Duluth Holdings Inc. (NASDAQ: DLTH) reported its financial results for the fiscal second quarter ended August 2, 2026, filing an -K with the SEC on September 3, 2026. The company reported net income of $18.4 million for the three-month period, a significant increase compared to $1.3 million in the prior year second quarter. This improvement was driven by gross margin expansion and the impact of $16.3 million in tariff refunds.
For the quarter, the company reported reported and adjusted earnings per share (EPS) of $0.50, which includes a $0.44 impact from tariff refunds. Adjusted EBITDA was reported at $27.0 million, compared to $12.0 million in the prior year. Net sales for the quarter decreased by $10.3 million, or 7.8%, to $121.4 million. This decline was attributed to a 11.5% decrease in direct-to-consumer net sales and a 2.4% decrease in retail store net sales.
Gross margin expanded by 1,810 basis points to 72.8% of net sales, compared to 54.7% in the prior year. This expansion was primarily driven by an increase in average unit retail prices due to reduced promotional activity and an improvement in product costs from direct-to-factory sourcing initiatives. The company ended the quarter with $26.8 million in cash and cash equivalents and approximately $96 million of net liquidity, with zero outstanding debt on its Asset Based Lending facility.
Regarding the fiscal year 2026 outlook, the company affirmed its previously issued net sales guidance range of $540 million to $560 million. The company raised its Adjusted EBITDA guidance to $38 million to $42 million, up from the previous range of $28 million to $32 million.
