Duluth Holdings (DLTH) AI Stock Analysis

• Market Cap: $72.90M
• Dividend Yield: N/A
• Average Volume (3M): 55.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: -4.21%
• EPS Growth: -292.04%
• Country: US
• Employees: 807
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Retail
• EPS (TTM): -0.32
• Shares Outstanding: 34,214,660
• 10 Day Avg. Volume: 94,579
• 30 Day Avg. Volume: 55,179
• PEG Ratio: -0.76
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.41
• Enterprise Value/Market Cap: 6.83
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.66
• Enterprise Value/Ebitda: 41.54
• 1Y Price Target: $2.75
• Price Target Upside: 50.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 42 Neutral
• Price Target: $2.00 ▲(9.29%Upside)

The overall score reflects significant financial pressures facing Duluth Holdings, despite some positive strategic steps and corporate events. The most significant factor is the deteriorating financial performance, which overshadows the company's efforts to stabilize operations and improve liquidity.

Positive Factors

Inventory Management

Efforts are in motion to improve inventory productivity and sourcing efficiencies, which are expected to benefit gross margins moving forward.

Leadership

New leadership under CEO Stephanie Pugliese is focused on restoring the financial health of the business and has identified significant annualized expense savings.

Negative Factors

Financial Performance

Q1 sales and Adjusted EBITDA missed expectations, with revenue falling 12% year over year.

Gross Margin

Gross margin eroded due to higher clearance penetration, and SG&A delevered nearly 300 basis points off the weaker top-line.

Valuation

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.

Duluth Holdings Business Overview & Revenue Model

Company Description

Duluth Holdings Inc., also known as Duluth Trading Company, is a lifestyle brand primarily serving the casual wear, workwear, and accessory markets in the United States. The company is renowned for its high-quality, solution-based apparel and gear designed for men and women who value durability and functionality. Duluth Holdings operates through a multi-channel distribution model, which includes retail stores, direct-to-consumer catalogs, and an e-commerce platform.

How the Company Makes Money

Duluth Holdings Inc. generates revenue through the sale of its diverse range of apparel and lifestyle products. The company's primary revenue streams include direct-to-consumer sales via its online platform and catalogs, as well as sales from its network of retail stores. In addition to its core product offerings in workwear and casual wear, Duluth Holdings capitalizes on seasonal products and accessories, enhancing its revenue potential. Marketing initiatives, customer loyalty programs, and a strong brand reputation contribute to repeat business and customer acquisition. The company does not heavily rely on any significant external partnerships, instead focusing on its brand strengths and unique product lines to drive sales.

Duluth Holdings Financial Statement Overview

Summary

Duluth Holdings is experiencing declining revenue and negative profitability, with challenges in cash flow and increasing financial leverage. Despite a stable asset base, strategic adjustments are needed to improve financial health.

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.

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.

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.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
612.65M	626.63M	646.68M	653.31M	698.58M	638.78M
	Gross Profit
300.24M	308.51M	324.97M	343.44M	377.32M	331.53M
	EBIT
-38.65M	-36.86M	-8.83M	6.23M	44.10M	24.21M
	EBITDA
-9.47M	-4.41M	24.25M	37.42M	73.38M	52.80M
	Net Income Common Stockholders
-51.09M	-43.67M	-9.36M	2.30M	29.70M	13.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.58M	3.33M	32.16M	45.55M	77.05M	47.22M
	Total Assets
463.70M	452.44M	490.45M	527.45M	515.55M	515.58M
	Total Debt
223.89M	163.13M	186.23M	199.88M	190.25M	237.37M
	Net Debt
215.31M	159.80M	154.07M	154.34M	113.19M	190.15M
	Total Liabilities
298.81M	272.76M	268.28M	300.26M	292.83M	324.48M
	Stockholders Equity
167.86M	182.68M	225.23M	230.41M	225.87M	193.46M
Cash Flow		Free Cash Flow
-47.85M	-25.25M	-10.41M	-28.46M	81.63M	38.49M
	Operating Cash Flow
-39.71M	-16.92M	38.67M	-5.63M	91.98M	50.75M
	Investing Cash Flow
-7.93M	-8.13M	-48.72M	-22.64M	-10.15M	-12.13M
	Financing Cash Flow
49.42M	-3.78M	-3.35M	-3.23M	-51.36M	6.36M

Duluth Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLTH, the sentiment is Negative. The current price of 1.83 is below the 20-day moving average (MA) of 1.94, below the 50-day MA of 1.86, and below the 200-day MA of 2.92, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.90 is Neutral, neither overbought nor oversold. The STOCH value of 24.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLTH.

Duluth Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
DXLG	61 Neutral	$60.81M	26.16	-1.82%	―	-10.71%	-112.57%
DBI	54 Neutral	$117.67M	―	-9.20%	8.30%	-4.22%	-386.70%
BIRD	54 Neutral	$95.24M	―	-72.29%	―	-23.63%	41.36%
LVLU	47 Neutral	$19.33M	―	-179.00%	―	-11.33%	-183.48%
TLYS	44 Neutral	$36.79M	―	-47.54%	―	-8.79%	-15.17%
DLTH	42 Neutral	$72.90M	―	-27.53%	―	-4.21%	-292.04%

Duluth Holdings Corporate Events

Duluth Holdings Reports Q1 2025 Financial Results

On June 5, 2025, Duluth Holdings Inc. announced its financial results for the fiscal first quarter ended May 4, 2025, reporting net sales of $102.7 million and a net loss of $15.3 million. The company is undergoing a strategic shift under new leadership to simplify operations and focus on brand awareness, product innovation, and customer service. Despite a 12% decrease in net sales compared to the previous year, Duluth Trading is taking steps to streamline its expense base and optimize its operations to return to profitable growth.

The most recent analyst rating on (DLTH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Duluth Holdings stock, see the DLTH Stock Forecast page.

Duluth Holdings Elects Board and Approves Auditor

At the 2025 annual meeting of shareholders held on May 29, 2025, Duluth Holdings Inc. shareholders voted to elect eight board members, approve executive compensation, and ratify KPMG LLP as the independent auditor for the fiscal year ending February 1, 2026. These decisions reflect the company’s ongoing commitment to strong governance and financial oversight, potentially impacting its operational stability and stakeholder confidence.

The most recent analyst rating on (DLTH) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Duluth Holdings stock, see the DLTH Stock Forecast page.

Duluth Holdings Announces Inducement Stock Awards for CEO

On May 5, 2025, Duluth Holdings Inc. announced the issuance of inducement stock awards to Stephanie L. Pugliese, the new President and CEO, in accordance with NASDAQ Listing Rule 5635(c)(4). The awards, totaling 1,759,532 shares of Class B common stock, were granted outside the company’s 2024 Equity Incentive Plan as a material inducement for her hiring. The stock awards include specific vesting schedules and conditions, such as immediate vesting in cases of termination due to death, disability, or without cause, and were approved by the company’s Board of Directors and Compensation Committee.

Duluth Holdings Secures New $100M Credit Agreement

On April 28, 2025, Duluth Holdings Inc. entered into a new Credit Agreement with BMO Bank N.A. and other financial institutions, allowing for borrowings up to $100 million under an asset-based revolving senior credit facility. This agreement, which replaces a previous facility at a lower interest rate, is secured by a first-priority perfected security interest in the company’s assets and will mature on April 28, 2030. The new facility is expected to provide Duluth Holdings with increased flexibility and liquidity, particularly for financing seasonal inventory builds.

Duluth Holdings Appoints Stephanie Pugliese as CEO

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.

Duluth Holdings Announces Board Member Departure

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.