Duluth Holdings (DLTH) AI Stock Analysis

• Market Cap: $115.32M
• Dividend Yield: N/A
• Average Volume (3M): 148.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -6.40%
• EPS Growth: 11.65%
• Country: US
• Employees: 807
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 0.23
• Shares Outstanding: 33,361,990
• 10 Day Avg. Volume: 316,225
• 30 Day Avg. Volume: 148,599
• PEG Ratio: 0.08
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 5.00
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: 13.55
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.21
• Revenue Forecast (FY): $547.74M

• Rating: 53 Neutral
• Price Target: $3.00 ▲(38.89% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is held back primarily by weak financial performance (declining revenue, ongoing losses, and elevated leverage) despite a meaningful TTM free-cash-flow rebound. Technicals are constructive with price above major moving averages, but the stock looks overbought (high RSI). Valuation is constrained by negative earnings, while the recent corporate update is a positive offset due to improved margins, profitability in Q4, and stronger free cash flow.

Positive Factors

Margin expansion & Q4 profit

A swing to Q4 net income and a 53% gross margin indicate meaningful improvement in pricing, product mix and markdown discipline. Sustained higher product-level margins provide structural room to cover fixed costs and drive durable profitability if management maintains assortment and promotion discipline.

Improved cash generation

Conversion to positive operating and free cash flow on a trailing-twelve-month basis materially strengthens near-term liquidity and funds operations or reinvestment without relying solely on capital markets. Durable cash generation, if sustained, reduces refinancing risk and enables strategic flexibility.

Inventory reduction & cost control

A 21% inventory reduction and tighter expense control lower markdown risk, free up working capital and improve gross margins and cash flow durability. Better inventory turns and streamlined operations support margin sustainability and reduce the need for promotional excess over the coming quarters.

Negative Factors

Revenue weakness

Declining top-line sales reflect weakening demand or market share pressure in apparel retail. Sustained revenue declines strain operating leverage, making it harder to convert product-level margins into consistent net profits and prolonging the turnaround timeline if comps remain negative.

Elevated leverage

A materially higher debt-to-equity ratio reduces financial flexibility and raises refinancing and interest coverage risk if revenue or cash generation falter. With equity down, leverage magnifies downside and limits the company’s ability to invest in growth without increasing financing costs.

Cash flow volatility

While recent TTM cash flow is positive, historical swings (strong in 2022, negative in 2023 and 2025) show durability is unproven. Persistent variability in operating cash makes planning, debt reduction and sustained capital allocation decisions riskier over a multi-quarter horizon.

Duluth Holdings Business Overview & Revenue Model

Company Description

Duluth 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 Money

Duluth Holdings makes money primarily by selling branded apparel and accessories directly to consumers through an omnichannel retail model. Its key revenue stream is net sales from product purchases made via (1) its e-commerce websites, (2) its direct-to-consumer catalog and related phone/mail ordering, and (3) its owned retail store fleet; revenue is generally recognized when control of merchandise transfers to the customer (e.g., at shipment/delivery for online orders or at point of sale in stores). The company’s gross profit is driven by the spread between retail prices and its cost of goods sold, which includes product sourcing/manufacturing costs, inbound freight, and inventory-related costs; profitability is influenced by product mix, pricing and promotional activity/markdowns, freight and fulfillment costs, and inventory management. Additional contributors to earnings can include shipping and handling amounts charged to customers (offset by fulfillment costs) and other operating income items where applicable, but the core business is selling Duluth-branded merchandise through its direct and retail channels.

Duluth Holdings Financial Statement Overview

Summary

Mixed fundamentals: TTM revenue is down (-4.3%) and profitability remains negative, while leverage has risen (debt-to-equity ~1.22) and ROE is negative. Offsetting this, gross margin has stayed relatively strong (~49–53%) and TTM cash flow improved sharply with positive operating cash flow (~$24M) and free cash flow (~$16.6M), though cash flow durability has been volatile across years.

Income Statement

TTM (Trailing-Twelve-Months) results show weakening demand, with revenue down 4.3% and profitability still pressured (negative operating profit and a net loss). Gross margin remains relatively solid and stable around ~49–53% over the period, but the business has not converted that into consistent bottom-line profitability: profits in 2021–2022 turned into losses in 2024–2025, with only partial improvement in TTM (smaller loss versus 2025). Overall, margins and earnings volatility are the key overhang despite decent product-level margin support.

