ation set the foundation to enable extended growth into new channels, brands and customer adjacencies." Sato concluded, "Customers are responding well to our Spring & Summer collections featuring functional styles for outdoor work and play for those that take on life with their own two hands. Rooted in ruggedness, our Duluth garden, landscaping and planting assortment continues to build on its multi-year success, expanding in both size and breadth across apparel and gear for both Men and Women. The Women's Heirloom collection of garden shirts, overalls, aprons and vests have been a cornerstone to this year's offering and have exceeded our expectations setting the stage for many years of future growth for this anchor category. Our Men's business experienced a significant improvement in trend from the prior quarter with growth that was down slightly to last year. Supported by the great momentum in garden, coupled with the AKHG Women's assortment, our Women's business overall grew 14% in the first quarter fueling total company net sales growth of 0.7%."
Operating Results for the First Quarter Ended
Net sales increased 0.7% to
Gross profit decreased to
Selling, general and administrative expenses increased 3.2% to
The increase in selling, general and administrative expense was partially due to higher occupancy costs from the new automated Southeast fulfillment center, coupled with increased amortization of software hosting implementation costs from continued capital investments.
The effective tax rate related to controlling interest was 27% in the current period compared to 25% prior year period.
2
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Balance Sheet and Liquidity
The Company ended the quarter with a cash balance of
End of period inventory of
Reaffirmed Fiscal 2023 Outlook
The Company's reaffirmed fiscal 2023 outlook is as follows:
· Net sales in the range of
· Adjusted EBITDA1 in the range of
· EPS in the range of
· Capital expenditures, inclusive of software hosting implementation costs,
of approximately$55 million
1See Reconciliation of forecasted net income to forecasted EBITDA and forecasted EBITDA to forecasted Adjusted EBITDA in the accompanying financial tables.
Conference Call Information
A conference call and audio webcast with analysts and investors will be held on
· Live conference call: 844-875-6915 (domestic) or 412-317-6711 (international)
· Conference call replay available through
or 412-317-0088 (international)
· Replay access code: 8504935
· Live and archived webcast: ir.duluthtrading.com
Investors can pre-register for the earnings conference call to expedite their entry into the call and avoid waiting for a live operator. To pre-register for the call, please visit https://dpregister.com/sreg/10178202/f937a546b8 and enter your contact information. You will then be issued a personalized phone number and pin to dial into the live conference call. Investors can pre-register any time prior to the start of the conference call.
About Duluth Trading
Duluth Trading is a lifestyle brand for the Modern, Self-Reliant American. Based
in
ide our customers an engaging and entertaining experience. Our marketing incorporates humor and storytelling that conveys the uniqueness of our products in a distinctive, fun way, and are available through our content-rich website, catalogs, and "store like no other" retail locations. We are committed to outstanding customer service backed by our "No Bull Guarantee" - if it's not right, we'll fix it. Visit our website at http://www.duluthtrading.com.
Non-GAAP Measurements 3 -----------
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