Duluth Holdings Inc. Announces Second Quarter 2026 Financial Results
Duluth boosted profitability, margins and cash flow, cut inventory, and raised 2026 Adjusted EBITDA guidance despite lower second quarter net sales.
Rhea-AI Summary
Duluth Holdings (DLTH) reported fiscal second quarter 2026 net income of $18.4 million versus $1.3 million a year earlier, aided by $16.3 million in tariff refunds.
Reported and adjusted EPS were both $0.50, including a $0.44 benefit from tariff refunds. Net sales declined 7.8% to $121.4 million, with direct-to-consumer sales down 11.5% to $70.1 million and retail store sales down 2.4% to $51.3 million on softer traffic and reduced promotions. Gross margin expanded to 72.8% from 54.7%; excluding tariff refunds, gross margin was 59.6%, up 490 basis points, driven by higher average unit prices and lower product costs. Adjusted EBITDA rose to $27.0 million from $12.0 million, including tariff refunds. Inventory decreased $22.9 million, or 15.5%, year over year, and the company ended the quarter with $26.8 million in cash, approximately $96 million of net liquidity, and no borrowings on its $70 million asset-based lending facility.
For fiscal 2026, Duluth reaffirmed net sales guidance of $540–$560 million and raised Adjusted EBITDA guidance to $38–$42 million from $28–$32 million, including the impact of tariff refunds, while maintaining expected capital expenditures of about $12 million.
Positive
- Net income rose to $18.4 million from $1.3 million in the prior-year quarter, helped by $16.3 million in tariff refunds.
- Adjusted EBITDA increased to $27.0 million from $12.0 million in the prior-year second quarter, including the impact of tariff refunds.
- Gross margin improved to 72.8% from 54.7%; excluding tariff refunds, gross margin was 59.6%, up 490 basis points year over year.
- Inventory declined by $22.9 million, or 15.5%, versus the prior year, supporting working capital and cash generation.
- Net liquidity was approximately $96.1 million with $26.8 million in cash and no debt outstanding on the $70.0 million asset-based lending facility.
- Fiscal 2026 Adjusted EBITDA guidance was raised to $38–$42 million from $28–$32 million, including tariff refunds, while sales guidance was reaffirmed.
Negative
- Net sales decreased 7.8% year over year to $121.4 million from $131.7 million.
- Direct-to-consumer sales fell 11.5% to $70.1 million due to lower web traffic and conversion following reduced promotional activity.
- Retail store net sales declined 2.4% to $51.3 million, reflecting lower store traffic despite higher average order values and new stores.
- SG&A as a percentage of net sales increased by 510 basis points to 57.3%, driven mainly by higher advertising and shipping expenses.
Market reaction after 2Q26 earnings report: DLTH +14.34%
Following this news, DLTH has gained 14.34%, reflecting a significant positive market reaction. Argus tracked a peak move of +10.9% during the session. Argus tracked a trough of -6.3% from its starting point during tracking. Our momentum scanner has triggered 13 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $4.15.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 08 | First-quarter earnings | Positive | +29.8% | Loss narrowed, EBITDA turned positive, margins expanded, and guidance increased |
| Mar 19 | Fourth-quarter earnings | Positive | +44.7% | Profitability improved, free cash flow turned positive, and fiscal 2026 guidance was issued |
| Dec 16 | Third-quarter earnings | Positive | -29.4% | Loss narrowed and EBITDA improved despite lower sales and a tariff impact |
| Sep 04 | Second-quarter earnings | Positive | +52.1% | Net income improved, margins expanded, and inventory declined despite lower sales |
| Jun 05 | First-quarter earnings | Negative | -17.4% | Sales and gross margin declined while the company reported a substantial net loss |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions aligned with the announcement sentiment in 4 of 5 prior events, with one divergence.
