Duluth Holdings increases 2025 adjusted EBITDA forecast to $23M-$25M due to enhanced cost savings and margin improvements.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Source: SeekingAlpha
Management Focus: Duluth Holdings Inc. is prioritizing gross margin improvement, cost control, and inventory management as part of its turnaround strategy, reporting improved profitability despite year-over-year sales declines.
Financial Performance: The company reported Q3 2025 net sales of $114.9 million, a 9.6% decline, but achieved a gross margin expansion to 53.8% and reduced SG&A expenses by 14.1%.
Operational Improvements: Significant operational enhancements led to a 17% reduction in inventory and projected cost savings of over $10 million for fiscal 2025, with a strong liquidity position of over $88 million.
Outlook and Challenges: Duluth Holdings raised its adjusted EBITDA guidance while revising sales expectations downward, citing ongoing tariff impacts and the need for further promotional resets to optimize margins and sales quality.
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Analyst Views on DLTH
Wall Street analysts forecast DLTH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DLTH is 5.00 USD with a low forecast of 5.00 USD and a high forecast of 5.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 2.410
Low
5.00
Averages
5.00
High
5.00
Current: 2.410
Low
5.00
Averages
5.00
High
5.00
About DLTH
Duluth Holdings Inc. is a lifestyle brand of men’s and women’s workwear, casual wear, outdoor apparel, and accessories sold primarily through the Company’s own omnichannel platform. The Company’s product assortment includes shirts, pants, shorts, underwear, outerwear, footwear, accessories, and hard goods. Its products feature proprietary designs and distinct names, such as its Longtail T shirts, Buck Naked underwear, Fire Hose work pants, and No-Yank Tank. The Company’s product assortment appeals to its customers for their everyday and on-the-job use. The Company’s omnichannel services include order-in-store, buy-online-pickup-in-store, and ship-from-store as well as retail store and mobile shopping experiences. The Company’s products are marketed under the Duluth Trading Company brand, with many of the products being exclusively developed and sold as Duluth Trading branded merchandise. The Company operates over 62 retail stores and three outlet stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Duluth Holdings Lowers Sales Guidance, Stock Plummets 29.39%
- Sales Guidance Cut: Duluth Holdings has lowered its net sales guidance for Q3 2025 to a range of $555 million to $565 million, down from $570 million to $595 million, indicating significant market challenges and weakening demand.
- Stock Price Plunge: Following the announcement of the lowered guidance, Duluth's stock price fell by $0.92, or 29.39%, closing at $2.21 per share on December 16, 2025, reflecting investor concerns about the company's future outlook.
- Legal Investigation Launched: Pomerantz LLP is investigating whether Duluth and certain officers have engaged in securities fraud or other unlawful business practices, which could expose the company to legal risks and further impact shareholder confidence.
- Investor Advisory: In light of these developments, investors are advised to contact legal counsel regarding the possibility of joining a class action lawsuit, highlighting the market's heightened scrutiny on corporate governance and transparency.
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Duluth Holdings Shares Plunge 29.4% Following Q3 2025 Sales Guidance Cut
- Stock Price Plunge: Duluth Holdings' shares fell nearly 29.4% on December 16, 2025, after the company lowered its net sales guidance in its Q3 2025 financial results, indicating strong market concerns about its future performance.
- Investor Investigation: The Schall Law Firm is investigating whether Duluth issued false or misleading statements that could affect investor decisions, highlighting the legal risks the company faces.
- Financial Transparency Issues: The company's failure to disclose critical information pertinent to investors may lead to a crisis of trust, potentially impacting future financing and market performance.
- Shareholder Rights Protection: The law firm encourages affected shareholders to participate in the investigation, reflecting market concerns over corporate governance and transparency, which may prompt the company to improve its disclosure practices and compliance.
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