Duluth Holdings Inc. (NASDAQ: DLTH), a lifestyle brand known for its workwear and outdoor apparel, announced its financial results for the fourth quarter and fiscal year ended February 1, 2026. The company reported a net income of $7.8 million for the fourth quarter, a significant improvement of $13.4 million compared to a net loss of $5.6 million in the same period last year. This positive shift is attributed to a gross margin increase of 53.0%, up 890 basis points from the previous year, driven by effective management of promotional activities and improved product costs.

For the fiscal year, Duluth Holdings reduced its net loss to $16.2 million from $43.6 million in the prior year. The company also reported an adjusted EBITDA of $24.9 million, an increase of $10.3 million from the previous year. The strong operational execution led to a positive free cash flow of $16.6 million, marking a $41.8 million improvement compared to the prior year.

President and CEO Stephanie Pugliese expressed pride in the team’s disciplined efforts to manage expenses and optimize inventory levels, which contributed to enhanced profitability. Looking ahead, the company aims to re-energize its customer base by focusing on core products that resonate with its customers. Duluth Holdings has set a fiscal 2026 outlook with projected net sales between $540 million and $560 million and adjusted EBITDA in the range of $26 million to $30 million. The company is also planning capital expenditures of approximately $12 million to support its growth initiatives.

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