The company's operating margin has deteriorated to -7.7% in 2026Q3, reflecting a failure to align its $70.7M SG&A burden with a contracting revenue base.
| Metric | TTM | Feb'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 |
|---|
| Sales/Revenue | 561.07M | 565.18M | 626.63M | 646.68M | 653.31M | 698.58M | 638.78M | 615.62M | 568.1M | 471.45M | 376.12M | 304.16M | 231.87M | 163.09M |
| Revenue Growth % | -8.42% | -9.81% | -3.1% | -1.01% | -6.48% | 9.36% | 3.76% | 8.37% | 20.5% | 25.35% | 23.66% | 31.18% | 42.17% | - |
| Cost of Goods Sold | 256.18M | 263.57M | 318.12M | 321.71M | 309.87M | 321.26M | 307.26M | 287.48M | 257.7M | 210.43M | 161.97M | 130.64M | 100.88M | 71.09M |
| COGS % of Revenue | - | 46.63% | 50.77% | 49.75% | 47.43% | 45.99% | 48.1% | 46.7% | 45.36% | 44.63% | 43.06% | 42.95% | 43.51% | 43.59% |
| Gross Profit | 304.89M | 301.61M | 308.51M | 324.97M | 343.44M | 377.32M | 331.53M | 328.15M | 310.4M | 261.02M | 214.15M | 173.52M | 130.99M | 92M |
| Gross Margin % | 54.34% | 53.37% | 49.23% | 50.25% | 52.57% | 54.01% | 51.9% | 53.3% | 54.64% | 55.37% | 56.94% | 57.05% | 56.49% | 56.41% |
| Gross Profit Growth % | - | -2.24% | -5.07% | -5.38% | -8.98% | 13.81% | 1.03% | 5.72% | 18.92% | 21.89% | 23.41% | 32.47% | 42.38% | - |
| Operating Expenses | 307.49M | 310.55M | 345.37M | 334.54M | 337.2M | 333.23M | 307.31M | 300.04M | 273.22M | 223.95M | 179.15M | 144.37M | 106.96M | 75.79M |
| OpEx % of Revenue | - | 54.95% | 55.12% | 51.73% | 51.61% | 47.7% | 48.11% | 48.74% | 48.09% | 47.5% | 47.63% | 47.47% | 46.13% | 46.47% |
| Selling, General & Admin | 306.64M | 310.55M | 337.62M | 334.54M | 337.2M | 333.23M | 307.31M | 300.04M | 273.22M | 223.95M | 179.15M | 144.37M | 106.96M | 75.79M |
| SG&A % of Revenue | - | 54.95% | 53.88% | 51.73% | 51.61% | 47.7% | 48.11% | 48.74% | 48.09% | 47.5% | 47.63% | 47.47% | 46.13% | 46.47% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 850K | 0 | 7.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -2.6M | -8.93M | -36.86M | -9.57M | 6.23M | 44.1M | 24.21M | 28.11M | 37.18M | 37.07M | 35M | 29.15M | 24.03M | 16.21M |
| Operating Margin % | -0.46% | -1.58% | -5.88% | -1.48% | 0.95% | 6.31% | 3.79% | 4.57% | 6.54% | 7.86% | 9.31% | 9.58% | 10.36% | 9.94% |
| Operating Income Growth % | - | 75.77% | -285.21% | -253.57% | -85.87% | 82.11% | -13.85% | -24.4% | 0.29% | 5.92% | 20.07% | 21.33% | 48.17% | - |
| EBITDA | 21.9M | 16.54M | -4.58M | 22.59M | 37.04M | 73.32M | 52.73M | 51.65M | 49.88M | 44.4M | 39.7M | 32.09M | 25.85M | 17.46M |
| EBITDA Margin % | 3.9% | 2.93% | -0.73% | 3.49% | 5.67% | 10.5% | 8.26% | 8.39% | 8.78% | 9.42% | 10.55% | 10.55% | 11.15% | 10.71% |
| EBITDA Growth % | 430.15% | 461.19% | -120.27% | -39.01% | -49.48% | 39.04% | 2.09% | 3.56% | 12.33% | 11.85% | 23.72% | 24.14% | 48.02% | - |
| D&A (Non-Cash Add-back) | 24.5M | 25.47M | 32.28M | 32.16M | 30.81M | 29.23M | 28.52M | 23.55M | 12.69M | 7.33M | 4.7M | 2.94M | 1.82M | 1.25M |
| EBIT | -1.59M | -8.93M | -36.69M | -8.65M | 6.61M | 44.15M | 24.28M | 28.4M | 37.56M | 37.49M | 35.25M | 29.33M | 24.45M | 16.3M |
| Net Interest Income | -4.51M | -5.2M | -4.55M | -4.16M | -3.65M | -4.72M | -6.26M | -4.47M | -5.95M | -1.99M | -194K | -306K | -341K | -248K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 4.51M | 5.2M | 4.55M | 4.16M | 3.65M | 4.72M | 6.26M | 4.47M | 5.95M | 1.99M | 194K | 306K | 341.09K | 248K |
| Other Income/Expense | -8.4M | -6.13M | -4.38M | -3.23M | -3.28M | -4.66M | -6.2M | -4.18M | -5.57M | -1.57M | 53K | -125K | 81K | -162K |
| Pretax Income | -11M | -15.06M | -41.24M | -12.8M | 2.95M | 39.44M | 18.02M | 23.93M | 31.61M | 35.51M | 35.05M | 29.02M | 24.11M | 16.05M |
| Pretax Margin % | -1.96% | -2.67% | -6.58% | -1.98% | 0.45% | 5.65% | 2.82% | 3.89% | 5.56% | 7.53% | 9.32% | 9.54% | 10.4% | 9.84% |
| Income Tax | 34K | 1.19M | 2.37M | -2.86M | 708K | 9.89M | 4.64M | 5.43M | 8.45M | 11.88M | 13.53M | 1.34M | 0 | 0 |
| Effective Tax Rate % | -0.31% | -7.87% | -5.75% | 22.36% | 23.97% | 25.07% | 25.74% | 22.69% | 26.73% | 33.45% | 38.58% | 4.61% | 0% | 0% |
| Net Income | -11.2M | -16.39M | -43.67M | -9.92M | 2.3M | 29.7M | 13.58M | 18.92M | 23.16M | 23.35M | 21.32M | 27.44M | 23.65M | 15.52M |
| Net Margin % | -2% | -2.9% | -6.97% | -1.53% | 0.35% | 4.25% | 2.13% | 3.07% | 4.08% | 4.95% | 5.67% | 9.02% | 10.2% | 9.51% |
| Net Income Growth % | 77.16% | 62.47% | -340.1% | -530.69% | -92.24% | 118.77% | -28.24% | -18.29% | -0.84% | 9.55% | -22.32% | 16.04% | 52.4% | - |
