Duluth Trading Company reported a net income of $1.3 million and Adjusted EBITDA of $12.0 million for the second quarter ending August 3, 2025. Gross margin expanded due to a promotional reset, and SG&A leverage improved from cost control efforts. Liquidity stood at $73.3 million, with inventory down 12% from last year.

President and CEO Stephanie Pugliese expressed optimism over the second-quarter results, highlighting positive momentum in turnaround efforts. Key improvements included gross margin enhancement, reduced SG&A, and disciplined inventory management. Efforts to simplify the business, reduce expenses, and maintain high product quality are ongoing priorities.

Net sales for the quarter decreased by 7.0% to $131.7 million, with direct-to-consumer sales dropping by 13.7% due to lower traffic. Retail store sales increased by 5.3% driven by higher average order values. Gross margin increased to 54.7% of net sales due to reduced promotional activity and improved product costs.

Selling, general, and administrative expenses decreased by 7.1% to $68.8 million, primarily due to leverage on outbound shipping costs and reduced personnel and depreciation expenses. Cash and cash equivalents stood at $5.7 million, with net liquidity at $73.3 million. The company is maintaining its fiscal 2025 financial guidance.

The Company uses non-GAAP financial measures to provide additional comparisons between current and prior results. Adjusted EBITDA, adjusted net income, and adjusted EPS help assess operating trends and business performance. Non-GAAP results supplement GAAP financials and should be viewed in conjunction with those results. Forward-looking statements and risks are outlined to provide insight into future performance and factors affecting results. The Company revised its financial statements for an accounting correction related to sales tax collections.

Read more at GlobeNewswire: Duluth Holdings Inc. Announces Second Quarter 2025