Executive Summary
Duluth Holdings reported Q2 2026 revenue of $131.716 million with a gross profit of $72.019 million, delivering a gross margin of 54.68%. Operating income was $3.252 million and EBITDA rose to $8.865 million, yielding an EBITDA margin of 6.73% and an operating margin of 2.47%. Net income reached $1.261 million, or $0.0366 per share, supported by a tax benefit of roughly $0.442 million. The quarter featured strong operating cash flow of $32.027 million and free cash flow of $29.787 million, underscoring robust cash generation even as leverage remains elevated. Balance sheet highlights include total assets of $433.8 million, total debt of $165.128 million, and total stockholders’ equity of $169.994 million, with cash and cash equivalents of $5.739 million at quarter-end. Net debt stands around $183.211 million, implying a substantial leverage footprint, and CFO-to-debt dynamics suggest meaningful near-term liquidity provided by operational results. Management commentary (where available) and year-over-year (YoY) and quarterly (QoQ) momentum show modest topline improvement in mix-driven margins and continued focus on cost discipline. Overall, the quarter reinforces a positive cash-flow trajectory and margin resilience, albeit with balance-sheet leverage that requires prudent capital allocation and debt-management considerations going forward.
Key Performance Indicators
QoQ: 126.33% | YoY:242.01%
QoQ: 108.25% | YoY:133.68%
QoQ: 108.13% | YoY:133.27%
Key Insights
Revenue: $131.716m; YoY: -6.99%, QoQ: +28.25% | Gross Profit: $72.019m; YoY: -2.67%, QoQ: +34.98% | Operating Income: $3.252m; YoY: +242.01%, QoQ: +126.33% | Net Income: $1.261m; YoY: +133.68%, QoQ: +108.25% | EPS: $0.0366; YoY: +133.27%, QoQ: +108.13% | EBITDA: $8.865m; EBITDA Margin: 6.73% | Gross Margin: 54.68% | Operating Margin: 2.47%; Net Margin: 1.01% | CFO: $32.027m; Free Cash Flow: $29.787m | Cash: $5.739m; Total Debt: $165.128m; Net Debt: $183.211m | Current Ratio: ~1.44x; Debt-to-Equi...
Financial Highlights
Revenue: $131.716m; YoY: -6.99%, QoQ: +28.25% | Gross Profit: $72.019m; YoY: -2.67%, QoQ: +34.98% | Operating Income: $3.252m; YoY: +242.01%, QoQ: +126.33% | Net Income: $1.261m; YoY: +133.68%, QoQ: +108.25% | EPS: $0.0366; YoY: +133.27%, QoQ: +108.13% | EBITDA: $8.865m; EBITDA Margin: 6.73% | Gross Margin: 54.68% | Operating Margin: 2.47%; Net Margin: 1.01% | CFO: $32.027m; Free Cash Flow: $29.787m | Cash: $5.739m; Total Debt: $165.128m; Net Debt: $183.211m | Current Ratio: ~1.44x; Debt-to-Equity: ~0.97x; ROE not provided
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
131.72M |
-6.99% |
28.25% |
| Gross Profit |
72.02M |
-2.67% |
34.98% |
| Operating Income |
3.25M |
242.01% |
126.33% |
| Net Income |
1.26M |
133.68% |
108.25% |
| EPS |
0.04 |
133.27% |
108.13% |
Management Commentary
No earnings call transcript text was provided in the data set. Key themes from the results and accompanying disclosures emphasize margin resilience, strong operating cash flow, and a debt-heavy balance sheet. See transcriptQuotes for any direct quotes where available.
No transcript content available in the provided data.
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No transcript content available in the provided data.
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Forward Guidance
No explicit forward guidance is included in the provided filing. Given the strong quarterly cash flow generation and improving gross margin, the company could aim for mid-single-digit revenue stability or growth if demand holds, with a continued emphasis on cost discipline and inventory management. Investors should monitor: (1) trend in gross margin sustainability amid promotional activity and channel mix, (2) working capital dynamics and the pace of debt reduction, (3) capital allocation decisions (buybacks versus debt reduction versus capex), and (4) consumer demand environment for apparel in the near-to-medium term.