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Duluth (DLTH) to Report Q3 Earnings: What's in the Cards?
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Duluth Holdings Inc. (DLTH - Free Report) is likely to register a decline in both the top and bottom lines from the respective prior-year quarter’s reported numbers in its third-quarter fiscal 2023 results on Nov 30, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $147 million, indicating a marginal decrease from the year-ago fiscal quarter’s reported figure. The consensus estimate for the quarter’s bottom line declined by 10.7% to a loss of 31 cents in the past 30 days. The figure suggests a 63.2% plunge from the year-ago fiscal quarter’s figure.
The company’s bottom line missed the Zacks Consensus Estimate by a significant margin in the last reported quarter. This retailer of casual wear, workwear and accessories has a trailing four-quarter negative earnings surprise of 216.4% on average.
Duluth is expected to have benefited from solid demand for its spring and fall-winter product collections in the fiscal third quarter. An increase in conversion rate across in-store and online, driven by the company’s marketing efforts and broadening customer base, is likely to have augmented its performance.
Encouraged by the solid demand for products, management has been focused on fulfilling customer orders with enhanced services across most categories. The company’s digital-first strategy, omnichannel capabilities, brand strength and an emphasis on high-growth areas like the women's apparel segment are likely to have benefited its fiscal third-quarter performance.
DLTH’s focus on expanding offerings across the AKHG brand for men and women amid growing consumer participation in outdoor recreation activities might have acted as a tailwind during the quarter. Also, its effective pricing strategies and a strong emphasis on cost-saving initiatives are likely to have boosted margins in the quarter under review.
However, Duluth has been bearing the brunt of rising costs and expenses due to higher shipping and occupancy costs and investments in growth-driving initiatives. In the first half of fiscal 2023, the company’s cost of goods sold and selling, general and administrative expenses increased by 3.3% and 2.4%, respectively, on a year-over-year basis. Any deleverage in operating expenses might have hurt its margins and profitability.
Also, slower store traffic in DLTH’s retail business might have adversely impacted its performance in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Duluth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Duluth carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:
The company is expected to register a bottom-line decrease when it reports its upcoming quarterly results. Its revenues are anticipated to have decreased year over year. The consensus mark for the same is pegged at $10.1 million, indicating a fall of 36.8% from that reported in the year-ago quarter. GNSS has a trailing four-quarter average earnings surprise of 35.2%.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.19% and carries a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings is pinned at $2.27 per share, indicating growth of 13.5% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to have increased year over year. The consensus mark for the same is pegged at $2.2 billion, indicating growth of 17.8% from that reported in the year-ago quarter. LULU has a trailing four-quarter average earnings surprise of 6.8%.
Loop Media, Inc. (LPTV - Free Report) currently has an Earnings ESP of +12.00% and a Zacks Rank #2. LPTV is likely to record a top-line decline when it reports upcoming quarter results. The Zacks Consensus Estimate for revenues is pegged at $6.1 million, indicating a 49.9% decline from the prior-year quarter’s figure. The company’s bottom line came in line with the Zacks Consensus Estimate in the last reported quarter.
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Duluth (DLTH) to Report Q3 Earnings: What's in the Cards?
Duluth Holdings Inc. (DLTH - Free Report) is likely to register a decline in both the top and bottom lines from the respective prior-year quarter’s reported numbers in its third-quarter fiscal 2023 results on Nov 30, before the opening bell.
The Zacks Consensus Estimate for revenues is pegged at $147 million, indicating a marginal decrease from the year-ago fiscal quarter’s reported figure. The consensus estimate for the quarter’s bottom line declined by 10.7% to a loss of 31 cents in the past 30 days. The figure suggests a 63.2% plunge from the year-ago fiscal quarter’s figure.
The company’s bottom line missed the Zacks Consensus Estimate by a significant margin in the last reported quarter. This retailer of casual wear, workwear and accessories has a trailing four-quarter negative earnings surprise of 216.4% on average.
Duluth Holdings Inc. Price and EPS Surprise
Duluth Holdings Inc. price-eps-surprise | Duluth Holdings Inc. Quote
Key Aspects to Note
Duluth is expected to have benefited from solid demand for its spring and fall-winter product collections in the fiscal third quarter. An increase in conversion rate across in-store and online, driven by the company’s marketing efforts and broadening customer base, is likely to have augmented its performance.
Encouraged by the solid demand for products, management has been focused on fulfilling customer orders with enhanced services across most categories. The company’s digital-first strategy, omnichannel capabilities, brand strength and an emphasis on high-growth areas like the women's apparel segment are likely to have benefited its fiscal third-quarter performance.
DLTH’s focus on expanding offerings across the AKHG brand for men and women amid growing consumer participation in outdoor recreation activities might have acted as a tailwind during the quarter. Also, its effective pricing strategies and a strong emphasis on cost-saving initiatives are likely to have boosted margins in the quarter under review.
However, Duluth has been bearing the brunt of rising costs and expenses due to higher shipping and occupancy costs and investments in growth-driving initiatives. In the first half of fiscal 2023, the company’s cost of goods sold and selling, general and administrative expenses increased by 3.3% and 2.4%, respectively, on a year-over-year basis. Any deleverage in operating expenses might have hurt its margins and profitability.
Also, slower store traffic in DLTH’s retail business might have adversely impacted its performance in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Duluth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Duluth carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:
Genasys (GNSS - Free Report) currently has an Earnings ESP of +21.74% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to register a bottom-line decrease when it reports its upcoming quarterly results. Its revenues are anticipated to have decreased year over year. The consensus mark for the same is pegged at $10.1 million, indicating a fall of 36.8% from that reported in the year-ago quarter. GNSS has a trailing four-quarter average earnings surprise of 35.2%.
lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.19% and carries a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings is pinned at $2.27 per share, indicating growth of 13.5% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to have increased year over year. The consensus mark for the same is pegged at $2.2 billion, indicating growth of 17.8% from that reported in the year-ago quarter. LULU has a trailing four-quarter average earnings surprise of 6.8%.
Loop Media, Inc. (LPTV - Free Report) currently has an Earnings ESP of +12.00% and a Zacks Rank #2. LPTV is likely to record a top-line decline when it reports upcoming quarter results. The Zacks Consensus Estimate for revenues is pegged at $6.1 million, indicating a 49.9% decline from the prior-year quarter’s figure. The company’s bottom line came in line with the Zacks Consensus Estimate in the last reported quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.