• Duluth Holdings Inc. (NASDAQ:DLTH) surpassed the Zacks Consensus Estimate for EPS by nearly 59%, reporting an EPS of -$0.23 against an expected -$0.56.
• Despite a slight miss in revenue expectations, the company showed improvement in profitability through gross margin expansion and effective SG&A leverage.
• Duluth Holdings reduced its net loss significantly to $10.1 million from $28.2 million in the previous year and improved its adjusted EBITDA by $5.5 million.

Duluth Holdings Inc., known for its Duluth Trading Company brand, operates in the Zacks Textile - Apparel industry. The company, listed on NASDAQ under the symbol DLTH, recently reported its earnings for the third quarter of 2025. Despite facing challenges, Duluth Holdings has shown signs of improvement in its financial performance.

On December 16, 2025, Duluth Holdings reported an earnings per share (EPS) of -$0.23, surpassing the Zacks Consensus Estimate of -$0.56. This represents an earnings surprise of nearly 59%, as highlighted by Zacks. The company has consistently exceeded EPS expectations, having done so twice in the past four quarters.

However, Duluth Holdings' revenue for the quarter was $114.87 million, slightly below the estimated $118.5 million. This marks a decline from the $127.06 million reported in the same quarter last year. Despite this, the company has managed to improve its profitability through gross margin expansion and effective SG&A leverage.

Duluth Holdings has also made strides in reducing its net loss, which decreased to $10.1 million from $28.2 million in the previous year. The adjusted EBITDA improved by $5.5 million, reaching -$0.7 million. The company maintains a net liquidity of $88.6 million, with cash and cash equivalents totaling $8.2 million.

The company's financial ratios provide further insight into its current situation. Duluth Holdings has a price-to-earnings (P/E) ratio of -3.87, indicating negative earnings. The price-to-sales ratio is 0.19, and the enterprise value to sales ratio is 0.47. The debt-to-equity ratio stands at 1.08, suggesting a balanced approach to debt and equity.