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Here are 1-3 brief analogies to describe Duluth (DLTH) succinctly:

• Carhartt for problem-solving clothing, marketed with a signature humor.
• L.L.Bean meets Carhartt, specializing in durable and comfortable work and casual apparel.
• A more comfortable and humorously branded Carhartt for everyday wear.

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• Workwear & Casual Apparel: Duluth Trading Company offers a wide range of durable and functional clothing for men and women, including their iconic Fire Hose pants, work shirts, outerwear, and Buck Naked underwear.
• Footwear: They provide a selection of practical and comfortable footwear, such as boots, shoes, and slippers, designed for various work and leisure activities.
• Accessories: The company sells various complementary accessories including hats, gloves, socks, belts, and bags, known for their utility and durability.

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Duluth Holdings Inc. (symbol: DLTH) primarily sells its products directly to **individuals**, not other companies. The company operates Duluth Trading Company, which is a direct-to-consumer retailer of workwear, casual clothing, accessories, and gear.

Based on their product offerings and marketing, Duluth serves the following categories of individual customers:

• Hardworking Individuals and Tradespeople: This core customer group includes professionals and individuals who perform physically demanding work, such as construction workers, farmers, mechanics, and other skilled trades. They seek highly durable, functional, and comfortable clothing and gear designed to withstand tough conditions and provide practical utility.
• Outdoor and DIY Enthusiasts: This category encompasses individuals who engage in outdoor activities, home improvement projects, gardening, or other hobbies that require robust and practical apparel. They value features like weather resistance, stain resistance, ample storage, and ergonomic designs for their recreational pursuits.
• Everyday Consumers Seeking Quality and Comfort: A broader segment of customers who appreciate the brand's emphasis on durable construction, comfortable fit, and practical features for daily wear. These customers are looking for long-lasting, reliable clothing and accessories that offer a combination of functionality and casual style, often valuing products that solve common wardrobe frustrations.

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Stephen L. Schlecht

Stephanie Pugliese

Heena Agrawal

Garth Weber

Ricker Schlecht

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The key risks to Duluth Holdings Inc. (DLTH) primarily revolve around its financial health, the cyclical and competitive nature of the retail industry, and operational challenges including tariffs and sales channel performance.

1. Financial Health and Profitability Concerns: Duluth Holdings faces significant financial health concerns, evidenced by a Piotroski F-Score of 2, which suggests poor business operations. The company has reported a negative operating margin of -4.47% and a net margin of -7.65%, indicating ongoing profitability issues. Furthermore, an Altman Z-Score of 1.67 places the company in the distress zone, implying a potential bankruptcy risk within two years. The company has also experienced no revenue growth over the past three years.
2. Cyclical Retail Market and Intense Competition: As a retail company, Duluth Holdings is subject to the cyclical nature of the retail industry, which can impact its future performance. The market is highly competitive, and the company needs to continuously emphasize innovation to maintain its competitive edge.
3. Operational Challenges (Tariffs and Sales Channel Performance): Duluth Holdings has been impacted by tariffs, with an estimated $15 million for the year at an average tariff rate of 12%. Additionally, the company has experienced a decrease in direct channel sales, with a reported drop of 18%, which could negatively affect future revenue growth.

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The emergence of highly specialized direct-to-consumer (DTC) apparel brands that focus on niche segments of workwear or outdoor gear, leveraging advanced materials, sustainable practices, or hyper-specific functionality. These brands can build strong online communities and offer compelling value propositions (performance, ethics, niche appeal) that may attract Duluth's core customers who are looking for more tailored solutions or stronger alignment with specific values. This trend fragments the market and allows smaller, agile players to capture market share by excelling in areas where a broader brand like Duluth might be perceived as less specialized or innovative.

