Duluth Holdings Inc. (NASDAQ:DLTH), which operates as Duluth Trading Company, reported a notable rebound in its second-quarter 2025 results, highlighting a return to profitability.
The lifestyle brand, known for its men’s and women’s workwear, casual apparel, and outdoor gear, posted a net income of $1.3 million for Q2, reversing a net loss of $2.0 million in the same period last year. Adjusted EBITDA reached $12.0 million, signaling a meaningful improvement in the company’s financial trajectory.
The report underscored a gross margin expansion to 54.7%, driven by lower promotional spending and more efficient product cost management. While net sales fell 7% to $131.7 million, the company successfully cut selling, general, and administrative expenses by $5.2 million. Inventory levels also declined 12.2% from a year earlier, supporting a strong net liquidity position of $73.3 million.
Looking forward, Duluth Holdings aims to streamline operations and enhance its fulfillment network. Management reaffirmed its fiscal 2025 guidance, emphasizing ongoing efforts to drive shareholder value through strategic marketing initiatives and product assortment refinements that reflect the brand’s focus on self-reliant consumers.
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