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Duluth Holdings Q1 FY2O website sales grows 31.7%

Jun '20
Pic: Duluth Holdings
Pic: Duluth Holdings
Duluth Holdings, a lifestyle brand of men’s and women’s casual wear, workwear and accessories, posted 3.8 per cent sales decline to $109.9 million in first quarter (Q1) FY20 ended on May 3, 2020 compared to sales of $114.2 million in same period prior year. Company reported website and catalog net sales increased 31.7 per cent during the quarter.
Gross profit for the quarter fell 14.1 per cent to $52.3 million (Q1 FY19: 60.9 million). Selling, general and administrative expenses increased 1.0 per cent to $71.3 million ($70.6 million). Company reported a net loss of $15.1 million ($7.6 million). Operating loss for the quarter were $18.9 million ($9.6 million).
“As people sheltered in place, the surge we saw in online demand was significant and it drove direct product sales to increase 32 per cent year-over-year in Q1. While our stores were closed during the month of April, total company sales for April exceeded last year by over 5 per cent,” Steve Schlecht, executive chairman and chief executive officer of Duluth Trading, said in a press release.
Company reported that the decrease in the sales was attributed to a 51.8 per cent decrease in retail net sales due to the temporary closure of all stores due to the Covid-19 pandemic beginning on March 20, 2020 through May 3, 2020. However, increase in the website and catalog net sales was driven by a shift of existing customers to online, as well as new buyer growth particularly within Duluth’s women’s products.
Women’s business net sales during the quarter grew 9.9 per cent driven by the garden collection, comfortable basics, plus line and Mother’s Day gift webpage. Whereas, men’s business net sales decreased 8.7 per cent due to the stores being closed with impacts to the core Duluth categories, partially offset by growth in Alaskan Hardgear.
“Our stores are now open for business with health and safety precautions in place for customers and employees. Given the success we’ve seen in our omnichannel sales during this time, we have high conviction in the strength of the Duluth Trading brand and are excited about our future,” Schlecht said.

Fibre2Fashion News Desk (JL)

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June 2021

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