Key Terms
adjusted ebitda financial
adjusted eps financial
asset based lending facility financial
non-gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Net Income improvement over prior year driven by gross margin expansion
Continued improvement in working capital driven by a
Strong balance sheet with approximately
MOUNT HOREB, Wis., Sept. 03, 2026 (GLOBE NEWSWIRE) -- Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth Trading” or the “Company”) (NASDAQ: DLTH), a lifestyle brand of men’s and women’s workwear, casual wear, outdoor apparel and accessories, today announced its financial results for the fiscal Second Quarter ended August 2, 2026.
Summary of the Second Quarter ended August 2, 2026
- Net income of
$18.4 million compared to net income of$1.3 million in the prior year second quarter. This includes the impact of$16.3 million in tariff refunds. - Reported and adjusted EPS1 of
$0.50 . This includes a$0.44 impact from tariff refunds. - Adjusted EBITDA2 of
$27.0 million compared to$12.0 million in the prior year second quarter. This includes the impact of$16.3 million in tariff refunds. - Inventory down
$22.9 million or15.5% vs. last year. - Cash and cash equivalents of
$26.8 million with net liquidity of$96.1 million .
1See Reconciliation of net income to adjusted net income and EPS to adjusted EPS in the accompanying financial tables.
2See Reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables.
Management Commentary
President and CEO Stephanie Pugliese stated, “Our second quarter performance demonstrates strong execution of our operational priorities, inventory discipline, and successful promotional reset. By combining gross margin expansion with effective inventory management, we have delivered another quarter of improved profitability and free cash flow. Our core products continue to lead the way with customers responding favorably to our high-quality, solution-based workwear.”
Pugliese added, “As we enter the second half of the year, we are excited about our enhanced product offering including our new Hellbent work pants, No Quit utility shirts, and Heirloom prints. We remain focused in advancing our ‘Build to Last’ strategy, maximizing channel productivity, and consistently delivering an exceptional customer experience.”
Operating Results for the Second Quarter ended August 2, 2026
Net sales decreased by
Gross margin expanded by 1,810 basis points to
Selling, general and administrative expenses increased
Balance Sheet and Liquidity
The Company ended the quarter with
Fiscal 2026 Outlook
For Fiscal 2026, the Company is:
- Affirming previously issued fiscal 2026 net sales guidance range of
$540 million to$560 million - Raising previously issued fiscal 2026 Adjusted EBITDA1 guidance to
$38 million to$42 million compared to the previous guidance of$28 million to$32 million , including the impact of tariff refunds - Affirming capital expenditures, inclusive of software hosting implementation costs, of approximately
$12 million
1See Reconciliation of Forecasted Net Income to Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA in the accompanying financial tables.
Conference Call Information
A conference call and audio webcast with analysts and investors will be held on Thursday, September 3, 2026, at 9:30 am Eastern Time to discuss the results and answer questions.
Links to access earnings information:
- Live Webcast: https://edge.media-server.com/mmc/p/ikonm7ds/
- Live Call: https://register-conf.media-server.com/register/BI318a2d17c9bf472ab0e924ba22a6be55
- Webcast Archive: https://ir.duluthtrading.com/news-and-events/event-calendar
About Duluth Trading
Duluth Trading is a lifestyle brand for the Modern, Self-Reliant American. Based in Mount Horeb, Wisconsin, we offer high quality, solution-based workwear, casual wear, outdoor apparel and accessories for men and women who lead a hands-on lifestyle and who value a job well-done. We provide our customers an engaging and entertaining experience. Our marketing incorporates humor and storytelling that conveys the uniqueness of our products in a distinctive, fun way, and are available through our content-rich website, catalogs, and “store like no other” retail locations. We are committed to outstanding customer service backed by our “No Bull Guarantee” - if it’s not right, we’ll fix it. Visit our website at http://www.duluthtrading.com.
