Duluth Holdings Q3 FY20 sales grow 13.2% to $136 mn

Duluth Holdings, an omnichannel lifestyle brand of men’s and women’s casual wear and workwear, has reported 13.2 per cent sales growth to $135.5 million in its third quarter (Q3) FY20 ended on November 1, 2020, compared to the sales of $119.8 million in the same period previous fiscal. Net income for the quarter rose to $0.9 million (Q3 FY19: $0.2 million).

 

“We’re pleased to report third quarter net sales growth largely driven by a 40 per cent growth in direct sales year-over-year. Effective and timely brand messaging, coupled with strong product lines, drove top line sales momentum during the third quarter,” Steve Schlecht, executive chairman and CEO of Duluth Trading, said in a press release.

 

“Customer traffic from our digital channel continued at the same strong pace as the second quarter with 15 million site visits, up 30 per cent to last year,” Schlecht said.

 

Gross profit for the reported quarter was $71.0 million ($65.3 million). Selling, general and administrative expenses were $68.1 million ($64.0 million). Company’s operating income during Q3 FY20 jumped to $2.8 million ($1.3 million).

 

Sales in non-store markets increased 37.5 per cent to $40.6 million ($29.5 million) driven by new buyer growth and effective digital advertising to promote Pink Buck Naked, Big Dam Birthday and global sales events. While sales in store markets for the quarter grew 5.6 per cent to $93.8 million ($88.8 million) driven by growth in online sales from both existing customers and new buyers, with direct-to-consumer sales in store markets increasing 45.9 per cent, partially offset by a decline in in-store sales.

 

Men’s business sales were up 12.4 per cent driven by growth in core products, Alaskan Hardgear and apparel newness. Women’s business sales increased 15.1 per cent driven by comfortable basics, workwear essentials and plus line apparel.

 

“While the remainder of the holiday shopping season is difficult to predict, we’ve done everything within our control to be prepared for our peak fourth quarter. We are fully staffed across all our operations; inventory levels are in good shape, and we’re fortunate to have customer-centric technologies in place like buy-on-line, pick-up in store,” Schlecht said.

Fibre2Fashion News Desk (JL)

Duluth Holdings, an omnichannel lifestyle brand of men’s and women’s casual wear and workwear, has reported 13.2 per cent sales growth to $135.5 million in its third quarter (Q3) FY20 ended on November 1, 2020, compared to the sales of $119.8 million in the same period previous fiscal. Net income for the quarter rose to $0.9 million (Q3 FY19: $0.2 million).

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