Duluth Holdings Inc (NASDAQ:DLTH) shares fell more than 10% in pre-market trade after the clothing brand reported mixed second quarter results, downwardly revised its full-year profit forecast, and announced that its finance chief is stepping down.
Chief financial officer and senior vice president Dave Loretta will be leaving the company on September 15, 2023, to take on a role at another company.
Chief accounting officer Michael Murphy will serve as the company’s interim finance chief until a new CFO is selected, Duluth said.
For the second quarter, Duluth reported net sales of $139.1 million, down from $141.5 million in the year-ago quarter but slightly ahead of the Street expectation of $138.8 million.
It posted a loss of $2 million or $0.06 per share, compared to earnings of $2.3 million or earnings per share (EPS) of $0.07 for the same quarter in 2022.
Analysts had been expecting Duluth to report EPS of $0.01.
The company also downwardly revised its full-year profit outlook. It still expects sales between $645 million to $660 million but now projects a loss per share between $0.15 and $0.08, compared to its prior guidance of EPS in the range of $0.02 to $0.08.
"Our updated outlook for fiscal 2023 reflects a continuation of consumers remaining selective in their discretionary spending," Duluth CEO Sam Sato said.
Duluth shares traded down 11.9% at US$6.47 about an hour before the opening bell in New York on Thursday.
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