DLTH - Earnings call transcript Q4 2020

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Operator

Good morning and welcome to the Duluth's Holdings Fourth Quarter 2020 and Fiscal Year Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note, this event is being recorded. to for conference Duluth like Case, to now Relations Investor Holdings. would turn over the Donni I Please go ahead.

Donni Case

financial Thank you, fourth year Trading's to discuss and welcome to quarter today's and call Duluth results. fiscal

we'll call, issued remarks, Dave this earnings Investor the website Officer. Loretta, open Schlecht, here Chief ir.duluthtrading.com at Chief which and am today's Our Press I with morning, Financial Relations Releases. your release, management under today to available prepared questions. on is Executive then will our provide we Steve call Officer; On and

Before you use we which today's include to phrases. as begin, can I would expect words statements, of that call like remind anticipate, forward-looking the on the similar estimate, comments by such be identified and will

annual upon events. I'll other the and as goals, to Duluth results not those are include, assumptions statements call relied to These Forward-looking forward-looking that Chief conference of predictions our statements of SEC only that, most of not should and report as Such forecasts materially recent to Form forward-looking by and described applicable. speak statements. limited risks in to, cause and call actual uncertainties the Steve? risks Schlecht, their Steve Executive be filings subject that And or date on with future Trading. as could XX-K outcomes in this the from of differ uncertainties projections, over and expressed nature turn are are and estimates, but those involve Officer

Stephen Schlecht

protect announced impact due just customers we At store as primarily but know protect suddenly learned morning for altered that time, was for how It that staff from more operating almost COVID are our is today's was clear reality. we the was be, and responsible first an I call. the I and plans What didn't far-reaching one closings much for retailers: we all of ago thank financial northeast to into that the to won't position. it in the standard the pretty all joining think the Good go XXXX year and would response important details it date in lessons COVID. everyone, were disrupted. you, procedure retail the our our

accounted don't to business our model is we end the First of and if tested. it's to gap. all absolutely total no sales presented stores could reopen. of the know By retail you revenue idea revenues, this In a when fill for pandemic, pressure lesson, were until that prior of climb your to March, they mountain due closed resilient year, so had circumstance XX XX% store existing the giant

had who already And traditionally place and omni patterns current we stores worked. we year online. for to closed to and total When draw also in their Direct closed, our ramped customers to marketing direct allowed up XX% promotions Fortunately, that ended website. shift the channel buying retail the sales digital XXXX stores in shopped it accounting strong our customers new sales. gap of and a

environment. retail currency created that validated lifestyle high-quality difficult dedicated a brand creating can solution-based, The organization to of second an innovative, brand the and Trading in your that customer When was in was the Duluth a challenging have you outstanding entire times. prevail experience, lesson is products

home as soared of spot activity online the new new products their Our that sweet and both at outdoors. and customers at recognize established Duluth normal

increase Trading the a years. customers X we new brand, to in XX% percentage in largest saw Duluth way As their found buyers, gain

expansion and Were of would and business. stronger value-added power Our surge newness. ready make Fourth to lesson: your in and in never BOPIS, competitive. in like capabilities, never not third the over the X more substantial it for years made investing facilities lesson: investments company last services stop been we distribution believe and direct the the replatforming have to channel, our e-commerce handle

to fishing workwear price-sensitive the and family Grit, customer. delight our Hardgear developed Best line that line to more building premium our brands appeal hard brand customers. During added expanded made celebrates out a platform We year, a to we no-frill headway ways We of playbook expanded to and with a brands. collection, of XX Duluth. new our We family our Alaskan of on the focus Made younger, past basic can-do spirit to workwear the goods new of

women, NoGA drive for men. development and innovative with additional product Naturale pant for Dang We lines and continue underwear, swimsuits new like to men sizes Soft

what million, reasons million. net of For and X%; accomplished deliver nearly our million, flow encountered of all $XX these year-over-year; challenges to the of $XX.X cash X% EBITDA up $XXX and very up sales team of proud I'm free XXXX, in adjusted

what's one signed have lease for consumer in clarity patterns discussed XXXX? until we before, So more retail only we now, our store there's buying Right paused expansion ahead As we post-pandemic. around have XXXX.

