Duluth Holdings Reports Q1 Fiscal 2026 Results with $98.6M in Net Sales

Duluth Holdings Inc. reported its financial results for the first quarter of fiscal 2026, revealing a net sales figure of $98.6 million, a decrease of 4.0% from $102.7 million in the same period last year. The company experienced a net loss of $10.0 million, a significant improvement compared to the net loss of $15.3 million reported in the prior year. The adjusted EBITDA for the quarter was $2.6 million, a recovery from an adjusted EBITDA loss of $3.8 million in the first quarter of fiscal 2025. The gross profit increased to $56.6 million, reflecting a gross margin of 57.4%, up from 52.0% in the previous year, primarily due to reduced promotional activity and improved product costs.

In terms of operational changes, Duluth Holdings noted a restructuring expense of $1.4 million related to the closure of its Salt Lake City fulfillment center, which also contributed to a $2.7 million impairment charge for long-lived assets. The company has streamlined its operations, resulting in a decrease in selling, general, and administrative expenses to $61.8 million from $65.2 million, attributed to better management of outbound shipping costs and a reduction in personnel and marketing expenses. The company’s inventory levels remained stable, with a slight increase to $132.4 million from $131.3 million.

Duluth Holdings continues to expand its retail presence, operating 63 retail stores and three outlet stores as of May 3, 2026. The company reported a slight increase in store sales, which helped offset the decline in direct-to-consumer sales driven by reduced web traffic and promotional activity. The company’s direct-to-consumer sales amounted to $57.1 million, down from $62.6 million, while store sales increased to $41.5 million from $40.2 million. The overall customer engagement metrics indicate a shift in purchasing behavior, with higher average order values noted despite the decline in web traffic.

Looking ahead, Duluth Holdings faces challenges from macroeconomic conditions, including inflation and recessionary concerns, which may impact consumer demand and merchandise costs. The company has expressed uncertainty regarding the future economic environment but remains focused on leveraging its operational efficiencies and brand strength to navigate these challenges. The management anticipates that cash flow from operations and the availability of funds under its credit facility will be sufficient to meet working capital needs and support anticipated capital expenditures in the near term.