Duluth Holdings stock reports stronger profit despite lower sales

Published on 10/04/2026 at 14:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Duluth Holdings stock reported USD 18.4 million of Q2 net income on September 3, 2026, helped by tariff refunds. Sales fell 7.8 percent to USD 121.4 million.

DLTH, US26443V1017, Illustration mit AI erstellt.

Duluth Holdings stock (ISIN US26443V1017) closed at USD 3.93 on Nasdaq on October 2, 2026, down 0.25 percent from the prior close. The company reported a sharp profit improvement for fiscal Q2 2026 on September 3, while sales continued to contract.

Profit improved as sales fell

According to Duluth Trading in its September 3, 2026 release, net income reached USD 18.4 million in the quarter, compared with USD 1.3 million in the prior-year period. Reported and adjusted diluted EPS was USD 0.50, including USD 0.44 from USD 16.3 million of tariff refunds.

Revenue moved in the opposite direction. Q2 net sales declined 7.8 percent year over year to USD 121.4 million from USD 131.7 million, with direct-to-consumer sales down 11.5 percent to USD 70.1 million and retail store sales down 2.4 percent to USD 51.3 million, according to Last10K.

Guidance highlights the turnaround

The operating reset is most visible in adjusted EBITDA. Duluth reported USD 27.0 million for Q2, up from USD 12.0 million a year earlier, and raised fiscal 2026 adjusted EBITDA guidance to USD 38 million-USD 42 million from USD 28 million-USD 32 million, while maintaining fiscal-year net sales guidance of USD 516 million-USD 540 million, according to Benzinga.

The comparison carries an important qualification: tariff refunds contributed USD 0.44 to quarterly EPS, while adjusted EBITDA excluding those refunds was USD 10.7 million. Inventory fell 15.5 percent year over year to USD 125.2 million, giving the margin gains a working-capital counterpart.

Analyst target stays above price

MarketBeat lists a Moderate Buy consensus based on 4 analysts, with an average, high and low price target of USD 5.00. Against the October 2 price of USD 3.93, that target lies 27.2 percent above the stock.

DLTH remains below its yearly high

DLTH closed at USD 3.93 on Nasdaq on October 2, 2026, within its USD 2.02 to USD 5.09 52-week range. For investors, the central test is whether sales stabilize while the reported margin improvement becomes less dependent on the USD 16.3 million tariff refund.