Robert W. Baird analyst Jonathan Komp upgraded the rating on Duluth Holdings to a Buy yesterday, setting a price target of $7.00.
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Jonathan Komp has given his Buy rating due to a combination of factors that highlight Duluth Holdings’ promising financial performance and strategic improvements. The company’s second-quarter results exceeded expectations with significant revenue and profit improvements, demonstrating the effectiveness of their efforts to reduce promotions and enhance profitability. Despite a year-over-year revenue decline, the substantial beat in gross profit and adjusted EBITDA indicates a positive trajectory.
Furthermore, under the renewed leadership of Stephanie Pugliese, Duluth Holdings is making notable progress in its transformation strategy, focusing on quality sales and operational efficiency. The company’s commitment to reducing inventory, cutting fixed costs, and maintaining lower promotional levels is expected to support sustained profitability. These strategic initiatives, along with a positive macroeconomic outlook, bolster confidence in Duluth Holdings’ multi-year recovery potential, justifying the upgraded rating and increased price target.
DLTH’s price has also changed dramatically for the past six months – from $2.560 to $3.590, which is a 40.23% increase.