Duluth Holdings (DLTH) AI Stock Analysis

• Market Cap: $64.79M
• Dividend Yield: N/A
• Average Volume (3M): 69.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -3.10%
• EPS Growth: -381.92%
• Country: US
• Employees: 807
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Retail
• EPS (TTM): -0.04
• Shares Outstanding: 32,628,246
• 10 Day Avg. Volume: 37,141
• 30 Day Avg. Volume: 69,825
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.93
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 0.83
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.75
• Price Target Upside: 55.37% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

Duluth Holdings faces significant financial challenges with declining revenues and profitability issues, which heavily impact its stock score. The technical analysis suggests continued bearish sentiment, and the valuation metrics are not favorable. However, strategic initiatives and a strong liquidity position provide some optimism for future improvement. Recent corporate events, including the new credit agreement and CEO appointment, could positively influence the company's recovery efforts.

Positive Factors

Leadership

Stephanie Pugliese will return to the company as president and CEO, bringing her deep understanding of brand DNA and company culture.

Operational Efficiency

Sourcing and product development initiatives are expected to improve inventory agility and help to recapture GM, further supported by product costing initiatives.

Negative Factors

Financial Performance

Valuation at sub-2 times adjusted EBITDA estimate reflects deep uncertainty over the company’s future, including negative earnings and just $3 million in cash on the balance sheet.

Tariffs

Recently announced tariffs pose a significant threat to all apparel companies and are the largest risk to shares.

Duluth Holdings Business Overview & Revenue Model

Company Description

Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No Polo Shirt, No Yank, Wild Boar Mocs, and Buck Naked. The company markets its products through its Website, catalogs, and retail stores. As of January 30, 2022, it operated 62 retail stores and three outlet stores. The company was formerly known as GEMPLER'S, Inc. Duluth Holdings Inc. was founded in 1989 and is headquartered in Mount Horeb, Wisconsin.

How the Company Makes Money

Duluth Holdings makes money primarily through the sale of its apparel and accessories via multiple channels, including a network of physical retail stores, an online e-commerce platform, and catalog sales. The company leverages its distinct brand identity and customer loyalty to drive repeat purchases. Key revenue streams include its direct-to-consumer sales and wholesale operations. Duluth Holdings also benefits from its strategic marketing initiatives and promotional campaigns, which enhance brand visibility and drive traffic across its sales channels. Additionally, the company's commitment to product innovation and quality helps maintain a strong market position, contributing significantly to its earnings.

Duluth Holdings Financial Statement Overview

Summary

Duluth Holdings is navigating a challenging financial landscape marked by declining revenues, negative profitability, and increasing leverage. The company's cash flow position is under pressure, exacerbated by negative operating cash flows and deteriorating free cash flow. While the company retains a stable asset base, the overall financial health indicates a need for strategic adjustments to improve profitability and liquidity.

Income Statement

Duluth Holdings has faced declining revenue, with a noticeable drop from $653.3M in 2023 to $626.6M in 2025. Additionally, the company is experiencing negative EBIT and net income margins, indicating profitability challenges. The gross profit margin has remained stable but is not sufficient to offset operating losses.

Balance Sheet

The company's debt-to-equity ratio has increased as equity decreases, indicating higher financial leverage. Stockholders' equity has declined over the years, impacting the equity ratio. Despite these challenges, the company maintains a relatively stable asset base, providing a buffer against liabilities.

