Duluth Holdings Inc. (NASDAQ:DLTH) Q2 2019 Earnings Conference Call - Final Transcript

Sep 12, 2019 • 09:30 am ET


Duluth Holdings Inc. (NASDAQ:DLTH) Q2 2019 Earnings Conference Call - Final Transcript


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Dave Loretta

lastly, improved inventory flow and positioning to satisfy our customers' expectation for completing the sale wherever and whenever they want.

In addition to growing top line, we've also been keenly focused on expense management, including getting the most out of our advertising spend. The steps we've taken to leverage fixed cost and gain variable expense efficiencies are already yielding results.

Now that I've given you some color around the second half of the year, here's an updated guidance for the full fiscal year 2019.

We expect to deliver sales growth of roughly 10% on a 52-week basis or net sales of between $610 million and $620 million in 2019. We expect gross margins to be down 50 basis points to 100 basis points, and selling, general and administrative expenses as a percentage of net sales to be in the range of 48% to 49%.

We expect 2019 earnings per diluted share to be between $0.60 and $0.66, which compares to $0.68 last year on a 52-week basis. This assumes a full-year weighted average diluted share count of 32.4 million shares and a tax rate of 26.5%. We expect adjusted EBITDA to be between $51 million and $55 million and capital expenditures of roughly $40 million.

But most importantly, we expect the second half of 2019 to be our turning point on growing operating margins and delivering the growth in bottom line results we've been planning for and investing in.

With that, we'll open the line for questions. Operator?