Overview

• U.S. apparel retailer's fiscal Q1 sales fell 4% yr/yr on lower direct-to-consumer demand

• Adjusted EPS loss narrowed from prior year as gross margin expanded 540 bps to 57.4%

• Company raised fiscal 2026 adjusted EBITDA guidance, affirms sales outlook

Outlook

• Company affirms fiscal 2026 net sales guidance of $540 mln to $560 mln

• Company raises fiscal 2026 adjusted EBITDA guidance to $28 mln to $32 mln from $26 mln to $30 mln

• Company maintains fiscal 2026 capital expenditures guidance at about $12 mln

Result Drivers

• PROMOTIONAL RESET - Reduced promotional activity led to lower direct-to-consumer sales but contributed to higher average unit retail prices and gross margin expansion, per management

• INVENTORY DISCIPLINE - Inventory reduction and operational efficiencies contributed to improved profitability and liquidity, according to CEO Stephanie Pugliese

• COST CONTROL - Decreased selling, general and administrative expenses driven by fulfillment efficiencies and lower personnel costs helped narrow losses

Company press release: ID:nGNX19QB4m

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales		$98.6 mln
Q1 Adjusted EPS		-$0.20
Q1 EPS		-$0.29
Q1 Adjusted EBITDA		$2.6 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy"

• Wall Street's median 12-month price target for Duluth Holdings Inc is $5.13, about 54.4% above its June 5 closing price of $3.32

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.