Duluth Holdings 2026 Q2 Earnings Strong Performance as Net Income Surges 165.6%

Duluth Holdings (DLTH) reported its fiscal 2026 Q2 earnings on Sep 05th, 2025. The company returned to profitability with a notable turnaround in net income and EPS. The results exceeded expectations with a significant improvement in gross margins and cost controls.

Revenue
Duluth Holdings saw a 7.0% decline in total revenue, which fell to $131.72 million in Q2 2026, compared to $141.62 million in the same period the prior year. Direct-to-consumer revenue reached $79.14 million, while in-store sales accounted for $52.58 million, representing a substantial portion of the total revenue. The drop in revenue was attributed to a 7% sales decline, though the company emphasized gross margin improvement and SG&A leverage.

Earnings/Net Income
Duluth Holdings returned to profitability in 2026 Q2 with an EPS of $0.04, reversing from a loss of $0.06 per share in the prior year. The company reported a net income of $1.29 million, a 165.6% increase from a net loss of $1.97 million in 2025 Q2. This marked a substantial turnaround for the company.

Price Action
The stock price of Duluth Holdings fell by 8.23% during the latest trading day, but saw a strong rebound with a 62.66% surge over the past week and a 67.70% rise month-to-date.

Post-Earnings Price Action Review
Stephanie Pugliese, President and CEO, expressed optimism about the company’s early turnaround efforts, which include promotional resets, cost controls, tariff mitigation, and improved inventory management. Pugliese emphasized gross margin improvement and SG&A leverage, which led to a $1.5 million increase in adjusted EBITDA to $12 million. She expressed confidence in the company’s ability to continue simplifying its operations and managing costs while delivering value to customers. Pugliese also underlined the importance of core product innovation, customer engagement, and a disciplined approach to inventory and promotions. She reiterated confidence in the company’s long-term growth strategy, focusing on product quality, profitability, and brand identity.

The company maintained its fiscal year 2025 adjusted EBITDA guidance of $20 million to $25 million, with Heena Agrawal, Interim CFO, highlighting the estimated $15 million tariff impact for 2025 that would largely affect the second half of the year. The company also expects year-end inventory to decline double-digit compared to the prior year and anticipates maintaining capital expenditures around $17 million to support new store openings and fulfillment center upgrades.

Additional News
Within the three weeks following the earnings report, no M&A activity or C-level changes were reported for Duluth Holdings. Additionally, there were no dividend or buyback announcements. The broader business landscape included political developments in Nigeria, where President Bola Tinubu embarked on a two-nation trip to Japan and Brazil on August 13, 2025. The trip included a brief stopover in Dubai and was highlighted in Nigeria’s Punch Newspapers. Other notable news included the passing of Oba Sikiru Kayode Adetona, the Awujale of Ijebuland, at the age of 91, and publicized accounts from a returnee on the harrowing experience of border police abuse en route to Libya.