Duluth Holdings' shares saw a significant decline in premarket trading on Thursday, as the clothing and accessories company projected a per-share loss for the fiscal year.
The company, known as Duluth Trading, expects sales for the fiscal year to fall within the range of $645 million to $660 million. However, they now predict a per-share loss of 8 cents to 15 cents. Earnings before interest, taxes, depreciation, and amortization (EBITDA) on an adjusted basis are forecasted at $40 million to $42 million.
This revised outlook comes as a surprise, considering Duluth's previous affirmation in early June of earnings between 2 cents and 8 cents for fiscal 2023, with adjusted EBITDA ranging from $47 million to $49 million.
In addition to the financial update, Duluth announced that their Chief Financial Officer and Senior Vice President, Dave Loretta, will be leaving the company in mid-September to pursue other employment opportunities. A search for a new CFO has already commenced, and in the interim, Chief Accounting Officer Michael Murphy will take on the role.
It will be interesting to observe how Duluth Holdings navigates these challenges and works towards regaining stability.