Duluth Holdings Inc. surged 18.8% in pre-market trading on Thursday after the company reported a sharp increase in quarterly earnings and revenue that exceeded analyst expectations.
The Wisconsin-based workwear and outdoor apparel brand posted net income of $18.4 million for the fiscal second quarter ended August 2, 2026, compared with a net income of $1.3 million in the same period a year earlier. Reported earnings per share stood at $0.50, including a $0.44 benefit from tariff refunds, while revenue reached $121.39 million, topping the consensus estimate of $119.9 million.
Adjusted EBITDA more than doubled to $27.0 million from $12.0 million in the prior-year quarter. Inventory levels declined by $22.9 million, or 15.5%, year-over-year, while net liquidity totaled approximately $96 million. The company also maintained zero debt on its asset-based lending facility.
Duluth Holdings reaffirmed its full-year revenue guidance in the range of $540 million to $560 million and reiterated its "Build to Last" growth strategy, which aims to double EBITDA by 2028. The earnings release was followed by an investor and analyst conference call.
The stock move was driven by company-specific fundamentals rather than broader market trends, as the S&P 500 rose 0.1% and the Nasdaq was essentially flat on the day.
