Duluth Holdings Inc. shares surged 18.8% in pre-market trading after the company reported a sharp increase in profitability and revenue for its fiscal second quarter ended August 2.
The Wisconsin-based workwear and outdoor apparel brand posted net income of $18.4 million, up from $1.3 million in the prior-year period. Earnings per share reached $0.50, including a $0.44 contribution from tariff refunds. Revenue totaled $121.39 million, exceeding the consensus estimate of $119.9 million.
Adjusted EBITDA more than doubled to $27.0 million from $12.0 million a year earlier, reflecting improved operational efficiency. Inventory levels declined by $22.9 million, or 15.5%, compared with the prior year, indicating better inventory management.
The company maintained its full-year revenue guidance in the range of $540 million to $560 million, unchanged from prior guidance. Duluth Holdings also reported approximately $96 million in net liquidity and no debt on its Asset Based Lending facility, reinforcing its financial stability.
The earnings report follows the company’s "Build to Last" growth strategy unveiled earlier in the year, which aims to double adjusted EBITDA by 2028. The broader market showed modest gains, with the S&P 500 up 0.1% and the Nasdaq essentially flat on the reporting day.
