Duluth Holdings increases 2025 adjusted EBITDA forecast to $23M-$25M due to enhanced cost savings and margin improvements.
Management Focus: Duluth Holdings Inc. is prioritizing gross margin improvement, cost control, and inventory management as part of its turnaround strategy, reporting improved profitability despite year-over-year sales declines.
Financial Performance: The company reported Q3 2025 net sales of $114.9 million, a 9.6% decline, but achieved a gross margin expansion to 53.8% and reduced SG&A expenses by 14.1%.
Operational Improvements: Significant operational enhancements led to a 17% reduction in inventory and projected cost savings of over $10 million for fiscal 2025, with a strong liquidity position of over $88 million.
Outlook and Challenges: Duluth Holdings raised its adjusted EBITDA guidance while revising sales expectations downward, citing ongoing tariff impacts and the need for further promotional resets to optimize margins and sales quality.
Trade with 70% Backtested Accuracy
Analyst Views on DLTH
About DLTH
About the author
Duluth Holdings Lowers Sales Guidance, Stock Plummets 29.39%
- Sales Guidance Cut: Duluth Holdings has lowered its net sales guidance for Q3 2025 to a range of $555 million to $565 million, down from $570 million to $595 million, indicating significant market challenges and weakening demand.
- Stock Price Plunge: Following the announcement of the lowered guidance, Duluth's stock price fell by $0.92, or 29.39%, closing at $2.21 per share on December 16, 2025, reflecting investor concerns about the company's future outlook.
- Legal Investigation Launched: Pomerantz LLP is investigating whether Duluth and certain officers have engaged in securities fraud or other unlawful business practices, which could expose the company to legal risks and further impact shareholder confidence.
- Investor Advisory: In light of these developments, investors are advised to contact legal counsel regarding the possibility of joining a class action lawsuit, highlighting the market's heightened scrutiny on corporate governance and transparency.
Duluth Holdings Shares Plunge 29.4% Following Q3 2025 Sales Guidance Cut
- Stock Price Plunge: Duluth Holdings' shares fell nearly 29.4% on December 16, 2025, after the company lowered its net sales guidance in its Q3 2025 financial results, indicating strong market concerns about its future performance.
- Investor Investigation: The Schall Law Firm is investigating whether Duluth issued false or misleading statements that could affect investor decisions, highlighting the legal risks the company faces.
- Financial Transparency Issues: The company's failure to disclose critical information pertinent to investors may lead to a crisis of trust, potentially impacting future financing and market performance.
- Shareholder Rights Protection: The law firm encourages affected shareholders to participate in the investigation, reflecting market concerns over corporate governance and transparency, which may prompt the company to improve its disclosure practices and compliance.
Duluth Holdings increases 2025 adjusted EBITDA forecast to $23M-$25M due to enhanced cost savings and margin improvements.
Management Focus: Duluth Holdings Inc. is prioritizing gross margin improvement, cost control, and inventory management as part of its turnaround strategy, reporting improved profitability despite year-over-year sales declines.
Financial Performance: The company reported Q3 2025 net sales of $114.9 million, a 9.6% decline, but achieved a gross margin expansion to 53.8% and reduced SG&A expenses by 14.1%.
Operational Improvements: Significant operational enhancements led to a 17% reduction in inventory and projected cost savings of over $10 million for fiscal 2025, with a strong liquidity position of over $88 million.
Outlook and Challenges: Duluth Holdings raised its adjusted EBITDA guidance while revising sales expectations downward, citing ongoing tariff impacts and the need for further promotional resets to optimize margins and sales quality.
DULUTH HOLDINGS INC. Reports Reduced Losses in Q3
Third Quarter Loss: Duluth Holdings Inc. reported a loss of $10.101 million for the third quarter, improving from a loss of $28.231 million in the same period last year.
Revenue Decline: The company's revenue decreased by 9.6% to $114.871 million compared to $127.056 million last year.
Revised Sales Outlook: For the full year, Duluth Holdings has lowered its sales forecast to between $555 million and $565 million, down from the previous estimate of $570 million to $595 million.
Adjusted EBITDA and Capital Expenditure: The company reaffirmed its annual adjusted EBITDA outlook of $23 million to $25 million and projected capital expenditures of $17 million.
Duluth Holdings Reports Q3 Net Loss Reduced to $10.1 Million
- Profitability Improvement: Duluth Holdings achieved a gross margin increase to 53.8% in Q3, up from 52.3% last year despite a $3 million tariff impact, which will enhance the company's profitability in a competitive market.
- Inventory Management Optimization: The company reduced inventory by 17%, or $39.2 million, compared to last year, demonstrating effective inventory management and cost control, thereby strengthening liquidity and operational efficiency.
- Sales Decline: Q3 net sales were $114.9 million, a 9.6% decrease year-over-year, primarily due to a 15.5% drop in direct-to-consumer sales, indicating a need for further efforts to attract customers and restore growth.
- Adjusted EBITDA Guidance Affirmation: The company affirmed the upper end of its fiscal 2025 adjusted EBITDA guidance at $25 million, reflecting management's confidence in future profitability, even as sales guidance was lowered, highlighting challenges in the market environment.
Nasdaq Falls More Than 100 Points Before Jobs Report: Investor Sentiment Rises, Fear & Greed Index Shifts to 'Neutral Zone'
Market Sentiment: The CNN Money Fear and Greed index improved to a reading of 50.3, indicating a shift to the "Neutral" zone, while U.S. stocks experienced a mixed performance with the Nasdaq Composite falling over 100 points.
