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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on DLTH

Here is a 90-word analysis of the negative drivers behind Duluth Holdings Inc.'s recent performance: Duluth Holdings' Q3 2024 earnings release revealed a quarterly loss of $0.41 per share, lagging estimates. The company's sales declined 8% year-over-year, while inventories surged 30%, indicating heavy clearance expected in Q4. Operational losses widened to $16.4 million, and the company's financial condition is deteriorating, with increasing debt and payables. Despite some improvements in gross margins, the company's financials are expected to remain challenging in Q4.

1.c. Company Highlights

2. Duluth Holdings' Q3 2025 Earnings: Navigating Challenges with Operational Improvements

Duluth Holdings reported net sales of $114.9 million for the third quarter of 2025, a decline of 9.6% year-over-year. Despite the revenue drop, the company achieved a gross margin expansion of 150 basis points to 53.8%. The reported EPS loss was $0.29, while the adjusted EPS loss was $0.23, beating last year's loss by $0.21. Adjusted EBITDA for the quarter was negative $0.7 million, a significant improvement of $5.5 million compared to the same period last year. The actual EPS loss of $0.23 was better than the estimated loss of $0.56.

Publication Date: Dec -23

📋 Highlights
  • Net Sales Decline with Margin Improvement:: Q3 net sales fell 9.6% YoY to $114.9M, but gross margin expanded 150 bps to 53.8%.
  • Adjusted EBITDA Turnaround:: Adjusted EBITDA improved by $5.5M YoY to -$0.7M, despite a $0.29 EPS loss narrowing to -$0.23.
  • Inventory Reduction:: Q3 ending inventory dropped 17% YoY, supporting cost savings of $12M in Q4 and $10M+ for fiscal 2025.
  • Full-Year Guidance:: Affirmed $23–25M adjusted EBITDA and $555–565M sales, with a $12M tariff offset via pricing/cost actions.
  • Operational Efficiency:: Q4 on-time delivery exceeded 90%, and Adairsville fulfillment center shipments rose 20 points, driving higher sell-through rates.

Operational Efficiency and Cost Savings

The company has made significant strides in optimizing its operations, including reducing global promotional days by more than half compared to last year and implementing price increases on select products. Men's denim was a strong performer, with 9% sales growth at higher margins. Duluth Holdings is on track to exceed $10 million in cost savings in fiscal 2025 and has reduced its Q3 ending inventory by 17% year-over-year. As the company noted, "We have made significant progress in optimizing our expense structure and refining our product assortment and brand marketing investments under Stephanie's direction."

Guidance and Outlook

Duluth Holdings affirmed its 2025 adjusted EBITDA guidance range of $23 million to $25 million, with a sales range of $555 million to $565 million. The company expects to maintain its investment in advertising above 10% of sales and plans to reduce SKUs by more than 20% in spring/summer 2026. For Q4, the company expects a higher-quality rate of sale despite revenues being down around 10% year-over-year.

Valuation and Financial Health

With a P/S Ratio of 0.14 and an EV/EBITDA of 595.41, the market appears to have already priced in the challenges faced by the company. The current liquidity of approximately $125 million and the goal to continue building on this momentum provide a stable base for long-term growth. The company's strategy to prioritize higher-value transactions is showing encouraging results, with average order values up year-over-year and gross margin rates improving.

Future Prospects

The company's focus on creating a stable base for long-term growth through promotional resets, cost cutting, and smoother operations is expected to drive improved profitability. With a plan to reduce SKUs and styles by 20% in 2026, Duluth Holdings is poised to achieve sales with relatively fewer units, making its operations more efficient. Analysts estimate next year's revenue growth at -13.6%, indicating a continued challenging environment, but the company's operational improvements and cost savings initiatives are expected to mitigate some of these challenges.

