The company reported disappointing fourth-quarter earnings and full-year guidance
The shares of workwear concern Duluth Holdings Inc (NASDAQ:DLTH) are sinking today after an abysmal fourth-quarter earning report. The company blamed the results that fell short of analysts' expectations on softening shipping and handling revenue, along with growing freight costs. The apparel name also lowered its 2019 full-year guidance. In response the equity is down 18.2% at $19.26.
The plummet has DLTH stock down 24% year-to-date, at a level not seen since mid-June. The stock had been attempting to rebound off its late-January lows, and while an area of support briefly emerged at the $22 level, continual downward pressure from its 80-day moving average acted as a ceiling.
Analysts are already chiming in with a round of price-target cuts. Stifel just slashed its price target to $21 from $25, and D.A. Davidson to $19 from $24. DLTH only holds one "strong buy" rating compared to four tepid "holds."
Short sellers are likely cheering today. Short interest rose 19.3% in the last two reporting periods and now accounts for 24.2% of the stock's available float, or about a month's worth of buying power, at the security's average daily trading volume.