| Net Income (Continuing) | -11.03M | -16.25M | -43.61M | -9.94M | 2.25M | 29.55M | 13.38M | 18.5M | 23.16M | 23.63M | 21.53M | 27.69M | 24.11M | 16.05M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -2.9M | -2.86M | -3M | -3.06M | -3.21M | -3.15M | -2.36M | -2.17M | -239K | 3.28M | 2.61M | 1.68M | 1.48M | 993.03K |
| EPS (Diluted) | -0.32 | -0.47 | -1.31 | -0.28 | 0.07 | 0.90 | 0.42 | 0.58 | 0.72 | 0.72 | 0.66 | 1.06 | 0.76 | 0.50 |
| EPS Growth % | 79.53% | 64.12% | -367.86% | -501.15% | -92.24% | 114.29% | -27.59% | -19.44% | 0% | 9.09% | -37.74% | 39.47% | 52% | - |
| EPS (Basic) | - | -0.47 | -1.31 | -0.28 | 0.07 | 0.91 | 0.42 | 0.59 | 0.73 | 0.73 | 0.68 | 1.09 | 0.76 | 0.50 |
| Diluted Shares Outstanding | 34.52M | 34.54M | 33.37M | 32.95M | 32.99M | 32.85M | 32.58M | 32.37M | 32.32M | 32.28M | 32.25M | 25.98M | 31.29M | 31.29M |
| Basic Shares Outstanding | 34.52M | 34.54M | 33.37M | 32.95M | 32.77M | 32.62M | 32.45M | 32.31M | 32.09M | 31.85M | 31.53M | 25.25M | 31.29M | 31.29M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | 0.9% | 218.95% | 63.76% | 28.58% |
Customer acquisition cost inefficiency
As reported in recent financial filings, DLTH has experienced a sustained revenue decline, with the most recent quarter showing a 9.6% year-over-year contraction, signaling that the company's core direct-to-consumer model is struggling to maintain its historical volume in an increasingly competitive and price-sensitive retail environment.
The consistent negative growth trajectory suggests that the brand's unique value proposition may be losing resonance with its core demographic. Investors should monitor whether this decline reflects a permanent shift in consumer preference or merely a temporary cyclical downturn in discretionary apparel spending.
Based on the company's latest income statement, Duluth maintains a robust gross margin of 53.8%, which indicates that despite significant top-line pressure, the brand retains substantial pricing power and has not yet been forced into deep, structural discounting to clear its inventory of functional apparel.
While the gross margin remains elevated compared to broader retail peers, the inability to translate this into positive operating income highlights a disconnect between product pricing and operational scale. This suggests that the company's premium brand positioning is intact, even as the underlying business model faces severe profitability headwinds.
According to the provided quarterly data, SG&A expenses consistently exceed gross profit in non-holiday periods, resulting in an operating margin of -7.7% in 2026Q3, which demonstrates that the company's fixed-cost structure is currently too heavy to support its diminished revenue base effectively.
The failure to achieve operating leverage during periods of revenue contraction points to an inflexible cost base, likely tied to retail store leases and high customer acquisition costs. Without a significant reduction in overhead or a return to top-line growth, the company may continue to face persistent operating losses.
As evidenced by the income statement, Duluth's SG&A expenses have remained stubbornly high relative to sales, with the company reporting $70.7M in operating costs against $114.9M in revenue for 2026Q3, underscoring a lack of expense discipline in the face of declining demand.
The high level of SG&A relative to revenue suggests that the company's marketing and administrative outlays are not yielding the expected returns on investment. This warrants further investigation into whether the current customer acquisition strategy is sustainable or if the company is overspending to defend a shrinking market share.
Quick answers to the most common questions about buying DLTH stock.
For fiscal year 2025, Duluth Holdings Inc. (DLTH) reported total revenue of $565.2M. This represents a 246.5% increase compared to $163.1M in 2013.
Duluth Holdings Inc. (DLTH) reported a net loss of $16.4M for the fiscal year ending 2025.
Duluth Holdings Inc. (DLTH) reported an operating income of $-8.9M, resulting in an operating profit margin of -1.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Duluth Holdings Inc. (DLTH) generated $301.6M in gross profit for the year, representing a gross profit margin of 53.4%. This demonstrates the company's core pricing power and production efficiency.