Duluth Holdings (DLTH, Financial) has implemented a strategic workforce reduction as part of its cost-saving efforts. On June 4, 2025, the company reduced its staff by 51 positions, accounting for 3% of its total workforce. This move is expected to incur expenses of less than $1 million.
The initiative aims to streamline operations, focusing more on enhancing brand awareness and developing innovative, solution-oriented products. Furthermore, Duluth Holdings seeks to improve its customer service offerings through these strategic adjustments.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Duluth Holdings Inc (DLTH, Financial) is $2.00 with a high estimate of $2.00 and a low estimate of $2.00. The average target implies an upside of 2.56% from the current price of $1.95. More detailed estimate data can be found on the Duluth Holdings Inc (DLTH) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Duluth Holdings Inc's (DLTH, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Duluth Holdings Inc (DLTH, Financial) in one year is $4.53, suggesting a upside of 132.31% from the current price of $1.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Duluth Holdings Inc (DLTH) Summary page.
DLTH Key Business Developments
Release Date: June 05, 2025
- Net Sales: $102.7 million, down 12% year-over-year.
- EPS Loss: Reported EPS loss of $0.45; adjusted EPS loss of $0.32.
- Adjusted EBITDA: Minus $3.8 million for the quarter.
- Gross Profit Margin: Declined by 80 basis points year-over-year; improved by over 300 basis points in March and April combined.
- SG&A Expenses: $65.7 million reported; $65.2 million adjusted, $5.4 million lower than last year.
- Inventory: $176.1 million, up 29% year-over-year.
- Cash and Cash Equivalents: $8.6 million at the end of the quarter.
- Borrowing: $64 million on the credit facility.
- Net Liquidity: $45 million at the end of the quarter.
- Store Portfolio: Closed one store; on track to open two new stores in the fall.
- Capital Expenditure Plan: Reduced by $3 million to approximately $17 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Duluth Holdings Inc (DLTH, Financial) is focusing on brand awareness by reinvigorating its distinctive voice and storytelling capabilities to drive customer acquisition and retention.
- The company is implementing a 20% reduction of SKUs by spring 2026 to create productivity gains and enhance inventory efficiency.
- Duluth Holdings Inc (DLTH) has initiated an expense savings initiative expected to result in annualized savings of approximately $15 million, with at least $10 million realized in the current fiscal year.
- The direct-to-factory sourcing initiative is yielding positive results, reducing costs of goods and enabling faster market innovation.
- The company has successfully transitioned its line of credit to an asset-based lending agreement, extending to 2030 with improved borrowing rates and increased flexibility.
Negative Points
- First quarter 2025 net sales declined by 12% compared to the previous year.
- The company reported an EPS loss of $0.45 and an adjusted EPS loss of $0.32 for the first quarter.
- Gross profit margin rate declined by 80 basis points due to greater clearance penetration and deeper discounting.
- Inventory levels increased by 29% year-on-year, with a significant portion in core year-round products.
- The company is facing macroeconomic uncertainties and potential top line headwinds, impacting its financial performance.
