Duluth Holdings misses Q4 estimates, issues weak 2026 outlook

Published 13/03/2025, 11:26
Duluth Holdings misses Q4 estimates, issues weak 2026 outlook

MOUNT HOREB, Wis. -On Thursday, Duluth Holdings Inc . (NASDAQ:DLTH) reported fourth quarter results that fell short of analyst expectations and provided weaker-than-anticipated guidance for fiscal 2026.

Duluth Holdings shares were unchanged in after-hours trading following the earnings release.

The workwear and casual apparel retailer posted an adjusted loss of $0.04 per share for Q4, missing the consensus estimate for earnings of $0.11 per share. Revenue declined 1.8% year-over-year to $241.3 million, below analysts’ projections of $252.88 million.

Duluth’s direct-to-consumer net sales increased 0.4% to $172.9 million, while retail store net sales decreased 6.9% to $68.4 million. Gross profit margin contracted to 44.1% from 48.2% in the prior-year quarter, primarily due to steeper discounting and a lower mix of full-price sales.

For fiscal 2026, the company expects revenue between $570 million and $595 million, well below the consensus forecast of $638.2 million. Duluth also projects adjusted EBITDA of $20 million to $25 million for the year.

President and CEO Sam Sato cited delays in processing at the company’s legacy fulfillment center during the holiday season as negatively impacting Q4 results. He noted Duluth adjusted promotional activity to fulfill backlogged orders and preserve higher quality sales.

Looking ahead, Sato said management remains committed to building on strategic initiatives and making structural improvements while focusing on enhancing operational execution in 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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