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Duluth Holdings (DLTH) Q3 Earnings: What's in the Cards?
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Duluth Holdings Inc. (DLTH - Free Report) is scheduled to report third-quarter 2016 results on Dec 8, after the closing bell. The company commenced trading in Nov 2015. It posted a positive surprise of 57.1% last quarter. The robust performance of the company is reflected in its price movement.
Shares of this apparel retailer gained 11.6% over the last three months, outperforming the Zacks categorized Textile-Apparel Manufacturing industry, which saw a decline of 10.3%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Duluth Holdings has been delivering higher year-over-year net sales for the last 26 consecutive quarters. However, the Belleville, WI-based company expects its operating expenses to rise in the third quarter mainly due to new retail stores including rent expense, depreciation and labor expense. This is expected to put pressure on margins in the quarter under review.
Further, unusually warm weather in some parts of the U.S. is unfavorably impacting sales of winter goods. Consequently, this is anticipated to dent sales in the to-be-reported quarter.
Nevertheless, we expect several factors to support the company’s growth, including an improved consumer spending power amid higher job growth, strong construction spending, decent automobile sales and stabilizing energy costs. Moreover, the company’s aggressive store expansion program is expected to boost its sales in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Duluth Holdings is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Its Earnings ESP is 0.00%.
Zacks Rank: Duluth Holdings has a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement.
Stocks to Consider
Here are some companies in the consumer discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
DeVry Education Group Inc.(DV - Free Report) , with an Earnings ESP of +2.82% and a Zacks Rank #2.
Wynn Resorts Ltd. (WYNN - Free Report) , with an Earnings ESP of +4.62% and a Zacks Rank #3.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Duluth Holdings (DLTH) Q3 Earnings: What's in the Cards?
Duluth Holdings Inc. (DLTH - Free Report) is scheduled to report third-quarter 2016 results on Dec 8, after the closing bell. The company commenced trading in Nov 2015. It posted a positive surprise of 57.1% last quarter. The robust performance of the company is reflected in its price movement.
Shares of this apparel retailer gained 11.6% over the last three months, outperforming the Zacks categorized Textile-Apparel Manufacturing industry, which saw a decline of 10.3%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Duluth Holdings has been delivering higher year-over-year net sales for the last 26 consecutive quarters. However, the Belleville, WI-based company expects its operating expenses to rise in the third quarter mainly due to new retail stores including rent expense, depreciation and labor expense. This is expected to put pressure on margins in the quarter under review.
DULUTH HOLDINGS Price and EPS Surprise
DULUTH HOLDINGS Price and EPS Surprise | DULUTH HOLDINGS Quote
Further, unusually warm weather in some parts of the U.S. is unfavorably impacting sales of winter goods. Consequently, this is anticipated to dent sales in the to-be-reported quarter.
Nevertheless, we expect several factors to support the company’s growth, including an improved consumer spending power amid higher job growth, strong construction spending, decent automobile sales and stabilizing energy costs. Moreover, the company’s aggressive store expansion program is expected to boost its sales in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Duluth Holdings is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Its Earnings ESP is 0.00%.
Zacks Rank: Duluth Holdings has a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement.
Stocks to Consider
Here are some companies in the consumer discretionary sector that investors may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Caleres, Inc. (CAL - Free Report) , carries a Zacks Rank #2 and has an Earnings ESP of +5.13%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DeVry Education Group Inc.(DV - Free Report) , with an Earnings ESP of +2.82% and a Zacks Rank #2.
Wynn Resorts Ltd. (WYNN - Free Report) , with an Earnings ESP of +4.62% and a Zacks Rank #3.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>