin as we begin to see the benefits of our product development and sourcing initiatives,” said Sam Sato, president and CEO, in a statement. “During the quarter, we saw a trend improvement in both customer traffic and transactions with healthy buyer conversion, resulting in net revenue growth of 1.8% year over year. The strength of the quarter was highlighted by product innovation successes such as Dry on the Fly, Armachillo and DuluthFlex Fire Hose Sweat Management.
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“We entered Q3 with a strong lineup of new arrivals such as Duluth Reserve, Bullpen 3D and Souped up Sweats and expanded our plus-size assortment including our successful Adjustabust, a bonded bra with a zip front, slim silhouette and cross back that provides extra support and security. On August 10, we successfully hosted our second Lingerie Trade-Up Event, engaging existing and new customers in our local stores. The event generated a lot of buzz and resulted in an increase in customer traffic, higher overall sales and 40% trade-ups from our female shoppers, which continues to be a key strategic growth opportunity for Duluth.”
Sato said the company’s nearly fully automated fulfillment center in Adairsville, Georgia, handled 58 percent of the company’s total volume in the first half of the fiscal year, enabling the planned closure of the Dubuque fulfillment center in October of this year.
Stephanie Pugliese, president since 2012 and CEO of Duluth Trading Co. since 2015, shows off the ballroom, an employee meeting room on the fourth floor of the company’s new headquarters in downtown Mount Horeb. The 10,000-square-foot building houses 205 employees and has room for growth. The headquarters was in Belleville, where the company still maintains its distribution center, call center and an outlet store. During the clothing company’s peak season, the Belleville offices can employ as many as 1,300 people.
Duluth Trading Co.’s corporate headquarters is located one block off Main Street in downtown Mount Horeb. With 205 employees and room for more, its presence contributes to downtown’s growth.
A steel sculpture of the angry beaver by renowned Mount Horeb metal artist John Pahlas greets visitors in the lobby of the Duluth Trading Co. The sculpture is made from old tools, scrap metal and other pieces of metal. The angry beaver can be found on numerous Duluth products and in commercials.
The cafeteria on the fourth floor of the Duluth Trading Co. headquarters does not serve food, but it does provide a place for employees to relax and enjoy food from home or from restaurants located a short walk away in downtown Mount Horeb. The cafeteria also has an outdoor patio with a fire pit.
Varun Bhatia (left) and Neerav Varshney of Tata Consultancy Services meet in The Canteen cafeteria at the Duluth Trading Company’s corporate headquarters in Mount Horeb, Wisconsin, on Thursday, Jan. 24, 2019. AMBER ARNOLD, STATE JOURNAL
The boardroom at the Duluth Trading Company’s corporate headquarters in Mount Horeb, Wisconsin, Thursday, Jan. 24, 2019. AMBER ARNOLD, STATE JOURNAL
An employee kitchenette at the Duluth Trading Company’s corporate headquarters in Mount Horeb, Wisconsin, Thursday, Jan. 24, 2019. AMBER ARNOLD, STATE JOURNAL
Employee workstations at Duluth Trading Co.’s new headquarters in Mount Horeb are located on the building’s interior edges to maximize natural light. The office building offers expansive views of the village and rural Dane County.
The interior design of Duluth Trading Co.’s headquarters in Mount Horeb reflects the company’s image of rugged casual and workwear.
Across from the new Duluth Trading Co. headquarters is a renovated former farm equipment building (right). The advertising on the side of the building was faded and covered in vines, but has been repainted. The building houses a 4,500-square-foot event center on the second floor, while a restaurant tenant is being sought for the ground floor.
A view of downtown Mount Horeb from the Duluth Trading Company headquarters in Mount Horeb, Wisconsin, Thursday, Jan. 24, 2019. AMBER ARNOLD, STATE JOURNAL
Duluth Trading Co. headquarters in Mount Horeb.
Stephanie Pugliese, president since 2012 and CEO of Duluth Trading Co. since 2015, shows off the ballroom, an employee meeting room on the fourth floor of the company’s new headquarters in downtown Mount Horeb. The 10,000-square-foot building houses 205 employees and has room for growth. The headquarters was in Belleville, where the company still maintains its distribution center, call center and an outlet store. During the clothing company’s peak season, the Belleville offices can employ as many as 1,300 people.
Duluth Trading Co.’s corporate headquarters is located one block off Main Street in downtown Mount Horeb. With 205 employees and room for more, its presence contributes to downtown’s growth.
A steel sculpture of the angry beaver by renowned Mount Horeb metal artist John Pahlas greets visitors in the lobby of the Duluth Trading Co. The sculpture is made from old tools, scrap metal and other pieces of metal. The angry beaver can be found on numerous Duluth products and in commercials.
The cafeteria on the fourth floor of the Duluth Trading Co. headquarters does not serve food, but it does provide a place for employees to relax and enjoy food from home or from restaurants located a short walk away in downtown Mount Horeb. The cafeteria also has an outdoor patio with a fire pit.
Varun Bhatia (left) and Neerav Varshney of Tata Consultancy Services meet in The Canteen cafeteria at the Duluth Trading Company’s corporate headquarters in Mount Horeb, Wisconsin, on Thursday, Jan. 24, 2019. AMBER ARNOLD, STATE JOURNAL
The boardroom at the Duluth Trading Company’s corporate headquarters in Mount Horeb, Wisconsin, Thursday, Jan. 24, 2019. AMBER ARNOLD, STATE JOURNAL
An employee kitchenette at the Duluth Trading Company’s corporate headquarters in Mount Horeb, Wisconsin, Thursday, Jan. 24, 2019. AMBER ARNOLD, STATE JOURNAL
Employee workstations at Duluth Trading Co.’s new headquarters in Mount Horeb are located on the building’s interior edges to maximize natural light. The office building offers expansive views of the village and rural Dane County.
The interior design of Duluth Trading Co.’s headquarters in Mount Horeb reflects the company’s image of rugged casual and workwear.
Across from the new Duluth Trading Co. headquarters is a renovated former farm equipment building (right). The advertising on the side of the building was faded and covered in vines, but has been repainted. The building houses a 4,500-square-foot event center on the second floor, while a restaurant tenant is being sought for the ground floor.
A view of downtown Mount Horeb from the Duluth Trading Company headquarters in Mount Horeb, Wisconsin, Thursday, Jan. 24, 2019. AMBER ARNOLD, STATE JOURNAL
Duluth Trading Co. headquarters in Mount Horeb.
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