# Duluth Holdings Inc. (DLTH) Q2 2025 Financial Results Summary
**Release Date: September 4, 2025**
Duluth Holdings Inc. (dba, Duluth Trading Company) reported its financial results for the fiscal second quarter ended August 3, 2025, revealing several key metrics that illustrate the company’s performance compared to the same quarter last year. Here’s a concise summary:
### Financial Performance Highlights
– **Net Income**:
– Reported net income of **$1.3 million**, a significant improvement compared to a **net loss of $2.0 million** in Q2 2024.
– **Earnings Per Share (EPS)**:
– Reported EPS of **$0.04**; adjusted EPS was **$0.03** (after adjustments for **$0.7 million** in restructuring charges and a tax valuation allowance).
– **Adjusted EBITDA**:
– Increased by **$1.5 million** to **$12.0 million**, representing **9.1%** of net sales.
– **Net Sales**:
– Decreased by **7.0%**, amounting to **$131.7 million** compared to **$141.6 million** in the prior-year quarter.
– **Inventory**:
– Down by **$20.7 million**, or **12.2%** vs. last year, indicating improved inventory management.
– **Gross Margin**:
– Increased to **54.7%** of net sales from **52.3%** in Q2 2024, primarily due to a reduction in promotional activities and improved product costs.
### Cash and Liquidity
– **Cash and Cash Equivalents**:
– At **$5.7 million**.
– **Net Liquidity**:
– Totaled **$73.3 million**.
### Operating Expenses
– **Selling, General and Administrative Expenses (SG&A)**:
– Decreased by **7.1%** to **$68.8 million** from **$74.0 million** in the prior year.
– SG&A as a percentage of net sales slightly decreased to **52.2%** from **52.3%** in Q2 2024.
### Management Commentary
– President and CEO **Stephanie Pugliese** expressed encouragement regarding the results and highlighted key improvements in business operations through promotional resets, expense management, and inventory control.
– Acknowledged ongoing work to enhance product sourcing and logistics as the company prepares for the upcoming peak selling season.
### Shareholder Returns
– **Dividend and Share Repurchase**:
– The company did not declare any quarterly dividend or share repurchase during this quarter.
### Fiscal 2025 Outlook
– Duluth Trading is maintaining its previously issued financial guidance for fiscal 2025.
### Summary of Key Metrics in Percentage Terms
– **Net Income Growth**: Shifted from a **net loss** of **-141.3%** in Q2 2024 to a **net income** of **100%** in Q2 2025.
– **Adjusted EBITDA Growth**: Increased from 7.4% of net sales to **9.1%**.
– **Direct-to-Consumer Sales Decline**: Decreased by **13.7%** to **$79.1 million**.
– **Retail Store Sales Increase**: Grew by **5.3%** to **$52.6 million**.
– **Inventory Management Improvement**: A decrease of **12.2%** vs. last year enhances liquidity.
This summary captures the key points of Duluth Holdings Inc.’s financial performance in Q2 2025, reflecting both progress and areas for further improvement as the company continues its turnaround strategies.
### DULUTH HOLDINGS INC. Consolidated Statements of Operations (Unaudited) (Amounts in thousands, except per share figures)
| Three Months Ended | Six Months Ended | |
|---|---|---|
| August 3, 2025 | July 28, 2024 | |
| Net sales | $131,716 | $234,420 |
| Cost of goods sold (excluding depreciation and amortization) | $59,697 | $109,046 |
| Gross profit | $72,019 | $125,374 |
| Selling, general and administrative expenses | $68,767 | $134,474 |
| Restructuring expense | $850 | $850 |
| Operating income (loss) | $2,402 | $(9,950) |
| Interest expense | $1,469 | $2,950 |
| Other (loss) income, net | $(82) | $(243) |
| Income (loss) before income taxes | $851 | $(13,143) |
| Income tax (benefit) expense | $(442) | $828 |
| Net income (loss) | $1,293 | $(13,971) |
| Less: Net income attributable to noncontrolling interest | $32 | $61 |
| Net income (loss) attributable to controlling interest | $1,261 | $(14,032) |
| Basic earnings per share (Class A and Class B): | ||
| Weighted average shares of common stock outstanding | 34,448 | 34,081 |
| Net income (loss) per share attributable to controlling interest | $0.04 | $(0.41) |
| Diluted earnings per share (Class A and Class B): | ||
| Weighted average shares and equivalents outstanding | 34,656 | 34,081 |
| Net income (loss) per share attributable to controlling interest | $0.04 | $(0.41) |
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### DULUTH HOLDINGS INC. Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands)
| August 3, 2025 | February 2, 2025 | July 28, 2024 | |
|---|---|---|---|
| ASSETS | |||
| Current Assets: | |||
| Cash and cash equivalents | $5,738 | $3,335 | $9,787 |
| Receivables | $8,894 | $3,970 | $8,318 |
| Income tax receivable | $114 | $— | $313 |
| Inventory, net | $148,051 | $166,545 | $168,718 |
| Prepaid expenses & other current assets | $23,135 | $17,781 | $19,722 |
| Total current assets | $185,932 | $191,631 | $206,858 |
| Property and equipment, net | $103,224 | $111,560 | $121,148 |
| Operating lease right-of-use assets | $97,361 | $102,663 | $107,799 |
| Finance lease right-of-use assets, net | $31,267 | $32,957 | $34,646 |
| Available-for-sale security | $4,834 | $4,491 | $4,877 |
| Other assets, net | $11,182 | $9,140 | $8,961 |
| Deferred tax assets | $— | $— | $4,320 |
| Total assets | $433,800 | $452,442 | $488,609 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
| Current liabilities: | |||
| Trade accounts payable | $43,598 | $73,882 | $77,270 |
| Accrued expenses and other current liabilities | $33,257 | $35,684 | $31,074 |
| Income taxes payable | $— | $65 | $— |
| Current portion of operating lease liabilities | $16,147 | $15,534 | $16,027 |
| Current portion of finance lease liabilities | $2,616 | $2,541 | $2,450 |
| Line of credit | $32,457 | $— | $— |
| Current maturities of TRI long-term debt | $975 | $931 | $888 |
| Total current liabilities | $129,050 | $128,637 | $127,709 |
| Operating lease liabilities, less current maturities | $83,638 | $89,222 | $92,275 |
| Finance lease liabilities, less current maturities | $29,295 | $30,621 | $31,911 |
| Duluth long-term debt, less current maturities | $— | $— | $— |
| TRI long-term debt, less current maturities | $23,821 | $24,283 | $24,723 |
| Deferred tax liabilities | $938 | $— | $— |
| Total liabilities | $266,742 | $272,763 | $276,618 |
| Shareholders’ equity: | |||
| Treasury stock | $(2,922) | $(2,332) | $(2,243) |
| Capital stock | $109,499 | $108,009 | $106,169 |
| Retained earnings | $63,689 | $77,721 | $111,538 |
| Accumulated other comprehensive loss, net | $(272) | $(722) | $(436) |
| Total shareholders’ equity of Duluth Holdings Inc. | $169,994 | $182,676 | $215,028 |
| Noncontrolling interest | $(2,936) | $(2,997) | $(3,037) |
| Total shareholders’ equity | $167,058 | $179,679 | $211,991 |
| Total liabilities and shareholders’ equity | $433,800 | $452,442 | $488,609 |
