Crypto & Forex September 4, 2025 0 Comments

Duluth Holdings Smashes Q2 Expectations – What This Surging Stock Means for Your Portfolio Right Now

Who’d have thought a clothing and tools outfitter like Duluth Holdings could cook up an earnings surprise that hits +160%? Yep, while their shares have been dragged down about 23.6% this year—lagging well behind the S&P 500’s 9.6% gain—they managed to deliver $0.03 per share this quarter, beating expectations that predicted a loss. It’s a bit like seeing a vintage roadster sputter to life after being parked in the garage for years—you’re second-guessing, but then it roars unexpectedly. Yet, with revenues dipping slightly compared to last year and only topping estimates once in four quarters, the real question simmering beneath the surface is: can Duluth Holdings keep shifting gears and accelerate past market expectations? The journey ahead depends heavily on their upcoming earnings call and how quickly management can steer through the industry’s twists and turns. Buckle up—this ride might get interesting. LEARN MORE

Duluth Holdings (DLTH) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of a loss of $0.05 per share. This compares to a loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +160.00%. A quarter ago, it was expected that this clothing and tools supplier would post a loss of $0.3 per share when it actually produced a loss of $0.32, delivering a surprise of -6.67%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Duluth Holdings, which belongs to the Zacks Textile – Apparel industry, posted revenues of $131.72 million for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.95%. This compares to year-ago revenues of $141.62 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Duluth Holdings shares have lost about 23.6% since the beginning of the year versus the S&P 500’s gain of 9.6%.

What’s next for Duluth Holdings?

While Duluth Holdings has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Duluth Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.34 on $118.4 million in revenues for the coming quarter and -$0.58 on $579.5 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Textile – Apparel is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Vince Holding Corp. (VNCE), has yet to report results for the quarter ended July 2025. The results are expected to be released on September 10.

This company is expected to post quarterly loss of $0.08 per share in its upcoming report, which represents a year-over-year change of -260%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Vince Holding Corp.’s revenues are expected to be $72.88 million, down 1.7% from the year-ago quarter.

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