The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: I just want to make sure I understand kind of the balance of the guidance here. You're coming out of the second quarter with the nice, least inflection
here, seemingly in sales of cleaner inventories. But the incremental downside to margins on the year is still kind of a promotional overhang. Do I
have that right?
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: And so I guess, the question embedded in that is, do you not feel given kind of what -- are you giving the inflection through heightened promotional
activity? Has that sort of ticked up incrementally? You've kind of been asked this, I guess, different ways on the call, but I guess, why not kind of
hold price more as opposed to give up the margin?
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: Got it. And so I guess, as you're kind of looking at negative margin here, operating margin, the swing factor looking at next year, presumably kind
of recovering some full price selling on gross margin, but sort of holding that constant in the low 50% range. How should we think about the
efficiencies or the SG&A leverage opportunity on new distribution? Is there any way you can kind of quantify that or as we look to next year?
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AUGUST 31, 2023 / 1:30PM, DLTH.OQ - Q2 2023 Duluth Holdings Inc Earnings Call
Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst
: Okay. And then the new distribution -- apologies, I forgot, allows for a bigger wholesale business. Do I have that right? How are you thinking about
expansion of wholesale?
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