Duluth (NASDAQ:DLTH) Downgraded to Neutral Rating by Robert W. Baird

Key Points

• Robert W. Baird downgraded Duluth to “neutral” from “outperform,” while maintaining a $5.00 price target, implying approximately 12.1% upside from the prior close. The analyst consensus remains “hold” with an average target of $5.00.
• Duluth reported quarterly EPS of $0.50, well above the $0.01 loss analysts expected, and raised fiscal 2026 adjusted EBITDA guidance to $38 million–$42 million from $28 million–$32 million.
• Sales remain a concern: Second-quarter revenue declined 7.8% year over year to $121.4 million, while reported profitability benefited significantly from $16.3 million in tariff refunds.

Duluth (NASDAQ:DLTH - Get Free Report) was downgraded by investment analysts at Robert W. Baird from an "outperform" rating to a "neutral" rating in a research report issued to clients and investors on Friday, Briefing.com reports. They presently have a $5.00 price objective on the stock. Robert W. Baird's price objective points to a potential upside of 12.11% from the company's previous close.

DLTH has been the topic of several other research reports. Zacks Research lowered Duluth from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 7th. Weiss Ratings upgraded shares of Duluth from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, June 8th. Finally, Wall Street Zen raised shares of Duluth to a "hold" rating in a research note on Saturday, May 23rd. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $5.00.

Duluth Stock Up 23.2%

Duluth stock opened at $4.46 on Friday. The firm has a market cap of $169.48 million, a price-to-earnings ratio of -13.94 and a beta of 1.38. The firm has a fifty day moving average price of $4.10 and a two-hundred day moving average price of $3.51. Duluth has a fifty-two week low of $2.02 and a fifty-two week high of $5.09. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.62 and a quick ratio of 0.30.

Duluth (NASDAQ:DLTH - Get Free Report) last announced its quarterly earnings results on Thursday, September 3rd. The company reported $0.50 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.01) by $0.51. The firm had revenue of $121.39 million for the quarter, compared to analyst estimates of $119.91 million. Duluth had a negative net margin of 2.00% and a negative return on equity of 3.69%. As a group, analysts forecast that Duluth will post -0.26 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. raised its stake in Duluth by 50.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 87,615 shares of the company's stock worth $152,000 after buying an additional 29,521 shares during the period. Empowered Funds LLC lifted its holdings in shares of Duluth by 9.3% during the 1st quarter. Empowered Funds LLC now owns 101,447 shares of the company's stock valued at $177,000 after purchasing an additional 8,597 shares in the last quarter. Blair William & Co. IL grew its position in shares of Duluth by 17.2% in the 3rd quarter. Blair William & Co. IL now owns 113,510 shares of the company's stock valued at $444,000 after purchasing an additional 16,678 shares during the period. Squarepoint Ops LLC bought a new stake in Duluth during the 3rd quarter worth approximately $85,000. Finally, Barclays PLC boosted its holdings in shares of Duluth by 32.2% in the fourth quarter. Barclays PLC now owns 58,043 shares of the company's stock valued at $121,000 after buying an additional 14,136 shares during the period. Institutional investors and hedge funds own 24.39% of the company's stock.

Duluth News Summary

Here are the key news stories impacting Duluth this week:

• Positive Sentiment: Profitability improved sharply: Duluth reported $18.4 million in net income, or $0.50 diluted EPS, compared with $1.3 million, or $0.04 per share, a year earlier. Adjusted EBITDA rose to $27.0 million from $12.0 million, exceeding expectations. Duluth Holdings Second-Quarter Financial Results
• Positive Sentiment: Full-year EBITDA guidance was raised: Management increased fiscal 2026 adjusted EBITDA guidance to $38 million-$42 million from $28 million-$32 million, signaling confidence in margin expansion, inventory discipline and improved operating execution. Duluth Raises Adjusted EBITDA Outlook
• Positive Sentiment: Margins and liquidity strengthened: Gross margin expanded to 72.8%, or 59.6% excluding tariff refunds, while inventory declined 15.5%. The company ended the quarter with approximately $96 million of net liquidity and no borrowings on its asset-based lending facility.
• Neutral Sentiment: Revenue guidance was maintained: Fiscal 2026 net sales guidance remains $540 million-$560 million, broadly consistent with the approximately $554 million analyst consensus. Duluth Q2 Income and Revenue Outlook
• Negative Sentiment: Sales trends remain weak: Second-quarter revenue fell 7.8% year over year to $121.4 million. Direct-to-consumer sales declined 11.5% because of lower web traffic and conversion, while store sales fell 2.4%.
• Negative Sentiment: Some earnings benefits were temporary: Results included $16.3 million in tariff refunds, contributing roughly $0.44 of EPS and materially lifting reported margins. Investors may therefore focus on whether underlying gains from pricing, sourcing and inventory management persist.

Duluth Company Profile

Duluth Holdings Inc operates as a specialty retailer of workwear, outdoor apparel and accessories for men and women under the Duluth Trading Co name. The company's product line includes work pants, durable outerwear, performance-based shirts, base layers and specialized gear such as tool belts and backpacks. Duluth Trading Co focuses on combining practical functionality with style, targeting tradespeople, outdoor enthusiasts and anyone in need of rugged, long-lasting clothing.

Since its founding in 1989, Duluth Trading Co has grown from a regional catalog business into a national retail chain.

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