Exhibit 99.1









Duluth Holdings Inc. Announces Fourth Quarter and Fiscal 2020 Financial Results



MOUNT HOREB, WI - March 18, 2021 – Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth Trading” or the “Company”) (NASDAQ: DLTH), a lifestyle brand of men’s and women’s casual wear, workwear and accessories, today announced its financial results for the fiscal fourth quarter and fiscal year ended January 31, 2021.



Highlights for the Fourth Quarter Ended January 31, 2021 





1See Reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables.



Highlights for the Fiscal Year Ended January 31, 2021





1See Reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables.

2See Reconciliation of Net cash provided by operating activities to Free Cash Flow in the accompanying financial tables.







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Management Commentary



“I am very proud of what our team accomplished in fiscal year 2020. Their agility and resourcefulness delivered full year net sales of $639 million, up nearly 4% year-over-year; adjusted EBITDA of $55 million, up 7%, and free cash flow of $38.5 million,” said Steve L. Schlecht, Executive Chairman and CEO of Duluth Trading. 



“Fortunately, our strong omnichannel presence allowed customers, who traditionally shopped in stores, to shift their buying patterns to online purchases. When our stores closed, we also ramped up digital marketing and promotions to draw current and new customers to our website. Overall, direct sales closed the retail gap and ended the year accounting for 72% of total 2020 sales.



“Early 2021 sales are off to a good start and are trending up in the mid-teens to last year. We are confident in our future based on the strength of our brand, our innovative product development resonating with customers and our ability to enhance profitability,” concluded Schlecht.



Operating Results for the Fourth Quarter Ended January 31, 2021



Net sales decreased 1.4% to $256.0 million, compared to $259.6 million in the same period a year ago. Retail store net sales were $68.6 million and direct-to-consumer sales were $187.3 million. Retail store net sales declined by 29.1%  while direct-to-consumer net sales grew 15.1%.  The decrease in retail store net sales was due to continued COVID-19 safety concerns keeping store traffic at subdued levels. The increase in direct-to-consumer net sales was driven by a shift of existing customers to online.



Net sales in non-store markets increased 12.9%, to $85.1 million, compared to $75.3 million in the same period a year ago. The increase was driven by effective digital advertising to promote targeted sales events. Net sales in store markets decreased 6.4%, to $168.1 million, compared to $179.7 million in the same period a year ago. The decrease was driven by COVID-19’s continuing impact on store traffic during our peak holiday season. However, the decline in store markets was partially offset by a 20.1% increase in direct-to consumer sales within those store markets. In Q4 2020, direct-to-consumer net sales had a 7.2% boost in markets where we have stores versus non-store markets, which continues to demonstrate the importance of our retail stores in building brand awareness and expanding our loyal customer base.



Women’s apparel net sales decreased 3.5% and Men’s apparel net sales decreased 2.3%. This decrease was primarily attributed to slower store traffic due to the COVID-19 pandemic and reduced national TV ad spend, partially offset by growth strength in Women’s comfortable basics and Men’s core products.



Gross profit decreased 1.0% to $135.7 million, or 53.0% of net sales, compared to $137.1 million, or 52.8% of net sales, in the corresponding prior-year period. The increase in gross margin rate was primarily due to reduced discounts on temporary promotions and achieving a higher gross margin rate on clearance activity, partially offset by lower shipping revenues.



Selling, general and administrative expenses increased 1.2% to $105.1 million, compared to $103.9 million in the same period a year ago. As a percentage of net sales, selling, general and administrative expenses increased to 41.1%, compared to 40.0% in the corresponding prior-year period.



The increase in selling, general and administrative expenses was primarily due to increased shipping costs to support website sales, which included $1.6M of COVID-19 carrier surcharges during the fourth quarter, and increased depreciation expense primarily associated with investments in technology, partially offset by advertising leverage driven by reduced national TV advertising.

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Balance Sheet and Liquidity



The Company ended the quarter with a cash balance of approximately $47.2 million, net working capital of $114.6 million, $48.3 million outstanding on Duluth Trading’s $50.0 million term loan and $12.3 million of fiscal 2020 capital expenditures. 



Other Developments









Fiscal 2021 Outlook



As uncertainties related to COVID-19 begin to slowly decline, the Company expects to see steady improvement in demand in fiscal 2021. The Company provided the following fiscal 2021 outlook:





1See Reconciliation of forecasted net income to forecasted EBITDA and forecasted EBITDA to forecasted Adjusted EBITDA in the accompanying financial tables.











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The table below recaps the Company’s fiscal 2020 stores opened, as well as the one signed new store lease for 2021 and the anticipated opening timeframe.







Conference Call Information

A conference call and audio webcast with analysts and investors will be held on Thursday,  March 18, 2020 at 9:30 am Eastern Time, to discuss the results and answer questions.

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 http://dpregister.com/10152542 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 growing lifestyle brand for the Modern, Self-Reliant American. Based in Mount Horeb, Wisconsin, we offer high quality, solution-based casual wear, workwear and accessories for men and women who lead a hands-on lifestyle and who value a job well-done. We provide 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 our products are sold exclusively 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



Management believes that non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Within this release, including the tables attached hereto, reference is made to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and Free Cash Flow. See attached Table “Reconciliation of Net Income to EBITDA and EBITDA to Adjusted EBITDA,” for a reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA for the three months and fiscal year ended January 31, 2021, versus the three months and fiscal year ended February 2, 2020 and “Free Cash Flow” as a liquidity measure for the fiscal years ended January 31, 2021 and February 2, 2020.  



