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MOUNT HOREB, Wis. - Duluth Trading Company (NASDAQ:DLTH), a retailer known for its workwear and casual apparel, has announced a workforce reduction of 51 employees, which is approximately 3% of its total employees, as part of a broader initiative to streamline operations. The layoffs, which took place on June 4, 2025, are part of the company’s efforts to reduce business complexity and enhance focus on brand awareness, innovative products, and customer service. The move comes as the company faces significant challenges, with InvestingPro data showing a 46% decline in stock value over the past year and negative EBITDA of $3 million in the last twelve months.
The expense associated with the workforce reduction was reported to be under $1 million. This move comes amid Duluth Trading’s strategic realignment to bolster its market presence and financial health, which InvestingPro analysis rates as "WEAK" based on comprehensive financial metrics. The company, which prides itself on offering high-quality apparel for the "Modern, Self-Reliant American," emphasizes its commitment to providing an engaging customer experience and stands behind its products with a "No Bull Guarantee." According to InvestingPro data, the company operates with a significant debt burden, with a debt-to-equity ratio of 1.33 and analysts forecasting a 9% revenue decline for the current fiscal year.
Duluth Trading conveys the uniqueness of its products through humor and storytelling in its marketing efforts, available through its content-rich website, catalogs, and distinctive retail locations. The company’s forward-looking statements indicate that these changes are designed with the expectation of improving operational efficiency and customer engagement, though they caution that actual results may vary due to factors beyond their control.
This information is based on a press release statement from Duluth Trading Company. The company has not provided further details on the expected impact of the workforce reduction on its operations or financial performance. Investors and customers of Duluth Trading will be watching closely to see how these changes will influence the company’s direction and market position.
In other recent news, Duluth Holdings reported its first-quarter 2025 financial results, revealing an adjusted EPS loss of $0.32, which was better than the forecasted loss of $0.38. However, the company’s revenue of $102.7 million did not meet expectations, falling short of the anticipated $105.54 million and marking a 12% year-over-year decrease. Despite the EPS surprise, the revenue shortfall reflects ongoing challenges in the retail environment. Duluth Holdings is taking strategic steps to streamline its operations, including a plan to reduce SKUs by 20% by spring 2026, aiming for $15 million in annualized savings through expense initiatives. The company is also focusing on offsetting tariff impacts through selective price increases. Analysts have not provided any upgrades or downgrades at this time. Duluth Holdings maintains its fiscal year 2025 adjusted EBITDA guidance of $20-25 million. These developments indicate the company’s focus on managing costs and enhancing its product offerings amidst a challenging economic landscape.
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