Non-GAAP Measurements
Management believes that non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Within this release, including the tables attached hereto, reference is made to adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted Net Income (Loss), Adjusted EPS, and Forecasted Adjusted EBITDA. See attached table “Reconciliation of Net Income (Loss) to EBITDA and EBITDA to Adjusted EBITDA,” for a reconciliation of net income (loss) to EBITDA and EBITDA to Adjusted EBITDA and “Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and EPS to Adjusted EPS” for a reconciliation of net income (loss) to adjusted net income (loss) and EPS to adjusted EPS for the three and six months ended August 2, 2026 and August 3, 2025. Also see attached table “Reconciliation of Forecasted Net Income (Loss) to Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA” for a reconciliation of forecasted Adjusted EBITDA for Fiscal 2026.
Adjusted EBITDA is a metric used by management and frequently used by the financial community, which provides insight into an organization’s operating trends and facilitates comparisons between peer companies, since interest, taxes, depreciation and amortization can differ greatly between organizations as a result of differing capital structures and tax strategies. Adjusted EBITDA excludes certain other items, which include significant non-cash items, and other charges or benefits resulting from transactions or events that are highly variable, significant in size, and that we do not believe are indicative of ongoing or future business operations.
Adjusted Net Income (Loss) and Adjusted EPS are metrics used by management and frequently used by the financial community, which provides insight into the effectiveness of our business strategies and to compare our performance against that of peer companies. Adjusted Net Income (Loss) and Adjusted EPS exclude restructuring expenses and impairment expenses that are not comparable from period to period.
The Company provides this information to investors to assist in comparisons of past, present and future operating results and to assist in highlighting the results of on-going operations. While the Company’s management believes that non-GAAP measurements are useful supplemental information, such adjusted results are not intended to replace the Company’s GAAP financial results and should be read in conjunction with those GAAP results.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts included in this press release, including statements concerning Duluth Trading’s plans, objectives, goals, beliefs, business strategies, future events, business conditions, its results of operations, financial position and its business outlook, business trends and certain other information herein, including statements under the heading “Fiscal 2026 Outlook” are forward-looking statements. You can identify forward-looking statements by the use of words such as “may,” ”might,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “believe,” “estimate,” “project,” “target,” “predict,” “intend,” “future,” “budget,” “goals,” “potential,” “continue,” “design,” “objective,” “forecasted,” “would” and other similar expressions. The forward-looking statements are not historical facts, and are based upon Duluth Trading’s current expectations, beliefs, estimates, and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond Duluth Trading’s control. Duluth Trading’s expectations, beliefs and projections are expressed in good faith, and Duluth Trading believes there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs, estimates, and projections will be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements, including, among others, the risks, uncertainties, and factors set forth under Part 1, Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on March 20, 2026 and other factors as may be periodically described in Duluth Trading’s subsequent filings with the SEC. These risks and uncertainties include, but are not limited to, the following: the impact of inflation and measures to control inflation on our results of operations; the prolonged effects of economic uncertainties on store and website traffic; the susceptibility of the price and availability of our merchandise to international trade conditions including tariffs; changes in U.S. and non-U.S. laws affecting the importation and taxation of goods, including imposition of unilateral tariffs on imported goods; our ability to secure the personal and/or financial information of our customers and employees; disruptions to our distribution network, supply chains and operations; failure to effectively manage inventory levels; our ability to maintain and enhance a strong brand and sub-brand image; adapting to declines in consumer confidence, inflation and decreases in consumer spending; disruptions to our e-commerce platform; our ability to meet customer delivery time expectations; our ability to properly allocate inventory throughout our distribution network to fulfill customer demand; our failure to meet our debt covenant ratios; natural disasters, unusually adverse weather conditions, boycotts, prolonged public health crises, epidemics or pandemics and unanticipated events; generating adequate cash from our existing stores and direct sales to support our growth; the impact of changes in corporate tax regulations and sales tax; identifying and responding to new