Duluth Holdings Earnings Call Transcripts
Fiscal Year 2027
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Q2 2026 saw improved profitability, margin expansion, and strong free cash flow, aided by a strategic shift to core products and reduced clearance. Net sales declined 7.8% year-over-year, but gross margin and EBITDA improved, with guidance raised for full-year adjusted EBITDA.
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Gross margin expanded 540 bps to 57.4% as reduced promotions and cost controls drove profitability, despite a 4% sales decline. Retail store sales rose 3%, inventory dropped 25%, and full-year EBITDA guidance was raised to $28–$32 million.
Fiscal Year 2026
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Gross margin and profitability improved for the third consecutive quarter, with strong retail performance offsetting digital declines. Inventory and SG&A were significantly reduced, and guidance for 2026 anticipates further margin expansion and stable sales in the second half.
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Q3 saw improved profitability and gross margin despite a 9.6% sales decline, driven by reduced promotions, cost savings, and inventory optimization. FY2025 guidance was raised for adjusted EBITDA, with liquidity strengthened by fully paying down debt.
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Q2 saw a 7% sales decline but improved gross margin and EBITDA, driven by reduced promotions, cost controls, and inventory management. Retail store sales rose 5%, while direct channel sales fell 18%. FY25 guidance is maintained, with tariff impacts expected in H2, offset by price increases and cost savings.
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Q1 net sales fell 12% year-over-year, with adjusted EBITDA at -$3.8 million and inventory up 29%. Strategic initiatives target $15 million in annualized savings, SKU reductions, and store optimization, while maintaining FY2025 EBITDA guidance of $20–$25 million.
Fiscal Year 2025
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Q4 net sales declined 1.8% due to fulfillment challenges, with adjusted EBITDA at $8.5 million. FY2025 guidance projects $570–$595 million in sales and 300 bps gross margin expansion, supported by direct sourcing and operational improvements.
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Net sales declined 8.1% year-over-year, but gross margin expanded by 210 basis points to 52.3%. Strategic initiatives in sourcing, fulfillment, and omnichannel retail are delivering cost savings, with full-year sales guidance reaffirmed at $640 million.
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Q2 2024 saw 1.8% sales growth and 90 bps gross margin expansion, led by women's and direct channel gains. Strategic sourcing, fulfillment optimization, and debt repayment strengthened financials, while guidance for the year remains unchanged.