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Duluth Holdings (DLTH)
NASDAQ:DLTH
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Duluth Holdings
(NASDAQ:DLTH)
Rating:50Neutral
Price Target:
$2.50
▲(8.23%Upside)
Positive Factors
Leadership
New leadership under CEO Stephanie Pugliese is focused on restoring the financial health of the business and has identified significant annualized expense savings.
Operational Improvements
Efforts are in motion to improve inventory productivity and sourcing efficiencies, which are expected to benefit gross margins moving forward.
Negative Factors
Cash Flow
The largest risk is continuing to run at sustained losses and negative free cash flow, which hampers the capacity to resuscitate the brand.
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.
Duluth Holdings (DLTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$86.81M
Dividend YieldN/A
Average Volume (3M)41.20K
Price to Earnings (P/E)―
Beta (1Y)0.55
Revenue Growth-4.21%
EPS Growth-292.04%
CountryUS
Employees807
SectorConsumer Cyclical
Sector Strength64
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.32
Shares Outstanding34,214,660
10 Day Avg. Volume52,267
30 Day Avg. Volume41,202
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.42
Price to Sales (P/S)0.00
P/FCF Ratio-1.64
Enterprise Value/Market Cap3.38
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit0.98
Enterprise Value/Ebitda24.48
Forecast
1Y Price Target
$2.00Price Target Upside-13.42% Downside
Rating ConsensusHold
Number of Analyst Covering1
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 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 Earnings Call Summary
Earnings Call Date:Jun 05, 2025
(Q1-2025)
| % Change Since: 3.12%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Duluth Holdings Inc. While there were strategic initiatives and positive steps such as cost reductions, improved lending terms, and growth in mobile sales, these were offset by significant declines in net sales, increased inventory levels, and a decline in gross profit margin. The company is taking steps to address challenges, but the current financial performance remains under pressure.Q1-2025 Updates
Positive Updates
Successful Transition to Asset-Based Lending
Duluth Holdings Inc. transitioned its line of credit to an asset-based lending agreement, extending to 2030 with a $100 million limit, improved borrowing rates, and increased flexibility.
Cost Reduction Initiative
Duluth implemented an expense savings initiative expected to result in annualized savings of approximately $15 million, with $10 million of cost benefits to be realized in the current fiscal year.
Mobile Sales Growth
Mobile sales penetration increased by 200 basis points with mobile conversion continuing to trend upwards.
Store Portfolio Optimization
Duluth is revitalizing its store portfolio, closing one low-performing store, renewing leases on stores meeting higher hurdle rates, and opening two new stores in the second half of the year.
Negative Updates
Decline in Net Sales
First quarter 2025 net sales were $102.7 million, down 12% compared to the previous year.
Reported EPS Loss
The reported EPS loss for the quarter was $0.45, with an adjusted EPS loss of $0.32.
Increased Inventory Levels
Inventory increased by $39.7 million or 29% compared to the previous year, with key drivers being core year-round products and wholesale inventory shifts.
Gross Profit Margin Decline
Gross profit margin rate declined by 80 basis points due to greater clearance penetration and deeper discounting during February's Big Dam clearance event.