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Adjusted EBITDA is a metric used by management and frequently used by the financial community, which provides insight into an organization’s operating trends and facilitates comparisons between peer companies, since interest, taxes, depreciation and amortization can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA excludes certain items that are unusual in nature or not comparable from period to period.



Management believes Free Cash Flow is a useful measure of performance as an indication of an organization’s financial strength and provides additional perspective on the ability to efficiently use capital in executing growth strategies. Free Cash Flow is used to facilitate a comparison of operating performance on a consistent basis from period-to-period and the ability to generate cash. Free Cash Flow is defined as net cash provided by operating activities less purchase of property and equipment and capital contributions towards build-to-suit stores.



The Company provides this information to investors to assist in comparisons of past, present and future operating results and to assist in highlighting the results of on-going operations. While the Company’s management believes that non-GAAP measurements are useful supplemental information, such adjusted results are not intended to replace the Company’s GAAP financial results and should be read in conjunction with those GAAP results.

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Forward-Looking Statements



This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts included in this press release, including statements concerning Duluth Trading's plans, objectives, goals, beliefs, business strategies, future events, business conditions, its results of operations, financial position and its business outlook, business trends and certain other information herein, including statements under the heading “Fiscal 2021 Outlook” and the forecasted results of operations in the Table “Reconciliation of Forecasted Net Income to Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA,” are forward-looking statements. You can identify forward-looking statements by the use of words such as “may,” ”might,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “believe,” “estimate,” “project,” “target,” “predict,” “intend,” “future,” “budget,” “goals,” “potential,” “continue,” “design,” “objective,” “forecasted,” “would” and other similar expressions. The forward-looking statements are not historical facts, and are based upon Duluth Trading's current expectations, beliefs, estimates, and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond Duluth Trading's control. Duluth Trading's expectations, beliefs and projections are expressed in good faith, and Duluth Trading believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, estimates, and projections will be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements, including, among others, the risks, uncertainties, and factors set forth under Part 1, Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on March 20, 2020 and Part II, Item 1A “Risk Factors” in the Company’s Quarterly Reports on Form 10-Q filed with the SEC on June 5, 2020, September 4, 2020, and December 4, 2020, and other factors as may be periodically described in Duluth Trading’s subsequent filings with the SEC. These risks and uncertainties include, but are not limited to, the following: the prolonged effects of the COVID-19 on store traffic and disruptions to our distribution network, supply chains and operations; our ability to maintain and enhance a strong brand and sub-brand image; effectively adapting to new challenges associated with our expansion into new geographic markets; generating adequate cash from our existing stores to support our growth; effectively relying on sources for merchandise located in foreign markets; transportation delays and interruptions, including port congestion; inability to timely and effectively obtain shipments of products from our suppliers and deliver merchandise to our customers; the inability to maintain the performance of a maturing store portfolio; the impact of changes in corporate tax regulations; identifying and responding to new and changing customer preferences; the success of the locations in which our stores are located; our ability to attract and retain customers in the various retail venues and locations in which our stores are located; competing effectively in an environment of intense competition; our ability to adapt to significant changes in sales due to the seasonality of our business; price reductions or inventory shortages resulting from failure to purchase the appropriate amount of inventory in advance of the season in which it will be sold in global market constraints; increases in costs of fuel or other energy, transportation or utility costs and in the costs of labor and employment; failure of our information technology systems to support our current and growing business, before and after our planned upgrades; and other factors that may be disclosed in our SEC filings or otherwise. Forward-looking statements speak only as of the date the statements are made. Duluth Trading assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances or other changes affecting forward-looking information except to the extent required by applicable securities laws.



Investor Contacts:

Donni Case (310) 622-8224

Margaret Boyce (310) 622-8247

Financial Profiles, Inc.

Duluth@finprofiles.com

(Tables Follow)

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DULUTH HOLDINGS INC.

Condensed Consolidated Balance Sheets

(Unaudited)

(Amounts in thousands)



















1Represents debt of the variable interest entity, TRI Holdings, LLC, that is consolidated in accordance with ASC 810, Consolidation. Duluth Trading Company is not the guarantor nor the obligor of this debt.

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DULUTH HOLDING INC.

Consolidated Statements of Operations

(Unaudited)

(Amounts in thousands, except per share figures)

















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DULUTH HOLDINGS INC.

Consolidated Statements of Cash Flows

(Unaudited)

(Amounts in thousands)



















































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DULUTH HOLDINGS INC.

Reconciliation of Net Income to EBITDA and EBITDA to Adjusted EBITDA

(Unaudited)

(Amounts in thousands)

















DULUTH HOLDINGS INC.

Free Cash Flow

(Unaudited)

(Amounts in thousands)









DULUTH HOLDINGS INC.

Reconciliation of Forecasted Net Income to Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA

For the Fiscal Year Ended January 30, 2022

(Unaudited)

(Amounts in thousands)





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