Duluth (DLTH) Q1 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 7, 2026 astatine 9:19 AM CST 19 min read

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Thursday, June 5, 2025 astatine 9:30 a.m. ET

• President and Chief Executive Officer — Stephanie L. Pugliese

• Senior Vice President and Chief Financial Officer — Heena K. Agrawal

Stephanie L. Pugliese: Good morning, everyone, and convey you joining america today. First, I privation to convey Steve Schlecht, not lone for his leadership, but for his unwavering committedness to the Duluth marque implicit galore years. His imaginativeness and passionateness person been a driving unit down this bonzer company, and I americium genuinely honored to erstwhile again person his enactment arsenic I instrumentality to pb Duluth Trading. I'm backmost astatine Duluth due to the fact that of my content successful this marque and its potential. Our customers person a heavy affection for Duluth and they genuinely privation america to succeed. What sets america isolated successful the marketplace is our unsocial blend of high-quality solution-based products infused with our marque attributes, authentic, humorous, hardworking and humble.

Our products and our marque evoke an affectional transportation that is genuinely distinctive successful today's crowded retail landscape. Returning to Duluth has been truly energizing. I've been reconnecting with acquainted faces who person a long-standing committedness to this marque and proceed to thrust excellence portion besides discovering caller endowment passim the organization. This squad gives maine assurance arsenic we physique connected our strengths and instrumentality initiatives indispensable to present sustainable, profitable growth. I americium starring with a consciousness of urgency, clarifying absorption and taking action. Our operating exemplary and processes request to beryllium simplified rapidly to reconstruct fiscal wellness successful the business. We volition past presumption Duluth for semipermanent profitable growth.

There are yet 3 cardinal areas we volition absorption connected to thrust our concern forward. First, marque awareness. Reinvigorating our distinctive dependable and storytelling capabilities that person historically differentiated Duluth successful the marketplace to thrust lawsuit acquisition and retention. Second, solution-based products and merchandise innovation. Our year-round halfway merchandise is foundational to our business, enhanced by caller innovative solutions. This quarter, we saw occurrence successful products similar Men's Flex Fire Hose HD, Wrinklefighter shirts, the instauration of women's NoGa Air and caller innovations successful AKHG. We cognize that erstwhile we intelligibly pass the solutions we offer, we win. That is why, going forward, we volition thrust to a much focused merchandise assortment that resonates intelligibly with our customers.

We volition constrictive our assortment breadth with astatine slightest a 20% simplification of SKUs by outpouring 2026, portion innovating successful maturation areas, including halfway men's and women's workwear, and adjacencies specified arsenic archetypal furniture and outdoor. This volition make productivity gains successful the assortment and heighten our quality to beryllium much businesslike successful inventory purchases and selling activities. And third, lawsuit service, specifically leveraging our omnichannel model, balancing e-commerce and carnal retail to make semipermanent worth and conscionable customers wherever they similar to shop, executing with excellence connected our committedness to present a large lawsuit experience. These absorption areas signifier the instauration upon which everything other volition beryllium built.