This week is shaping up to be a decisive one for shares of apparel and workwear retailer Duluth Holdings. The company is scheduled to release its third-quarter 2025 financial results before the market opens on Tuesday, December 16, 2025. This earnings report arrives at a critical juncture, following a period of mixed performance that has left investors seeking clarity on the firm’s trajectory.
Conflicting Trends in Share Performance
The stock’s recent price action presents a complex picture. While Duluth shares have declined by approximately 3% since the start of 2025, significantly underperforming the broader S&P 500 index, they have staged a remarkable short-term rally. Over the past six months, the equity has surged by more than 60%. This sharp near-term advance stands in stark contrast to the longer-term pressures the business has faced.
Key Financial Context:
- Year-to-Date Performance: The stock is trailing the S&P 500 by 16 percentage points.
- Six-Month Surge: A price increase exceeding 60%.
- First Quarter 2025: Net sales fell 12.0% to $102.7 million, resulting in a net loss of $15.3 million.
- Full-Year Outlook: Management has reaffirmed its 2025 guidance for adjusted EBITDA in the range of $20 to $25 million.
These figures outline a company in transition. A longer-term view reveals that adjusted EBITDA has plummeted from $51.43 million in 2020 to negative $1.25 million as of August 2025, representing a decline of 102%.
Should investors sell immediately? Or is it worth buying Duluth?
Market Focus on Q3 Results and Operational Metrics
The upcoming quarterly statement will be scrutinized for signs of whether recent operational improvements are sustainable. The company’s second-quarter 2025 results painted a mixed picture: net sales decreased by 7% year-over-year to $131.7 million, yet the firm expanded its gross margin by 240 basis points to 54.7%. Adjusted EBITDA rose by $1.5 million to $12 million. A notable divergence was seen in sales channels, with store sales growing 5.3% while direct-to-consumer sales via online and catalog channels collapsed by 18%.
The market hopes Tuesday’s release will provide definitive insight into sales trends and profitability within the competitive retail landscape. Investors will be keen to see if the company is successfully addressing the persistent challenges in its online sales segment. The report will be followed by a conference call and webcast at 3:30 PM CET, where management’s commentary is expected to be crucial for shaping market sentiment.
Analyst Sentiment Ahead of the Report
Despite the operational headwinds, Wall Street analysts maintain a generally optimistic stance. Based on assessments from four analysts, the consensus rating for Duluth stock is currently “Buy.” The average 12-month price target sits at $7.00, implying a potential upside of over 140% from the recent price of around $2.91.
The third-quarter earnings release will serve as a reality check for this bullish outlook. Any deviation from the maintained annual forecast is likely to trigger significant market moves. The central question for investors is whether the company’s operational progress can justify the optimistic targets set by market experts.
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