and changing customer preferences; the success of the locations in which our stores are located; effectively relying on sources for merchandise located in foreign markets; transportation delays and interruptions, including port congestion; our inability to timely and effectively obtain shipments of products from our suppliers and deliver merchandise to our customers; the inability to maintain the performance of our maturing store portfolio; our inability to deploy marketing tactics and commit adequate resources to support marketing in order to retain and attract new customers; our ability to successfully open new stores; effectively adapting to new challenges associated with our expansion into new geographic markets; competing effectively in an environment of intense competition or elevated promotions; our ability to adapt to significant changes in sales due to the seasonality of our business; price reductions or inventory shortages resulting from failure to purchase the appropriate amount of inventory in advance of the season in which it will be sold; the potential for further increases in price and lack of availability of raw materials; our dependence on third-party vendors to provide us with sufficient quantities of merchandise at acceptable prices; failure of our vendors and their manufacturing sources to use acceptable labor or other practices; our dependence upon key executive management or our inability to hire or retain the talent required for our business; increases in costs of fuel or other energy, transportation or utility costs and in the costs of labor and employment; failure of our information technology systems to support our current and growing business, before and after our planned upgrades; disruptions in our supply chain and fulfillment centers; our inability to protect our trademarks or other intellectual property rights; infringement on the intellectual property of third parties; acts of war, terrorism or civil unrest; the impact of governmental laws and regulations and the outcomes of legal proceedings; failure to comply with data privacy regulation; our ability to comply with the security standards for the credit card industry; our failure to maintain adequate internal controls over our financial and management systems; acquisition, disposition, and development risks; and other factors that may be disclosed in our SEC filings or otherwise. Forward-looking statements speak only as of the date the statements are made. Duluth Trading assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances or other changes affecting forward-looking information except to the extent required by applicable securities laws.
Investor Contacts:
Heena Agrawal
Senior Vice President and Chief Financial Officer
Chris Steffes
Senior Director of Financial Planning and Analysis
Email: IR@duluthtrading.com
(Tables Follow)
| DULUTH HOLDINGS INC. Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands) | ||||||||
| August 2, 2026 | February 1, 2026 | August 3, 2025 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 26,799 | 16,345 | 5,738 | |||||
| Receivables | 2,127 | 2,710 | 8,894 | |||||
| Inventory, net | 125,152 | 131,342 | 148,051 | |||||
| Prepaid expenses & other current assets | 28,863 | 21,654 | 23,249 | |||||
| Total current assets | 182,941 | 172,051 | 185,932 | |||||
| Property and equipment, net | 87,755 | 96,913 | 103,224 | |||||
| Operating lease right-of-use assets | 82,762 | 89,283 | 97,361 | |||||
| Finance lease right-of-use assets, net | 27,889 | 29,577 | 31,267 | |||||
| Available-for-sale security | 4,534 | 4,763 | 4,834 | |||||
| Other assets, net | 8,165 | 10,022 | 11,182 | |||||
| Total assets | 394,046 | 402,609 | 433,800 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable | 47,322 | 48,226 | 43,598 | |||||
| Accrued expenses and other current liabilities | 29,481 | 39,871 | 33,257 | |||||
| Current portion of operating lease liabilities | 16,656 | 16,449 | 16,147 | |||||
| Current portion of finance lease liabilities | 2,742 | 2,681 | 2,616 | |||||
| Line of credit | — | — | 32,457 | |||||
| Current maturities of TRI long-term debt(1) | 1,066 | 1,020 | 975 | |||||
| Total current liabilities | 97,267 | 108,247 | 129,050 | |||||
| Operating lease liabilities, less current maturities | 71,247 | 76,008 | 83,638 | |||||
| Finance lease liabilities, less current maturities | 26,554 | 27,940 | 29,295 | |||||
| TRI long-term debt, less current maturities(1) | 22,829 | 23,337 | 23,821 | |||||
| Deferred tax liabilities | 962 | 962 | 938 | |||||
| Total liabilities | 218,859 | 236,494 | 266,742 | |||||
| Shareholders' equity: | ||||||||
| Treasury stock | (3,783 | ) | (2,922 | ) | (2,922 | ) | ||
| Capital stock | 112,473 | 110,794 | 109,499 | |||||
| Retained earnings | 69,593 | 61,332 | 63,689 | |||||
| Accumulated other comprehensive loss, net | (342 | ) | (231 | ) | (272 | ) | ||
| Total shareholders' equity of Duluth Holdings Inc. | 177,941 | 168,973 | 169,994 | |||||
| Noncontrolling interest | (2,754 | ) | (2,858 | ) | (2,936 | ) | ||
| Total shareholders' equity | 175,187 | 166,115 | 167,058 | |||||
| Total liabilities and shareholders' equity | 394,046 | 402,609 | 433,800 | |||||
__________________________
(1) Represents debt of the variable interest entity, TRI Holdings, LLC, that is consolidated in accordance with ASC 810, Consolidation. Duluth Holdings Inc. is not the guarantor nor the obligor of this debt.
