Executive Summary
Duluth Holdings reported QQ1 2026 results with a notable top-line decline and pronounced profitability headwinds. Revenue reached $102.7 million, down 11.98% year over year and 57.43% quarter over quarter, while gross margin remained healthy at approximately 51.95%. The business posted an operating loss of $12.35 million and a net loss of $15.29 million, driving a negative EPS of $0.45. EBITDA was negative at $5.764 million, underscoring that the negative operating leverage persisted even as gross margin held up. A material working-capital drain contributed to negative cash flow: cash provided by operating activities was −$56.46 million, with free cash flow of −$57.80 million. The balance sheet shows a leveraged position with total debt of $223.9 million and net debt of $215.3 million, alongside a modest cash balance of $8.58 million and inventory elevated at $177.84 million. The current ratio sits around 1.34x, and the quick ratio is markedly weak, highlighting liquidity pressure despite a financing cash inflow of about $63.0 million in the quarter. While the gross margin suggests pricing power and product mix resilience, the combination of subdued revenue, elevated operating expenses (SG&A of $65.71 million), and heavy working-capital consumption point to a required strategic reset focused on cost containment, working-capital efficiency, and debt-financing flexibility. Absent meaningful improvements in operating leverage and cash generation, the near-term risk remains elevated for DLTH.
Key Performance Indicators
QoQ: -57.43% | YoY:-11.98%
QoQ: -49.89% | YoY:-0.03%
QoQ: -191.25% | YoY:-37.69%
QoQ: -335.08% | YoY:-94.25%
QoQ: -164.71% | YoY:-87.50%
Key Insights
Revenue: $102.704 million; YoY: -11.98%; QoQ: -57.43%.
Gross Profit: $53.355 million; Gross Margin: 51.95%; YoY: -0.03%; QoQ: -49.89%.
Operating Income: -$12.352 million; Operating Margin: -12.03%; YoY: -37.69%; QoQ: -191.25%.
Net Income: -$15.293 million; Net Margin: -14.89%; YoY: -94.25%; QoQ: -335.08%.
EPS (basic/diluted): -$0.45; YoY: -87.50%; QoQ: -164.71%.
EBITDA: -$5.764 million; EBITDA Margin: -5.61%.
Cash Flow: Net cash from operating activities −$56.463 million; Capex −$1.332 milli...
Financial Highlights
Revenue: $102.704 million; YoY: -11.98%; QoQ: -57.43%.
Gross Profit: $53.355 million; Gross Margin: 51.95%; YoY: -0.03%; QoQ: -49.89%.
Operating Income: -$12.352 million; Operating Margin: -12.03%; YoY: -37.69%; QoQ: -191.25%.
Net Income: -$15.293 million; Net Margin: -14.89%; YoY: -94.25%; QoQ: -335.08%.
EPS (basic/diluted): -$0.45; YoY: -87.50%; QoQ: -164.71%.
EBITDA: -$5.764 million; EBITDA Margin: -5.61%.
Cash Flow: Net cash from operating activities −$56.463 million; Capex −$1.332 million; Free cash flow −$57.795 million.
Balance Sheet: Cash & equivalents $8.58 million; Total debt $223.89 million; Net debt $215.31 million; Inventory $177.84 million; Total assets $463.71 million; Total liabilities $298.81 million; Stockholders’ equity $167.86 million.
Liquidity/Leverage: Current ratio ~1.34x; Quick ratio ~0.08x; Interest expense $1.481 million; Long-term debt $140.49 million; Short-term debt $83.41 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
102.70M |
-11.98% |
-57.43% |
| Gross Profit |
53.36M |
-0.03% |
-49.89% |
| Operating Income |
-12.35M |
-37.69% |
-191.25% |
| Net Income |
-15.29M |
-94.25% |
-335.08% |
| EPS |
-0.45 |
-87.50% |
-164.71% |
Management Commentary
Transcript data for QQ1 2026 not provided in the input. Notable management commentary from the earnings call could not be cited due to absence of transcript text in the supplied material.
Transcript not provided in the input.
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Forward Guidance
No formal forward guidance was provided in the supplied data. Given the reported quarter’s cash burn, elevated SG&A, and a high debt load, management commentary (when available) would likely emphasize initiatives to restore operating leverage, optimize working capital, and reassess capex/store footprint. Investors should monitor: (1) expense discipline and SG&A efficiency; (2) inventory turns and days of inventory on hand; (3) progress on DTC growth and omni-channel initiatives; (4) any debt refinancing actions or capital-structure optimization; (5) changes in store footprint and occupancy costs; and (6) any signals regarding capital allocation priorities and potential strategic alternatives.