Duluth (NASDAQ:DLTH) Issues Quarterly Earnings Results

Duluth (NASDAQ:DLTH) posted its quarterly earnings data on Monday. The company reported ($0.20) EPS for the quarter, beating the consensus estimate of ($0.39) by $0.19, FiscalAI reports. The firm had revenue of $98.59 million during the quarter, compared to the consensus estimate of $93.69 million. Duluth had a negative return on equity of 5.95% and a negative net margin of 2.90%.

Here are the key takeaways from Duluth’s conference call:

• Duluth said its promotional reset drove a major profitability improvement in Q1, with gross margin rising to 57.4% from 52.0% last year and adjusted EBITDA turning positive at $2.6 million.
• Net sales fell 4% to $98.6 million as the company intentionally pulled back on discounts and clearance events, with direct-to-consumer sales down while retail stores grew 3.3%.
• Management highlighted stronger customer economics, including a 10% increase in sales per customer and a 16% year-over-year increase in net promoter score, signaling healthier customer engagement.
• The company continued to improve efficiency by cutting SG&A by 5.2%, reducing SKUs by over 20%, and lowering inventory by 24.8% year over year, which helped strengthen liquidity to about $100 million.
• Duluth raised full-year adjusted EBITDA guidance to $28 million-$32 million from $26 million-$30 million, while reaffirming sales guidance of $540 million-$560 million and expecting sales to stabilize in the second half of the year.

Duluth Stock Performance

NASDAQ DLTH opened at $4.31 on Tuesday. The company has a current ratio of 1.59, a quick ratio of 0.38 and a debt-to-equity ratio of 0.31. The business’s 50 day moving average is $3.33 and its two-hundred day moving average is $2.79. Duluth has a 12-month low of $1.82 and a 12-month high of $4.66. The stock has a market capitalization of $158.44 million, a price-to-earnings ratio of -8.98 and a beta of 1.45.

Hedge Funds Weigh In On Duluth

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Empowered Funds LLC increased its position in Duluth by 9.3% during the 1st quarter. Empowered Funds LLC now owns 101,447 shares of the company’s stock worth $177,000 after purchasing an additional 8,597 shares during the period. Barclays PLC increased its position in Duluth by 32.2% during the 4th quarter. Barclays PLC now owns 58,043 shares of the company’s stock worth $121,000 after purchasing an additional 14,136 shares during the period. Blair William & Co. IL increased its position in Duluth by 17.2% during the 3rd quarter. Blair William & Co. IL now owns 113,510 shares of the company’s stock worth $444,000 after purchasing an additional 16,678 shares during the period. Squarepoint Ops LLC acquired a new position in Duluth during the 3rd quarter worth approximately $85,000. Finally, Quadrature Capital Ltd acquired a new position in Duluth during the 4th quarter worth approximately $52,000. Institutional investors and hedge funds own 24.39% of the company’s stock.

Duluth News Summary

Here are the key news stories impacting Duluth this week:

• Positive Sentiment: Duluth reported better-than-expected Q1 results, with a loss of $0.20 per share versus estimates for a $0.39 loss, and revenue of $98.6 million above expectations. Article Title
• Positive Sentiment: Gross margin expanded 540 basis points to 57.4%, driven by less promotional activity and better product costs, signaling improved pricing power and operating efficiency. Article Title
• Positive Sentiment: Management raised fiscal 2026 adjusted EBITDA guidance to $28 million-$32 million from $26 million-$30 million, suggesting confidence in the turnaround plan. Article Title
• Positive Sentiment: The company unveiled a new “Build to Last” strategy and said it aims to double EBITDA by 2028, giving investors a clearer long-term recovery roadmap. Article Title

Analyst Upgrades and Downgrades

Separately, Wall Street Zen raised Duluth to a “hold” rating in a research note on Saturday, May 23rd. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $5.00.

About Duluth

Duluth Holdings Inc operates as a specialty retailer of workwear, outdoor apparel and accessories for men and women under the Duluth Trading Co name. The company’s product line includes work pants, durable outerwear, performance-based shirts, base layers and specialized gear such as tool belts and backpacks. Duluth Trading Co focuses on combining practical functionality with style, targeting tradespeople, outdoor enthusiasts and anyone in need of rugged, long-lasting clothing.

Since its founding in 1989, Duluth Trading Co has grown from a regional catalog business into a national retail chain.