| DULUTH HOLDINGS INC. Consolidated Statements of Operations (Unaudited) (Amounts in thousands, except per share figures) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| August 2, 2026 | August 3, 2025 | August 2, 2026 | August 3, 2025 | ||||||||||||
| Net sales | $ | 121,389 | $ | 131,716 | $ | 219,983 | $ | 234,420 | |||||||
| Cost of goods sold (excluding depreciation and amortization) | 33,028 | 59,697 | 74,988 | 109,046 | |||||||||||
| Gross profit | 88,361 | 72,019 | 144,995 | 125,374 | |||||||||||
| Selling, general and administrative expenses | 69,515 | 68,767 | 131,317 | 133,925 | |||||||||||
| Impairment of long-lived assets | — | — | 2,709 | 549 | |||||||||||
| Restructuring expense | — | 850 | 1,354 | 850 | |||||||||||
| Operating income (loss) | 18,846 | 2,402 | 9,615 | (9,950 | ) | ||||||||||
| Interest expense | 768 | 1,469 | 1,558 | 2,950 | |||||||||||
| Other income (loss), net | 396 | (82 | ) | 489 | (243 | ) | |||||||||
| Income (loss) before income taxes | 18,474 | 851 | 8,546 | (13,143 | ) | ||||||||||
| Income tax expense (benefit) | 61 | (442 | ) | 181 | 828 | ||||||||||
| Net income (loss) | 18,413 | 1,293 | 8,365 | (13,971 | ) | ||||||||||
| Less: Net income attributable to noncontrolling interest | 51 | 32 | 104 | 61 | |||||||||||
| Net income (loss) attributable to controlling interest | $ | 18,362 | $ | 1,261 | $ | 8,261 | $ | (14,032 | ) | ||||||
| Basic earnings per share (Class A and Class B): | |||||||||||||||
| Weighted average shares of common stock outstanding | 35,272 | 34,448 | 34,997 | 34,081 | |||||||||||
| Net income (loss) per share attributable to controlling interest | $ | 0.52 | $ | 0.04 | $ | 0.24 | $ | (0.41 | ) | ||||||
| Diluted earnings per share (Class A and Class B): | |||||||||||||||
| Weighted average shares and equivalents outstanding | 36,381 | 34,656 | 36,407 | 34,081 | |||||||||||
| Net income (loss) per share attributable to controlling interest | $ | 0.50 | $ | 0.04 | $ | 0.23 | $ | (0.41 | ) | ||||||
| DULUTH HOLDINGS INC. Consolidated Statements of Cash Flows (Unaudited) (Amounts in thousands) | |||||||
| Six Months Ended | |||||||
| August 2, 2026 | August 3, 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net income (loss) | $ | 8,365 | $ | (13,971 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
| Depreciation and amortization | 11,422 | 13,294 | |||||
| Stock based compensation | 1,622 | 1,348 | |||||
| Impairment of long-lived assets | 2,709 | 549 | |||||
| Deferred income taxes | — | 938 | |||||
| Loss on disposal of property and equipment | 1,406 | 905 | |||||
| Non-cash lease expense | 8,053 | 7,992 | |||||
| Changes in operating assets and liabilities: | |||||||
| Receivables | 583 | (4,924 | ) | ||||
| Inventory | 6,190 | 18,494 | |||||
| Prepaid expense & other current assets | (5,835 | ) | (3,281 | ) | |||
| Software hosting implementation costs, net | 239 | (4,652 | ) | ||||
| Trade accounts payable | (921 | ) | (30,731 | ) | |||
| Accrued expenses and other current liabilities | (9,497 | ) | (2,560 | ) | |||
| Operating lease liabilities | (8,101 | ) | (7,660 | ) | |||
| Other assets | (780 | ) | (177 | ) | |||
| Net cash provided by (used in) operating activities | 15,455 | (24,436 | ) | ||||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (2,495 | ) | (3,572 | ) | |||
