Q2 2025 Duluth Holdings Inc Earnings Call Transcript
Key Points
- Duluth Holdings Inc (DLTH) achieved a $1.5 million increase in adjusted EBITDA, reaching $12 million or 9% of sales, despite a 7% decline in sales.
- The company reported a strong liquidity position with $73 million and a 12% reduction in inventory compared to last year.
- Retail store sales grew by 5% year-on-year, driven by improved traffic trends, increased conversion rates, and higher average order values.
- Duluth Holdings Inc (DLTH) successfully implemented cost-saving measures, on track to realize $10 million in savings for fiscal 2025.
- The company saw a positive response to new product lines, such as the Artisan Hemp and AKHG collections, which contributed to profitability.
- Duluth Holdings Inc (DLTH) experienced a 7% decline in net sales compared to the previous year.
- Direct channel sales, excluding wholesale, saw an 18% decrease primarily due to a decline in web traffic resulting from the promotional reset.
- The impact of tariffs is expected to be more significant in the second half of the year, with an anticipated cost of approximately $15 million.
- Women's sales declined by 11.3% as the company reset promotions.
- The company closed one underperforming store during the quarter.
Good day, and welcome to the Duluth Holdings Inc. Second-quarter 2025 conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mr. Chris Steffes with Duluth Investor Relations. Please go ahead, sir.
Thank you, and welcome to today's call to discuss Duluth Trading second quarter financial results. Our earnings release, which was issued this morning, is available on our Investor Relations website at ir.duluthtrading.com under News Releases. I'm here today with Stephanie Pugliese, President and Chief Executive Officer; and Heena Agrawal, Senior Vice President and Chief Financial Officer.
On today's call, management will provide prepared remarks and then open the call for questions. Before we begin, I would like to remind you that the comments on today's call will include forward-looking statements, which can be identified by the use of words such as estimate, anticipate, expect and similar phrases.
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