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Duluth Holdings (DLTH)
NASDAQ:DLTH
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Duluth Holdings
(NASDAQ:DLTH)
45Neutral
Positive Factors
Leadership Change
Stephanie Pugliese will return to the company as president and CEO, bringing her deep understanding of brand DNA and company culture.
Operational Efficiency
Sourcing and product development initiatives are expected to improve inventory agility and help to recapture GM, further supported by product costing initiatives.
Negative Factors
Financial Health
Valuation at sub-2 times adjusted EBITDA estimate reflects deep uncertainty over the company’s future, including negative earnings and just $3 million in cash on the balance sheet.
Market Risks
Recently announced tariffs pose a significant threat to all apparel companies and are the largest risk to shares.
Duluth Holdings (DLTH) vs. S&P 500 (SPY)
Market Cap
$66.23M
Dividend YieldN/A
Average Volume (3M)77.91K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth-3.10%
EPS Growth-381.92%
CountryUS
Employees807
SectorConsumer Cyclical
Sector Strength58
IndustryApparel - Retail
Share Statistics
EPS (TTM)-1.37
Shares Outstanding32,628,246
10 Day Avg. Volume58,016
30 Day Avg. Volume77,909
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.12
Price to Cash Flow (P/CF)-0.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.75Price Target Upside47.06% Upside
Rating ConsensusHold
Number of Analyst Covering2
Duluth Holdings Business Overview & Revenue Model
Company DescriptionDuluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No Polo Shirt, No Yank, Wild Boar Mocs, and Buck Naked. The company markets its products through its Website, catalogs, and retail stores. As of January 30, 2022, it operated 62 retail stores and three outlet stores. The company was formerly known as GEMPLER'S, Inc. Duluth Holdings Inc. was founded in 1989 and is headquartered in Mount Horeb, Wisconsin.
How the Company Makes MoneyDuluth Holdings makes money primarily through the sale of its apparel and accessories via multiple channels, including a network of physical retail stores, an online e-commerce platform, and catalog sales. The company leverages its distinct brand identity and customer loyalty to drive repeat purchases. Key revenue streams include its direct-to-consumer sales and wholesale operations. Duluth Holdings also benefits from its strategic marketing initiatives and promotional campaigns, which enhance brand visibility and drive traffic across its sales channels. Additionally, the company's commitment to product innovation and quality helps maintain a strong market position, contributing significantly to its earnings.
Duluth Holdings Financial Statement Overview
Summary
Duluth Holdings is navigating a challenging financial landscape marked by declining revenues, negative profitability, and increasing leverage. The company's cash flow position is under pressure, exacerbated by negative operating cash flows and deteriorating free cash flow. While the company retains a stable asset base, the overall financial health indicates a need for strategic adjustments to improve profitability and liquidity.Income Statement
Duluth Holdings has faced declining revenue, with a noticeable drop from $653.3M in 2023 to $626.6M in 2025. Additionally, the company is experiencing negative EBIT and net income margins, indicating profitability challenges. The gross profit margin has remained stable but is not sufficient to offset operating losses.45
Neutral
Balance Sheet
The company's debt-to-equity ratio has increased as equity decreases, indicating higher financial leverage. Stockholders' equity has declined over the years, impacting the equity ratio. Despite these challenges, the company maintains a relatively stable asset base, providing a buffer against liabilities.55
Neutral
Cash Flow
Operating cash flow has turned negative, with free cash flow worsening significantly over the recent period. This trend suggests liquidity pressures and challenges in sustaining operations without relying on external financing. The free cash flow to net income ratio indicates additional stress, as cash flow generation is weak relative to earnings.40
Negative
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 626.63M | 646.68M | 653.31M | 698.58M | 638.78M | Gross Profit |
| 308.51M | 324.97M | 343.44M | 377.32M | 331.53M | EBIT |
| -29.11M | -8.83M | 6.23M | 44.10M | 24.21M | EBITDA |
| -36.86M | 24.25M | 37.42M | 73.38M | 52.80M | Net Income Common Stockholders |
| -43.67M | -9.36M | 2.30M | 29.70M | 13.58M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 3.33M | 32.16M | 45.55M | 77.05M | 47.22M | Total Assets |
| 452.44M | 490.45M | 527.45M | 515.55M | 515.58M | Total Debt |
| 138.85M | 186.23M | 199.88M | 190.25M | 237.37M | Net Debt |
| 135.51M | 154.07M | 154.34M | 113.19M | 190.15M | Total Liabilities |
| 272.76M | 268.28M | 300.26M | 292.83M | 324.48M | Stockholders Equity |
| 182.68M | 225.23M | 230.41M | 225.87M | 193.46M |
| Cash Flow | Free Cash Flow | |||
| -25.25M | -10.41M | -28.46M | 81.63M | 38.49M | Operating Cash Flow |
| -16.92M | 38.67M | -5.63M | 91.98M | 50.75M | Investing Cash Flow |
| -8.13M | -48.72M | -22.64M | -10.15M | -12.13M | Financing Cash Flow |
| -3.78M | -3.35M | -3.23M | -51.36M | 6.36M |
Duluth Holdings Technical Analysis
Neutral
1.87
Price Trends
2.28
Negative
2.73
Negative
3.21
Negative
Market Momentum
-0.12
Negative
46.02
Neutral
36.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLTH, the sentiment is Neutral. The current price of 1.87 is above the 20-day moving average (MA) of 1.80, below the 50-day MA of 2.28, and below the 200-day MA of 3.21, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 36.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DLTH.
