Duluth Holdings: A Lot Of Untapped Potential

Summary

• Duluth Holdings has seen a decline in share price over the past few years driven by worsening fundamental performance and internal initiatives temporarily pressuring cash flow.
• Presently, Duluth's sales and margin are still being negatively affected by macro pressures, but this will eventually subside, ultimately leading to a natural fundamental improvement.
• Looking forward, the company continues to introduce new products, expanding their women's line, and improving data and analytics capabilities, all of which I expect to drive increased cash flow.

Joe Hendrickson

Introduction

Duluth Holdings (NASDAQ:DLTH) has clearly seen more and more pessimism from the market since reaching a share price of ~$19 in 2021. Since then, there’s been simply a linear trajectory downwards to their current share price under $5 today. And

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DLTH either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.