Duluth Holdings (6DU) Q2 2026 Earnings Report
DE:6DU Q2 2026 EPS Results
- Actual EPS
- EUR 0.45
- Consensus EPS
- -EUR 0.01
- Beat/Miss
- Beat by +EUR 0.46
- One Year Ago EPS
- EUR 0.03
DE:6DU Q2 2026 Revenue Results
- Actual Revenue
- EUR 108.54M
- Expected Revenue
- EUR 107.21M
- Beat/Miss
- Beat by +EUR 1.32M
- YoY Revenue Growth
- -7.84%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 09/03/2026
- Time
- Before Open
- Conference Call
- Thursday, September 3, 2026
DE:6DU Upcoming Earnings
Duluth Holdings's next earnings date is estimated for November 26, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:6DU Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Management highlighted five consecutive quarters of improving margins and free cash flow, substantial clearance and inventory reductions, stronger liquidity, supply chain savings, improved customer engagement metrics, positive early Amazon results, and raised adjusted EBITDA guidance. These gains were offset by declining sales, lower conversion, a contracted customer base, category-specific sales declines, transportation cost pressures, and a near-term Q3 top-line headwind from lapping prior-year clearance activity.
Company Guidance
Management reaffirmed full year net sales guidance of $540 million to $560 million and raised full year adjusted EBITDA guidance to between $38 million and $42 million from $28 million to $32 million, including the $16.3 million gain from tariff refunds. First half net sales were -6.2%, at the high end of the -6% to -10% range, while overall second half sales performance is projected to be between -2% to +2%, with Q3 better than Q2 and Q4 better than Q3; Q3 is expected to moderate as the company laps prior year clearance events. The tariff rate for the second half is assumed at approximately 15% to 16%, reflecting 12.5% for Q3 and back to the higher rates in Q4, and full year capital expenditure guidance remains approximately $12 million.
- Five Consecutive Quarters of Profitability and Cash Flow ImprovementManagement reported five straight quarters of year-over-year gains in both net income margin and free cash flow, supported by operational consistency, disciplined inventory and cash management, and improved execution.
- Significant Gross Margin ExpansionUnderlying gross margin, excluding tariff refunds, expanded by 490 basis points to 59.6% in Q2. Including the impact of tariff refunds, gross margin expanded by 1.81 thousand basis points to 72.8% of net sales. The improvement was driven by the pricing and promotional reset, average unit retail increases of nearly 6%, and direct-to-factory sourcing savings.
- Net Income and Adjusted EBITDA GrowthNet income improved by $17.1 million to $18.4 million, while reported and adjusted diluted EPS was $0.50. Adjusted EBITDA increased to $27 million from $12 million in the prior-year quarter. Excluding tariff refunds, adjusted EBITDA was $10.7 million, or 8.8% of sales.
- Clearance Inventory Reduced and Inventory Quality ImprovedClearance inventory dollars declined 43.1% and clearance units decreased 46.6% year over year. Total inventory declined $22.9 million, or 15.5%, to $125.2 million, with 85.4% in current products and 14.6% in clearance goods versus 22.2% clearance goods last year. Inventory improved for the fifth straight quarter.
- Improved Inventory AvailabilityPrioritizing inventory at the Adairsville hub and retail stores improved in-stock levels by over 600 basis points.
- Customer Engagement Metrics ImprovedCustomer average order value and sales per customer improved year over year. Through the first half, retention rates increased, net promoter score rose 11%, and reactivation campaigns re-engaged 9% more lapsed customers than in the prior-year quarter.
- Strong Core Product DemandCore products including Flex Fire Hose, Heirloom Bibs, and Buck Naked underwear continued to outperform the overall pace of the business. Men's product sales increased 0.5%, driven by strong demand for first-layer products and woven bottoms, including Duluth Flex Fire Hose and Double-Flex denim.