environment. with entered Looking is continue of of and innovations Tractor their product XX women's successful. XX Duluth is Duluth Naked March, then In one the only Grits, base. extensions, We'll today, aligned it setting will Tractor pilot assortments potential beyond a Tractor digital We'll possibly the we Company be Buck on the other closely our retail focus is pilot year, displays store biggest not to beginning provide this Supply rolled we'll in concepts Alaskan underwear customer to The locations. have improve partnerships. to out to to the including adding new of that to concept make expand investments localized of more a will to retail also stores. test in stores. The And in Made. the Hardgear reflect are benefits successes Supply into collection to changing of Supply new line and customized continue exploring we capabilities Best marketing, and be

chickens. in and announced member sense our today's our board, to That has great think any decided a Dave Board a expand and awareness our of count In slated been Dave to public directorships too has advisory our a Duluth We be to His then in I Duluth. release, on Board. was Blair's retire stay to didn't invaluable XX our Paschke on markets experience time Equity guidance and will capital for upcoming way advice Dave Officer. providing CEO early years, to I the on to instrumental long. type company. that on we meeting. said, Markets mention makes our deep shareholder served of with our this involved top-tier see Director annual this expect next our partnership opportunity Brett of benefit we and public search engaged Coolidge to I When William company the brand September a Executive this replace press Managing Board. XXXX, board complementary public. of having to been Brett a to and in as Duluth bringing for with want reassumed the partner. it's firm role that identify earlier at Chief has also is have Capital partner I

deciding proud of more However, future did COVID made into in we talent than me continuity gave for of jumping company. of management most factor. times, a together the our the appreciation a Frankly, the the and ever confidence and of the trying leadership greater the day-to-day I've team. I'm work during of back dedication

for many ESG, to shape have that coworkers satisfaction personally of fair we of responsibility, wells] both in like has greater better do social principles strive collectively. but into we profit. Finally, that the customers, and And commitment build Duluth corporate We admit are and a been a lasting next-door to [XX achieve and -- we I in committed products. our we laggard going job. culture achieve been and always We principles our communicating purpose. we striving CSR our treat neighbors. its for XXXX aim in to to a are of Trading growth, Like vendors the embedded

have of We an ESG results investors, to our already a the fourth this have for Dave Directors. nominating responsibility and full call many vendors, for understand our of the the over Dave? and ESG We governance turn the details Steering our is Committee our Board an the are communities financial initiative quarter of which oversight I'll With of employees, that, we customers, facilities. operating and formed important to adding and stakeholders, Loretta cover year. to committee in

David Loretta

everyone. performance XXXX. for a our cover Then overview good I'll fourth brief fiscal results. and of Steve, and I'll with conclude quarter with morning, guidance begin outlook today Thanks, commentary our year and our on

up while to delivered over We shifted in closed stages a of X.X% mentioned his and were during challenge increase team early an comments, $XXX.X Steve net the the year, difficult our customers retail rose sales omnichannel for the to As XX of throughout of to the through resourcefulness many Duluth year. million, agility of online, prior pandemic. as strength the and stores model shining the demonstrated weeks

minimal sales sales. represent XXXX. brand online XXXX compared of in played stores direct the and an existing our bottom line role expediting expanding to plans growing as disruption the including We orders, in orders network, XX% year with new BOPIS XX% entered surge fiscal faster leveraging handled fulfillment our overall business direct results top Our grew in that in to markets, with shipping and the expenses, on emphasis reflected and than year full line sales

took roughly altered actions the generate quarters. flexibility financial cash the $XX the increase our from over operations out us approach, million we quarter While enabled of coming to our flow of to pandemic X first

that net same of sales XX% growth pretax period. X-month in In versus grew opened pace we X XXXX, years. to over XX openings of addition, just only In earnings store new to X% annual an by stores prior we over close compared

effective new customers were new new and have awareness an While in successful been we channels. customers, way brand through growing attract reaching stores digital to very

a in of sight retention In in seen rates largest all reactivation without we fact, history, where we've increase our this the customers, gain existing year recent losing long. did acquisition And improving of with buyers. XXXX new number and delivered of in customer our XX%

inventory expanded flow year. our of XX% inventory aggressive the to up over flat was clearance higher free newness strategy in future the and rightsize higher were roughly we last throughout comparable open that A over ago, by levels period. Another assortment. our year year-long for the being on prior in the over with more XX% we initiative quarter buy to than sitting the end This inventories our to ended the was more year, first adjusting By XXXX order year. and to

