Cautious Hold on Duluth Holdings Amid Strategic Adjustments and Uncertain Outlook

BTIG analyst Janine Stichter has reiterated their neutral stance on DLTH stock, giving a Hold rating today.

Janine Stichter’s rating is based on a combination of factors surrounding Duluth Holdings’ current financial situation and strategic initiatives. Despite some progress in the latter part of the quarter, the company’s Q1 revenue and adjusted EBITDA slightly missed expectations, indicating a gradual pace of improvement. Under the leadership of returning CEO Stephanie Pugliese, the company is focusing on foundational changes such as cost structure optimization, brand awareness growth, and product assortment refinement. However, the valuation remains below historical and peer levels, and the turnaround efforts are expected to take time to manifest fully.
Given the muted visibility and the complexity of the ongoing adjustments, Stichter has opted to maintain a cautious stance with a Hold rating. While there are plans to restore the company’s financial foundation, including significant expense savings and improved gross margins, these initiatives are still in the early stages. The company’s guidance for 2025 remains unchanged, but the impact of tariffs and promotional activities adds uncertainty. Therefore, Stichter prefers to remain on the sidelines until clearer signs of sustained progress are evident.

According to TipRanks, Stichter is a 4-star analyst with an average return of 7.2% and a 47.03% success rate. Stichter covers the Consumer Cyclical sector, focusing on stocks such as Boot Barn, Lululemon Athletica, and VF.