- Positive Early Results from Amazon WholesaleThe mid-July Amazon wholesale launch showed strong momentum, with consistent week-over-week acceleration in sales and positive early results that management said support longer-term awareness and customer acquisition through new channels.
- Marketing Channels Generated Strong EngagementManagement reported strong responses across Connected TV, Meta, and Search. Premium audio integration, including host response with Conan O'Brien, drove significant engagement and last-click revenue. Duluth also continued sports partnerships and planned Fire Hose campaigns across linear and CTV broadcasts during college football matchups.
- Expanded Brand and AI InvestmentsDuluth is ramping up upper-funnel brand investments in Q3, increasing product storytelling around events such as Fall Grind Days and Big Dam Birthday, and investing in AI capabilities across organic and paid media to improve discoverability and optimize its digital footprint.
- Strategic Roadmap ProgressManagement said it completed the 'Seal the Foundation' phase of its Build to Last roadmap by protecting margins, controlling costs, addressing structural inefficiencies, right-sizing overhead, and establishing a leaner operating model. The company is now shifting toward scalable growth through stores, ecommerce, wholesale, customer investment, and broader brand reach.
- Stronger Balance Sheet and Free Cash FlowCash and cash equivalents were $26.8 million, with zero debt on the asset-based lending facility versus $32.5 million of debt a year earlier. Net liquidity was approximately $96.1 million, and first-half free cash flow was $13 million, an improvement of $41 million versus the same period last year.
- Supply Chain Efficiency GainsOver the last two years, Duluth consolidated its logistics network from four fulfillment centers to two. Automation covered 75% of total units in Q2, up 230 basis points year over year, while network variable cost per unit declined nearly 25%. The company also sustained nationwide click-to-delivery speed.
- Raised Adjusted EBITDA GuidanceFull-year adjusted EBITDA guidance was increased to $38 million-$42 million from the prior outlook of $28 million-$32 million. The updated projection includes the $16.3 million tariff refund gain and is partially offset by strategic growth investments and increased fuel expenses.
- Full-Year Sales Guidance ReaffirmedDuluth reaffirmed full-year net sales guidance of $540 million-$560 million. First-half sales declined 6.2%, which was at the high end of the targeted -6% to -10% range, while second-half sales are projected to be between -2% and +2%.
- Store Portfolio and Fulfillment InvestmentsRetail store adjusted EBITDA margin expanded 80 basis points in Q2 and 290 basis points year to date, representing cumulative margin expansion of 650 basis points over two years across the first six months. The company also finalized five of seven 2026 store lease renewals and is continuing investments in Manhattan Omni fulfillment software, Apple Pay, retail store growth, and wholesale partnerships.
DE:6DU Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Nov 26, 2026 | 2026 (Q3) | -0.28- | -0.21 | ― | ― |
| Sep 03, 2026 | 2026 (Q2) | -0.010.45 | 0.03 | 1566.67% (+0.42) | |
| Jun 08, 2026 | 2026 (Q1) | -0.35-0.18 | -0.29 | 37.50% (+0.11) | |
| Mar 19, 2026 | 2025 (Q4) | 0.130.21 | -0.04 | 675.00% (+0.24) | |
| Dec 16, 2025 | 2025 (Q3) | -0.21-0.21 | -0.37 | 43.90% (+0.16) | |
| Sep 04, 2025 | 2025 (Q2) | -0.100.03 | -0.02 | 250.00% (+0.04) | |
| Jun 05, 2025 | 2025 (Q1) | -0.34-0.29 | -0.21 | -33.33% (-0.07) | |
| Mar 13, 2025 | 2024 (Q4) | 0.10-0.04 | 0.19 | -119.05% (-0.22) | |
| Dec 05, 2024 | 2024 (Q3) | -0.29-0.37 | -0.29 | -28.13% (-0.08) | |
| Aug 29, 2024 | 2024 (Q2) | -0.11-0.02 | -0.05 | 66.67% (+0.04) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed
