What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2023-03-17 compared with 2022-03-25 · 75 added, 104 removed, 698 unchanged (20% of the section changed)

1 unchanged sentence

Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm s ( KPMG LLP , PCAOB ID No.

185 and Grant Thornton LLP , PCAOB ID No.

Report of Independent Registered Public Accounting Firm ( KPMG LLP , PCAOB ID No.

Consolidated Balance Sheets as of January 29, 2023 and January 30, 202 2

8 unchanged sentences

Duluth Holdings Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Duluth Holdings Inc.

(the Company) as of January 30, 2022, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for the year ended January 30, 2022, and the related notes and financial statement schedule II - Valuation and Qualifying Accounts (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of January 30, 2022, and the results of its operations and its cash flows for the year ended January 30, 2022, in conformity with U.S.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Duluth Holdings Inc.

(the Company) as of January 29, 2023 and January 30, 2022, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for the years then ended, and related notes and financial statement schedule II - Valuation and Qualifying Accounts (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of January 29, 2023 and January 30,2022, and the results of its operations and its cash flows for the years then ended, in conformity with U.S.

generally accepted accounting principles.

2 unchanged sentences

These consolidated financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that our audit provides a reasonable basis for our opinion.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

2 unchanged sentences

The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Product returns reserve

As discussed in Note 5 to the consolidated financial statements, the Company recorded $5.4 million as of January 30, 2022 in reserves for product returns within accrued expenses and other current liabilities.

Management estimates the product returns reserve using its own historical sales and product returns information.

We identified the assessment of the product returns reserve as a critical audit matter.

There was a high degree of auditor judgment required to assess whether the historical return rate used to estimate the accrual for product returns is indicative of future returns.

Product return reserve

As discussed in Note 5 to the consolidated financial statements, as of January 29, 2023 the Company recorded $5,168 thousand in reserves for product returns within accrued expenses and other current liabilities.

Management estimates the product return reserve using its own historical sales and product return information.

We identified the assessment of the product return reserve as a critical audit matter.

A high degree of auditor judgment was required to assess whether the historical return rate used to estimate the reserve for product returns is indicative of future returns.

The following are the primary procedures we performed to address this critical audit matter.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the product returns reserve.

This included a control related to management’s assumption that the historical return rate will reflect future returns and a control related to the completeness, accuracy, and relevance of underlying data used in the estimate.

We assessed the Company’s ability to accurately estimate the product return rate by comparing prior period estimates to actual product return rates experienced.

We analyzed the product return rate assumption by evaluating the consistency of the

assumption with the trend of actual historical product return rates and comparing the product return reserve to actual product returns received after the balance sheet date but prior to the issuance of the consolidated financial statements.

We evaluated the design and tested the operating effectiveness of certain internal controls related to the product return reserve.

This included controls related to determining the historical return rate used to estimate product returns.

We assessed the Company’s ability to

accurately estimate the product return rate by comparing prior period estimates to actual product return rates experienced.

We analyzed the product return rate assumption by evaluating the consistency of the assumption with the trend of actual historical product return rates and by comparing the product return reserve to actual product returns received after the balance sheet date.

We have served as the Company’s auditor since 2021.

7 unchanged sentences

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 29, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of January 30, 2022, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for the year ended January 30, 2022, and the related notes and financial statement schedule II – Valuation and Qualifying Accounts (collectively, the consolidated financial statements), and our report dated March 25, 2022 expressed an unqualified opinion on those consolidated financial statements.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of January 29, 2023 and January 30, 2022, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for the years then ended , and the related notes and financial statement schedule II – Valuation and Qualifying Accounts (collectively, the consolidated financial statements), and our report dated March 17, 2023 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

17 unchanged sentences

March 17, 2023

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders

DULUTH HOLDINGS INC.

Opinion on the financial statements

We have audited the consolidated balance sheet of Duluth Holdings Inc., a Wisconsin corporation, and affiliate (the “Company”) as of January 31, 2021, the related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows for the year then ended, and the related notes and financial statement schedule included under Item 15 (collectively referred to as the “financial statements”).

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of January 31, 2021, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for opinion

These financial statements are the responsibility of the Company’s management.

Our responsibility is to express an opinion on the Company’s financial statements based on our audit.

We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S.

federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that our audit provides a reasonable basis for our opinion.

