Apparel retailer Duluth's Q1 gross margin rises on lower promotions, higher prices
Apparel retailer Duluth's Q1 gross margin rises on lower promotions, higher prices
Overview
U.S. apparel retailer's fiscal Q1 sales fell 4% yr/yr on lower direct-to-consumer demand
Adjusted EPS loss narrowed from prior year as gross margin expanded 540 bps to 57.4%
Company raised fiscal 2026 adjusted EBITDA guidance, affirms sales outlook
Outlook
Company affirms fiscal 2026 net sales guidance of $540 mln to $560 mln
Company raises fiscal 2026 adjusted EBITDA guidance to $28 mln to $32 mln from $26 mln to $30 mln
Company maintains fiscal 2026 capital expenditures guidance at about $12 mln
Result Drivers
PROMOTIONAL RESET - Reduced promotional activity led to lower direct-to-consumer sales but contributed to higher average unit retail prices and gross margin expansion, per management
INVENTORY DISCIPLINE - Inventory reduction and operational efficiencies contributed to improved profitability and liquidity, according to CEO Stephanie Pugliese
COST CONTROL - Decreased selling, general and administrative expenses driven by fulfillment efficiencies and lower personnel costs helped narrow losses
Company press release: ID:nGNX19QB4m
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales |
| $98.6 mln |
|
Q1 Adjusted EPS |
| -$0.20 |
|
Q1 EPS |
| -$0.29 |
|
Q1 Adjusted EBITDA |
| $2.6 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for Duluth Holdings Inc is $5.13, about 54.4% above its June 5 closing price of $3.32
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)