Duluth Holdings Inc. (NASDAQ:DLTH) Q3 2022 Earnings Call Transcript

Sam Sato : Yeah, maybe I’ll answer the first part of that Dylan. This is Sam. So, as I said in my prepared remarks, the current environment, it’s posing near-term challenges for the business for sure and we’re going to prudently focus on managing expenses. Having said that, we are focused on unlocking the full potential long term and so, yeah, there is some flexibility in our OpEx as we move into next year, for sure, but we’re not going to necessarily cut our nose off despite our face, meaning there are certain things that we believe we’ve got to invest in, in order for our business to scale and continue to grow sustainably long term and that’s largely around technology and logistics. And so, while we may, depending on what next year looks like, we may extend the timeframe of those capital investments, the investments themselves will ultimately have to be made in order for us to deliver against the longer-term value proposition.

Specific to the pause on the ERP, that was really more about as our new CTO came in and looked at our infrastructure and our current course and speed said, we really should prioritize and we would get greater near-term value out of a more optimized warehouse management tool than ERP. And so, he really advised us and made the call as we expected him to give us kind of a re-prioritization through his expert lens on not only where we would get greater value, but importantly, in these conditions, where we could potentially get greater near-term value. And so, I think that was the appropriate call and we eventually are going to replace the ERP system. We’re going to have to do that but it’s now moved down the priority list, because AJ believes there’s other areas that take greater priority and will deliver greater results for us faster.

Dylan Carden : Thanks, Sam. Appreciate that. That’s good for all.

Sam Sato : Sure. Appreciated.

Operator: This concludes our question-and-answer session, as well as our conference for today. Thank you for attending today’s presentation. You may now disconnect.