Duluth Holdings Inc. Reports First Quarter 2025 Financial Results

New leadership focused on streamlining operations and enhancing brand strength.

Initiatives underway to optimize cost structure.

MOUNT HOREB, Wis., June 5, 2025 – Duluth Holdings Inc. (dba, Duluth Trading Company) (NASDAQ: DLTH), a lifestyle brand specializing in workwear, casual wear, outdoor apparel, and accessories for men and women, today disclosed its financial results for the fiscal first quarter, which concluded on May 4, 2025.

Q1 2025 Financial Highlights

• Net sales reached $102.7 million.
• The company reported a net loss of $15.3 million, with an adjusted net loss¹ of $10.8 million, compared to a net loss of $7.9 million in the first quarter of the previous year. The adjusted net loss of $10.8 million excludes a $4.1 million addition to its valuation allowance on deferred tax assets and $0.4 million in impairment expenses, net of tax.
• Earnings per diluted share (EPS) came in at ($0.45), and adjusted EPS¹ at ($0.32).
• Adjusted EBITDA² declined by $5.6 million year-over-year, resulting in a loss of ($3.8) million, representing (3.7%) of net sales.
• The company held $8.6 million in cash and cash equivalents, with a net liquidity of $44.6 million.
• Expense-reduction measures have been implemented to improve operational efficiency.

¹See Reconciliation of net loss to adjusted net loss and adjusted net loss to adjusted EPS in the accompanying financial tables.
²See Reconciliation of net loss to EBITDA and EBITDA to Adjusted EBITDA in the accompanying financial tables.

Management Perspective

Stephanie Pugliese, President and CEO, shared her enthusiasm: “I am deeply honored to return to Duluth. I have unwavering faith in the brand and its potential. Duluth Trading has earned its reputation for top-quality, problem-solving products, and is built upon authentic and humorous brand attributes.”

Pugliese added, “Our operating performance over the last few years has presented challenges due to increasing business complexities. To fully grasp the brand’s potential and boost shareholder value, I’m taking decisive actions to simplify operations. This encompasses prioritizing brand visibility, solution-based products, innovation, and customer engagement. An in-depth review of our brand and product portfolio is underway to re-energize the Duluth brand.”

“I intend to maximize the groundwork done on product sourcing, achieving optimal performance for our fulfillment center network, and rationalizing the store portfolio, along with streamlining expenditures. I strongly believe streamlining the business and emphasizing Duluth Trading’s strengths will deliver shareholder value. This will help the company return to profitable growth over time,” concluded Pugliese.

Operational Review for the Quarter Ending May 4, 2025

Net sales recorded a decrease of 12.0% to $102.7 million, in comparison to $116.7 million in the same quarter of last year. Direct-to-consumer net sales diminished by 17.1% to $62.6 million. This was primarily due to lower website traffic, partially offset by a higher average order value. Retail store net sales saw a 2.6% decrease to $40.2 million because of reduced store traffic.

Gross profit margin decreased by 80 basis points to 52.0%, in comparison to 52.8% in the corresponding period of the previous year. This change primarily resulted from a higher clearance penetration, partially balanced by improvements in product costs due to the direct-to-factory sourcing initiative. Gross profit decreased to $53.4 million, versus $61.6 million in the corresponding prior year.

Selling, general, and administrative expenses decreased by 6.9% to $65.7 million, versus $70.6 million in the same period a year ago. These expenses, as a percentage of net sales, rose to 64.0%, up from 60.5% in the comparable quarter of last year, mainly due to the reduced net sales.

Balance Sheet and Liquidity Overview

The company closed the quarter with $8.6 million in cash and cash equivalents, a net working capital of $54.2 million, $64.0 million in outstanding debt under the $100 million revolving credit line, and a liquid capital of $44.6 million.

Fiscal 2025 Outlook

The company is reaffirming its fiscal 2025 financial guidance at this time and will reassess as changes occur in the macroeconomic environment.

Conference Call Details

A conference call, along with an audio webcast for analysts and investors, is scheduled for Thursday, June 5, 2025, at 9:30 am Eastern Time. The call will cover the company’s results and allow for a Q&A session.

• Live conference call: 844-875-6915 (domestic) or 412-317-6711 (international)
• Conference call replay available through June 12, 2025: 877-344-7529 (domestic) or 412-317-0088 (international)
• Replay access code: 8123705
• Live and archived webcast: ir.duluthtrading.com

Investors can pre-register for the earnings conference call to expedite their entry into the call and avoid waiting for a live operator. To pre-register for the call, please visit https://dpregister.com/sreg/10199243/ff038e2354 and enter your contact information. You will then be issued a personalized phone number and pin to dial into the live conference call. Investors can pre-register any time prior to the start of the conference call.