XXXX, and quarter sequential on confidence the year-over-year today current to in inventory have that are each fiscal is delivered delays investments imports in adjusted X.X% improvement on for our first address prior the the we by over optimizing $XX.X inbound congestion a and record-high Overall we second by sales This now and of this shipping increase realizing quarter Our efficiencies of reflects likely That trends shortly. year. impact I'll but in focus were and and EBITDA, due caused gives the the are a an million operational greater continue we've last our our technology these the over increase being some customer this actions, gross shortages. inventory to X aggressive the us in infrastructure. turned coming COVID-related said, made spend QX boosting and years labor over inventory the These and delivery efficiency; realizing point in receipts capabilities speed, state impacted we've years. position. and expect basis we channels XX investments and improvement XXXX to corner will on margins challenged

XXXX, cash we of flow compared $XX.X free XXXX. generated million cash of with in in burn $XX.X Finally, positive million a

with a we phase balance flow our and result, growth sheet initiatives. stronger XXXX next cash ended a of fund to As much

compared sales reported X.X% of now the Turning $XXX prior to million, year. fourth the net down to We quarter.

networks. As QX retailers sales the shopping forward the volumes to December, this we avoid were strain began weeks in Peak earlier early several year. on pulled many season encouraged our delivery holiday as holiday on mentioned call

trend, key from growth event shopping continued from avoid XX% fourth growth shifting Our November October its of plus the up rate. in quarter, This the down quarter's and early to into direct business XX% the although elections. reflected positive sequentially the third holiday sale

was As our customer through we impacted COVID period, lockdowns. reemerging to progressed peak by with traffic the holiday stores concerns

the were we improving retail reversed saw from quarter. store sales trend the For the XX% down and quarter, third our

With our that channels, XX% see return vaccines February, industry-wide all January shifting sales the with of store giving more initiatives us a buying stores. markets rebound markets direct XXXX did fourth deliveries pulling sales and confidence helped the in rollout evident significant omnichannel of on XX% QX. increased compared demand XX% sales in the store will and quarter, Store to shipping traffic, increase trends the our as in in Also continues customers help in in the continued improved offset direct fulfilling stores QX. non-store in some of patterns, holiday traffic to soft Our alleviate an peak delays. constraints delivery to forward into

weighed were revenues, our quarter. fourth shipping and $X.X fee offers which in pricing on the down million competitive However, shipping free

last orders. the heavier of mentioned higher pay $X Additionally, costs premiums to and associated costs needed Overall mile incurred COVID as expected on were staffing shipping quarter, million roughly UPS related network to with strains last we incremental surcharges fulfill direct in QX. and

our women's update compared for X.X%. apparel Overall fourth was men's and down Turning product to apparel quarter. X% year, to last down our was the

button last core year. outerwear our tops and below down woven in Softness men's were

goods However, Hose in our volume. A men's DuluthFlex, high strong continue performance. and women's, and we a collection. outerwear year. active spot plus business total workwear is the business outdoor bright In contributed last both and seasonal Fire men's Alaskan basics and demand, strong of holiday-themed sweaters The No-Yanks and underwear, Hardgear to at bottoms, flannel. the had well the was underwear, outerwear and In products, XX% apparel and core to to which holding and like to is responding in NoGA bottoms. to flannels increased women's, the men's, Comfortable response be pants X% had strong collections

to lineup Best an sold increased latest saw the men's Best our launched out in first October workwear at quarter, brand styles our XX new momentum in few we in price. the within and best-selling digitally the XX colors our fourth as premium Additionally, Made Grit native fourth low brand, our everyday months. platform and quickly X on new Grit added our entry-level and we quarter, representing for introduction Made. collections

about brand destination way of potential new a We and brands our these and women's brands, are We X establishes core for Duluth umbrella. believe structure, Trading including the under Alaskan from the Hardgear Duluth lifestyles. like-minded the Duluth as excited stops, men's needs directly platform workwear their and benefit and couldn't high-growth and infrastructure more in our and emerging brands achieve will wants based scale outdoor own. on they a These to on customers speak their targeted

and quarter increased $XXX selling a SG&A expenses. million decrease offset to $X.X expenses. general compared increases to marketing fourth expenses $X included $XXX and administrative for of year. in expenses, in Turning million million advertising last $X.X and the X% million in to by This million

in increased as XX% order the expense heavier The XXX basis of XXX due percentage of to costs environment delivery This points metrics percentage to the use a unique of to Selling As sales, was increased increased a to a pressured expectations net shopping of unit direct XX.X% basis compared direct for a and sales percentage total. last to the SG&A points customer to expenses holiday higher largely of XX.X% our cost XX% year. year. expenses. per fulfillment incremental and carrier last increase stores incurred as compared and meet mix sales surcharges

impacted Planned slower traffic, traffic search On in site drove months. the quarter. to cuts rates, advertising subsequent November during continued our live third prospecting ads in front, brand October, sports mobile sales digital in at TV growth conversion although a investment in than and mainly the pace and