3. NewsRoom

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duluth Holdings Inc. - DLTH

Jan -22

Source: prnewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duluth Holdings Inc. - DLTH

Jan -20

Source: globenewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duluth Holdings Inc. - DLTH

Jan -15

Source: prnewswire.com

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DLTH ACTIVE INVESTIGATION: Lost Money on Duluth Holdings Inc.? Contact Levi & Korsinsky Now

Jan -14

Source: newsfilecorp.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duluth Holdings Inc. - DLTH

Jan -08

Source: prnewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims on Behalf of Investors of Duluth Holdings Inc. - DLTH

Jan -06

Source: globenewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duluth Holdings Inc. - DLTH

Jan -01

Source: prnewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Duluth Holdings Inc. - DLTH

Dec -30

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.16%)

6. Segments

Direct-to-Consumer

Expected Growth: 2.5%

Duluth Holdings Inc.'s Direct-to-Consumer segment growth of 2.5% is driven by increasing online presence, effective marketing strategies, and a strong brand reputation. Additionally, the company's focus on product innovation, expansion of product lines, and strategic pricing decisions have contributed to the growth. Furthermore, the rise of e-commerce and changing consumer behavior have also played a significant role in driving sales.

Stores

Expected Growth: 1.5%

Duluth Holdings Inc.'s 1.5% store growth is driven by increasing demand for outdoor apparel, expansion into new markets, and strategic investments in e-commerce and digital marketing. Additionally, the company's focus on omnichannel retailing, product innovation, and strong brand loyalty contribute to its growth momentum.

7. Detailed Products

Firehose Work Pants

Durable and comfortable work pants designed for heavy-duty use, featuring multiple tool pockets and a rugged fabric blend.

Flex Firehose Pants

Stretchy and flexible work pants with a firehose-inspired design, offering improved mobility and comfort.

DuluthFlex Pants

High-stretch work pants with a comfortable fit, designed for workers who need flexibility and durability.

Longtail T-Shirts

Moisture-wicking, breathable, and comfortable work shirts designed for outdoor enthusiasts and workers.

Buck Naked Underwear

Comfortable, breathable, and moisture-wicking underwear designed for active individuals.

Alaskan Hardgear Jackets

Durable, water-resistant, and insulated jackets designed for outdoor enthusiasts and workers in harsh environments.

8. Duluth Holdings Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Duluth Holdings Inc. faces moderate threat from substitutes, as customers have limited alternatives for its outdoor apparel and gear products.

Bargaining Power Of Customers

Duluth Holdings Inc. has a diverse customer base, which reduces the bargaining power of individual customers, making it a low threat.

Bargaining Power Of Suppliers

Duluth Holdings Inc. relies on a few key suppliers for its raw materials, which gives them some bargaining power, making it a moderate threat.

Threat Of New Entrants

The outdoor apparel and gear industry has high barriers to entry, making it difficult for new entrants to compete with established players like Duluth Holdings Inc.

Intensity Of Rivalry

The outdoor apparel and gear industry is highly competitive, with many established players competing for market share, making it a high-intensity rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.82%
Debt Cost 3.95%
Equity Weight 83.18%
Equity Cost 10.61%
WACC 9.49%
Leverage 20.22%

11. Quality Control: Duluth Holdings Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Torrid

A-Score: 3.4/10

Value: 10.0

Growth: 4.4

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Zumiez

A-Score: 3.2/10

Value: 4.6

Growth: 2.1

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Victoria's Secret

A-Score: 3.0/10

Value: 4.0

Growth: 3.3

Quality: 3.8

Yield: 0.0

Momentum: 4.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Genesco

A-Score: 2.9/10

Value: 5.4

Growth: 3.0

Quality: 2.7

Yield: 0.0

Momentum: 4.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
The Children's Place

A-Score: 2.5/10

Value: 8.5

Growth: 1.0

Quality: 3.9

Yield: 0.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Duluth Holdings

A-Score: 2.5/10

Value: 6.3

Growth: 1.4

Quality: 2.3

Yield: 0.0

Momentum: 3.5

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.41$

Current Price

2.41$

Potential

-0.00%

Expected Cash-Flows