| Principal receipts from available-for-sale security | 118 | 107 | |||||
| Net cash used in investing activities | (2,377 | ) | (3,465 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from line of credit | 18,699 | 76,247 | |||||
| Payments on line of credit | (18,699 | ) | (43,790 | ) | |||
| Payments on TRI long-term debt | (495 | ) | (454 | ) | |||
| Payments on finance lease obligations | (1,325 | ) | (1,251 | ) | |||
| Payments of tax withholding on vested restricted shares | (861 | ) | (590 | ) | |||
| Other | 57 | 142 | |||||
| Net cash provided by (used in) financing activities | (2,624 | ) | 30,304 | ||||
| Increase in cash and cash equivalents | 10,454 | 2,403 | |||||
| Cash and cash equivalents at beginning of period | 16,345 | 3,335 | |||||
| Cash and cash equivalents at end of period | $ | 26,799 | $ | 5,738 | |||
| Supplemental disclosure of cash flow information: | |||||||
| Interest paid | $ | 1,558 | $ | 2,950 | |||
| Income taxes paid | $ | — | $ | — | |||
| Supplemental disclosure of non-cash information: | |||||||
| Unpaid liability to acquire property and equipment | $ | 188 | $ | 1,801 | |||
| DULUTH HOLDINGS INC. Reconciliation of Net Income (Loss) to EBITDA and EBITDA to Adjusted EBITDA (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| August 2, 2026 | August 3, 2025 | August 2, 2026 | August 3, 2025 | ||||||||||||
| (in thousands) | |||||||||||||||
| Net income (loss) | $ | 18,413 | $ | 1,293 | $ | 8,365 | $ | (13,971 | ) | ||||||
| Depreciation and amortization | 5,644 | 6,545 | 11,422 | 13,294 | |||||||||||
| Amortization of internal-use software hosting | |||||||||||||||
| subscription implementation costs | 1,088 | 1,111 | 2,196 | 2,240 | |||||||||||
| Interest expense | 768 | 1,469 | 1,558 | 2,950 | |||||||||||
| Income tax expense (benefit) | 61 | (442 | ) | 181 | 828 | ||||||||||
| EBITDA | $ | 25,974 | $ | 9,976 | $ | 23,722 | $ | 5,341 | |||||||
| Long-term incentive expense | 1,046 | 1,173 | 1,870 | 1,466 | |||||||||||
| Impairment expense | — | — | 2,709 | 549 | |||||||||||
| Restructuring expense | — | 850 | 1,354 | 850 | |||||||||||
| Adjusted EBITDA | $ | 27,020 | $ | 11,999 | $ | 29,655 | $ | 8,206 | |||||||
| DULUTH HOLDINGS INC. Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and EPS to Adjusted EPS (Unaudited) | |||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
| August 2, 2026 | August 3, 2025 | August 2, 2026 | August 3, 2025 | ||||||||||||||||||||||
| (in thousands, except per share amounts) | Amount | Per share | Amount | Per share | Amount | Per share | Amount | Per share | |||||||||||||||||
| Net income (loss) attributable to controlling interest | $ | 18,362 | $ | 0.50 | $ | 1,261 | $ | 0.04 | $ | 8,261 | $ | 0.23 | $ | (14,032 | ) | $ | (0.41 | ) | |||||||
| Plus: Restructuring expenses | - | - | 850 | 0.03 | 1,354 | 0.04 | 850 | 0.02 | |||||||||||||||||
| Plus: Impairment expenses | - | - | - | - | 2,709 | 0.07 | 549 | 0.02 | |||||||||||||||||
| Income tax effect of adjustments(1) | - | - | (196 | ) | (0.01 | ) | (934 | ) | (0.03 | ) | (322 | ) | (0.01 | ) | |||||||||||
