Improved Profitability
Duluth Holdings delivered a consecutive quarter of improved profitability, building upon progress from Q2. Gross margin expanded by 150 basis points to 53.8% compared to last year.
Successful Product Launches
Men's denim sales grew by 9% at higher margins, and the Highland Cows print became one of the most successful prints across several categories.
Operational Improvements
The company is on track to exceed $10 million in cost savings for fiscal 2025, with a 17% reduction in Q3 ending inventory achieved by rightsizing receipts.
Strong Liquidity Position
Duluth Holdings ended the third quarter with a strong liquidity position of over $88 million and has fully paid down its credit line as of the fourth quarter.