Duluth (DLTH) - 2025 Q4 - Annual Results

Financial Performance - Net sales for the fourth quarter decreased by 1.8% to $241.3 million compared to $245.6 million in the prior year[5] - The company reported a net loss of $5.6 million for the fourth quarter, compared to a net income of $6.8 million in the prior year[5] - Adjusted EBITDA for the fourth quarter was $8.5 million, down from $20.9 million in the prior year[5] - For the full fiscal year, net sales were $626.6 million, a decrease from $646.7 million in the prior year[5] - The company experienced a net loss of $43.6 million for the full fiscal year, compared to a net loss of $9.9 million in the prior year[5] - Adjusted EBITDA for the fiscal year ended February 2, 2025, was $14.62 million, down from $32.67 million in the previous fiscal year[36] - The company forecasts a net loss between $26.80 million and $21.50 million for the fiscal year ending February 1, 2026[43] - Free cash flow for the fiscal year ended February 2, 2025, was $(25.25) million, compared to $(10.41) million in the previous year[38] Sales Breakdown - Direct-to-consumer net sales increased by 0.4% to $172.9 million in the fourth quarter, while retail store net sales decreased by 6.9% to $68.4 million[9] - Net sales for the three months ended February 2, 2025, were $241.27 million, a decrease of 1.4% from $245.61 million for the same period last year[32] Profitability Metrics - The gross profit margin decreased to 44.1% of net sales, down from 48.2% in the prior year, primarily due to increased discounting[10] - Gross profit for the fiscal year ended February 2, 2025, was $308.51 million, down 5.1% from $324.97 million in the previous fiscal year[32] Liquidity and Debt - The company ended the quarter with a liquidity of $103.3 million and no debt on the credit facility[1] - Cash and cash equivalents at the end of the period were $3.34 million, a significant decrease from $32.16 million at the beginning of the period[34] - Total assets decreased to $452.44 million as of February 2, 2025, from $491.21 million as of January 28, 2024[29] - Total current liabilities increased to $128.55 million as of February 2, 2025, compared to $105.63 million in the previous year[29] Strategic Initiatives - The company plans to expand its Duluth Women's Heirloom and Garden collection and introduce new products featuring Armachillo cooling technology[7] Future Outlook - Fiscal 2025 outlook includes net sales projected in the range of $570 million to $595 million and adjusted EBITDA in the range of $20 million to $25 million[18] - The company incurred restructuring expenses of $7.75 million during the fiscal year ended February 2, 2025[32]