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High materiality8/10

Duluth Trading Q2 2026 profits jump on tariff refunds; EBITDA outlook raised

Sep 3, 2026, 5:49 AM EDT1 sourcesAI-analyzed

Why it may matterVerify against the original reporting

Strong quarterly profitability aided by tariff refunds and robust margins could lift valuation; improved liquidity and higher EBITDA guidance provide a near-term earnings catalyst.

AI summary

What happened, with direct paths to the underlying reporting

Duluth Trading Company posted a strong Q2 2026 with net income of $18.4M and adjusted EBITDA of $27.0M, aided by $16.3M in tariff refunds. Gross margin expanded to 72.8% (59.6% ex-tariffs) as pricing and direct-to-factory sourcing improved profitability, while inventory fell 15.5% to boost liquidity. The balance sheet remains robust with $96.1M net liquidity and zero debt on the $70M ABL; FY2026 guidance was raised for Adjusted EBITDA to $38-42M.

Q2 net income $18.4M; tariff refunds $16.3M included.
Gross margin 72.8%; ex-tariffs 59.6% due to pricing and sourcing.
Inventory down 15.5% ($22.9M); net liquidity $96.1M; cash $26.8M; ABL debt 0.
FY2026 guidance: net sales $540-560M; Adj EBITDA $38-42M.
Two new stores opened in 3Q2025; Build to Last strategy emphasis.

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