Duluth Holdings Reports Decrease in Net Sales and Net Loss for Third Quarter

Duluth Holdings Inc. reported its financial results for the third quarter and nine months ended November 2, 2025, revealing a decrease in net sales and a net loss, although the loss was significantly reduced compared to the previous year. The company generated net sales of $114.9 million for the third quarter, a decline of 9.6% from $127.1 million in the same period last year. For the nine-month period, net sales totaled $349.3 million, down 9.4% from $385.4 million. The gross profit for the third quarter was $61.8 million, a decrease of 6.9% year-over-year, while gross profit for the nine months was $187.2 million, down 7.3%. The gross margin improved to 53.8% for the third quarter, up from 52.3% a year earlier, attributed to higher average unit retail sales and improved product costs.

The company reported a net loss of $10.1 million for the third quarter, a significant improvement from a net loss of $28.2 million in the prior year. For the nine-month period, the net loss was $24.0 million, compared to a loss of $38.1 million in the same period last year. Adjusted EBITDA also showed positive movement, increasing to a loss of $0.7 million in the third quarter from a loss of $6.2 million a year prior, and reaching $7.5 million for the nine months, compared to $6.1 million in the previous year.

Duluth Holdings has made strategic adjustments to its operations, including a reduction in selling, general, and administrative expenses, which fell by 14.1% to $70.7 million in the third quarter. This reduction was driven by lower outbound shipping costs and a decrease in personnel and depreciation expenses. The company also underwent a restructuring process, which included a reduction in force aimed at optimizing its expense structure. The restructuring expenses were not significant in the current quarter but had been higher in the previous year.

Operationally, Duluth Holdings continues to focus on its omnichannel platform, with 63 retail stores and three outlet stores as of the reporting date. The company has experienced a decline in web traffic, which has impacted sales, particularly due to reduced promotional activity. Despite these challenges, the company is optimistic about its future, citing ongoing efforts to enhance product offerings and improve customer engagement. The outlook remains cautious, with expectations that macroeconomic factors such as inflation and consumer demand will continue to influence performance in the upcoming quarters. The company plans to invest approximately $17 million in capital expenditures for fiscal 2025, primarily for new store openings and technology improvements.