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Duluth Holdings reports widening fiscal 1Q net loss despite 14% increase in net sales

The Wisconsin clothing and tools supplier's net loss was $7.6 million, compared to a much smaller loss of $700,000 in the year-ago quarter
Duluth rang up net sales of $114.2 million, fueled by five new-store openings

Duluth Holdings Inc (NASDAQ:DLTH) on Thursday reported a widening fiscal first-quarter net loss that missed Wall Street’s expectations despite a double-digit increase in net sales.

The clothing and tools supplier net loss was $7.6 million, or $0.23 per share, compared to a much smaller loss of $700,000, or $0.02 per share, in the year-ago quarter. Analysts had expected a net loss $0.22 a share.

Net sales increased 14% to $114.2 million for the quarter ended May 5, fueled by five new-store openings. That compares with sales of $100.2 million in the prior-year quarter.

Duluth’s quarterly sales slightly beat analysts’ estimates of $114.07 million.

READ: Shares of Duluth Holdings slammed as 4Q results miss forecasts

“Our 14% top-line growth was driven by new stores, ongoing expansion of the women’s business, and new product introductions, with direct sales in established omnichannel store markets continuing to outpace that of non-store markets,” said CEO Stephanie Pugliese.

The Mount Horeb, Wisconsin-based company reaffirmed its sales and earnings outlook for the year.

Net sales are expected to be $645 million to $655 million, while earnings are expected to be in the range of $0.74 to $0.80 per share.

Investors didn’t seem to mind the Duluth’s mixed earnings report. The sock recently traded up 0.46% to $15.14 a share.

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