/s/ GRANT THORNTON LLP

We served as the Company’s auditor from 2002 to 2021.

Chicago, Illinois

March 26, 2021

DULUTH HOLDINGS INC.

Consolidated Balance Sheets

20 unchanged sentences

Current portion of finance lease liabilities

Current maturities of Duluth long-term debt

Current maturities of TRI long-term debt

2 unchanged sentences

Finance lease liabilities, less current portion

Duluth long-term debt, less current maturities

TRI long-term debt, less current maturities

60 unchanged sentences

Securities available-for-sale:

Unrealized security income (loss)

Income tax expense (benefit)

Other comprehensive income (loss)

Unrealized security (loss) income

Income tax (benefit) expense

Other comprehensive (loss) income

Comprehensive income

12 unchanged sentences

shareholders'

Balance at February 2, 2020

Balance at January 31, 2021

Issuance of common stock

32 unchanged sentences

Noncash lease impacts

Net cash provided by operating activities

Net cash (used in) provided by operating activities

Cash flows from investing activities:

Purchases of property and equipment

Capital contributions towards build-to-suit stores

Principal receipts from available-for-sale security

4 unchanged sentences

Payments on line of credit

Proceeds from delayed draw term loan

Payments on delayed draw term loan

Proceeds from long term debt

Payments on long term debt

Payments on TRI long term debt

1 unchanged sentence

Shares withheld for tax payments on vested restricted stock

Net cash (used in) provided by financing activities

Increase in cash and cash equivalents

Net cash used in financing activities

(Decrease) Increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

48 unchanged sentences

The Company’s revenue primarily consists of the sale of apparel, footwear and hard goods.

Revenue for merchandise that is shipped to our customers from our distribution centers and stores is recognized upon shipment following customer payment, which is when the customer obtains control of the product and has the ability to direct the use of the product, including, among other options, the ability to redirect the product to a different shipping destination.

Revenue for merchandise that is shipped to our customers from our fulfillment centers and stores is recognized upon shipment following customer payment, which is when the customer obtains control of the product and has the ability to direct the use of the product, including, among other options, the ability to redirect the product to a different shipping destination.

Store revenue is recognized at the point of sale.

15 unchanged sentences

Depreciation and amortization

Freight from the Company's distribution centers to its stores

Freight from the Company's fulfillment centers to its stores

Advertising expenses including:

5 unchanged sentences

Advertising and Catalog Expenses

The Company’s non-direct response advertising primarily consists of billboards, web marketing programs, social media and radio and television advertisements, which are expensed as they are incurred.

The Company’s non-direct response advertising primarily consists of web marketing programs, social media and radio and television advertisements, which are expensed as they are incurred.

The Company’s direct-response advertising consists of producing, printing and mailing catalogs, which are expensed upon receipt by customers.

5 unchanged sentences

Shipping and processing expense, including handling expense, has been classified as a component of selling, general and administrative expenses.

Shipping and handling expenses increased in fiscal 2021 and fiscal 2020 due to the shift to online shopping, particularly in 2020, as well as additional surcharges during our peak holiday season resulting from the strained distribution network.

The Company incurred shipping and processing expenses of $ 44.0 million and $ 44.3 million for fiscal 2022 and fiscal 2021, respectively.

13 unchanged sentences

The Company considers short-term investments with original maturities of three months or less when purchased to be cash equivalents.

As of January 29, 2023, Cash and cash equivalents consisted of cash, amounts receivable from credit card issuers and money market funds.

Amounts receivable from credit card issuers are typically converted to cash within 2 to 4 days of the original sales transaction and are considered to be cash equivalents.

4 unchanged sentences

The Company records an inventory reserve for the anticipated loss associated with selling inventories below cost.

Inventory reserve for excess and obsolete items was $ 2.4 million and $ 1.6 million as of January 30, 2022 and January 31, 2021, respectively.

Inventory reserve for excess, obsolete items and shrinkage was $ 1.8 million and $ 2.4 million as of January 29, 2023 and January 30, 2022, respectively with the majority of the decrease coming from the retail inventory shrinkage reserve.

DULUTH HOLDINGS INC.

17 unchanged sentences

Leasehold improvements are depreciated over the shorter of the lease term or estimated useful life.

Depreciable lives by major classification are as follows:

Depreciable lives by major classification generally are as follows:

Land improvements

23 unchanged sentences

2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) .

