Duluth Holdings Inc. (NASDAQ:DLTH) Q3 2019 Earnings Conference Call - Final Transcript

Dec 05, 2019 • 09:30 am ET


Duluth Holdings Inc. (NASDAQ:DLTH) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Duluth Holdings Third Quarter Fiscal Year 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Donni Case, Investor Relations for Duluth Holdings. Please go ahead.

Donni Case

Thank you, Kate, and welcome to today's call to discuss Duluth Trading's third 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'm here today with Steve Schlecht, 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 the words such as estimate, anticipate, expect and similar phrases. Forward-looking statements by their nature, involve estimates, projections, both 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 predictions of future events.

And with that, I would like to turn the call over to Steve. So, go ahead, Steve.

Stephen L. Schlecht

Good morning, and thank you for joining us today. Since I assumed the role of Interim CEO last quarter, I've spent a good deal of time meeting with all levels of management throughout our organization. While I never stepped back from my role in shaping strategy. I had to re-enter the operational side of the business. Over the last couple of years, we have been undergoing a significant transformation for both our IT systems and distribution infrastructure which was necessary to support our growth and compete in today's retail environment. As I recently reported to our Board of Directors, while we have our share of growing pains, I have high confidence in our people, processes and systems, and collectively I believe we have a clear road map to growing our company and its profitability.

That said, the potential of our investments both in time and money have not been fully realized at this time. Yet they are gaining traction and bearing fruit. In fact, I believe we entered the fourth quarter better prepared to serve our customers than any time in the last two years and here is a quick update on what we have accomplished. We completed the opening of the 15 stores that were planned for fiscal 2019 in time for the holidays.

In the third quarter, we opened new markets in Birmingham, Alabama, Austin, Texas and Salt Lake City. Subsequent to