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Why is Duluth Holdings Stock (DLTH) Up Over 20% Today?

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Casual wear and workwear apparel company Duluth Holdings Inc. (DLTH) is up over 20% today early afternoon trading. This surge of the retailer’s share price coincides with the release of its fiscal fourth quarter and year ended January 31, 2016 earnings report.

Regarding Duluth’s fourth quarter performance, the company’s net sales increased 27.5% to $140.4 million compared to $110.1 million in the prior-year fourth quarter. Its gross margin increased 40 basis points (bps) to 56.1% compared to 55.7% in the prior-year fourth quarter. Furthermore, Duluth outperformed our earnings estimate for the quarter by 27.59%.

Regarding Duluth’s fiscal year, the company’s net sales increased 31.2% to $304.2 million compared to $231.9 million in the prior year, and its gross margin increased 50 bps to 57.0% compared to 56.5% a year ago.

“Fiscal 2015 was a milestone year for Duluth Trading. We became a publicly traded company, made great strides in increasing our brand awareness through highly successful marketing campaigns and opened three new stores bringing our total store count to nine,” said Stephanie Pugliese, Chief Executive Officer of Duluth Trading.

Duluth Holdings has a Zacks Rank #3 (Hold), and as of 12:36 PM ET its sotck is up 22.90%.

 

 

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DULUTH HOLDINGS (DLTH): Free Stock Analysis Report
 
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