Duluth (NASDAQ:DLTH) Issues Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Duluth (NASDAQ:DLTH) posted its quarterly earnings results on Thursday. The company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.09 by $0.14, FiscalAI reports. Duluth had a negative return on equity of 11.51% and a negative net margin of 5.03%.The firm had revenue of $215.89 million during the quarter, compared to analysts’ expectations of $210.65 million.

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

• Adjusted EBITDA rose to $24.9M for FY2025 (up ~$10.3M YoY), gross margin expanded to ~53.4%, free cash flow was $16.6M, and net liquidity ended at $141.3M, signaling stronger profitability and balance-sheet flexibility.
• Net sales declined roughly 9–10% for FY2025 (direct channel down ~16%) and management expects a similar first-half 2026 headwind (sales down ~6–10%) driven by the ongoing promotional reset and lower web traffic.
• The retail channel outperformed digital—Q4 retail sales grew ~4.7%, every store is profitable, two new stores opened with projected payback in ≤3 years, and four-wall profitability improved ~550 bps.
• Operations and logistics were materially consolidated—Adairsville now holds ~69% of inventory, Dubuque and Salt Lake City centers were closed, and planned investments (cross-dock, labor management, automation) aim to lift fulfillment efficiency and reduce distribution costs.
• FY2026 guidance calls for net sales of $540–560M (-1% to -5%), adjusted EBITDA of $26–30M, ~$12M capex, ~100 bps gross-margin expansion to ~54.4%, but the outlook assumes tariff rates remain as pre-Supreme Court and notes ongoing tariff uncertainty.

Duluth Stock Performance

NASDAQ DLTH opened at $3.14 on Friday. Duluth has a twelve month low of $1.58 and a twelve month high of $4.66. The company has a quick ratio of 0.21, a current ratio of 1.29 and a debt-to-equity ratio of 0.33. The stock has a market cap of $115.33 million, a P/E ratio of -3.61 and a beta of 1.84. The company’s 50-day simple moving average is $2.32 and its 200 day simple moving average is $2.79.

Insider Buying and Selling

In related news, SVP Richard W. Schlecht acquired 18,052 shares of the firm’s stock in a transaction on Tuesday, December 23rd. The shares were bought at an average cost of $2.17 per share, with a total value of $39,172.84. Following the completion of the acquisition, the senior vice president owned 341,731 shares of the company’s stock, valued at $741,556.27. This trade represents a 5.58% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. 42.94% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Duluth

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Quadrature Capital Ltd acquired a new position in Duluth during the fourth quarter worth $52,000. Squarepoint Ops LLC acquired a new stake in shares of Duluth during the 3rd quarter worth about $85,000. Barclays PLC lifted its holdings in Duluth by 32.2% during the 4th quarter. Barclays PLC now owns 58,043 shares of the company’s stock valued at $121,000 after purchasing an additional 14,136 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Duluth by 50.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 87,615 shares of the company’s stock valued at $152,000 after purchasing an additional 29,521 shares during the last quarter. Finally, Empowered Funds LLC boosted its position in Duluth by 9.3% in the first quarter. Empowered Funds LLC now owns 101,447 shares of the company’s stock valued at $177,000 after buying an additional 8,597 shares in the last quarter. Institutional investors own 24.39% of the company’s stock.

Analyst Ratings Changes

Several brokerages have recently weighed in on DLTH. Robert W. Baird set a $5.00 price objective on Duluth in a report on Wednesday, December 17th. Wall Street Zen upgraded Duluth to a “hold” rating in a research note on Friday, November 28th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $5.00.

Key Headlines Impacting Duluth

Here are the key news stories impacting Duluth this week:

• Positive Sentiment: Q4 turnaround: Duluth reported Q4 net income of $7.8M and EPS of $0.22–$0.23, beating consensus EPS and generating a quarterly profit versus a year‑ago loss, with revenue modestly above estimates. This beat is a clear near‑term catalyst for the stock. Duluth Q4 results (press release)
• Positive Sentiment: Margin, inventory and cash flow improvements: Gross margin jumped to 53.0% (+890 bps YoY), year‑end inventory fell ~21%, and full‑year free cash flow was positive $16.6M; the company ended the quarter with ~$16.3M cash and $141.3M net liquidity — all signs of improving operating discipline. Details on margins, inventory, FCF
• Positive Sentiment: FY2026 targets and margin trajectory: Management guided FY2026 net sales of $540–$560M and adjusted EBITDA of $26–$30M and signaled plans for a ~100 bps gross‑margin expansion through a promotional reset and lower inventory — positive for medium‑term profitability if sales stabilize. Seeking Alpha: margin guidance and promotional reset
• Neutral Sentiment: Earnings call materials and transcript available for deeper read: The company hosted a call and published slides/transcript — useful for investors to hear management’s cadence on traffic, inventory cadence and capital allocation. Earnings call transcript
• Neutral Sentiment: Local/unrelated items and noisy short‑interest data: A local City of Duluth infrastructure meeting and an anomalous short‑interest data entry (zeros/days‑to‑cover) are unrelated to corporate fundamentals and unlikely to move the stock. City of Duluth meeting
• Negative Sentiment: Topline weakness: Net sales fell ~10.5% YoY in Q4 and direct‑to‑consumer traffic declined; lower sales growth is the main risk if the company can’t re‑accelerate demand even as margins improve. Sales decline detail
• Negative Sentiment: Guidance and lingering risks: Some outlets note the FY2026 guide is below some sell‑side expectations and the earnings call flagged growing backlog/risks, which could cap near‑term upside if investors expected stronger top‑line guidance. Investing.com: guide vs. consensus TipRanks: backlog and risks

Duluth Company Profile

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.