X% realized last in investments. billboards leverage on partially up Despite administrative local traffic in TV net and XX.X% in due the the of XX% Our and by X% primarily a basis year, new to a depreciation QX to compared with percentage net as digital advertising to as XXX offset largely in higher advertising. and higher General well XX.X% sales slowdown last store XX.X% advertising and as XX.X% as due year, brand cutting and marketing amortization increased points of catalog to to compared percentage spend reduced significant points technology markets, to last expenses quarter of costs fourth year. in basis were sales and XXX QX. traffic, decreased holiday search compared we Advertising website

stores Our stable store during XX the fourth quarter. count remains at

of fourth per or $XX.X begins We $X.XX period. at the we share to We net million normal. are the year. diluted reported the customer on was quarter diluted or million, adding $XX.X return observe last reported while decrease for hold a $X.XX quarter shopping this share per for economy fourth behavior time stores new of versus to $X.X comparable Adjusted the and income EBITDA compared $XX.X million million to in

and lessen articulated capital spend flow years with relative facility, We flow our the in $XXX million, from elevated credit term Moving cash credit. of exploration support fund XXXX. the distribution the prior to and the earlier quarter $XX.X our the on channels, cash helped capital as growth, million positive line in the Clearing balance on of year inventory working Steve in generate net will $XX.X of to sheet. ended free future new $XX before. third-party million million Cash outstanding of including through will levels and reduced on reliance

we in greater inventory management, focused on improving the we're year, network. in and stores, automation our sales begin new increased center the profitability As through distribution cleaner

improve, our open respect analytic given stores we addition, uncertainty our scenarios assumption up easing prepared shift platform the with vaccination slated very in some will includes expect business. to at near-term growth test New opening the can We sustain in rates the dramatically opening, will said, sales All closure customer on continued to Mall support on XXXX track. our the the delays new emerging our of of due X% together, we growth range the tools that what brand mix and Duluth. segmentation month. data the for initiatives ramping concept store for optimistic customer the to the of the COVID-XX, of to efficiencies. in next accelerate and operating XXXX store the XX% for Based new in November channel to of range This currently deliver That Hills, for half holds a In of the our And pressure we continue Cherry are personalization. in remain America inventory year are quarterly sales to overall one pandemic. receipts. a and expect the year first and given to we warehouse the future of enable over and of deeper being effects course will by do ensure continue to remain The Jersey to are

we year. Our and inventory is levels, sales expect higher in at this margin we the estimate This percent that at selling sales in first improvement XXX the the operating end as the expenses company contribute XXX will at sales. With XX of of the in drive full to points of end realize of year second growth of gross year best least stores profit range half to will points. of the basis improvement that lower the time basis cleaner at be realize half for and the up XX% to of range leverage

XXXX. entering are We of million expected added $XX XXXX. million to number with The overall for key have over estimate in the amortization million $XX which to investments of adjusted place $XX that represents XX% a roughly EBITDA depreciation of $XX this growth our million year and to be is to year,

growth implementation one hosting this earnings, pipeline, In will costs store including healthy million. software addition capital expenditures slightly only to the new in about year-over-year to in with be down $XX

$XX call generate open of result, that, to expecting at As least flow in positive And XXXX. the are million with a questions. we for cash free I'll

Operator

first Jonathan Komp [Operator comes question from of Baird. Instructions] The

Jonathan Komp

the to days, pretty Dave, first had past you're few a about wanted disruption quarter. It not the your to you've start first, like environment. to maybe And the last significant cycle, already thoughts just if year. near-term good sounds get on

any and So appreciated. out play channel QX? thinking And balance be kind QX, on of by how would might current you the the how trajectory are of that thoughts maybe

David Loretta

going so month year period have encouraging. mid- but a fourth down up X close retail business It business in quarter, total In to direct a XX%; represented be over little is to we against that that high in the traffic close. positively to compared to John. the than February, started of got -- look our of March, a and the stores. This over improvement very Yes, slight are for Through shifts, in start the was have is and XX%. teens of that's, dwindling and different even that overall little was comparables seeing trends week are to Yes. to the those to recently, see our still we the past as year, we're than continue start Sure, negative, comp ago channel, middle better going first prior But was March, our did of to stores XX%, when we minus our as XX%. significant remain right? going then up we February, but the By really the prior stores channel weeks overall. year the

it's in trend. the when from to our going expecting And were the end at going So its we look quarter of and some near we to to means overall March be the for direct clearance very mid-teens current business. year last quarter, be we're be with Because first events. aggressive that promotions, slightly is down April -- the in

expecting But to of as to QX we're so mid-teens higher, XX% which not positive. right year, over -- outlook you last XX% first of be sort the direct of to a the the as to be significantly for get the combination much, the should those So be by now. retail X quarter, end