| Adjusted net income (loss) attributable to controlling interest | $ | 18,362 | $ | 0.50 | $ | 1,915 | $ | 0.06 | $ | 11,390 | $ | 0.31 | $ | (12,955 | ) | $ | (0.38 | ) | |||||||
__________________________
(1) The income tax effects of adjustments are calculated using the Company’s estimated
| DULUTH HOLDINGS INC. Reconciliation of Forecasted Net Income (Loss) to Forecasted EBITDA and Forecasted EBITDA to Forecasted Adjusted EBITDA (Unaudited) | |||||||
| Forecasted | Low | High | |||||
| Net income (loss) | $ | (2,950 | ) | $ | 1,350 | ||
| Depreciation and amortization | 24,200 | 24,200 | |||||
| Amortization of internal-use software hosting subscription implementation costs | 4,500 | 4,500 | |||||
| Interest expense | 3,800 | 3,500 | |||||
| Income tax expense | 487 | 487 | |||||
| EBITDA | $ | 30,037 | $ | 34,037 | |||
| Long-term incentive expense | 3,900 | 3,900 | |||||
| Impairment expense | 2,709 | 2,709 | |||||
| Restructuring expense | 1,354 | 1,354 | |||||
| Adjusted EBITDA | $ | 38,000 | $ | 42,000 | |||
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bee05309-9d69-4426-8889-86a226ba28a5
FAQ
What were Duluth Holdings (DLTH) second quarter 2026 earnings and EPS?
Duluth Holdings reported fiscal second quarter 2026 net income of $18.4 million, up from $1.3 million a year earlier. Reported and adjusted EPS were both $0.50, including a $0.44 benefit from tariff refunds.
How did Duluth Holdings (DLTH) second quarter 2026 revenue perform year over year?
Net sales for the fiscal second quarter 2026 were $121.4 million, a 7.8% decrease from $131.7 million in the prior-year quarter. Direct-to-consumer sales fell 11.5% to $70.1 million, while retail store sales declined 2.4% to $51.3 million.
How did gross margin and tariff refunds affect Duluth Holdings (DLTH) in Q2 2026?
Gross margin rose to 72.8% from 54.7%, including a $16.0 million reduction to cost of goods sold from tariff refunds. Excluding refunds, gross margin was 59.6%, up 490 basis points, driven by higher average unit prices and improved product costs.
What was Duluth Holdings (DLTH) Adjusted EBITDA in the second quarter 2026?
Adjusted EBITDA for fiscal second quarter 2026 was $27.0 million, compared with $12.0 million in the prior-year second quarter. This figure includes the impact of $16.3 million in tariff refunds that benefited profitability.
What is Duluth Holdings (DLTH) saying about its fiscal 2026 outlook?
For fiscal 2026, Duluth reaffirmed net sales guidance of $540–$560 million and raised its Adjusted EBITDA outlook to $38–$42 million from $28–$32 million, including tariff refunds. Expected capital expenditures remain about $12 million.
How did Duluth Holdings (DLTH) manage inventory and liquidity in Q2 2026?
Inventory was reduced by $22.9 million, or 15.5%, versus the prior year. The company ended the quarter with $26.8 million in cash, about $96.1 million of net liquidity, and no outstanding borrowings on its $70.0 million asset-based lending facility.
When is the Duluth Holdings (DLTH) Q2 2026 earnings conference call and how can investors access it?
The Q2 2026 earnings conference call is scheduled for Thursday, September 3, 2026, at 9:30 a.m. Eastern Time. Investors can access the live webcast and call through the provided registration and media links on the company’s investor relations events page.