Duluth (DLTH) Q2 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 7, 2026 astatine 9:26 AM CST 35 min read

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Aug. 31, 2023 astatine 9:30 a.m. ET

• Chief Executive Officer — Sam Sato

• Senior Vice President and Chief Merchandising Officer — Eli Getson

• Senior Vice President and Chief Financial Officer — Heena Agrawal

Sam Sato: Thank you for joining today's call. I'm pleased with our 2nd 4th show arsenic we delivered top-line income maturation of 1.8%, portion expanding our gross borderline 90 ground points arsenic we began to spot the benefits of our sourcing initiatives. The 4th was highlighted by spot successful women's and our archetypal furniture business, arsenic good arsenic spot successful our cooling technologies crossed Armachillo and Dry connected the Fly, keeping consumers chill during the blistery summertime months. We saw a inclination enactment betterment successful some conversion and transactions, coupled with steadfast increases implicit past twelvemonth successful some mean bid worth and units per transaction.

Before I reappraisal our 2nd 4th results, I'm excited to update you connected a cardinal summation to our enactment team. On August 12, Eli Getson joined Duluth Trading Company arsenic our Senior Vice President and Chief Merchandising Officer. Eli has much than 20 years of enactment and expertise. Most recently, Eli served arsenic the Senior Vice President and General Merchandise Manager astatine Academy Sports and Outdoors, wherever helium was liable for merchandising, strategical readying and merchandise innovation. Eli brings with him a wealthiness of acquisition and cognition and has deed the crushed running. We look guardant to sharing his insights connected aboriginal calls.

I'm excited to supply an update connected the advancement we are making connected our cardinal strategical initiatives, including merchandise improvement and sourcing, logistics web optimization and our retail store portfolio strategy. As mentioned successful anterior calls, we are seeing the benefits of our sourcing and merchandise innovation efforts. This remains a captious strategical unlock for the business, which is allowing america to bring to marketplace high-quality, innovative products much frequently, summation our velocity to market, and importantly trim our merchandise costs. As Heena volition discuss, we stay connected way to recognize important merchandise outgo benefits this twelvemonth with much to travel implicit the adjacent respective years.

I shared connected the archetypal 4th telephone that we identified and began Phase 2 of our fulfillment halfway web program to maximize productivity and cost. Our highly-automated fulfillment halfway astatine Adairsville is present efficiently processing astir 60% of each online orders and replenishment volume. This has accrued wide web capableness and enabled america to exit 1 of our bequest fulfillment centers. With the adaptable CPU successful Adairsville 65% little than the mean bequest facilities and elimination of fixed costs from the exit, we expect annualized tally complaint savings of astir $5 cardinal with expected benefits to commencement precocious successful the 4th fourth of this year. We're making large advancement connected our retail store portfolio strategy.