For Q2, net sales grew 13% Y/Y to $137M led by a 67% Y/Y increase in direct sales and more than doubled Q1 strong direct sales growth rate; total new buyer growth increased 54.6% Y/Y.
“Shift to more digital marketing versus traditional media spend generated a 130% lift in new buyer growth in our direct channel. Direct sales growth in store markets outpaced that of non-store markets by 21 percentage points,” Duluth Holdings (DLTH +6.8%) executive chairman & CEO Steve Schlecht commented.
Direct-to-consumer net sales increased 66.9% and retail store net sales decreased 40.4% as stores re-opened during first half of Q2.
Net income increased to $5.9M, or $0.18/diluted share vs. net income of $1.9M, or $0.06/diluted share, in the prior-year quarter.
Adjusted EBITDA increased 75.3% to $16.8M.
As of June 15, 2020, the company re-opened all 62 retail stores in some capacity.
Duluth ended Q2 with a cash balance of $19M, an inventory balance of $167.6M, $49.5M outstanding on its $70.5M term loan, and $30M outstanding on its $80M revolving line of credit.
Price performance of Duluth in comparison to broader index and peers:
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