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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 Trading's Q2 2025 Earnings: A Turnaround in Progress

Duluth Trading reported Q2 2025 net sales of $131.7M, a 7% decline YoY, driven by reduced promotional activity. The company reported an EPS of $0.03, beating estimates of -$0.05. Adjusted EBITDA rose $1.5M to $12M (9.1% of sales), reflecting 240 bps gross margin expansion to 54.7%. Inventory decreased 12% to $148.1M, ending with $73.3M liquidity.

Publication Date: Sep -13

📋 Highlights

Gross Margin and Promotional Strategies

Stephanie Pugliese emphasized gross margin dollars as the core metric guiding promotional pullback, prioritizing profitability over sales contraction. The company has reduced promotional depth while maintaining frequency, resulting in a 10% increase in AUR for men's bottoms.

Cost Savings and Tariff Impact

The company is on track to achieve $10 million in cost savings in 2025, with $5.2M SG&A savings in Q2. Heena Agrawal noted that July and August price increases are meeting sales expectations, offsetting tariff impacts through vendor negotiations and SG&A reductions.

Valuation and Outlook

With a P/S Ratio of 0.22 and an EV/EBITDA of -59.63, the market is pricing in significant challenges. However, the company's efforts to reduce SKUs by 20% by 2026, improve inventory management, and maintain cost discipline are expected to drive long-term profitability. The company plans to open two new stores in late 2025 and is confident in maintaining disciplined promotions during the fall/holiday period.

Conclusion on Financial Health

The ROE of -26.01% and ROIC of -10.74% indicate that the company still faces significant challenges. However, the reduction in inventory and improvement in adjusted EBITDA are positive signs. The company's guidance for adjusted EBITDA remains $20M–$25M for 2025, with double-digit year-end inventory declines expected.

3. NewsRoom

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Duluth Holdings Inc. to Report Third Quarter 2025 Financial Results on December 16, 2025

Dec -02

Source: globenewswire.com

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Duluth Trading Strengthens Midwest Footprint, Opens Sixth Minnesota Location in Maple Grove

Sep -23

Source: prnewswire.com

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Duluth Trading Brings Durable Style to Kansas City with New Legends Outlets Mall Location

Sep -05

Source: prnewswire.com

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Duluth Holdings Q2 Review: Succeeding Turnaround Supports More Upside

Sep -05

Source: seekingalpha.com

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Duluth Holdings Inc. (DLTH) Q2 2025 Earnings Call Transcript

Sep -04

Source: seekingalpha.com

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Duluth Holdings (DLTH) Tops Q2 Earnings and Revenue Estimates

Sep -04

Source: zacks.com

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Duluth Holdings Inc. to Report Second Quarter 2025 Financial Results on September 4, 2025

Aug -21

Source: globenewswire.com

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Quebec Innovative Materials Corp. (QIMC) Announces Orvian Natural Resources I LLC Has Secured Strategic US Land Package in Minnesota's Duluth Complex for Clean Natural Hydrogen Development

Jul -30

Source: newsfilecorp.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
Genesco

A-Score: 3.5/10

Value: 7.2

Growth: 3.0

Quality: 2.7

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Victoria's Secret

A-Score: 3.5/10

Value: 5.2

Growth: 3.3

Quality: 3.8

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Duluth Holdings

A-Score: 3.5/10

Value: 9.8

Growth: 1.4

Quality: 4.4

Yield: 0.0

Momentum: 4.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Torrid

A-Score: 3.0/10

Value: 8.0

Growth: 4.4

Quality: 3.9

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Zumiez

A-Score: 2.9/10

Value: 4.4

Growth: 2.1

Quality: 3.9

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
The Children's Place

A-Score: 2.7/10

Value: 9.8

Growth: 1.0

Quality: 4.5

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

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

3.13$

Current Price

3.13$

Potential

-0.00%

Expected Cash-Flows