Cash Flow

Operating cash flow has turned negative, with free cash flow worsening significantly over the recent period. This trend suggests liquidity pressures and challenges in sustaining operations without relying on external financing. The free cash flow to net income ratio indicates additional stress, as cash flow generation is weak relative to earnings.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
626.63M	646.68M	653.31M	698.58M	638.78M
	Gross Profit
308.51M	324.97M	343.44M	377.32M	331.53M
	EBIT
-36.86M	-8.83M	6.23M	44.10M	24.21M
	EBITDA
-4.41M	24.25M	37.42M	73.38M	52.80M
	Net Income Common Stockholders
-43.67M	-9.36M	2.30M	29.70M	13.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.33M	32.16M	45.55M	77.05M	47.22M
	Total Assets
452.44M	490.45M	527.45M	515.55M	515.58M
	Total Debt
163.13M	186.23M	199.88M	190.25M	237.37M
	Net Debt
159.80M	154.07M	154.34M	113.19M	190.15M
	Total Liabilities
272.76M	268.28M	300.26M	292.83M	324.48M
	Stockholders Equity
182.68M	225.23M	230.41M	225.87M	193.46M
Cash Flow		Free Cash Flow
-25.25M	-10.41M	-28.46M	81.63M	38.49M
	Operating Cash Flow
-16.92M	38.67M	-5.63M	91.98M	50.75M
	Investing Cash Flow
-8.13M	-48.72M	-22.64M	-10.15M	-12.13M
	Financing Cash Flow
-3.78M	-3.35M	-3.23M	-51.36M	6.36M

Duluth Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLTH, the sentiment is Negative. The current price of 1.77 is below the 20-day moving average (MA) of 1.81, below the 50-day MA of 2.11, and below the 200-day MA of 3.14, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 34.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DLTH.

Duluth Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$6.65B	11.64	3.00%	3.98%	2.61%	-21.41%
DXLG	59 Neutral	$62.62M	25.94	2.11%	―	-10.50%	-88.94%
DBI	55 Neutral	$145.37M	―	-3.31%	6.60%	-2.14%	-173.54%
BIRD	47 Neutral	$41.90M	―	-65.03%	―	-25.31%	40.84%
DLTH	46 Neutral	$64.79M	―	-22.43%	―	-3.10%	-381.92%
LVLU	44 Neutral	$18.04M	―	-148.78%	―	-11.06%	-175.45%
TLYS	43 Neutral	$45.23M	―	-37.62%	―	-8.61%	-33.30%

Duluth Holdings Corporate Events

Duluth Holdings Secures New $100M Credit Agreement

On April 28, 2025, Duluth Holdings Inc. entered into a new Credit Agreement with BMO Bank N.A. and other financial institutions, allowing for borrowings up to $100 million under an asset-based revolving senior credit facility. This agreement, which replaces a previous facility at a lower interest rate, is secured by a first-priority perfected security interest in the company’s assets and will mature on April 28, 2030. The new facility is expected to provide Duluth Holdings with increased flexibility and liquidity, particularly for financing seasonal inventory builds.

Spark’s Take on DLTH Stock

According to Spark, TipRanks’ AI Analyst, DLTH is a Neutral.

Duluth Holdings is navigating significant financial and operational challenges, with declining revenues and profitability. The technical analysis suggests a bearish trend, and the valuation is unattractive due to negative earnings. Despite some positive strategic initiatives and leadership changes, the overall outlook remains cautious, with financial performance being the primary concern.

To see Spark’s full report on DLTH stock, click here.

Duluth Holdings Appoints Stephanie Pugliese as CEO

On March 31, 2025, Duluth Holdings Inc. announced the appointment of Stephanie L. Pugliese as President and CEO, effective May 5, 2025, succeeding Stephen L. Schlecht. Pugliese, who previously led the company from 2015 to 2019, is expected to leverage her extensive experience in branded apparel and retail to drive sustainable growth. Her return is anticipated to strengthen Duluth’s market position, building on recent investments in systems, sourcing, and distribution.

Duluth Holdings Announces Board Member Departure

On March 24, 2025, Francesca M. Edwardson announced her decision not to stand for re-election to the Board of Directors of Duluth Holdings Inc. at the 2025 Annual Meeting of Shareholders. Having served since 2015, her departure is not due to any disagreements with the company. Her retirement marks the end of a significant tenure where her expertise in corporate governance was highly valued, and her contributions will be missed by the company.

Duluth Holdings Announces CEO Retirement and Interim Appointment

On March 11, 2025, Duluth Holdings announced that Samuel M. Sato will retire as President and CEO, effective April 25, 2025, with Stephen L. Schlecht appointed as Interim CEO. The company reported a decrease in net sales and a net loss for the fiscal year ending February 2, 2025, attributing challenges to fulfillment delays and increased promotional activity. Despite these setbacks, Duluth Trading plans to expand its product lines and focus on strategic initiatives to improve operational execution.