Duluth Holdings Inc. (NASDAQ:DLTH) Just Reported Earnings, And Analysts Cut Their Target Price

Shareholders might have noticed that Duluth Holdings Inc. (NASDAQ:DLTH) filed its yearly result this time last week. The early response was not positive, with shares down 4.5% to US$4.42 in the past week. Revenues were in line with expectations, at US$647m, while statutory losses ballooned to US$0.28 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Duluth Holdings

Following last week's earnings report, Duluth Holdings' three analysts are forecasting 2025 revenues to be US$644.8m, approximately in line with the last 12 months. Losses are forecast to narrow 2.4% to US$0.27 per share. Before this latest report, the consensus had been expecting revenues of US$659.9m and US$0.04 per share in losses. So it's pretty clear the analysts have mixed opinions on Duluth Holdings after this update; revenues were downgraded and per-share losses expected to increase.

The consensus price target fell 29% to US$5.00, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 0.3% annualised decline to the end of 2025. That is a notable change from historical growth of 2.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Duluth Holdings is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Duluth Holdings' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Duluth Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Duluth Holdings going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Duluth Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.