Duluth Holdings' Q2 profit rises on tariff refunds

Duluth Holdings

03/09/2026 10:58

Overview
US workwear retailer's fiscal Q2 sales fell 7.8% yr/yr
Net income, adjusted EPS for Q2 rose, helped by $16.3 mln tariff refunds
Company raised full-year adjusted EBITDA outlook, affirms sales guidance

Outlook
Company affirms fiscal 2026 net sales guidance of $540 mln to $560 mln
Duluth Holdings raises fiscal 2026 adjusted EBITDA outlook to $38 mln to $42 mln
Company maintains fiscal 2026 capital expenditures guidance at about $12 mln

Result Drivers
TARIFF REFUNDS - $16.3 mln in tariff refunds contributed to net income and gross margin expansion
INVENTORY DISCIPLINE - 15.5% reduction in inventory improved working capital
HIGHER PRICES, LOWER PROMOTIONS - Gross margin expansion driven by higher average unit retail prices from reduced promotional activity and improved product costs via direct to factory sourcing

Company press release: ID:nGNXbHRbfr

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
 
$121.40 mln
 
Q2 Adjusted EPS
 
$0.50
 
Q2 Adjusted EBITDA
 
$27 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 41.6% above its September 2 closing price of $3.62

Reuters Recommended Reads
Sept 2 - Ollie’s Bargain Outlet Q2 net sales miss estimates
Sept 2 - Five Below Q2 sales beat estimates on strong comparable growth; raises annual outlook
Sept 2 - Tillys Q2 sales rise on comparable growth, profit improves

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.)