What were Duluth Holdings’ (NASDAQ:DLTH) first-quarter FY2026 net sales?

Duluth Holdings reported net sales of $98.6 million for Q1 FY2026, representing a 4% decline year-over-year from the prior-year period.

How did Duluth’s profitability metrics perform in Q1 FY2026?

The company narrowed its net loss to $10 million from $15.3 million a year earlier. Adjusted EPS was ($0.20), and adjusted EBITDA increased to $2.6 million, reflecting improved operational efficiency despite top-line pressure.

What drove the decline in net sales for Duluth Holdings?

The 4% decline in total revenue was primarily due to an 8.7% drop in direct-to-consumer (DTC) sales, while in-store retail sales grew 3.3%, showing resilience in physical locations.

How did Duluth’s gross margin change, and why?

Gross margin expanded by 540 basis points to 57.4%, driven by inventory optimization, improved pricing power, and operational efficiency initiatives.

What changes occurred in Duluth’s inventory and liquidity?

Total inventory levels declined 24.8% year-over-year to $43.7 million, supporting a healthy balance sheet with approximately $99.5 million in net liquidity.

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Duluth narrows losses as margin expansion offsets sales decline

Written by Brie CarterPublished Jun. 8 2026Last Updated Jun. 8 2026

Duluth Holdings (NASDAQ:DLTH) reported financial results for the first quarter of fiscal 2026, ended May 3, 2026, highlighting significant progress in operational efficiency despite a challenging retail environment.

The company narrowed its net loss to $10 million, compared to a net loss of $15.3 million in the same period last year.

Adjusted earnings per share were ($0.20), while adjusted EBITDA increased to $2.6 million.

Net sales for the quarter reached $98.6 million, a 4% decrease from the prior-year period.

This top-line pressure was primarily driven by an 8.7% decline in direct-to-consumer sales.

However, the company’s retail footprint demonstrated resilience, with in-store sales growing 3.3%.

Management emphasized the strength of the company’s margin strategy, with gross margin expanding by 540 basis points to 57.4%.

This improvement reflects the success of ongoing initiatives to optimize inventory levels and enhance pricing power.

Inventory management remained a key focus throughout the quarter, with total inventory levels declining 24.8% year-over-year to $43.7 million, contributing to a healthy balance sheet with approximately $99.5 million in net liquidity.

Looking ahead, the company reaffirmed its fiscal 2026 net sales guidance of $540 million to $560 million.

Reflecting confidence in its operational turnaround and margin structure, the company raised its full-year adjusted EBITDA guidance to a range of $28 million to $32 million.