Jonathan Komp

it bit some year. on to the of extent year implied maybe Could as maybe G&A And the margin, little of gross just looks well, full margin expansion differentiate those a willing? for you Great. for pieces, drivers like the of Okay. both the leverage you're

David Loretta

improvement. expect a gross margin, Last to some margin. Yes, year our we certainly. do We we'll hit see gross significant that had

yes, points now. some open flat So leverage spend, over some right we'll of costs plans the and We be be costs back our overhead relatively the the component basis percent into channel. we a year, the held back our fixed it is little -- coming points we're the terms we're XX occupancy significant But year We'll being having XXX around. in selling gross and terms our but of big able on basis in dollars and full we're expecting The to the just of improvement going that XXX and in likely leverage based last quarter, have first for points, of more sales. margin the in year. quarter, moving ad shift basis in to and overhead. improvement of stores to to in when see half simply from But leverage of promotional our is first

So full components year guidance is what that those earnings get gave we on growth sort us to. will of

Jonathan Komp

you business excellent. pilot far, your Okay, there helpful. just very of if I how of margin willing thoughts the other to and stores just you might last from kind channels, it's thoughts the Tractor how but any contribution would to product? new sell be ever And in around might profile willing And the one on selling broader it's selling the thoughts decide be handful of meaningfully any increase mean so strategy, any you it's standpoint? Supply, broad-stroke just own know margin may evolving to portion where that shape current channels, Duluth early, of given sell on in that what early, did Understanding that be to a from a the

David Loretta

And the some has of most picked it test well-known best that -- margins. product, and that very for it Yes, we is and it our product is tried true, carries our early.

the So is don't really overall if some accretion activity need we'll necessarily in to hope a a from you there. it's off then company it's We we it so takes will. expect some same get see to benefit partnership and that apply another, the level company. we it one of And net, the this way margin well-known on effort, spend really that -- ad

a or in to really But up growth this any plans point a So look would what see some attempt can ramp to this awareness in places costs at and us that new like of pick we up don't customer wholesale customers. retail have that. internal to gain simply manage was product division other a our first

Operator

The Stifel. next from Jim is question Duffy of

Jim Duffy

inflection revenue surprise. good on all, quarter, a So After third of quarter fourth all both year very inventory. in the declined, growth good the of however, second in a a the quarter came and in guys, as the progress bit the

advancements, Given Do the direct we larger new full think you new technology And quarter? fourth quarter? expense embedded the direct for customers in would year What maybe offerings, your cut direct stronger. much guys have been what's the fourth the you Dave, than deceleration outlook? advertising too the have then, was business the I'm in business acquired, that thought expectations curious would -- in products

David Loretta

me Jim, in of Well, terms our let start there, outlook.

time, the year, full expecting you to growth deceleration on much spend For fourth high something deliveries expected came were stepped from a and very happening, if a not compared direct we the on concerns of December, further But We to in network. is concerned that our April delivery gas -- on we as in year. we're around all direct at of that. impact we growth was not the saw, prior do, November, of period carrier -- was given through -- that customers. they the from the dislocation generate to We the rate. in And the the delays shopping disappoint The did having and truly possibly of up quarter in we where weeks critical that some -- didn't pulling that's ad that needs want when the may made it.

where So that's our retail we there's came that itself really there. my to And expecting the XXXX, partly a I why some we be could think really concerns growth but reinvigorated But -- the estimate the is think it line no XXXX. issue channel for January, business. so top direct deceleration I in we're into we saw when with come in

Jim Duffy

and you tension do stance greatly inventories. It's as inherent while your less promotional the intent There's you some up stabilize Okay. should can there direct tightened With a business. that the view direct Are you being less an less you've headwind, to promotional. we direct that Or that to supporting business confident respect the business, between promotional? be consider being promotion estimate?

