Duluth Holdings Inc. (NASDAQ:DLTH) Q1 2019 Earnings Conference Call Transcript

Jun 13, 2019 • 09:30 am ET

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Duluth Holdings Inc. (NASDAQ:DLTH) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning everyone and welcome to the Duluth Holdings' First Quarter Fiscal Year 2019 Earnings Conference Call. All participants will be in a listen-only mode. (Operator Instructions). After today's presentation, there will be an opportunity to ask questions. (Operator Instructions). Please also note, today's event is being recorded. At this time, I'd like to turn the conference call over to Donni Case, Investor Relations for Duluth Holdings. Please go ahead.

Executive
Donni Case

Thank you, Jamie and welcome to today's call to discuss Duluth Trading's first quarter fiscal year 2019 financial results. Our earnings release, which we issued this morning is available on our Investor Relations website at ir.duluthtrading.com under Press Releases. I am here today with Stephanie Pugliese, Chief Executive Officer; and Dave Loretta, Chief Financial Officer. On today's call management will provide prepared remarks and then we will open the call to your questions. Before we begin, I would like to remind you that the comments on today's call will include forward-looking statements, which can be identified by the use of words such as estimate, anticipate, expect, and similar phrases. Forward-looking statements by their nature involve estimates, projections, goals, forecasts and assumptions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. Such risks and uncertainties include, but are not limited to, those that are described in our most recent Annual Report on Form 10-K and other SEC filings as applicable. These forward-looking statements speak only as of the date of this conference call and should not be relied upon as prediction of future events. And with that, I would like to turn the call over to Stephanie Pugliese. Stephanie?

Executive
Stephanie L. Pugliese

Thank you, Donni. We believe that we are well-positioned for long-term success with our unique brand and the investments that we have made in strengthening our omni-channel model. First quarter results, which were aligned with our expectations coming out of fourth quarter, reflected a continued softness in traffic and customer response. While indicative of some current challenges that we continue to face through the first weeks of the second quarter, they do not reflect the long-term potential that this brand has. We remain fully committed to building the Duluth Trading brand through multiple touch points with our customers and the fundamental architecture for achieving this is to build an omni-channel model that we control and that responds to the expectations of today's consumer. This will allow us to grow and scale our business well beyond what we would have achieved with a direct model alone.

Before I turn the call over to Dave's financial review, I want to address the current state of the business, what's working and what we will improve go forward. You've all heard the reports that the retail environment continues to be challenging on a number of fronts and we are not immune to these macro pressures. While we are cautious about consumer spending behavior and the economic outlook, we are focused on those