Duluth Holdings reports higher profit of $18.4 million

• Duluth Holdings reported fiscal second-quarter 2026 net income of $18.4 million, up from $1.3 million a year earlier.
• The company received $16.3 million in tariff refunds that supported earnings during the quarter.
• Duluth raised adjusted EBITDA guidance to $38 million–$42 million for fiscal 2026.

Duluth Holdings (NASDAQ:DLTH) reported fiscal second-quarter 2026 net income of $18.4 million, compared with $1.3 million a year earlier, supported by $16.3 million in tariff refunds.

Net sales declined 7.8% to $121.4 million, with direct-to-consumer sales falling 11.5% to $70.1 million and retail store sales declining 2.4% to $51.3 million due to lower traffic and reduced promotions.

Duluth reported gross margin of 72.8%, compared with 54.7% in the prior-year period, while gross margin excluding tariff refunds was 59.6%, up 490 basis points due to higher average unit prices and lower product costs, and adjusted EBITDA increased to $27 million from $12 million.

Duluth reaffirmed fiscal 2026 net sales guidance of $540 million–$560 million and raised adjusted EBITDA guidance to $38 million–$42 million from $28 million–$32 million, including tariff refund impacts.

Duluth Holdings operates casual wear, workwear, outdoor apparel, and lifestyle product brands through direct-to-consumer channels and retail stores.

The company ended the quarter with $26.8 million in cash, approximately $96 million in net liquidity, no borrowings under its $70 million asset-based lending facility, and inventory down $22.9 million or 15.5% year over year.