Previous Close | $2.20 |
Intrinsic Value | $0.00 |
Upside potential | -100% |
Data is not available at this time.
Duluth Holdings Inc. operates as a lifestyle brand specializing in durable, functional workwear and casual apparel for men and women. The company primarily generates revenue through direct-to-consumer sales via its e-commerce platform and a network of retail stores under the Duluth Trading Co. brand. Its product lineup includes innovative designs like fire hose pants and long-tail T-shirts, catering to a niche market that values durability and comfort. Duluth competes in the highly fragmented apparel sector, differentiating itself through humor-infused marketing and a loyal customer base. While it holds a modest market share compared to giants like Carhartt or Dickies, its focus on quality and unique branding supports a defensible position in the workwear segment. The company’s omnichannel strategy balances digital and physical retail, though store expansion has pressured margins in recent years.
Duluth reported revenue of $626.6 million for FY2025, but net income stood at a loss of $43.7 million, reflecting operational challenges. Negative operating cash flow of $16.9 million and capital expenditures of $8.3 million suggest strained liquidity. The diluted EPS of -$1.31 underscores profitability headwinds, likely tied to elevated SG&A costs and inventory management inefficiencies in a competitive retail environment.
The company’s negative earnings and cash flow indicate weak near-term earnings power. With $163.1 million in total debt against $3.3 million in cash, leverage appears elevated, limiting financial flexibility. Asset turnover metrics are likely subdued given stagnant revenue growth and high fixed costs from its retail footprint.
Duluth’s balance sheet shows heightened risk, with a debt-to-equity ratio skewed by its $163.1 million debt load. Minimal cash reserves ($3.3 million) and negative operating cash flow raise liquidity concerns. Absence of dividends aligns with capital preservation priorities, but refinancing needs may pressure future profitability if interest rates remain high.
Top-line growth has stagnated, with no dividend payments signaling a focus on debt management over shareholder returns. The lack of a clear growth catalyst—such as product expansion or international scaling—suggests reliance on existing markets, where competition limits pricing power. Store rationalization or e-commerce optimization could be pivotal to reversing trends.
The market likely prices DLTH at a discount to peers, reflecting its unprofitability and leveraged position. A negative EPS implies no traditional P/E multiple, with valuation driven by asset-based metrics or turnaround potential. Investor sentiment may hinge on cost-cutting success or margin recovery in FY2026.
Duluth’s brand loyalty and differentiated product designs provide a foundation, but execution risks dominate. A turnaround would require improved inventory turnover, reduced debt, and omnichannel efficiency. Macro pressures in retail apparel and potential recessionary impacts add uncertainty, making near-term optimism cautious at best.
Company 10-K (CIK: 0001649744), Bloomberg
show cash flow forecast
Fiscal year | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | 2036 | 2037 | 2038 | 2039 | 2040 | 2041 | 2042 | 2043 | 2044 | 2045 | 2046 | 2047 | 2048 | 2049 | 2050 | |
INCOME STATEMENT | ||||||||||||||||||||||||||
Revenue growth rate, % | NaN | |||||||||||||||||||||||||
Revenue, $ | NaN | |||||||||||||||||||||||||
Variable operating expenses, $m | NaN | |||||||||||||||||||||||||
Fixed operating expenses, $m | NaN | |||||||||||||||||||||||||
Total operating expenses, $m | NaN | |||||||||||||||||||||||||
Operating income, $m | NaN | |||||||||||||||||||||||||
EBITDA, $m | NaN | |||||||||||||||||||||||||
Interest expense (income), $m | NaN | |||||||||||||||||||||||||
Earnings before tax, $m | NaN | |||||||||||||||||||||||||
Tax expense, $m | NaN | |||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
BALANCE SHEET | ||||||||||||||||||||||||||
Cash and short-term investments, $m | NaN | |||||||||||||||||||||||||
Total assets, $m | NaN | |||||||||||||||||||||||||
Adjusted assets (=assets-cash), $m | NaN | |||||||||||||||||||||||||
Average production assets, $m | NaN | |||||||||||||||||||||||||
Working capital, $m | NaN | |||||||||||||||||||||||||
Total debt, $m | NaN | |||||||||||||||||||||||||
Total liabilities, $m | NaN | |||||||||||||||||||||||||
Total equity, $m | NaN | |||||||||||||||||||||||||
Debt-to-equity ratio | NaN | |||||||||||||||||||||||||
Adjusted equity ratio | NaN | |||||||||||||||||||||||||
CASH FLOW | ||||||||||||||||||||||||||
Net income, $m | NaN | |||||||||||||||||||||||||
Depreciation, amort., depletion, $m | NaN | |||||||||||||||||||||||||
Funds from operations, $m | NaN | |||||||||||||||||||||||||
Change in working capital, $m | NaN | |||||||||||||||||||||||||
Cash from operations, $m | NaN | |||||||||||||||||||||||||
Maintenance CAPEX, $m | NaN | |||||||||||||||||||||||||
New CAPEX, $m | NaN | |||||||||||||||||||||||||
Total CAPEX, $m | NaN | |||||||||||||||||||||||||
Free cash flow, $m | NaN | |||||||||||||||||||||||||
Issuance/(repurchase) of shares, $m | NaN | |||||||||||||||||||||||||
Retained Cash Flow, $m | NaN | |||||||||||||||||||||||||
Pot'l extraordinary dividend, $m | NaN | |||||||||||||||||||||||||
Cash available for distribution, $m | NaN | |||||||||||||||||||||||||
Discount rate, % | NaN | |||||||||||||||||||||||||
PV of cash for distribution, $m | NaN | |||||||||||||||||||||||||
Current shareholders' claim on cash, % | NaN |