Duluth Holdings Risk Analysis
Duluth Holdings disclosed 44 risk factors in its most recent earnings report. Duluth Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Duluth Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $6.55B | 11.40 | 3.24% | 4.25% | 2.38% | -21.28% | |
59 Neutral | $50.32M | 21.95 | 2.11% | ― | -10.50% | -88.94% | |
55 Neutral | $127.14M | ― | -3.31% | 7.55% | -2.14% | -173.54% | |
45 Neutral | $66.23M | ― | -22.43% | ― | -3.10% | -381.92% | |
45 Neutral | $39.37M | ― | -65.03% | ― | -25.31% | 40.84% | |
44 Neutral | $18.85M | ― | -148.78% | ― | -11.06% | -175.45% | |
43 Neutral | $51.26M | ― | -37.62% | ― | -8.61% | -33.30% |
* Consumer Cyclical Sector Average
Performance Comparison
DLTH
Duluth Holdings
1.87
-2.43
-56.51%
DBI
Designer Brands
2.66
-6.35
-70.48%
TLYS
Tilly's
1.70
-4.18
-71.09%
DXLG
Destination XL
0.99
-2.41
-70.88%
BIRD
Allbirds
5.15
-7.17
-58.20%
LVLU
Lulu's Fashion Lounge Holdings
0.44
-0.69
-61.06%
Duluth Holdings Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -33.92% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Neutral
Duluth Holdings faced significant challenges with order fulfillment and sales declines, but maintained a strong financial position and achieved notable successes in mobile growth, fulfillment strategy, and strategic initiatives. The company's strategic progress and liquidity suggest potential for future improvement, despite current operational setbacks.Highlights
Record Sales During Black Friday to Cyber Monday
Despite challenges, the company achieved record sales during the Black Friday week through Cyber Monday.
Mobile Growth and Performance
Mobile now accounts for nearly 70% of site visits and 58% of digital sales, with both metrics growing year-over-year and conversion rates significantly above industry averages.
Successful Cost-Saving Fulfillment Strategy
The Adairsville fulfillment center now processes over 60% of total volume at a cost per unit 66% lower than legacy facilities, yielding faster deliveries and expanded network capacity.
Strategic Initiatives and Product Collaborations
The company is making progress on product development and sourcing initiatives, with partnerships like Leinenkugels and product innovations such as Armachillo cooling technology and NoGa Air.
Strong Financial Position
The company ended the year debt-free with $103 million in liquidity, providing flexibility to manage the business.
Lowlights
Order Fulfillment Challenges
Significant backlog in orders at the Belleville fulfillment center due to processing delays, negatively impacting top line growth.
Net Sales Decline
Net sales declined 1.8% in Q4 and 3.1% for the full year 2024, with retail store sales decreasing by 6.9%.
Gross Margin Contraction
Q4 gross margin contracted by 410 basis points, and full-year gross margin declined by 110 basis points due to deeper promotions.
Inventory Increase
Inventory increased by 32% year-over-year, ending at $166.5 million, with higher levels of core products and in-transit inventory.
Adjusted Net Loss
The company reported an adjusted net loss of $23.6 million for the full year 2024, compared to a net loss of $9.9 million the previous year.
Company Guidance
During the Duluth Holdings Fourth Quarter 2024 Financial Results Conference Call, several key metrics and future guidance were discussed. The company reported a 1.8% decline in net sales, totaling $241 million for the quarter, with direct channel sales remaining flat and retail store sales decreasing by 6.9%. Adjusted EBITDA for the quarter was approximately $9 million. For the full fiscal year 2024, net sales were $627 million with an adjusted EBITDA of $15 million. Looking ahead to fiscal 2025, Duluth Holdings projects net sales between $570 million and $595 million, with a forecasted gross margin expansion of approximately 300 basis points. The company also plans to reduce SG&A expenses by up to 200 basis points and anticipates adjusted EBITDA between $20 million and $25 million. Duluth Holdings is focusing on enhancing inventory management, operational execution, and continuing its transformation initiatives, including direct sourcing from factories and mobile-first digital strategies. The company ended 2024 with a strong financial position, having no debt and $103 million in liquidity.Duluth Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Duluth Holdings Appoints Stephanie Pugliese as CEO
Positive
Apr 2, 2025
On March 31, 2025, Duluth Holdings Inc. announced the appointment of Stephanie L. Pugliese as President and CEO, effective May 5, 2025, succeeding Stephen L. Schlecht. Pugliese, who previously led the company from 2015 to 2019, is expected to leverage her extensive experience in branded apparel and retail to drive sustainable growth. Her return is anticipated to strengthen Duluth’s market position, building on recent investments in systems, sourcing, and distribution.
Executive/Board ChangesShareholder Meetings
Duluth Holdings Announces Board Member Departure
Neutral
Mar 26, 2025
On March 24, 2025, Francesca M. Edwardson announced her decision not to stand for re-election to the Board of Directors of Duluth Holdings Inc. at the 2025 Annual Meeting of Shareholders. Having served since 2015, her departure is not due to any disagreements with the company. Her retirement marks the end of a significant tenure where her expertise in corporate governance was highly valued, and her contributions will be missed by the company.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Duluth Holdings Announces CEO Retirement and Interim Appointment
Negative
Mar 13, 2025
On March 11, 2025, Duluth Holdings announced that Samuel M. Sato will retire as President and CEO, effective April 25, 2025, with Stephen L. Schlecht appointed as Interim CEO. The company reported a decrease in net sales and a net loss for the fiscal year ending February 2, 2025, attributing challenges to fulfillment delays and increased promotional activity. Despite these setbacks, Duluth Trading plans to expand its product lines and focus on strategic initiatives to improve operational execution.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.