We are investigating Duluth Holdings Inc. (DLTH) (“Duluth” or the “Company”) for potential violations of the federal securities laws.
On April 4, 2019, Duluth issued a press release announcing its financial and operating results for the quarter and fiscal year ended February 3, 2019. For the quarter, Duluth reported net income of $20.8 million on revenue of $250.5 million for the quarter, and net income of $23.3 million on revenue of $568.1 million for the fiscal year. In addition, Duluth offered full-year 2019 earnings guidance in the range of $0.74 to $0.80 per share, on revenue of $645 million to $655 million. Explaining the foregoing results and projections, which fell significantly below analyst expectations, Duluth cited, in part “some challenges with systems implementation and late deliveries of product” and “inventory that was misaligned to the timing of sales and not distributed optimally throughout the network.” On this news, Duluth’s stock price fell sharply during intraday trading on April 5, 2019.