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Duluth Holdings Inc. (DLTH) operates primarily in the men's and women's casual wear, workwear, and outdoor apparel markets in the United States. Based on available market data for these main product categories, the addressable markets are as follows:

• U.S. Workwear Market: The U.S. workwear market size was estimated at USD 3.50 billion in 2024.
• U.S. Outdoor Apparel Market: The U.S. outdoor apparel market generated approximately USD 5.41 billion in revenue in 2024.
• U.S. Casual Wear Market: The global casual wear market size was valued at USD 624.29 billion in 2024. North America accounted for a 26% share of this global market, and the U.S. made up approximately 84% of the North American market in 2024. This indicates an estimated U.S. addressable market for casual wear of approximately USD 136.34 billion in 2024.

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Duluth Holdings Inc. (DLTH) is focusing on several key initiatives to drive future revenue growth over the next 2-3 years, despite recent strategic shifts that have impacted top-line sales. These drivers include:

1. Expansion of the Women's Category: Duluth is actively working to grow its women's product line and customer base, with a stated vision for women's products to account for nearly 40% of the company's total sales in the near future. The company is emphasizing innovative product design for women across both its Duluth and AKHG brands.
2. Growth of the AKHG Brand and Expansion into Outdoor Apparel: The acquisition and rebranding of Alaskan Hardgear (AKHG) allows Duluth to broaden its target customer audience beyond traditional workwear into the outdoor gear and apparel market. This strategy aims to establish Duluth as a multi-brand platform, identifying and catering to the specific end-uses for its target consumers.
3. Targeted Price Increases and Optimized Promotional Strategy: Duluth is implementing targeted price increases to counteract the impact of tariffs and improve gross margins, rather than engaging in a "race to the bottom" on pricing. This approach, coupled with a deliberate reduction in promotional activity, is intended to enhance profitability and support sustainable long-term revenue growth, even if it initially leads to some top-line contraction.
4. Increased Brand Awareness and Customer Acquisition: The company plans to reinvigorate its distinctive brand voice and storytelling capabilities to drive customer acquisition and retention. This includes marketing efforts aimed at attracting a younger demographic, specifically consumers in their 40s and early 50s.
5. Product Innovation in Core Categories and Adjacencies: Duluth is committed to providing "solution-based products" and continuing innovation in its core men's and women's workwear, as well as adjacent categories like first-layer and outdoor products. This focus on innovative design is expected to enhance the product assortment and attract customers.

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Share Repurchases

• On June 10, 2024, Duluth Holdings Inc. authorized a share repurchase program of up to $5.0 million of its common stock, followed by an additional $2.5 million authorization on September 26, 2024.
• During the three months ended September 30, 2024, the company repurchased approximately $4.8 million of its common stock, totaling 801,287 shares.
• Over the last three to five years, quarterly share repurchases have varied, including $849.50K in April 2025, $281.73K in October 2024, $441.96K in July 2024, and $935.60K in April 2024.

Share Issuance

• On May 5, 2025, Duluth Holdings Inc. issued inducement stock awards totaling 1,759,532 shares of Class B common stock to Stephanie L. Pugliese upon her appointment as President and CEO. These awards were granted outside the company's 2024 Equity Incentive Plan as a material inducement for her hiring.
• A director also received 5,339 shares of Class B common stock as an equity award on October 30, 2025, under the company's 2024 Equity Incentive Plan, in lieu of a quarterly cash retainer for board service.
• The 2024 Equity Incentive Plan was approved by shareholders, with the amount of future awards under the plan being at the discretion of the Compensation Committee.

Inbound Investments

No information available for large investments made in the company by third-parties, such as a strategic partner or a private equity firm, within the last 3-5 years.

Outbound Investments

No information available for instances where the company made a strategic investment in another company, such as an acquisition or a significant equity stake, within the last 3-5 years.

Capital Expenditures

• Fiscal year 2024 capital expenditures were $17.4 million, with a primary focus on advancing the company's technology roadmap, including investments in software hosting implementation costs.
• For fiscal year 2025, Duluth Holdings plans capital expenditures of approximately $17 million, which includes supporting new store openings and technology investments.
• Historically, capital expenditures decreased to $17 million in 2024 from a peak of $53 million in 2023, with recent initiatives shifting focus towards technology investments like a website re-platform rather than aggressive store expansion.