About Duluth Trading

Duluth Trading caters to the modern, self-reliant American. Based in Mount Horeb, Wisconsin, the brand offers top-quality, functional, casual wear, workwear, and accessories for active individuals who value quality. The company strives to deliver an engaging and entertaining experience. The marketing strategy features humor and storytelling to highlight its distinctive products, showcased on a content-rich website, catalogs, and unique retail stores. The company is committed to offering outstanding customer service, supported by its “No Bull Guarantee.” Find out more at http://www.duluthtrading.com.

Non-GAAP Financial Information

Management believes that non-GAAP financial measures can offer additional, meaningful comparisons between the current and past operating results. This release, including the attached tables, references adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), adjusted net loss, and adjusted earnings per share (EPS). Refer to the attached table “Reconciliation of Net Loss to EBITDA and EBITDA to Adjusted EBITDA,” for the reconciliation of net loss to EBITDA and EBITDA to Adjusted EBITDA for the three months ended May 4, 2025, compared to the three months ended April 28, 2024, and to the table “Reconciliation of Net Loss to Adjusted Net Loss and Adjusted Net Loss to Adjusted EPS,” for the reconciliation of net loss to adjusted net loss and adjusted net loss to adjusted EPS for the three months ended May 4, 2025.

Adjusted EBITDA, a key metric used by management and the financial community, provides insights into operating trends and enables comparisons between peer companies. It excludes certain items that are either unusual in nature or not comparable from period to period.

Adjusted Net Loss and Adjusted EPS are metrics used by management and frequently employed within the financial community to offer insight into the effectiveness of our business strategies and to assess our performance against our competitors. These metrics exclude impairment expenses and a valuation allowance on deferred tax assets, as they are not comparable from period to period.

The company provides this data to investors to aid in analyzing past, present, and future operating results and to emphasize the ongoing performance. While management believes non-GAAP measures are valuable supplemental information, these *adjusted results* are not a substitute for GAAP financial results and should be considered alongside those GAAP results.

Forward-Looking Statements

This press release contains “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. All non-historical facts, including company plans, goals, beliefs, business strategies, future events, business conditions, results of operations, financial positions, business outlook, and trends, plus the statements under “Fiscal 2025 Outlook,” are forward-looking statements. You can identify forward-looking statements through the use of terms like “may,” ”might,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “believe,” “estimate,” “project,” “target,” “predict,” “intend,” “future,” “budget,” “goals,” “potential,” “continue,” “design,” “objective,” “forecasted,” “would,” and similar expressions. These statements are based on current expectations, beliefs, estimates, projections, and assumptions, many of which are inherently uncertain and beyond the control of Duluth Trading. Although the intentions, beliefs and projections are expressed in good faith, there can be no guarantee those aspirations will be fulfilled, and actual results may vary. These statements are subject to risks and uncertainties that could cause actual outcomes to differ materially, including those outlined in Part 1, Item 1A, “Risk Factors,” in the Company’s Annual Report on Form 10-K filed on March 21, 2025, and other factors detailed in subsequent SEC filings. These risks include, but aren’t limited to: the impact of inflation, economic uncertainties’ effects on traffic to stores and sites, and disruptions to the supply chain and operations. Also included are: inventory management, maintaining brand image, responding to changes in consumer confidence, disruptions to e-commerce platforms, meeting customer delivery expectations, allocation of inventory, failing to meet debt covenant ratios, natural disasters, public health crises, generating adequate cash flow, changes in tax regulations, identifying shifting customer preferences, and success of store locations. Additionally, the following are included: reliance on foreign merchandise sources, transportation delays, inability to obtain products, maintaining store portfolio performance, ineffective marketing tactics, ability to open new stores, expansion into new markets, intense market competition, seasonality effects, price reductions stemming from inventory, the potential for increased raw material costs, dependence on third-party vendors, implications of international trade, labor practices, dependence on key management, fuel or other energy cost increases, failure of IT systems, supply chain disruptions, inability to protect trademarks, infringement issues, acts of war, terrorism, or civil unrest, the impact of governmental laws and regulations, and legal proceedings. These statements should only be considered as of the date made. Duluth Trading assumes no obligation to update forward-looking statements to reflect actual results or subsequent events as required by applicable securities laws.

The Company revised its prior period financial statements for an accounting correction related to sales tax collections to the Company’s Condensed Consolidated Balance Sheets that are primarily related to accrued expenses and other current liabilities, deferred taxes and retained earnings, as well as corresponding impacts to the Company’s other Consolidated Financial Statements. The impacts of these revisions were not material to the Company’s previously filed financial statements. These revisions relate to immaterial corrections that were identified by management and when accumulated, required a correction to the Company’s previously filed financial statements.

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