Duluth Holdings Inc. (NASDAQ: DLTH) Q1 2025 Earnings Call | 6/5/2025

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Duluth Holdings Inc. (NASDAQ: DLTH) reported Q1 2025 results on June 5, 2025, with net sales of $102.7 million—a 12% year-over-year decline, primarily due to lower direct-to-consumer site traffic and softer retail store demand. The company posted a net loss of $15.3 million ($0.45 per diluted share), wider than last year’s $7.9 million loss, while adjusted net loss was $10.8 million ($0.32 per share), beating analyst forecasts for a larger loss. Adjusted EBITDA fell to negative $3.8 million, or (3.7%) of net sales, reflecting the sales shortfall and margin pressure. Gross profit margin declined 80 basis points to 52.0%, driven by higher clearance activity, though improved product costs from direct sourcing provided some offset. Selling, general, and administrative expenses dropped 6.9% to $65.7 million, but deleveraged to 64.0% of sales on lower revenue. The company ended the quarter with $8.6 million in cash and $44.6 million in total liquidity. Management initiated expense savings and business simplification measures, including a planned 20% SKU reduction by spring 2026 and a $15 million annualized cost savings target, to stabilize operations and restore profitability. Inventory increased 29% to $176.1 million as Duluth works to improve inventory management and reset promotions. Despite the challenging quarter, Duluth Holdings maintained its full-year 2025 outlook, citing confidence in its brand, ongoing cost discipline, and operational reset. CEO Stephanie Pugliese emphasized the company’s commitment to streamlining the business, restoring price integrity, and driving product innovation to attract and retain loyal customers. Outlook: Full-year 2025 guidance maintained, with focus on cost savings, inventory efficiency, and brand growth initiatives. Continued emphasis on omnichannel service, SKU rationalization, and operational discipline. About Inside Ticker: For more expert analysis and real-time updates on Duluth Holdings Inc. (NASDAQ: DLTH) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #DuluthHoldings #DLTH #EarningsCall #Q12025 #RetailStocks #Workwear #CostSavings #StockMarket #Investing #InsideTicker