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

Duluth (NASDAQ:DLTH) issued its quarterly earnings data on Thursday. The company reported $0.23 earnings per share for the quarter, topping analysts’ consensus estimates of $0.09 by $0.14, FiscalAI reports. Duluth had a negative return on equity of 5.97% and a negative net margin of 2.90%.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 Down 2.9%

Duluth stock opened at $3.05 on Friday. Duluth has a 1-year low of $1.58 and a 1-year high of $4.66. The business has a fifty day moving average price of $2.33 and a 200-day moving average price of $2.80. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.29 and a quick ratio of 0.21. The stock has a market capitalization of $112.03 million, a price-to-earnings ratio of -6.35 and a beta of 1.84.

Insider Transactions at Duluth

In related news, SVP Richard W. Schlecht purchased 18,052 shares of the firm’s stock in a transaction on Tuesday, December 23rd. The stock was acquired at an average price 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 in the company, valued at approximately $741,556.27. This represents a 5.58% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. 42.94% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Quadrature Capital Ltd acquired a new position in shares of Duluth in the fourth quarter worth about $52,000. Squarepoint Ops LLC acquired a new stake in shares of Duluth during the 3rd quarter valued at about $85,000. Barclays PLC increased 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 valued at $121,000 after purchasing an additional 14,136 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in 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 purchasing an additional 29,521 shares during the period. Finally, Empowered Funds LLC raised its holdings in 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 purchasing an additional 8,597 shares during the period. Hedge funds and other institutional investors own 24.39% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages have commented on DLTH. Robert W. Baird set a $5.00 target price on shares of Duluth in a report on Wednesday, December 17th. Wall Street Zen upgraded shares of Duluth to a “hold” rating in a report 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price 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 adjusted EPS ~$0.23, beating expectations; gross margin widened to 53% and year-end inventory fell ~21%, producing positive free cash flow for the year. These operational improvements are the primary bullish drivers. Duluth Q4 results
• Positive Sentiment: Margin/action plan for 2026 — Management is pushing a promotional reset, inventory reduction and expects roughly +100 bps of gross-margin expansion in 2026, signaling continued focus on profitability over top-line growth. Margin outlook
• Neutral Sentiment: Fiscal-2026 targets set — Company provided FY26 guidance: net sales $540–$560M and adjusted EBITDA $26–$30M. Guidance provides a framework for modeling but is conservative versus some street expectations. Guidance
• Neutral Sentiment: Short-interest data appears unreliable — Recent short-interest entries show anomalous “0 shares” and NaN increases; treat short-interest signals as likely data errors until updated filings confirm a change. (No reliable external short-interest link available.)
• Negative Sentiment: Top-line weakness — Net sales fell ~10.5% year-over-year in Q4, with direct-to-consumer channel down significantly; slower sales tempers enthusiasm from margin gains and raises execution risk on re-energizing traffic. Sales decline
• Negative Sentiment: Guidance and risks flagged — Some coverage notes the company “beat Q4 but guides below consensus” and the earnings call highlighted backlog growth and remaining execution risks; conservative guidance plus lingering full-year loss history keeps downside risk if traffic or margins deteriorate. Guides below consensus Earnings call highlights

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.