Apparel retailer Duluth's Q2 net income at $1.3 mln, maintains FY 25 guidance

Duluth Holdings

04/09/2025 10:55

Overview

Duluth fiscal Q2 net income $1.3 mln vs. $2 mln loss last year

Net sales fall 7% to $131.7 mln, gross margin improves to 54.7%

Adjusted EBITDA rises $1.5 mln to $12.0 mln, 9.1% of net sales

Outlook

Company maintains fiscal 2025 financial guidance

Duluth Trading focuses on simplifying operations and reducing expenses

Company aims to mitigate tariff impacts during peak selling season

Duluth Trading committed to restoring profitable growth

Result Drivers

GROSS MARGIN IMPROVEMENT - Driven by reduced promotional activity and improved product costs from direct sourcing

SG&A REDUCTION - Achieved through cost control measures including reduced personnel and depreciation expenses

INVENTORY DISCIPLINE - Inventory levels decreased by 12.2% compared to last year, contributing to improved liquidity

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
$131.70 mln
Q2 Adjusted EPS
$0.03
Q2 EPS
$0.04
Q2 Adjusted EBITDA
$12 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "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 $2.00, about 18% below its September 3 closing price of $2.36

Press Release: ID:nGNX7GmM6J

(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.)