Duluth Holdings Inc. reported a decline in financial performance for the fiscal year ending February 2, 2025, with net sales decreasing by 3.1% to $626.6 million, down from $646.7 million in the previous year. The company also experienced a significant increase in net loss, which rose to $43.6 million compared to a loss of $9.9 million in fiscal 2023. Adjusted EBITDA fell to $14.6 million, a decrease of $18 million from the prior year, reflecting challenges in sales and operational efficiency.
The decline in sales was attributed to several factors, including lower average unit retail prices, processing delays at a legacy fulfillment center, and reduced store traffic. The company faced significant backlogs due to inventory depletion following high demand during the Black Friday weekend, which led to a reduction in promotional activities to maintain sales quality. Store market net sales decreased by 0.8% to $441.8 million, while non-store market sales saw a more pronounced drop of 11.1%, totaling $174.3 million.
Operationally, Duluth Holdings continued to expand its retail presence, operating 62 retail stores and three outlet stores as of the end of the fiscal year. The company has focused on enhancing its omnichannel strategy, integrating its online and physical sales channels to improve customer experience. However, the total employee count as of February 2, 2025, was 2,248, a slight increase from the previous year, indicating ongoing investments in workforce despite financial challenges.
Looking ahead, Duluth Holdings has outlined strategic initiatives aimed at driving future growth, including a focus on optimizing its direct-to-consumer channel and enhancing its product offerings. The company plans to invest in technology and infrastructure to support its multi-brand and multi-channel strategy. However, management has cautioned that economic uncertainties, including inflation and consumer spending patterns, may continue to impact performance in the near term. The company remains committed to navigating these challenges while pursuing its long-term growth objectives.
About DULUTH HOLDINGS INC.
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