Duluth Holdings Inc. (DLTH) reported its fiscal first-quarter 2024 results, with revenues of $116.68 million, missing estimates by 2.52% and down from $123.76 million a year ago. The company posted a net loss of $7.9 million and Adjusted EBITDA of $1.8 million. Despite sales challenges, CEO Sam Sato highlighted improved inventory management and successful customer engagement campaigns. The company ended the quarter with $6.8 million in cash and updated its fiscal 2024 outlook to net sales of $640 million and Adjusted EBITDA of $39 million.
Kohl’s (KSS) shares dropped up to 25% after reporting a surprise first-quarter loss and lowering its annual forecast. Net sales fell 5.3%, with comparable sales down 4.4%, marking the ninth consecutive decline. CEO Tom Kingsbury attributed the disappointing results to various economic pressures, particularly affecting middle-income consumers, despite ongoing strategic initiatives and collaborations, such as with Sephora. Despite these efforts, external sales remained sluggish. The decline marked the stock’s steepest drop on record, contrasting with the broader market’s gains.
Advance Auto Parts (AAP) reported a flat revenue of $3.41 billion in Q1 CY2024, slightly missing analyst expectations of $3.43 billion. Year-on-year, the company saw a decrease in GAAP profit per share from $0.81 to $0.67. Despite this, Advance Auto Parts confirmed its full-year revenue guidance at $11.4 billion and EPS guidance at $4.00, both above analyst forecasts. The company’s gross margin dropped from 43% to 42%, and free cash flow improved significantly from -$472.5 million to -$46.27 million while same-store sales slightly declined by 0.2%.
Friday, May 31, 2024, Subscribers-Only Podcast:
Covering recent news and analysis for our portfolio companies and other topics relevant to value/contrarian investors.
Today’s podcast is about 7 minutes long and covers:
- Initial note
- Introduction – some thoughts on market action this week.
- A quick rundown of the 3 CTL companies that reported this week.
- Comments on recommended companies
- AMMO, Inc (POWW) announced that it will release financial results for its fourth quarter and fiscal year 2024 ended March 31, 2024, after the stock market closes on Thursday, June 13, 2024.
- VF Corp (VFC) has appointed Lululemon’s former chief product officer as global brand president of Vans, the apparel company said late Thursday.
- United States Steel (X) and Nippon Steel have secured all regulatory clearances from jurisdictions outside of the U.S. for their proposed merger.
- Baxter International (BAX) announced that it will pay a dividend of $0.29 per share on the 1st of July.
Please know that while I don’t yet personally own shares of all Cabot Turnaround Letter recommended stocks – including the stocks mentioned in this note – that will materially change over time.
Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at mwarder@cabotwealth.com or to our friendly customer support team at support@cabotwealth.com. Due to the time and space limits we may not be able to cover every topic, but we will work to cover as much as possible or respond by email.
Portfolio
| Market Cap | Recommendation | Symbol | Rec. Issue | Price at Rec. | Current Price * | Current Yield | Rating and Price Target |
| Small cap | Gannett Company | GCI | Aug 2017 | 9.22 | $ 3.71 | - | Buy (9) |
| Small cap | Duluth Holdings | DLTH | Feb 2020 | 8.68 | $ 3.84 | - | Buy (20) |
