Duluth (NASDAQ:DLTH) Posts Earnings Results, Beats Estimates By $0.19 EPS

Duluth (NASDAQ:DLTH) posted its earnings results on Monday. The company reported ($0.20) EPS for the quarter, topping the consensus estimate of ($0.39) by $0.19, FiscalAI reports. Duluth had a negative net margin of 2.00% and a negative return on equity of 3.65%. The company had revenue of $98.59 million during the quarter, compared to the consensus estimate of $93.69 million.

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 Trading Up 8.4%

Shares of DLTH stock opened at $4.67 on Wednesday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 0.38 and a current ratio of 1.59. The company has a market capitalization of $171.67 million, a price-to-earnings ratio of -14.59 and a beta of 1.45. Duluth has a 52-week low of $1.82 and a 52-week high of $4.94. The company has a 50-day simple moving average of $3.37 and a two-hundred day simple moving average of $2.80.

Analyst Ratings Changes

DLTH has been the subject of a number of analyst reports. Weiss Ratings upgraded Duluth from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday. Wall Street Zen upgraded Duluth to a “hold” rating in a report on Saturday, May 23rd. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat, Duluth presently has an average rating of “Moderate Buy” and a consensus target price of $5.00.

More Duluth News

Here are the key news stories impacting Duluth this week:

• Positive Sentiment: DLTH reported better-than-expected Q1 results, with a smaller loss than analysts anticipated and revenue above consensus. Earnings report
• Positive Sentiment: Gross margin expanded sharply by 540 basis points to 57.4%, helped by reduced promotional activity and better product costs, signaling improved pricing power and execution. Q1 financial results
• Positive Sentiment: Management raised fiscal 2026 Adjusted EBITDA guidance to $28 million-$32 million, suggesting confidence that the turnaround is gaining traction. Build to Last strategy
• Positive Sentiment: The company introduced a new “Build to Last” strategy aimed at doubling EBITDA by 2028, which supports a longer-term growth narrative. Strategy announcement
• Neutral Sentiment: Short-interest data showed no meaningful change in shares shorted, so it is unlikely to be a major driver of the stock move today.
• Neutral Sentiment: Several analyst/commentary pieces highlighted margin gains and the turnaround plan, reinforcing the positive read-through, but they did not add new fundamental information beyond the earnings release. Analyst commentary
• Negative Sentiment: Net sales fell 4% year over year, with direct-to-consumer revenue down 8.7%, showing demand is still soft despite the margin improvement. Q1 financial results

Hedge Funds Weigh In On Duluth

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Blair William & Co. IL boosted its stake in shares of Duluth by 17.2% in the 3rd quarter. Blair William & Co. IL now owns 113,510 shares of the company’s stock worth $444,000 after buying an additional 16,678 shares during the last quarter. Empowered Funds LLC boosted its stake in shares of Duluth by 9.3% in the 1st quarter. Empowered Funds LLC now owns 101,447 shares of the company’s stock worth $177,000 after buying an additional 8,597 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Duluth by 50.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 87,615 shares of the company’s stock worth $152,000 after buying an additional 29,521 shares during the last quarter. Barclays PLC boosted its stake in shares of Duluth by 32.2% in the 4th quarter. Barclays PLC now owns 58,043 shares of the company’s stock worth $121,000 after buying an additional 14,136 shares during the last quarter. Finally, Quadrature Capital Ltd purchased a new position in shares of Duluth in the 4th quarter worth approximately $52,000. Hedge funds and other institutional investors own 24.39% of the company’s stock.

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.