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Aug 03, 2025
Duluth Trading Co. Q2 2025 Earnings Report
Duluth Trading Co. reported a return to profitability in Q2 2025, with improved gross margin and reduced SG&A expenses.
Key Takeaways
Duluth Trading Co. posted a net income of $1.3M and positive EPS, reversing a net loss from the prior year. Revenue declined 7%, but gross margin increased due to reduced promotions and improved sourcing.
Revenue by Segment
Forward Guidance
The company maintained its prior FY2025 guidance and emphasized ongoing turnaround efforts.
Positive Outlook
- Gross margin improved due to reduced promotions and better sourcing.
- SG&A expenses reduced through cost control initiatives.
- Inventory levels down 12.2% YoY.
- Retail sales grew despite overall revenue decline.
- CEO reaffirmed focus on core strengths and operational simplification.
Challenges Ahead
- Overall revenue declined 7% YoY.
- Direct-to-consumer net sales fell 13.7% due to reduced traffic.
- Operating margin remains low despite positive income.
- Inventory reductions could constrain future sales if not well-managed.
- Interest expenses increased significantly vs. prior year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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