Duluth Holdings: Margin Expansion Likely In 2023

Summary

• The management saw its sales growth trend stabilize in 2023 and had growth drivers such as new product offerings, new market entries, and acquisitions.
• The management expected to see margin improvements in 2023, through gross margin expansion and advertising and selling expense leverage.
• The stock's P/S ratio of 0.32x is near the bottom of its historical low. This can provide comfort for investors, who would like to invest at this level.
• Catalysts for this company are likely margin expansion through its entry into the women's market. If its women's business continued to show sustained growth or accelerated growth in the coming quarters, we will be glad to convince ourselves of its comeback.

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Investment Thesis

Duluth Holdings, Inc. (NASDAQ:DLTH) saw its sales growth trend stabilize in 2023 and had growth drivers such as new product offerings and acquisitions. The management expected to see margin improvements in 2023, through gross

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.