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Duluth Holdings (DLTH)
NASDAQ:DLTH
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Duluth Holdings
(NASDAQ:DLTH)
Rating:57Neutral
Price Target:
$4.00
▲(5.54% Upside)
Positive Factors
Financial Performance
FQ2 revenue topped estimate by +11%, gross profit beat by +17%, and adjusted EBITDA was $10.8M, showing much stronger results from actions to reduce promotions, raise AURs, and improve profitability than anticipated.
Leadership and Strategy
DLTH's transformation efforts under the leadership of Stephanie Pugliese signal significant progress supported by a positive macro view and a dramatic course correction prioritizing quality of sales.
Negative Factors
Macroeconomic Risks
The biggest risk to shares is volatility in top-line performance that could unwind progress that has started to gain a foothold in the model, particularly with risk of broader macroeconomic headwinds as tariffs take hold.
Market Risks
DLTH retains a speculative risk profile given a small market capitalization, limited float, challenging operating performance in recent years, and moderate net debt.
Duluth Holdings (DLTH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$134.91M
Dividend YieldN/A
Average Volume (3M)2.33M
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-6.13%
EPS Growth-215.18%
CountryUS
Employees807
SectorConsumer Cyclical
Sector Strength83
IndustryApparel - Retail
Share Statistics
EPS (TTM)0.03
Shares Outstanding34,214,660
10 Day Avg. Volume6,939,482
30 Day Avg. Volume2,331,114
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.88
Enterprise Value/Revenue0.42
Enterprise Value/Gross Profit0.85
Enterprise Value/Ebitda-51.65
Forecast
1Y Price Target
$5.50Price Target Upside45.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Duluth Holdings Business Overview & Revenue Model
Company DescriptionDuluth Holdings Inc. is a lifestyle brand that specializes in workwear and casual apparel for men and women. Founded in 1989 and headquartered in Belleville, Wisconsin, the company operates through its retail stores, catalogs, and online platforms. Duluth Holdings is known for its durable, functional, and comfortable clothing and accessories designed to meet the needs of hardworking individuals, particularly in sectors like construction, trades, and outdoor activities.
How the Company Makes MoneyDuluth Holdings generates revenue primarily through the sale of its apparel and accessories via multiple channels, including direct-to-consumer sales from its website, retail stores, and catalog distribution. Key revenue streams include sales from its physical retail locations, e-commerce sales, and catalog orders. The company focuses on offering a unique product assortment that includes proprietary designs and patented features, which allows them to differentiate from competitors. They also engage in promotional campaigns and seasonal sales to drive customer traffic and increase sales volumes. Partnerships with various logistics and fulfillment services enhance their supply chain efficiency, contributing to overall profitability.
Duluth Holdings Earnings Call Summary
Earnings Call Date:Sep 04, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 27, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a company in the midst of a strategic turnaround, with significant improvements in gross margin and cost control efforts. However, challenges remain, including a decline in sales and upcoming tariff impacts. The management is optimistic about continuing their turnaround efforts, with a focus on enhancing profitability and optimizing inventory.Q2-2025 Updates
Positive Updates
Gross Margin Improvement
The company delivered a gross margin expansion of 240 basis points to 54.7%, driven by a reduction in promotional depth and an increase in average unit retail.
SG&A Leverage and Cost Reduction
SG&A expenses were reduced by $5.2 million, or 7.1%, resulting in improved leverage. The company is on track to realize $10 million in cost savings for fiscal 2025.
Inventory Reduction
Inventory levels decreased by 12% compared to the prior year, driven by enhanced inventory management processes.
Retail Store Performance
Retail store sales increased by 5.3%, supported by improved traffic trends and optimized inventory allocation.
Successful Product Launches
New product lines like Artisan Hemp and Featherlite Chick Knit shirts were well received, and the Mother's Day print collection was the most successful print launch ever.
Negative Updates
Sales Decline
Overall net sales decreased by 7%, with direct channel sales excluding wholesale declining by 18% due to reduced web traffic.
Impact of Tariffs
Tariff costs are expected to have a significant impact in the second half of the year, with an anticipated annual impact of $15 million.
Increase in Clearance Inventory
Clearance goods made up 22% of the inventory mix compared to 11% last year, driven by slower sell-throughs of spring/summer merchandise.