| Small cap | Dril-Quip | DRQ | May 2021 | 28.28 | $ 19.22 | - | Buy (44) |
| Small cap | Kopin Corp | KOPN | Aug 2023 | 2.03 | $ 0.80 | - | Buy (5) |
| Small cap | Ammo, Inc. | POWW | Oct 2023 | 1.99 | $ 2.64 | - | Buy (3.50) |
| Mid cap | Mattel | MAT | May 2015 | 28.43 | $ 17.71 | - | Buy (38) |
| Mid cap | Adient plc | ADNT | Oct 2018 | 39.77 | $ 28.19 | - | Buy (55) |
| Mid cap | Xerox Holdings | XRX | Dec 2020 | 21.91 | $ 13.78 | 7.3% | Buy (33) |
| Mid cap | Viatris | VTRS | Feb 2021 | 17.43 | $ 10.56 | 4.5% | Buy (26) |
| Mid cap | TreeHouse Foods | THS | Oct 2021 | 39.43 | $ 36.42 | - | Buy (60) |
| Mid cap | The Western Union Co. | WU | Dec 2021 | 16.40 | $ 12.79 | 7.4% | Buy (25) |
| Mid cap | Brookfield Re | BNRE | Jan 2022 | 61.32 | $ 43.03 | 0.7% | Buy (93) |
| Mid cap | Polaris | PII | Feb 2022 | 105.78 | $ 83.84 | 3.1% | Buy (160) |
| Mid cap | Goodyear Tire & Rubber | GT | Mar 2022 | 16.01 | $ 12.34 | - | Buy (24.50) |
| Mid cap | Janus Henderson Group | JHG | Jun 2022 | 27.17 | $ 33.29 | 4.7% | Buy (67) |
| Mid cap | Six Flags Entertainment | SIX | Dec 2022 | 22.60 | $ 25.49 | - | Buy (35) |
| Mid cap | Kohl’s Corporation | KSS | Mar 2023 | 32.43 | $ 22.90 | 8.7% | Buy (50) |
| Mid cap | Frontier Group Holdings | ULCC | Apr 2023 | 9.49 | $ 5.47 | - | Buy (15) |
| Mid cap | Advance Auto Parts | AAP | Sep 2023 | 64.08 | $ 69.71 | 1.4% | Buy (98) |
| Mid cap | Mohawk Industries | MHK | Jan 2024 | 103.11 | $ 120.97 | - | Buy (165) |
| Mid cap | VF Corporation | VFC | Mar 2024 | 16.24 | $ 13.44 | 2.7% | Buy (25) |
| Mid cap | Barnes Group | B | Apr 2024 | 36.55 | $ 38.74 | 1.6% | Buy (55) |
| Mid cap | First Quantum Minerals | FM | Apr 2024 | 15.93 | $ 18.63 | 1.6% | Buy (40) |
| Mid cap | United States Steel | X | Jun 2024 | 37.12 | $ 38.12 | 0.5% | Buy (55) |
| Large cap | General Electric | GE | Jul 2007 | 304.96 | $ 163.59 | 0.2% | Buy (160) |
| Large cap | Nokia Corporation | NOK | Mar 2015 | 8.02 | $ 3.90 | 3.4% | Buy (12) |
| Large cap | Macy’s | M | Jul 2016 | 33.61 | $ 19.45 | 3.4% | Buy (25) |
| Large cap | Newell Brands | NWL | Jun 2018 | 24.78 | $ 7.71 | 3.4% | Buy (39) |
| Large cap | Vodafone Group plc | VOD | Dec 2018 | 21.24 | 9.64 | 10.6% | Buy (32) |
| Large cap | Berkshire Hathaway | BRK.B | Apr 2020 | 183.18 | $ 411.07 | - | HOLD |
| Large cap | Wells Fargo & Company | WFC | Jun 2020 | 27.22 | $ 59.38 | 2.4% | Buy (64) |
| Large cap | Western Digital Corporation | WDC | Oct 2020 | 38.47 | $ 74.24 | - | Buy (78) |
| Large cap | Elanco Animal Health | ELAN | Apr 2021 | 27.85 | $ 17.76 | - | Buy (44) |
| Large cap | Walgreens Boots Alliance | WBA | Aug 2021 | 46.53 | $ 16.22 | 6.2% | Buy (70) |
| Large cap | Volkswagen AG | VWAGY | Aug 2022 | 19.76 | $ 14.19 | 6.5% | Buy (70) |
| Large cap | Warner Bros Discovery | WBD | Sep 2022 | 13.13 | $ 8.26 | - | Buy (20) |
| Large cap | Capital One Financial | COF | Nov 2022 | 96.25 | $ 137.00 | 1.8% | Buy (150) |
| Large cap | Bayer AG | BAYRY | Feb 2023 | 15.41 | $ 7.69 | 7.0% | Buy (24) |
| Large cap | Tyson Foods | TSN | Jun 2023 | 52.01 | $ 57.39 | 3.4% | Buy (78) |
| Large cap | Agnico Eagle Mines | AEM | Nov 2023 | 49.80 | $ 67.90 | 2.3% | Buy (75) |
| Large cap | Fidelity Natl Info Services | FIS | Dec 2023 | 55.50 | $ 75.02 | 2.7% | Buy (85) |
| Large cap | Baxter International | BAX | Feb 2024 | 38.79 | $ 33.86 | 3.3% | Buy (60) |
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