Executive Summary
Duluth Holdings reported QQ3 2025 results reflecting a backdrop of softer demand in the apparel retail space. Revenue came in at $127.1 million, a YoY decline of 8.1% and a QoQ drop of 10.3%, signaling continued pressure on top-line growth. Gross profit was $66.41 million, yielding a gross margin of approximately 52.3%, which remains competitive within the apparel space. However, operating profitability deteriorated meaningfully, with operating income of -$22.59 million and net income of -$28.54 million, producing an implied net margin near -22.5%. EBITDA was -$14.15 million, and the EBITDAR ratio stood at -0.111, underscoring ongoing fixed-cost pressures in a subdued demand environment.
Liquidity and cash flow remained constrained. Cash and cash equivalents were $9.34 million at quarter-end, with net cash used in operating activities of about -$41.07 million and free cash flow of -$43.70 million. The company reported total debt of $138.56 million and net debt of roughly $129.23 million. The balance sheet shows a solid asset base (Total assets of $533.10 million) but a challenging liquidity profile reflected in a current ratio of 1.30 and a very low quick ratio of 0.15, driven by a large inventory position of $233.58 million. Management commentary or earnings-call specifics were not provided in the transcript dataset, limiting the ability to anchor qualitative guidance to explicit management quotes for QQ3 2025.
From a strategic stance, the results highlight a classic turnaround inflection risk: the company still benefits from a strong gross margin, suggesting pricing power and product mix durability, but must convert this into meaningful operating leverage and cash generation. Absent visible guidance or a stated strategic path in the transcript, investors should monitor inventory normalization, SG&A discipline, and selective store optimization as near-term catalysts. The investment thesis remains cautious to neutral, with substantial upside contingent on improved operating execution and liquidity management.
Key Performance Indicators
QoQ: -10.28% | YoY:-8.07%
QoQ: -10.25% | YoY:-4.31%
QoQ: -886.51% | YoY:-81.78%
QoQ: -662.26% | YoY:-172.68%
QoQ: 418.18% | YoY:209.38%
Key Insights
Revenue: $127.06 million for QQ3 2025, YoY change: -8.07%, QoQ change: -10.28%. Gross Profit: $66.41 million, Gross Margin: 0.523 (52.3%), YoY gross profit change: -4.31%, QoQ change: -10.25%. Operating Income: -$22.59 million, Operating Margin: -0.178 (−17.8%), YoY change: N/A, QoQ change: N/A. EBITDA: -$14.15 million, EBITDA Margin: -0.111 (−11.1%). Net Income: -$28.54 million, Net Margin: -0.225 (−22.5%), YoY change: -172.68%, QoQ change: -662.26%. EPS: 0.35 (reported), with a note of i...
Financial Highlights
Revenue: $127.06 million for QQ3 2025, YoY change: -8.07%, QoQ change: -10.28%. Gross Profit: $66.41 million, Gross Margin: 0.523 (52.3%), YoY gross profit change: -4.31%, QoQ change: -10.25%. Operating Income: -$22.59 million, Operating Margin: -0.178 (−17.8%), YoY change: N/A, QoQ change: N/A. EBITDA: -$14.15 million, EBITDA Margin: -0.111 (−11.1%). Net Income: -$28.54 million, Net Margin: -0.225 (−22.5%), YoY change: -172.68%, QoQ change: -662.26%. EPS: 0.35 (reported), with a note of inconsistency given net loss; Diluted EPS: 0.35. Weighted average shares: 33.448 million.
Cash Flow and Balance Sheet: CFO: -$41.07 million; Capex: -$2.63 million; Free Cash Flow: -$43.70 million. Cash at end of period: $9.34 million; Total debt: $138.56 million; Net debt: $129.23 million. Current assets: $264.29 million; Current liabilities: $203.65 million; Working capital: $60.64 million. Inventory: $233.58 million; Accounts receivable: $4.53 million; Accounts payable: $104.55 million. Shareholders’ equity: $188.13 million; Total assets: $533.10 million. Current ratio: 1.30; Quick ratio: 0.15; Cash ratio: 0.046. Debt to capital: 0.424; Interest coverage: negative (−18.06x).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
127.06M |
-8.07% |
-10.28% |
| Gross Profit |
66.41M |
-4.31% |
-10.25% |
| Operating Income |
-22.59M |
-81.78% |
-886.51% |
| Net Income |
-28.54M |
-172.68% |
-662.26% |
| EPS |
0.35 |
209.38% |
418.18% |
Key Financial Ratios
operatingProfitMargin
-17.8%
operatingCashFlowPerShare
$-1.23
freeCashFlowPerShare
$-1.31
Management Commentary
No earnings call transcript data provided for QQ3 2025; therefore, no management quotes or thematic highlights can be extracted from the supplied dataset.
No transcript quotes available.
— N/A
No transcript quotes available.
— N/A
Forward Guidance
No explicit forward-looking guidance was included in the QQ3 2025 data set. Given the macro headwinds for the apparel retail sector and Duluth’s current cash burn, a prudent near-term outlook would hinge on: 1) inventory normalization to reduce working capital strain, 2) sustained gross margin through product mix and pricing discipline, 3) SG&A containment to convert gross profit into positive operating leverage, and 4) liquidity management to reduce net debt and improve cushion against refinancing risk. Investors should monitor any cadence of announcements on store optimization, e-commerce initiatives, and potential capital allocation shifts (e.g., debt reduction or selective investments) in subsequent quarters.