Duluth Holdings Inc (NASDAQ:DLTH) stock fell 0.90% (As on December 17, 11:15:44 AM UTC-4, Source: Google Finance) after the company reported third-quarter results that showed a smaller loss than expected, helping lift the retailer’s shares despite revenue coming in below market forecasts. Net loss for the quarter narrowed sharply to $10.1 million from $28.2 million in the same period last year. Selling, general and administrative expenses were cut by $11.6 million, or 14.1%, to $70.7 million. Inventory levels declined 17% compared with a year earlier, and the company reported net liquidity of $88.6 million. On the sales mix, direct-to-consumer revenue fell 15.5% to $67.4 million, reflecting lower traffic, though this was partly offset by higher average order values. Meanwhile, net sales from retail stores edged up 0.4% to $47.4 million primarily driven by two new store openings and higher average order values. Adjusted EBITDA increased $5.5 million from the prior year to -$0.7 million. Inventory is down $39.2 million or 17.0% vs. last year. The Company ended the quarter with $8.2 million of cash and cash equivalents, $51.1 million of net working capital, $44.6 million of outstanding debt on the $125.0 million Asset Based Lending facility resulting in $88.6 million of net liquidity.

DLTH in the third quarter of FY25 has reported the adjusted loss per share of $0.23, beating the analysts’ estimates for the adjusted loss per share of $0.46. The company had reported the adjusted revenue decline of 9.6 percent to $114.9 million in the third quarter of FY25, missing the analysts’ estimates for revenue of $117.06 million. Even so, the company managed to expand its gross margin to 53.8% from 52.3% a year earlier, despite absorbing a $3 million impact from tariffs. The increase in gross margin rate was primarily driven by an increase in average unit retail sales from reduced promotional activity coupled with an improvement in product costs from our direct to factory sourcing initiative. Selling, general and administrative expenses as a percentage of net sales decreased to 61.5% in the three months ended November 2, 2025, compared to 64.8% in the three months ended October 27, 2024.

Looking ahead, Duluth reaffirmed the upper end of its previously issued fiscal 2025 adjusted EBITDA guidance of $23 million to $25 million. It also revised its net sales outlook to a range of $555 million to $565 million, down from its earlier forecast of $570 million to $595 million. The company affirmed capital expenditures at $17 million.