Stock Performance: Tesla Inc. saw a significant gain of around 4%, nearing record highs, while Zillow Group Inc. dropped about 8% due to new advertising format tests by Alphabet Inc.
Economic Data: The NY Empire State Manufacturing Index fell to -3.9 in December, missing market expectations, while investors are awaiting key payroll data and earnings results from several companies.
Interest Rate Outlook: Markets currently assign a 24% probability to a 25-basis-point rate cut in January, with expectations for two cuts next year as traders monitor economic indicators closely.
Duluth Holdings Lowers Sales Guidance, Stock Plummets 29.39%
- Sales Guidance Cut: Duluth Holdings has lowered its net sales guidance for Q3 2025 to a range of $555 million to $565 million, down from $570 million to $595 million, indicating significant market challenges and weakening demand.
- Stock Price Plunge: Following the announcement of the lowered guidance, Duluth's stock price fell by $0.92, or 29.39%, closing at $2.21 per share on December 16, 2025, reflecting investor concerns about the company's future outlook.
- Legal Investigation Launched: Pomerantz LLP is investigating whether Duluth and certain officers have engaged in securities fraud or other unlawful business practices, which could expose the company to legal risks and further impact shareholder confidence.
- Investor Advisory: In light of these developments, investors are advised to contact legal counsel regarding the possibility of joining a class action lawsuit, highlighting the market's heightened scrutiny on corporate governance and transparency.
Duluth Holdings Shares Plunge 29.4% Following Q3 2025 Sales Guidance Cut
- Stock Price Plunge: Duluth Holdings' shares fell nearly 29.4% on December 16, 2025, after the company lowered its net sales guidance in its Q3 2025 financial results, indicating strong market concerns about its future performance.
- Investor Investigation: The Schall Law Firm is investigating whether Duluth issued false or misleading statements that could affect investor decisions, highlighting the legal risks the company faces.
- Financial Transparency Issues: The company's failure to disclose critical information pertinent to investors may lead to a crisis of trust, potentially impacting future financing and market performance.
- Shareholder Rights Protection: The law firm encourages affected shareholders to participate in the investigation, reflecting market concerns over corporate governance and transparency, which may prompt the company to improve its disclosure practices and compliance.
Duluth Holdings increases 2025 adjusted EBITDA forecast to $23M-$25M due to enhanced cost savings and margin improvements.
Management Focus: Duluth Holdings Inc. is prioritizing gross margin improvement, cost control, and inventory management as part of its turnaround strategy, reporting improved profitability despite year-over-year sales declines.
Financial Performance: The company reported Q3 2025 net sales of $114.9 million, a 9.6% decline, but achieved a gross margin expansion to 53.8% and reduced SG&A expenses by 14.1%.
Operational Improvements: Significant operational enhancements led to a 17% reduction in inventory and projected cost savings of over $10 million for fiscal 2025, with a strong liquidity position of over $88 million.
Outlook and Challenges: Duluth Holdings raised its adjusted EBITDA guidance while revising sales expectations downward, citing ongoing tariff impacts and the need for further promotional resets to optimize margins and sales quality.
DULUTH HOLDINGS INC. Reports Reduced Losses in Q3
Third Quarter Loss: Duluth Holdings Inc. reported a loss of $10.101 million for the third quarter, improving from a loss of $28.231 million in the same period last year.
Revenue Decline: The company's revenue decreased by 9.6% to $114.871 million compared to $127.056 million last year.
Revised Sales Outlook: For the full year, Duluth Holdings has lowered its sales forecast to between $555 million and $565 million, down from the previous estimate of $570 million to $595 million.
Adjusted EBITDA and Capital Expenditure: The company reaffirmed its annual adjusted EBITDA outlook of $23 million to $25 million and projected capital expenditures of $17 million.
Duluth Holdings Reports Q3 Net Loss Reduced to $10.1 Million
- Profitability Improvement: Duluth Holdings achieved a gross margin increase to 53.8% in Q3, up from 52.3% last year despite a $3 million tariff impact, which will enhance the company's profitability in a competitive market.
- Inventory Management Optimization: The company reduced inventory by 17%, or $39.2 million, compared to last year, demonstrating effective inventory management and cost control, thereby strengthening liquidity and operational efficiency.
- Sales Decline: Q3 net sales were $114.9 million, a 9.6% decrease year-over-year, primarily due to a 15.5% drop in direct-to-consumer sales, indicating a need for further efforts to attract customers and restore growth.
- Adjusted EBITDA Guidance Affirmation: The company affirmed the upper end of its fiscal 2025 adjusted EBITDA guidance at $25 million, reflecting management's confidence in future profitability, even as sales guidance was lowered, highlighting challenges in the market environment.
Nasdaq Falls More Than 100 Points Before Jobs Report: Investor Sentiment Rises, Fear & Greed Index Shifts to 'Neutral Zone'
Market Sentiment: The CNN Money Fear and Greed index improved to a reading of 50.3, indicating a shift to the "Neutral" zone, while U.S. stocks experienced a mixed performance with the Nasdaq Composite falling over 100 points.
Stock Performance: Tesla Inc. saw a significant gain of around 4%, nearing record highs, while Zillow Group Inc. dropped about 8% due to new advertising format tests by Alphabet Inc.
Economic Data: The NY Empire State Manufacturing Index fell to -3.9 in December, missing market expectations, while investors are awaiting key payroll data and earnings results from several companies.
Interest Rate Outlook: Markets currently assign a 24% probability to a 25-basis-point rate cut in January, with expectations for two cuts next year as traders monitor economic indicators closely.