Company Guidance
During the first quarter of fiscal year 2025, Duluth Holdings Inc. reported net sales of $102.7 million, a 12% decline compared to the previous year. The company experienced a reported EPS loss of $0.45, while the adjusted EPS loss stood at $0.32. Adjustments to EPS included a $4.5 million impact, with $4.1 million attributed to an increase in deferred tax valuation allowance and $0.4 million related to net impairment expenses. The adjusted EBITDA for the quarter was negative $3.8 million. The company reduced promotional days by 35% and adjusted the depth of promotions from 25% to 20% on average, contributing to a gross profit margin rate decline of 80 basis points, although gross margin improved by over 300 basis points in March and April compared to the previous year. Inventory levels increased by 29% year-on-year, reaching $176.1 million, with a clearance inventory mix of 9%. The company ended the quarter with $8.6 million in cash and cash equivalents and $64 million in borrowings on its credit facility. Despite the challenges, Duluth Holdings maintained its fiscal year 2025 guidance with an adjusted EBITDA range of $20 million to $25 million. Key focuses include reducing SKUs by more than 5% in fall 2025 and over 20% in spring/summer 2026, managing tariffs with targeted price increases, and revitalizing the store portfolio. The company also transitioned its credit facility to an asset-based lending agreement with a $100 million limit, improving borrowing rates and flexibility.Duluth Holdings Financial Statement Overview
Summary
Duluth Holdings is under financial strain with declining revenue and profitability, negative operating and free cash flows, and increased leverage. Strategic improvements are needed for stabilization.Income Statement
Duluth Holdings is facing challenges with declining revenue and profitability. The TTM data shows a negative net income and EBIT, indicating operational difficulties. Gross profit margins have also decreased over time, reflecting pressures on cost management or pricing power. The company needs strategic improvements to return to previous profitability levels.35
Negative
Balance Sheet
The company's balance sheet reveals moderate leverage with a debt-to-equity ratio that has increased over time, posing a risk if not managed carefully. Stockholders' equity has decreased, suggesting potential financial strain. However, the equity ratio remains reasonable, offering some stability to the company's financial structure.45
Neutral
Cash Flow
Cash flow analysis highlights significant issues with negative operating and free cash flows in the TTM period. The ability to generate cash from operations is weak, impacting the company's financial flexibility. The negative trends in cash flows raise concerns about sustaining operations and funding future growth without external financing.30
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 |
| EBITDA | -4.41M | 24.25M | 37.42M | 73.38M | 52.80M |
| Net Income | -43.67M | -9.36M | 2.30M | 29.70M | 13.58M |
Balance Sheet | |||||
| Total Assets | 452.44M | 490.45M | 527.45M | 515.55M | 515.58M |
| Cash, Cash Equivalents and Short-Term Investments | 3.33M | 32.16M | 45.55M | 77.05M | 47.22M |
| Total Debt | 163.13M | 186.23M | 199.88M | 190.25M | 237.37M |
| 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
Positive
2.31
Price Trends
2.04
Positive
2.02
Positive
2.68
Negative
Market Momentum
0.08
Negative
57.45
Neutral
72.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLTH, the sentiment is Positive. The current price of 2.31 is above the 20-day moving average (MA) of 2.20, above the 50-day MA of 2.04, and below the 200-day MA of 2.68, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.45 is Neutral, neither overbought nor oversold. The STOCH value of 72.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $17.18B | 10.68 | -8.50% | 2.94% | 1.62% | -25.72% | |
57 Neutral | $161.12M | ― | -9.20% | 6.06% | -4.22% | -386.70% | |
57 Neutral | $89.74M | ― | -72.29% | ― | -23.63% | 41.36% | |
53 Neutral | $76.42M | 26.16 | -1.82% | ― | -10.71% | -112.57% | |
52 Neutral | $53.97M | ― | -47.54% | ― | -8.79% | -15.17% | |
50 Neutral | $86.81M | ― | -27.53% | ― | -4.21% | -292.04% | |
47 Neutral | $11.65M | ― | -179.00% | ― | -11.33% | -183.52% |
* Consumer Cyclical Sector Average
Performance Comparison
DLTH
Duluth Holdings
2.31
-1.46
-38.73%
DBI
Designer Brands
3.30
-4.16
-55.76%
TLYS
Tilly's
1.79
-3.63
-66.97%
DXLG
Destination XL
1.42
-2.05
-59.08%
BIRD
Allbirds
11.02
-1.84
-14.31%
LVLU
Lulu's Fashion Lounge Holdings
4.21
-20.69
-83.09%
Duluth Holdings Corporate Events
Executive/Board Changes
Duluth Holdings Announces Resignation of Chief Merchandising Officer
Neutral
Jul 22, 2025
On July 16, 2025, Eli M. Getson informed Duluth Holdings Inc. of his voluntary resignation as Senior Vice President and Chief Merchandising Officer, effective August 1, 2025. The company expressed gratitude for his contributions and wished him success in his future endeavors.
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.
Business Operations and StrategyFinancial Disclosures
Duluth Holdings Reports Q1 2025 Financial Results
Negative
Jun 5, 2025
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.
Executive/Board ChangesShareholder Meetings
Duluth Holdings Elects Board and Approves Auditor
Neutral
Jun 2, 2025
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.
Executive/Board Changes
Duluth Holdings Announces Inducement Stock Awards for CEO
Neutral
May 5, 2025
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.
Private Placements and Financing
Duluth Holdings Secures New $100M Credit Agreement
Positive
May 1, 2025
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.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.