David Loretta

we No, during we're not as periods promotional. direct in where growth demonstrate

the that's larger. base is. customer the You with is comment file the much And right, -- file started of it

periods it doesn't momentum see we are the products year. right that to then in that But in that hard sweet are hitting mean we're think in direct, compare prior we're channel. So but where be it going spot, the introducing I to nice that in backwards to going new seasonally really will

Jim Duffy

Okay. I'll me, jump and last else someone And for let one in.

you point is the contribution XXXX the your a wholesale guidance, Tractor revenue mid-teens in Are assumptions on Supply about commentary any growth clarification Just outlook? about rollout Dave, of in reflected quarter-to-date? your embedding

David Loretta

now tests across Supply. involves few contemplated Buck the No, just sizes. it's colors not our Naked It's outlook. in we're right of in Tractor a -- stores that And and the X XX SKU

So material point. in if it's then and it's not that, fairly there it our but outlook obviously at and well this contemplate we we'll today. refresh stores, small But progress expand other to things to not

Operator

[Operator Dylan The Carden question comes of Blair. Instructions] William next from

Dylan Carden

curious, for they the sounds brands, XXXX? a to of mentioned it and kind categories of between kind had at Could Best maybe outperformance to these stand Just the some of you newer good hardgear, contribution off as now start. of anticipate them of you down like Made just point or hardgear, plus is you and break as Co. kind this stand

David Loretta

pace. but XX of and is growing It's Hardgear Yes, Best at X% about faster Grit. our Made certainly larger a Alaskan business, much than

it but going now. of So a Grit relatively still X% when today brands most does that's women's, going we're channels what our than meaningful needle driving XXXX; in are move men's the probably see core more Made right in Best but XX to they're that's us less volume small those and which for of compared to well. sub-brand are planned, significant to growth this core our those in in and

Dylan Carden

of putting about of helpful. phase online stores with little of and there hasn't talking kind store this why now year that of paydown only talk down forward? the engine, what kind of you're is aren't uses when would CapEx maybe towards of And coming then one growth, stepped capital you about kind growth of be anticipated debt this sort more go in kind of a cash Anything primary bit sort Great. next

David Loretta

we're for working up this on our replenishment. retail lifecycle have. it's we've teed tool, we'll provide Okay, we've yes. management to procedures, less basic then gotten now store, of of with stores. areas forecasting that function and that to have spend implementation, software Certainly, got one there. CapEx initiative. infrastructure is patchwork And really right by due a But other include merchandise a the with see with that the a systems us And but allow that will assortment are time and These planning, manual tools organizations and

million So other stood million CapEx so is spend the that's in going $X then to dollars, big be to or up. logistics get initiative going to our of area. million that be And several dollars

up Belleville that to that warehouse. confident and We meet us gives to adding really add And and it our will period third peak as are it the is in the like delivery center confidence efficiency running. quarter and Lake more importantly, the be the implementation our a capacity during to capabilities during what capacity expectations. the time that have us City fourth I customers' to But further get can Salt closer well. articulated, a But step will we fix and our West in gas, and million Coast we're will distribution give going do some cost of deliver several that on

So future, and infrastructure-related these to that X for the capital from benefit get X pieces. of spend are least. big at That's the kind foreseeable we'll necessary, years but are are

Dylan Carden

understand final have trying the guidance then here. to I just And I'm is of one kind

and It of be range, end. any you between half mid-teens to to sales the X% back XX% that like is sounds volatility kind looks like it some end like of top there just can stores of of for should the what that Total total a pace. Is half the off it first front going the towards half, little up Dave? that sounds expecting to higher you of kind contextualize XX% might year, lower sounds first quarters the closures. line, whole -- back there of You're in a outlook lap get a half the bit better come for theoretically then But year. half that you're way there's like of the as towards sort kind making versus

David Loretta

that's second Yes. for significant It against be XX%. retail. any as down volumes we're and in be to not with going the to that see going Certainly, digit, to will in we'll the direct going likely the a end see first prior much first mid-single be year but we're channel of as up in could that anticipating growth offset quarter. half, quarter And some growth. the That

as the direct you the low going especially And be back it math to So the be for as to guidance with half the mid-single-digit. the year, probably full the start of will rough sales to year the but to fourth where opened, range the for get have traffic concern. that's closer in quarter. pandemic XX% grow, growth to we then the end XX% But in strong we're of periods been of our to will half year. against the will year, stores wasn't full last expect retail And back

the those of So back that high higher the growth. X the half we to year think range, of XX% to end can be combine the

Operator

session concludes other today's no are and This attending this There you the questions the for at question-and-answer Thank time. presentation. conference.

disconnect. now may You

Duluth (DLTH) 18 Mar 212020 Q4 Earnings call transcript