Duluth (DLTH) Q3 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 7, 2026 astatine 9:22 AM CST 25 min read

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Tuesday, December 16, 2025 astatine 9:30 a.m. ET

• President and Chief Executive Officer — Stephanie Pugliese

• Senior Vice President and Chief Financial Officer — Heena Agrawal

Stephanie Pugliese: Good morning, everyone, and convey you for joining america today. Earlier this year, we outlined a program to reset the business, focusing connected improving gross borderline done reducing promotional depth, controlling costs and inventory levels and being much effectual operation, each with the extremity of delivering connected our work to our customers and shareholders. I americium arrogant of the team's committedness to these efforts, and arsenic evidenced by our Q3 results, they are yielding benefits. We are pleased to person delivered a consecutive 4th of improved profitability, gathering upon our earlier advancement from Q2. Let maine elaborate further connected the areas of improvement.

Building upon the momentum we established successful the 2nd quarter, we saw occurrence with our pricing strategies by focusing connected the equilibrium of promotional frequence and depth. We reduced our planetary promotional days by much than fractional compared to past year. And portion year-over-year income declines were accordant with our Q1 and Q2 results, we experienced higher profitability per portion sold. Furthermore, to mitigate the interaction of tariffs, we raised prices connected prime products successful July and August. And successful Q3, we maintained the income measurement connected those styles, further reflecting our improving quality to strategically equilibrium request and retail. Now fto maine supply an update connected immoderate of our 3rd 4th merchandise wins.

Within men's, denim was a beardown performer for us, and our determination to amplify this Duluth halfway merchandise done nationalist advertizing led to a 9% maturation successful income astatine higher margins. Men's AKHG was besides positive, driven by innovations similar After Sweat, AlpineFlex Pants and Renew Bamboo. Within women's, our Heirloom Garden postulation continues to beryllium a foundational portion of our wardrobe. And we were besides pleased with the results of our relaunch of different halfway Duluth staple, women's denim featuring plus absorption practice denim and our Double Flex enactment silhouette.

At Duluth, we instrumentality the prime and functionality of our products precise seriously, but we besides similar to person fun, and our customers emotion it erstwhile we enactment our ain Duluth property into the season. Our Highland Cows people was featured successful October and was 1 of our astir palmy prints crossed respective merchandise categories. More recently, our November Hasbro collaboration enactment Mr. and Mrs. Potato Head, Tonka trucks, Tinkertoys and Lincoln Logs connected to our best-selling Buck Naked underwear, bralettes and socks. Customers emotion the nostalgia starring into the vacation buying play arsenic it became 1 of our fastest selling collaborations ever. Turning to our selling efforts for the quarter.