Balance Sheet

Leverage is meaningful and has become more pronounced in TTM: total debt is down versus prior years, but equity has also declined, pushing debt-to-equity up to ~1.22 (higher than the ~0.83–0.89 range in prior years). Returns to shareholders are currently negative (TTM return on equity is materially below zero), reflecting ongoing losses. Asset base has contracted from 2023–2025 levels, which can help right-size the business, but the combination of elevated leverage and negative profitability keeps balance sheet quality in the mid-range.

Cash Flow

Cash generation has improved meaningfully in TTM (Trailing-Twelve-Months), with positive operating cash flow (~$24M) and positive free cash flow (~$16.6M), a sharp turnaround from 2025 when both were negative. This is a key strength because it provides liquidity even while the company reports accounting losses. However, cash flow has been volatile across years (strong in 2022, negative operating cash flow in 2023 and 2025), so durability is not yet proven and remains a risk if sales stay under pressure.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	565.18M	626.63M	646.68M	653.31M	698.58M	638.78M
Gross Profit	301.61M	308.51M	324.97M	343.44M	377.32M	331.53M
EBITDA	16.54M	-4.41M	23.51M	37.42M	73.38M	52.80M
Net Income	-16.39M	-43.67M	-9.92M	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	188.95M	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	16.57M	-25.25M	-10.41M	-28.46M	81.63M	38.49M
Operating Cash Flow	24.17M	-16.92M	38.67M	-5.63M	91.98M	50.75M
Investing Cash Flow	-7.38M	-8.13M	-48.72M	-22.64M	-10.15M	-12.13M
Financing Cash Flow	-3.78M	-3.78M	-3.35M	-3.23M	-51.36M	6.36M

Duluth Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 2.16 is below the 20-day moving average (MA) of 2.27, below the 50-day MA of 2.32, and below the 200-day MA of 2.60, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 76.77 is Negative, neither overbought nor oversold. The STOCH value of 51.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLTH.

Duluth Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JILL	65 Neutral	$237.01M	6.21	28.75%	2.25%	-2.67%	-22.93%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TLYS	56 Neutral	$111.84M	-2.54	-21.26%	―	-8.31%	36.10%
DLTH	53 Neutral	$115.32M	-5.10	-9.74%	―	-6.40%	11.65%
DBI	50 Neutral	$278.46M	2.53	-9.44%	2.68%	-5.16%	-3394.48%
CURV	49 Neutral	$124.00M	-16.58	0.97%	―	-7.33%	-114.80%
CATO	42 Neutral	$57.27M	-3.44	-5.76%	―	-1.01%	65.04%

Duluth Holdings Corporate Events

Duluth Holdings Delivers Strong Turnaround in Q4 Results

On March 19, 2026, Duluth Holdings Inc. reported fiscal fourth-quarter 2025 results showing a sharp turnaround to net income of $7.8 million from a $5.6 million loss a year earlier, as gross margin expanded 890 basis points to 53.0% despite tariff headwinds and adjusted EBITDA rose to $17.5 million. For the full year ended February 1, 2026, the company significantly narrowed its net loss to $16.2 million, generated $16.6 million of positive free cash flow, cut inventory by 21.1% and ended the year with $141.3 million in net liquidity, signaling strengthened balance sheet flexibility and improved operational efficiency even as net sales declined and management pivoted toward core products and more disciplined promotions.

The most recent analyst rating on (DLTH) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Duluth Holdings stock, see the DLTH Stock Forecast page.

Duluth Holdings Revises Executive Employment and Compensation Terms

On March 9, 2026, Duluth Holdings amended the employment agreement of President and CEO Stephanie L. Pugliese so that, for fiscal 2026, she will receive a single equity grant that vests in three equal annual installments, with the overall minimum grant-date fair value unchanged from the prior arrangement. The revised equity structure maintains the scale of her long-term incentive while tying continued vesting to ongoing service.

Also on March 9, 2026, Duluth Holdings approved a fourth amendment to the employment agreement of Chairman and Senior Advisor Stephen L. Schlecht, effective March 16, 2026, extending his term through the 2028 annual shareholder meeting while cutting his annual base salary from $275,000 to $100,000. His existing bonus opportunity, set as a percentage of base salary, will continue through fiscal 2028 with a prorated bonus in that final year, signaling a shift toward lower fixed pay and sustained performance-based incentives for a key executive.

The most recent analyst rating on (DLTH) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Duluth Holdings stock, see the DLTH Stock Forecast page.