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Will Duluth Holdings (DLTH) Q4 Earnings & Sales Grow Y/Y?
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Duluth Holdings Inc. (DLTH - Free Report) is slated to release fourth-quarter fiscal 2017 results on Mar 20. We note that the apparel retailer has reported an average negative earnings surprise of 7.7% over the trailing four quarters. Let’s see how things are placed ahead of the upcoming results.
The current Zacks Consensus Estimate for the quarter under review is pegged at 54 cents, which shows a 25.6% surge from 43 cents recorded in the year-ago period. However, the estimate has declined in the past seven days. Nevertheless, analysts polled by Zacks expect revenues of $209 million, up 19.4% from the year-ago quarter.
Factors Driving the Quarter
We remain encouraged about Duluth Holdings’ upcoming performance, given the strength at both its direct and retail businesses. In fact, improved sales at both these segments and all product categories helped the company achieve its 31st straight quarter of year-over-year increase in net sales when it reported third-quarter fiscal 2017 results. Notably, Duluth Holdings has been steadily expanding store base, driven by strong growth in direct and retail segments.
In this regard, the company successfully concluded its plans of opening 15 new stores in fiscal 2017, and the same are delivering impressive results. Thus, we expect Duluth Holdings fourth-quarter performance to benefit from store expansion initiatives. Apart from this, the company’s widening consumer base is also attributable to dedicated omni-channel expansion efforts and marketing strategies. Management remains committed toward undertaking constant investments in the omnichannel space — which plays a major role in enhancing brand awareness and growth.
However, retail store expansions have substantially raised the company’s selling, general and administrative (SG&A) expenses. SG&A expenses rose 39.4%, 26.1% and 26.7% year on year during the first, second and third quarters of fiscal 2017, respectively. Though this poses threat for the quarter to be reported, we expect strength in the retail model, favorable consumer spending and strategic growth initiatives to offset these hurdles and fuel top and bottom-line growth this quarter.
What the Zacks Model Unveils
However, our proven model doesn’t show that Duluth Holdingsis likely to beat bottom-line estimates this quarter. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with ourEarnings ESP Filter.
While Duluth Holdings carries a Zacks Rank #2, its Earnings ESP of -0.37% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Children’s Place (PLCE - Free Report) , a Zacks #3 Ranked stock, has an Earnings ESP of +0.40%.
Bed Bath & Beyond , a #3 Ranked company, has an Earnings ESP of +2.55%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Will Duluth Holdings (DLTH) Q4 Earnings & Sales Grow Y/Y?
Duluth Holdings Inc. (DLTH - Free Report) is slated to release fourth-quarter fiscal 2017 results on Mar 20. We note that the apparel retailer has reported an average negative earnings surprise of 7.7% over the trailing four quarters. Let’s see how things are placed ahead of the upcoming results.
Duluth Holdings Inc. Price and EPS Surprise
Duluth Holdings Inc. Price and EPS Surprise | Duluth Holdings Inc. Quote
What to Expect
The current Zacks Consensus Estimate for the quarter under review is pegged at 54 cents, which shows a 25.6% surge from 43 cents recorded in the year-ago period. However, the estimate has declined in the past seven days. Nevertheless, analysts polled by Zacks expect revenues of $209 million, up 19.4% from the year-ago quarter.
Factors Driving the Quarter
We remain encouraged about Duluth Holdings’ upcoming performance, given the strength at both its direct and retail businesses. In fact, improved sales at both these segments and all product categories helped the company achieve its 31st straight quarter of year-over-year increase in net sales when it reported third-quarter fiscal 2017 results. Notably, Duluth Holdings has been steadily expanding store base, driven by strong growth in direct and retail segments.
In this regard, the company successfully concluded its plans of opening 15 new stores in fiscal 2017, and the same are delivering impressive results. Thus, we expect Duluth Holdings fourth-quarter performance to benefit from store expansion initiatives. Apart from this, the company’s widening consumer base is also attributable to dedicated omni-channel expansion efforts and marketing strategies. Management remains committed toward undertaking constant investments in the omnichannel space — which plays a major role in enhancing brand awareness and growth.
However, retail store expansions have substantially raised the company’s selling, general and administrative (SG&A) expenses. SG&A expenses rose 39.4%, 26.1% and 26.7% year on year during the first, second and third quarters of fiscal 2017, respectively. Though this poses threat for the quarter to be reported, we expect strength in the retail model, favorable consumer spending and strategic growth initiatives to offset these hurdles and fuel top and bottom-line growth this quarter.
What the Zacks Model Unveils
However, our proven model doesn’t show that Duluth Holdings is likely to beat bottom-line estimates this quarter. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
While Duluth Holdings carries a Zacks Rank #2, its Earnings ESP of -0.37% makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Guess? (GES - Free Report) has an Earnings ESP of +2.19% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Children’s Place (PLCE - Free Report) , a Zacks #3 Ranked stock, has an Earnings ESP of +0.40%.
Bed Bath & Beyond , a #3 Ranked company, has an Earnings ESP of +2.55%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>