Duluth Holdings Inc. announced its financial results for the fiscal Third Quarter ended November 2, 2025, showing improved profitability with consecutive quarters of gross margin expansion and SG&A leverage.
The company reported a net loss reduction to $10.1 million compared to the previous year, with adjusted EPS of $0.23.
Inventory decreased by 17% compared to the prior year, and cash and cash equivalents stood at $8.2 million with net liquidity of $88.6 million.
Improved Profitability
Consecutive quarters of gross margin expansion and SG&A leverage drove improved profitability.
Inventory Management
Inventory down by 17% compared to the previous year, indicating effective inventory management strategies.
Financial Outlook
Affirming the higher end of fiscal 2025 Adjusted EBITDA guidance range at $23-25 million and updating net sales guidance to $555-565 million.
- The company's efforts led to enhanced gross margin, lower costs, reduced inventory levels, and improved free cash flow.
- Net sales decreased by 9.6% in the third quarter, with direct-to-consumer net sales dropping by 15.5% and retail store net sales increasing by 0.4%.
Duluth Holdings Inc. demonstrated resilience and improvement in its financial performance, focusing on profitability, inventory management, and strategic outlook for fiscal 2025.