Amortization expense and accumulated amortization was $ 0.2 million for fiscal 2021.

Amortization expense was $ 3.6 million and $ 1.8 million for fiscal 2022 and fiscal 2021, respectively.

Accumulated amortization was $ 5.4 million and $ 2.0 million for fiscal 2022 and fiscal 2021, respectively.

See Note 13 “Recent Accounting Pronouncements” for more information.

11 unchanged sentences

Accumulated amortization was $ 0.8 million and $ 0.6 million as of January 29, 2023 and January 30, 2022, respectively.

Scheduled future amortization of amortizable other assets are as follows as of January 30, 2022:

(in thousands)

DULUTH HOLDINGS INC.

Notes to Consolidated Financial Statements

Scheduled future amortization of amortizable other assets is as follows as of January 29, 2023:

(in thousands)

Impairment of Long-Lived Assets

2 unchanged sentences

Such analyses necessarily involve judgment.

For fiscal 2021 and 2020, management did not identify any events or changes in circumstances that indicated the potential impairment of long-lived assets.

For fiscal 2022, management did not identify any events or changes in circumstances that indicated the potential impairment of long-lived assets.

Store Pre-opening Costs

9 unchanged sentences

Total stock compensation expense associated with restricted stock recognized by the Company was $ 2.7 million and $ 2.0 million for fiscal 2022 and fiscal 2021, respectively, and is included in selling, general and administrative expenses on the Consolidated Statements of Operations.

DULUTH HOLDINGS INC.

Notes to Consolidated Financial Statements

The following is a summary of the activity in the Company’s unvested restricted stock during the years ended January 29, 2023 and January 30, 2022:

Weighted average

Outstanding at February 2, 2020

Outstanding at January 31, 2021

Outstanding at January 30, 2022

Outstanding at January 29, 2023

At January 29, 2023, the Company had unrecognized compensation expense of $ 4.9 million related to the restricted stock awards, which is expected to be recognized over a weighted average period of 2.4 years.

1 unchanged sentence

Treasury stock consists of shares withheld in lieu of tax payments when restricted stock vests using the treasury cost method and is classified in the Consolidated Balance Sheets as a reduction to shareholders’ equity.

DULUTH HOLDINGS INC.

Notes to Consolidated Financial Statements

Taxes Collected from Customers

14 unchanged sentences

Notes to Consolidated Financial Statements

The Company’s assets and liabilities measured at fair value are categorized as Level 1 or Level 3 instruments.

The fair value of the Company’s money market account is obtained from real-time quotes for transactions in active exchange markets involving identical assets (Level 1).

The fair value of the Company’s available-for-sale security was valued based on a discounted cash flow method (Level 3), which incorporates the U.S.

3 unchanged sentences

Changes in assumptions could significantly affect the estimates.

The amortized cost and fair value of the Company’s available-for-sale security and the corresponding amount of gross unrealized gains and losses recognized in accumulated other comprehensive income are as follows.

The amortized cost and fair value of the Company’s money market account and available-for-sale security along with the corresponding amount of gross unrealized gains and losses recognized in accumulated other comprehensive income are as follows.

January 29, 2023

1 unchanged sentence

Level 1 security:

Money market funds

Level 3 security:

Corporate trust

19 unchanged sentences

TRI Long-term debt, including short-term portion

The above long-term debt, including the short-term portion is attributable to the consolidation of TRI in accordance with ASC Topic 810, Consolidation .

The fair value was also based on a discounted cash flow method (Level 3) based on credit information and an estimate of future cash flows.

As of January 30, 2022, and January 31, 2021, the carrying values of the long-term delayed draw term loan and long-term line of credit both approximated their fair value.

DULUTH HOLDINGS INC.

Notes to Consolidated Financial Statements

Reclassifications

Certain reclassifications have been made to the 2020 financial statements in order to conform to the 2021 presentation.

There were no changes to previously reported controlling shareholders’ equity and net income as a result of the reclassifications.

The above long-term debt, including the short-term portion is attributable to the consolidation of TRI in accordance with ASC Topic 810, Consolidation .

The fair value was also based on a discounted cash flow method (Level 3) based on credit information and an estimate of future cash flows.

