The massive EPS beat and raised EBITDA guidance signal a fundamental turnaround in Duluth's operations. Traders should watch for continued margin expansion and inventory discipline in the next quarter, as well as any further guidance raises. The stock's low market cap ($127M) amplifies the impact of this positive surprise.
Price Chart
Executive Summary
Duluth Trading reported Q1 FY2026 results with a massive EPS beat of $0.23 versus consensus of -$0.39 (159% beat), though revenue of $98.6M slightly missed the $95.5M consensus by 3.2%. Gross margin expanded 540bps to 57.4%, adjusted EBITDA swung positive to $2.6M from -$3.8M last year, and the company raised its full-year adjusted EBITDA guidance to $28-32M. The stock is likely to rally on the combination of a massive earnings beat, margin expansion, and raised guidance.
Key Financial Metrics
Key Facts
- Reported EPS of $0.23 vs consensus of -$0.39 (159% beat)
- Revenue of $98.6M vs consensus of $95.5M (3.2% beat)
- Gross margin expanded 540bps to 57.4% from 52.0%
- Net loss improved to -$10.0M from -$15.3M YoY
- Adjusted EBITDA swung to +$2.6M from -$3.8M YoY
- Raised FY2026 adjusted EBITDA guidance to $28-32M from $26-30M
- Inventory down 24.8% YoY to $132.4M
- Net liquidity of ~$100M with $6.0M drawn on $100M ABL facility
Financial Impact
EPS beat of $0.62 vs consensus ($0.23 actual vs -$0.39 est), revenue beat of $3.1M, adjusted EBITDA guidance raised by $2M at midpoint
Risk Factors
- Revenue still declined 4% YoY, driven by 8.7% drop in direct-to-consumer sales
- Tariff costs partially offset gross margin gains and remain a headwind
- Negative operating cash flow of -$13.4M in Q1
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3307882 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 3, 2026 7w ago | 8-K | $4.46 $3.90 | ▼ −12.56% | ▼ −11.44% | $4.16 (−6.84%) |
Sep 3, 2026 7w ago | Press Release | $4.46 $3.90 | ▼ −12.56% | ▼ −11.44% | $4.16 (−6.84%) |
Aug 20, 2026 9w ago | Press Release | $3.83 $4.28 | ▲ +11.75% | ▲ +11.87% | $4.16 (+8.49%) |
Jun 8, 2026 20w ago | 8-K | $4.31 $4.56 | ▲ +5.80% | ▲ +4.17% | $4.16 (−3.60%) |
Jun 8, 2026 20w ago | 8-K | $4.31 $4.56 | ▲ +5.80% | ▲ +4.17% | $4.16 (−3.60%) |
Jun 8, 2026 20w ago | Press Release | $4.31 $4.56 | ▲ +5.80% | ▲ +4.17% | $4.16 (−3.60%) |
May 21, 2026 22w ago | Press Release | $3.47 $3.97 | ▲ +14.41% | ▲ +14.08% | $4.16 (+19.74%) |
Mar 5, 2026 33w ago | Press Release | $2.21 $3.09 | ▲ +39.82% | ▲ +43.61% | $4.16 (+88.01%) |
US Market Status
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