Duluth (NASDAQ:DLTH) Releases Earnings Results, Beats Expectations By $0.51 EPS

Posted by Stanley Muller on Sep 4th, 2026

Duluth (NASDAQ:DLTH – Get Free Report) posted its earnings results on Thursday. The company reported $0.50 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.01) by $0.51, FiscalAI reports. Duluth had a negative return on equity of 3.69% and a negative net margin of 2.00%.The company had revenue of $121.39 million for the quarter, compared to analysts’ expectations of $119.91 million.

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

Profitability and cash flow improved significantly: Q2 adjusted EBITDA rose to $27 million, while free cash flow reached $13 million through the first half. Excluding $16.3 million of tariff refunds, adjusted EBITDA was still $10.7 million, supported by higher pricing, lower overhead, and better cost productivity.
Gross margins and inventory quality strengthened: Underlying gross margin expanded 490 basis points year over year to 59.6%, while clearance inventory dollars declined 43% and clearance represented just 14.6% of inventory versus 22.2% last year. Management attributed the gains to reduced promotions, SKU rationalization, and a greater focus on core “hero” products.
Full-year EBITDA guidance was raised: Duluth increased fiscal 2026 adjusted EBITDA guidance to $38 million-$42 million from $28 million-$32 million, while reaffirming net sales guidance of $540 million-$560 million. The outlook includes the tariff refund but also anticipates higher marketing and transportation costs.
Sales remained under pressure: Q2 net sales fell 7.8% to $121.4 million, with direct-to-consumer sales down 7.6% and women’s sales down 15%. Management expects Q3 sales to be affected by difficult comparisons with last year’s clearance events, although it forecasts sequential improvement and a stronger Q4.
Management is investing for longer-term growth: Duluth plans to increase upper-funnel marketing, expand AI-driven search capabilities, improve stores and e-commerce, and develop wholesale channels following early momentum from its Amazon launch. Core men’s products continued to perform well, while the company views AKHG as a smaller brand with selective long-term potential.

Duluth Price Performance

Shares of NASDAQ DLTH opened at $4.46 on Friday. Duluth has a 1 year low of $2.02 and a 1 year high of $5.09. The stock has a market capitalization of $169.48 million, a P/E ratio of -13.94 and a beta of 1.38. The company’s 50-day moving average is $4.10 and its 200 day moving average is $3.51. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.62 and a quick ratio of 0.30.

Key Headlines Impacting Duluth

Here are the key news stories impacting Duluth this week:

Positive Sentiment: Profitability improved sharply: Duluth reported $18.4 million in net income, or $0.50 diluted EPS, compared with $1.3 million, or $0.04 per share, a year earlier. Adjusted EBITDA rose to $27.0 million from $12.0 million, exceeding expectations. Duluth Holdings Second-Quarter Financial Results
Positive Sentiment: Full-year EBITDA guidance was raised: Management increased fiscal 2026 adjusted EBITDA guidance to $38 million-$42 million from $28 million-$32 million, signaling confidence in margin expansion, inventory discipline and improved operating execution. Duluth Raises Adjusted EBITDA Outlook
Positive Sentiment: Margins and liquidity strengthened: Gross margin expanded to 72.8%, or 59.6% excluding tariff refunds, while inventory declined 15.5%. The company ended the quarter with approximately $96 million of net liquidity and no borrowings on its asset-based lending facility.
Neutral Sentiment: Revenue guidance was maintained: Fiscal 2026 net sales guidance remains $540 million-$560 million, broadly consistent with the approximately $554 million analyst consensus. Duluth Q2 Income and Revenue Outlook
Negative Sentiment: Sales trends remain weak: Second-quarter revenue fell 7.8% year over year to $121.4 million. Direct-to-consumer sales declined 11.5% because of lower web traffic and conversion, while store sales fell 2.4%.
Negative Sentiment: Some earnings benefits were temporary: Results included $16.3 million in tariff refunds, contributing roughly $0.44 of EPS and materially lifting reported margins. Investors may therefore focus on whether underlying gains from pricing, sourcing and inventory management persist.

Institutional Trading of Duluth

Several large investors have recently bought and sold shares of the company. Blair William & Co. IL raised its position 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 acquiring an additional 16,678 shares in the last quarter. Empowered Funds LLC lifted 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 valued at $177,000 after purchasing an additional 8,597 shares during the period. Goldman Sachs Group Inc. boosted its position in shares of Duluth by 50.8% during the first 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 in the last quarter. Barclays PLC boosted its position in shares of Duluth by 32.2% during the fourth 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. Finally, Quadrature Capital Ltd purchased a new stake in Duluth in the fourth quarter worth $52,000. 24.39% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on DLTH shares. Zacks Research cut Duluth from a “strong-buy” rating to a “hold” rating in a report on Friday, August 7th. Weiss Ratings upgraded Duluth from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, June 8th. Finally, Wall Street Zen upgraded Duluth to a “hold” rating in a report on Saturday, May 23rd. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $5.00.

Check Out Our Latest Research Report on DLTH

About Duluth

(Get Free Report)

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.