Based on the criteria set forth in ASC Topic 842, Leases (“ASC 842”), the Company recognizes ROU assets and lease liabilities related to leases on the Company’s Consolidated Balance Sheets.

12 unchanged sentences

The Company accounts for these costs as variable payments and does not include such costs as a lease component.

Due to the adverse impacts of COVID-19, the Company negotiated rent deferral and payback periods with a number of the Company’s store landlords for the months of April and May 2020.

Based on the guidance set forth in the Financial Accounting Standards Board (“FASB”) issued Staff Q&A “Topic 842 and Topic 840:

Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic”, the Company accounted for these deferrals as if no changes to the lease contract were made and elected not to apply the lease modification guidance under ASC 842.

As of January 31, 2021 the Company had deferred rent of $ 0.8 million, which was recorded within accrued expenses and other current liabilities and will be paid in accordance with the concession arrangements.

The Company had no deferred rent as of January 30, 2022.

The expense components of the Company’s leases reflected on the Company’s Consolidated Statement of Operations were as follows:

28 unchanged sentences

Right-of-use assets obtained in exchange for lease liabilities:

Finance leases

Operating leases

21 unchanged sentences

TRI Long-term debt

Duluth Line of credit

Duluth Delayed draw term loan

current maturities

Duluth long-term debt

TRI Holdings, LLC

6 unchanged sentences

Credit Agreement

On May 17, 2018, the Company entered into a credit agreement (the “Credit Agreement”) which provides for borrowing availability of up to $ 80.0 million in revolving credit and associated swing line (the “Revolver”) and borrowing availability of up to $ 50.0 million in a delayed draw term loan (“DDTL”), for a total credit facility of $ 130.0 million.

On May 17, 2018, the Company entered into a credit agreement (the “Credit Agreement”) which provided for borrowing availability of up to $ 80.0 million in revolving credit and associated swing line (the “Revolver”) and borrowing availability of up to $ 50.0 million in a delayed draw term loan (“DDTL”), for a total credit facility of $ 130.0 million.

On April 30, 2020, the Credit Agreement was amended to include an incremental DDTL of $ 20.5 million (the “Incremental DDTL”) that was available to draw upon before March 31, 2021, and matured on April 29, 2021 , for a total credit facility of $ 150.5 million.

As of and for the fiscal year ended January 31, 2021, no amount of the Incremental DDTL was funded.

The loan covenants were also amended to allow for greater flexibility during the Company’s peak borrowing periods in fiscal 2020.

2 unchanged sentences

On May 14, 2021, the Company terminated the Credit Agreement, and entered into a new credit agreement (the “New Credit Agreement”), which was treated as a modification for accounting purposes.

The New Credit Agreement matures on May 14, 2026 and provides for borrowings of up to $ 150.0 million that are available under a revolving senior credit facility, with a $ 5.0 million sublimit for issuance of standby letters of credit, as well as a $ 10.0 million sublimit for swing line loans.

At the Company’s option, the interest rate applicable to the revolving senior credit facility will be a floating rate equal to:

The New Credit Agreement originally matured on May 14, 2026 and provided for borrowings of up to $ 150.0 million that were available under a revolving senior credit facility, with a $ 5.0 million sublimit for issuance of standby letters of credit, as well as a $ 10.0 million sublimit for swing line loans.

At the Company’s option, the interest rate applicable to the revolving senior credit facility was a floating rate equal to:

(i) the Bloomberg Short-Term Bank Yield Index rate (“BSBY”) plus the applicable rate of 1.25 % to 2.00 % determined based on the Company’s rent adjusted leverage ratio, or (ii) the base rate plus the applicable rate of 0.25 % to 1.00 % based on the Company’s rent adjusted leverage ratio.

The New Credit Agreement is secured by essentially all Company assets and requires the Company to maintain compliance with certain financial and non-financial covenants, including a maximum rent adjusted leverage ratio and a minimum fixed charge coverage ratio as defined in the New Credit Agreement.

As of January 30, 2022, and for the fiscal year then ended, the Company was in compliance with all financial and non-financial covenants for all debts discussed above.

On July 8, 2022, the Company entered into the First Amendment to the New Credit Agreement (the “First Amendment”), which was treated as a modification for accounting purposes.

