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/Mis Actual Consensu

s s

Estimate

Q2 Sales $131.70

mln

Q2 $0.03

Adjusted

EPS

Q2 EPS $0.04

Q2 $12 mln

Adjusted

EBITDA

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 ( DLTH ) is $2.00, about 18% below its September 3 closing price of $2.36

Press Release:

(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.)