Duluth Holdings Inc. reported fiscal third‑quarter 2025 results for the period ended November 2, 2025, showing net sales of $114.9 million—a 9.6% decline from the same quarter a year earlier. The decline was driven primarily by a 15.5% drop in direct‑to‑consumer sales, which fell to $67.4 million, while retail store sales edged up 0.4% to $47.4 million.
Gross margin widened to 53.8% of net sales, up 1.5 percentage points from 52.3% a year earlier. The improvement stems from an 8% increase in average unit retail price and lower product costs achieved through direct‑to‑factory sourcing. Operating expenses fell 14.1% to $70.7 million, which lowered the SG&A ratio to 61.5% of sales and helped offset the revenue decline.
Net loss for the quarter was $10.1 million, a significant improvement from the $28.2 million loss reported in the same quarter last year. Earnings per share reflected a loss of $0.29, while the adjusted EPS loss was $0.23. The company beat consensus adjusted EPS estimates of $0.46–$0.56, a $0.23 margin that underscores the effectiveness of cost controls and margin‑enhancing initiatives.
Management revised its fiscal‑year outlook, lowering net sales guidance to $555–$565 million from the previously projected $570–$595 million, while affirming the higher end of the adjusted EBITDA guidance at $23–$25 million. The adjustment signals caution about near‑term demand, yet confidence in sustaining profitability through disciplined expense management and inventory reductions of 17% ($39.2 million).
CEO Stephanie Pugliese highlighted the quarter’s achievements: “I am proud of the team for delivering another quarter of improved profitability, continuing our discipline on promotional reset, managing expenses and inventory levels, and further streamlining operations.” She added that the company is positioned to capitalize on holiday demand and maintain margin expansion moving forward.
The market reacted positively to the earnings release, with analysts noting the earnings beat and margin expansion as key drivers of investor confidence, while acknowledging the revenue miss and lowered sales guidance as areas of concern.
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