The First Amendment amends the New Credit Agreement in order to (i) increase the revolving commitment from $ 150.0 million to $ 200.0 million;

(ii) extend the maturity date from May 14, 2026 to July 8, 2027;

(iii) amend the pricing index to replace BSBY with the Term Secured Overnight Financing Rate;

and (iv) to reduce the commitment fee in some instances.

As of January 29, 2023, and for the fiscal year then ended, the Company was in compliance with all financial and non-financial covenants in the New Credit Agreement.

DULUTH HOLDINGS INC.

Notes to Consolidated Financial Statements

Future principal maturities of all TRI debt, excluding unamortized financing fees of $ 1.2 million associated with the TRI debt, and the Company’s Credit Agreement, are as follows as of January 30, 2022:

Future principal maturities of all TRI debt, excluding unamortized financing fees of $ 1.2 million associated with the TRI debt are as follows as of January 29, 2023:

(in thousands)

7 unchanged sentences

Product returns

Catalog costs

Unpaid purchases of property & equipment

41 unchanged sentences

The Company’s revenue primarily consists of the sale of apparel, footwear and hard goods.

Revenue for merchandise that is shipped to our customers from our distribution centers and stores is recognized upon shipment.

Revenue for merchandise that is shipped to our customers from our fulfillment centers and stores is recognized upon shipment.

Store revenue is recognized at the point of sale, net of returns, and excludes taxes.

51 unchanged sentences

Research and development tax credits

Nondeductible Compensation

Total income tax expense

7 unchanged sentences

Returns allowance

Uniform capitalization

Deferred rent

Uniform inventory capitalization

Unrealized loss on investment

Lease liability

2 unchanged sentences

Unrecognized tax benefits

Charitable contributions

Research and development

Total deferred tax assets

5 unchanged sentences

Goodwill and intangibles

Revenue recognition method adjustment

Total deferred tax liabilities

8 unchanged sentences

Additions for tax positions in current year

Statue of limitations

Statute of limitations

Balance at end of year

If recognized, $ 0.3 million of the Company’s unrecognized tax benefits as of January 29, 2023, would affect the Company’s effective tax rate.

The Company does not anticipate that there will be a material change in the balance of the unrecognized tax benefits in the next 12 months.

Any interest and penalties related to uncertain tax positions are recorded in

The Company does not anticipate that there will be a material change in the balance of the

DULUTH HOLDINGS INC.

Notes to Consolidated Financial Statements

income tax expense.

There were no material amounts recorded as tax expense for interest or penalties for the years ended January 30, 2022 and January 31, 2021.

unrecognized tax benefits in the next 12 months.

Any interest and penalties related to uncertain tax positions are recorded in income tax expense.

There were no material amounts recorded as tax expense for interest or penalties for the years ended January 29, 2032.

The Company files income tax returns in the United States federal jurisdiction and in various state jurisdictions.

19 unchanged sentences

The Company adopted ASU 2018-15 using the prospective method.

In fiscal 2021, $ 4.4 million of capitalized costs associated with implementation activities, net of amortization are classified within Prepaid expenses & other current assets on the Company’s Consolidated Balance Sheets and $ 1.8 million of related amortization costs are included in Selling, general and administrative expenses on the Company’s Consolidated Statement of Operations.

In fiscal 2022 and 2021, $ 9.2 million and $ 4.4 million of capitalized costs associated with implementation activities, net of amortization are classified within Prepaid expenses & other current assets on the Company’s Consolidated Balance Sheets, respectively, and $ 3.6 million and $ 1.8 million of related amortization costs are included in Selling, general and administrative expenses on the Company’s Consolidated Statement of Operations, respectively.

Recently Issued Accounting Pronouncements Not Yet Adopted

9 unchanged sentences

ASU 2019-10 amends the effective dates for ASU 2016-13 for smaller reporting companies with fiscal years beginning after December 15, 2022, and interim periods within those years.

The Company expects to adopt ASU 2016-13 on January 30, 2023, the first day of the Company’s first quarter for the fiscal year ending January 28, 2024, the Company’s fiscal year 2023.

The Company is evaluating the level of impact adopting ASU 2016-13 will have on the Company’s consolidated financial statements.

The Company adopted ASU 2016-13 on January 30, 2023, the first day of the Company’s first quarter for the fiscal year ending January 28, 2024, the Company’s fiscal year 2023.

The Company not expect this standard to have a material impact on the Company’s consolidated financial statements.

DULUTH HOLDINGS INC.

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data