Duluth Holdings Proves Retail Growth Isn't Dead

Duluth Holdings (NASDAQ: DLTH) continued to buck the "death of retail" trend in its second-quarter earnings report, with impressive sales growth from its rapidly expanding store base leading the way. By all visible measures, the company's strategy of building physical stores to attract new customers and expand awareness of its brand is working well, helping the company overcome the industry headwinds that have crushed other apparel retailers.

For the quarter, net sales were up 31% to $86.2 million. Breaking down the sales mix, we see that the company's retail segment is growing much more quickly than its direct (e-commerce and catalog) business.

CEO Stephanie Pugliese noted that while Duluth isn't reporting comparable-store sales numbers yet, its retail locations continue to meet or exceed expectations for sales per square foot and store-level EBITDA.

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Source: Fool.com