New customers helped drive a strong quarter online for outdoor apparel manufacturer and retailer Duluth Trading Co.
Parent company Duluth Holdings Inc., No. 175 in the Internet Retailer 2016 Top 500 Guide, reported direct sales, which consist of sales online and through its catalog, during the second quarter of $53.8 million, up 24.2% from $43.3 million last year. Through the first half of 2016, Duluth reported direct sales of $114.2 million, up 20.6% from $94.7 million last year.
Chief financial officer Mark DeOrio told analysts on Duluth Trading’s Q2 2016 earnings call that growth is in part a result of the retailer’s digital marketing campaigns, which helped generate a 19.6% year-over-year spike in online visitors. Those shoppers also spent more on average and had a higher conversion rate, though he didn’t specify the increases.
CEO Stephanie Pugliese told analysts mobile will be a key focus for Duluth heading into the second half of 2016.
“We do continue to see increased conversion and revenue per customer with mobile devices, so we continue to make improvements and engage more strongly with customers,” she told analysts on the call, according to a transcript from Seeking Alpha. “We’re also well aware that we have more opportunity in the future, and part of our e-commerce platform redesign will be bringing on a stronger mobile site and mobile experience for our customers.” When pressed for specifics, a company spokesman declined further comment.
- Net sales of $65.8 million, up 27.3% from $51.7 million last year.
- Direct sales account for 81.8% of total sales, compared to 83.9% last year. That decrease in percentage of overall sales can be attributed to 43.8% year-over-year growth in sales made through the company’s nine retail and two outlet stores.
- Net income of $3.7 million, down 35.1% from $5.7 million.
For the first six months of fiscal 2016, Duluth Trading reported:
- Net sales of $134.5 million, up 23.9% from $108.5 million last year.
- Direct sales account for 84.9% of the company’s overall sales, compared to 87.2%.
- Net income of $7.0 million, down 17.6% from $8.5 million.