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Nov 02, 2025
Duluth Trading Co. Q3 2025 Earnings Report
Duluth Trading Co. reported a narrower net loss in Q3 2025, with improved gross margin and reduced expenses.
Key Takeaways
Duluth Holdings Inc. made progress on its turnaround strategy in Q3 2025, reducing net loss to $10.1 million and boosting gross margin despite a decline in sales. Operating loss also improved significantly, reflecting tighter cost controls and better inventory management.
Net loss narrowed to $10.1 million from $28.2 million last year.
Gross margin improved to 53.8%, up from 52.3%.
SG&A expenses were reduced by $11.6 million year-over-year.
Retail store sales grew slightly, while direct-to-consumer sales declined.
Revenue by Segment
Forward Guidance
Duluth affirmed the high end of its FY2025 Adjusted EBITDA guidance but lowered its revenue outlook slightly.
Positive Outlook
- Affirmed Adjusted EBITDA guidance at $23M–$25M.
- Gross margin improvements expected to continue.
- Free cash flow and inventory management remain strong.
- Operational execution showing results.
- Positive customer response entering Q4.
Challenges Ahead
- Lowered net sales guidance to $555M–$565M.
- Direct-to-consumer segment under pressure from weak traffic.
- Continued operating losses expected in near term.
- Retail growth modest despite new stores.
- Tariff-related costs still affecting margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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