📊 DLTH Key Takeaways
Is DLTH a Good Investment? Thesis Analysis
Duluth Holdings faces fundamental profitability challenges with negative operating and net margins despite solid gross margins of 53.4%, indicating operational inefficiency and cost control issues. The company is currently unprofitable with negative returns on equity and assets, though it maintains adequate liquidity (1.59x current ratio) and positive free cash flow of $16.6M, suggesting near-term solvency is not immediately threatened but turnaround execution is uncertain.
Why Buy DLTH? Key Strengths
- Strong gross margin of 53.4% demonstrates pricing power and product quality perception
- Positive free cash flow of $16.6M (2.9% FCF margin) provides liquidity cushion despite operating losses
- Adequate liquidity with current ratio of 1.59x and low debt/equity of 0.17x reduces near-term financial distress risk
- Reasonable absolute asset base of $402.6M with 42% equity financing provides operational foundation
DLTH Investment Risks to Consider
- Operating losses of $10.2M and negative operating margin of -1.8% indicate operational expenses exceed contribution margins
- Net margin of -2.9% with diluted EPS of -$0.47 shows company is destroying shareholder value
- Flat revenue growth (0.0% YoY) combined with profitability deterioration signals demand weakness or market saturation in retail apparel
- Negative interest coverage of -2.0x indicates insufficient operating cash generation to service debt obligations
- Quick ratio of 0.38x significantly below current ratio suggests reliance on inventory liquidation for short-term liquidity
Key Metrics to Watch
- Operating margin trend - critical to achieving profitability; target >2% to signal cost control improvements
- Revenue growth acceleration - must return to positive growth to stabilize market position in competitive retail sector
- Inventory turnover and working capital management - high quick ratio gap suggests potential inventory obsolescence risk
- Operating cash flow sustainability - must maintain positive OCF >$20M to fund operations and debt service
- Insider trading activity patterns - 13 Form 4 filings warrant monitoring for directional sentiment on company outlook
DLTH Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.9% FCF margin may limit capital allocation flexibility.
DLTH Profitability Ratios
DLTH vs Consumer Sector
How DULUTH HOLDINGS INC. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is DLTH Overvalued or Undervalued?
Based on fundamental analysis, DULUTH HOLDINGS INC. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
DLTH Balance Sheet & Liquidity
DLTH 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: DULUTH HOLDINGS INC.'s revenue has declined by 10% over the 5-year period, indicating business contraction. The most recent EPS of $-1.31 indicates the company is currently unprofitable.
DLTH Growth Metrics (YoY)
DLTH Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $114.9M | -$10.1M | $-0.29 |
| Q2 2025 | $131.7M | $1.3M | $0.04 |
| Q1 2025 | $102.7M | -$3.9M | $-0.12 |
| Q3 2024 | $127.1M | -$5.1M | $-0.16 |
| Q2 2024 | $139.1M | $1.1M | $0.03 |
| Q1 2024 | $122.9M | -$1.3M | $-0.04 |
| Q3 2023 | $145.3M | $2.8M | $0.09 |
| Q2 2023 | $141.5M | $1.1M | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DLTH Capital Allocation
DLTH SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for DULUTH HOLDINGS INC. (CIK: 0001649744)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DLTH
What is the AI rating for DLTH?
DULUTH HOLDINGS INC. (DLTH) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DLTH's key strengths?
Claude: Strong gross margin of 53.4% demonstrates pricing power and product quality perception. Positive free cash flow of $16.6M (2.9% FCF margin) provides liquidity cushion despite operating losses.
What are the risks of investing in DLTH?
Claude: Operating losses of $10.2M and negative operating margin of -1.8% indicate operational expenses exceed contribution margins. Net margin of -2.9% with diluted EPS of -$0.47 shows company is destroying shareholder value.
What is DLTH's revenue and growth?
DULUTH HOLDINGS INC. reported revenue of $565.2M.
Does DLTH pay dividends?
DULUTH HOLDINGS INC. does not currently pay dividends.
Where can I find DLTH SEC filings?
Official SEC filings for DULUTH HOLDINGS INC. (CIK: 0001649744) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DLTH's EPS?
DULUTH HOLDINGS INC. has a diluted EPS of $-0.47.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DLTH a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, DULUTH HOLDINGS INC. has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DLTH stock overvalued or undervalued?
Valuation metrics for DLTH: ROE of -9.7% (sector avg: 18%), net margin of -2.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy DLTH stock in 2026?
Our dual AI analysis gives DULUTH HOLDINGS INC. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DLTH's free cash flow?
DULUTH HOLDINGS INC.'s operating cash flow is $24.2M, with capital expenditures of $7.6M. FCF margin is 2.9%.
How does DLTH compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -2.9% (avg: 8%), ROE -9.7% (avg: 18%), current ratio 1.59 (avg: 1.5).