NasdaqGS:DLTH

Stock Analysis Report

Executive Summary

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States.


Snowflake Analysis

Undervalued with questionable track record.

Share Price & News

How has Duluth Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DLTH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.0%

DLTH

-2.2%

US Online Retail

-1.1%

US Market


1 Year Return

-70.5%

DLTH

22.6%

US Online Retail

17.8%

US Market

Return vs Industry: DLTH underperformed the US Online Retail industry which returned 22.6% over the past year.

Return vs Market: DLTH underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

DLTHIndustryMarket
7 Day-2.0%-2.2%-1.1%
30 Day-9.5%6.6%1.5%
90 Day-16.2%13.8%6.6%
1 Year-70.5%-70.5%22.6%22.6%20.2%17.8%
3 Year-63.0%-63.0%104.6%104.3%47.5%38.1%
5 Yearn/a210.8%197.2%71.2%52.4%

Price Volatility Vs. Market

How volatile is Duluth Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Duluth Holdings undervalued compared to its fair value and its price relative to the market?

49.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: DLTH ($7.84) is trading below our estimate of fair value ($15.38)

Significantly Below Fair Value: DLTH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: DLTH is good value based on its PE Ratio (16.7x) compared to the Online Retail industry average (32.6x).

PE vs Market: DLTH is good value based on its PE Ratio (16.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: DLTH is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: DLTH is good value based on its PB Ratio (1.7x) compared to the US Online Retail industry average (3x).


Next Steps

Future Growth

How is Duluth Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLTH's forecast earnings growth (11.8% per year) is above the savings rate (1.7%).

Earnings vs Market: DLTH's earnings (11.8% per year) are forecast to grow slower than the US market (14.1% per year).

High Growth Earnings: DLTH's earnings are forecast to grow, but not significantly.

Revenue vs Market: DLTH's revenue (6.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: DLTH's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLTH's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Duluth Holdings performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLTH has high quality earnings.

Growing Profit Margin: DLTH's current net profit margins (2.5%) are lower than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: DLTH's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: DLTH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DLTH had negative earnings growth (-31.5%) over the past year, making it difficult to compare to the Online Retail industry average (15%).


Return on Equity

High ROE: DLTH's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Duluth Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: DLTH's short term assets ($204.3M) exceed its short term liabilities ($95.5M).

Long Term Liabilities: DLTH's short term assets ($204.3M) do not cover its long term liabilities ($269.6M).


Debt to Equity History and Analysis

Debt Level: DLTH's debt to equity ratio (77.7%) is considered high.

Reducing Debt: DLTH's debt to equity ratio has increased from 15.1% to 77.7% over the past 5 years.

Debt Coverage: DLTH's debt is not well covered by operating cash flow (5.9%).

Interest Coverage: DLTH's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: DLTH has a high level of physical assets or inventory.

Debt Coverage by Assets: DLTH's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Duluth Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate DLTH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate DLTH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if DLTH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if DLTH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of DLTH's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.5yrs

Average management tenure


CEO

Steve Schlecht (72yo)

0.5yrs

Tenure

US$321,923

Compensation

Mr. Stephen L. Schlecht, also known as Steve, is a Founder of Duluth Holdings Inc. and has been its Executive Chairman and Director of Duluth Holdings, Inc. since February 2, 2015 and since 1986 respective ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD321.92K) is below average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Schlecht
Founder0.5yrsUS$321.92k10.54% $26.9m
David Loretta
Senior VP2.6yrsUS$559.39k0.20% $506.3k
Allen Dittrich
Senior VP & COO0yrsUS$562.43k0.59% $1.5m
Michael Murphy
VP & Chief Accounting Officer0.4yrsno data0.031% $79.4k

0.5yrs

Average Tenure

57.5yo

Average Age

Experienced Management: DLTH's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Schlecht
Founder0.5yrsUS$321.92k10.54% $26.9m
Edgar Coolidge
Independent Director4.4yrsUS$107.60k1.88% $4.8m
Thomas Folliard
Independent Director4.4yrsUS$112.00k0.17% $439.0k
Brenda Morris
Independent Director4.4yrsUS$107.80k0.038% $96.5k
Scott Williams
Independent Director1.7yrsUS$71.39k0.018% $45.6k
David Finch
Independent Director4.4yrsUS$104.50k0.32% $806.7k
Francesca Edwardson
Independent Director4.4yrsUS$107.00k0.13% $330.1k

4.4yrs

Average Tenure

62yo

Average Age

Experienced Board: DLTH's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DLTH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Duluth Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Duluth Holdings Inc.
  • Ticker: DLTH
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$254.995m
  • Shares outstanding: 32.52m
  • Website: https://www.duluthtrading.com

Number of Employees


Location

  • Duluth Holdings Inc.
  • 201 East Front Street
  • Mount Horeb
  • Wisconsin
  • 53572
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DLTHNasdaqGS (Nasdaq Global Select)YesClass B Common StockUSUSDNov 2015
6DUDB (Deutsche Boerse AG)YesClass B Common StockDEEURNov 2015

Biography

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, tanks, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No Polo Shirt, No Yank, Wild Boar Mocs, and Buck Naked. Duluth Holdings Inc. markets its products through its Website, catalogs, and retail stores. As of November 14, 2019, it operated 61 stores. The company was formerly known as GEMPLER’S, Inc. Duluth Holdings Inc. was founded in 1989 and is headquartered in Mount Horeb, Wisconsin. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 03:16
End of Day Share Price2020/02/21 00:00
Earnings2019/11/03
Annual Earnings2019/02/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.