Company Guidance
During the second quarter of fiscal year 2025, Duluth Holdings Inc. focused on several key metrics as part of its turnaround strategy, resulting in a positive trajectory despite a 7% year-over-year decline in net sales to $131.7 million. The company achieved a gross margin expansion of 240 basis points to 54.7% and improved SG&A leverage, contributing to a $1.5 million increase in adjusted EBITDA, reaching $12 million or 9.1% of sales. Duluth reported an adjusted EPS of $0.03, a $0.05 improvement compared to the previous year. The company successfully reduced inventory levels by 12% and achieved $10 million in cost savings for fiscal 2025, primarily through headcount reductions and controllable expenses. As part of their strategic initiatives, Duluth implemented a reduction in promotional depth, leading to an 8% increase in average unit retail, and plans to continue focusing on maintaining price integrity and optimizing inventory management to drive long-term profitable growth.Duluth Holdings Financial Statement Overview
Summary
Duluth Holdings is facing significant financial challenges, with declining revenue, negative net income, and cash flow issues. The company's balance sheet shows increased leverage and decreased stockholders' equity, indicating financial strain. Strategic improvements are necessary to stabilize and improve financial health.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 | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 602.75M | 626.63M | 646.68M | 653.31M | 698.58M | 638.78M |
| Gross Profit | 298.26M | 308.51M | 324.97M | 343.44M | 377.32M | 331.53M |
| EBITDA | -4.91M | -4.41M | 24.25M | 37.42M | 73.38M | 52.80M |
| Net Income | -46.09M | -43.67M | -9.36M | 2.30M | 29.70M | 13.58M |
Balance Sheet | ||||||
| Total Assets | 433.80M | 452.44M | 490.45M | 527.45M | 515.55M | 515.58M |
| Cash, Cash Equivalents and Short-Term Investments | 5.74M | 3.33M | 32.16M | 45.55M | 77.05M | 47.22M |
| Total Debt | 165.13M | 163.13M | 186.23M | 199.88M | 190.25M | 237.37M |
| Total Liabilities | 266.74M | 272.76M | 268.28M | 300.26M | 292.83M | 324.48M |
| Stockholders Equity | 169.99M | 182.68M | 225.23M | 230.41M | 225.87M | 193.46M |
Cash Flow | ||||||
| Free Cash Flow | -33.02M | -25.25M | -10.41M | -28.46M | 81.63M | 38.49M |
| Operating Cash Flow | -24.30M | -16.92M | 38.67M | -5.63M | 91.98M | 50.75M |
| Investing Cash Flow | -8.51M | -8.13M | -48.72M | -22.64M | -10.15M | -12.13M |
| Financing Cash Flow | 28.76M | -3.78M | -3.35M | -3.23M | -51.36M | 6.36M |
Duluth Holdings Technical Analysis
Positive
3.79
Price Trends
2.27
Positive
2.07
Positive
2.46
Positive
Market Momentum
0.23
Negative
85.96
Negative
61.33
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 3.79 is above the 20-day moving average (MA) of 2.38, above the 50-day MA of 2.27, and above the 200-day MA of 2.46, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 85.96 is Negative, neither overbought nor oversold. The STOCH value of 61.33 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 43 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $17.99B | 12.87 | -3.58% | 2.97% | 1.27% | -14.28% | |
60 Neutral | $230.94M | ― | -9.20% | 4.23% | -4.22% | -386.70% | |
57 Neutral | $134.91M | ― | -24.97% | ― | -6.13% | -215.18% | |
54 Neutral | $57.90M | ― | -43.51% | ― | -11.10% | -10.31% | |
53 Neutral | $71.66M | 26.16 | -3.58% | ― | -9.85% | -137.20% | |
45 Neutral | $51.00M | ― | -78.23% | ― | -22.48% | 39.73% | |
42 Neutral | $11.02M | ― | -187.85% | ― | -10.68% | -74.47% |
* Consumer Cyclical Sector Average
Performance Comparison
DLTH
Duluth Holdings
3.79
0.01
0.26%
DBI
Designer Brands
4.73
-1.03
-17.88%
TLYS
Tilly's
1.90
-2.66
-58.33%
DXLG
Destination XL
1.24
-1.37
-52.49%
BIRD
Allbirds
6.26
-4.23
-40.32%
LVLU
Lulu's Fashion Lounge Holdings
4.01
-15.94
-79.90%
Duluth Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Duluth Holdings Reports Q2 2025 Financial Turnaround
Positive
Sep 4, 2025
On September 4, 2025, Duluth Holdings announced its financial results for the second quarter ending August 3, 2025, reporting a net income of $1.3 million compared to a net loss of $2.0 million in the same quarter the previous year. The company achieved a gross margin expansion due to promotional resets and cost control measures, resulting in an adjusted EBITDA of $12.0 million. Despite a 7% decrease in net sales to $131.7 million, Duluth Trading improved its financial standing with a reduction in inventory by 12.2% and maintained a net liquidity of $73.3 million. CEO Stephanie Pugliese highlighted the positive momentum in the company’s turnaround efforts, emphasizing improvements in promotional strategies, expense management, and inventory discipline. Looking ahead, the company aims to focus on business simplification and leveraging its core strengths to drive shareholder value and restore profitable growth.
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.
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.