Duluth Trading Co. Battles Price Hikes, CEO Shakeup & Plunging Profits: What It Means for Shoppers and Investors in 2025
Duluth Trading’s new CEO tackles loss, tariffs, and inventory woes. What shoppers and investors must know about the retailer’s uncertain future.
- Q1 Loss: $15.3M (up 94% year-over-year)
- Revenue Drop: Down 12% vs. 2024
- Product Reduction: -20% by Spring 2026
- Tariff Impact: $14M in added costs expected
Duluth Trading Co. is bracing for a wild ride in 2025. The Wisconsin-based retailer – famed for rugged workwear and memorable advertising mascots – reported plunging profits in its latest earnings report. Losses nearly doubled in the first quarter, with revenue slipping short of Wall Street forecasts.
But that’s just the start. Economic turbulence and new tariffs mean price hikes and product cuts could be on the way for thousands of loyal customers nationwide.
Why Did Duluth Trading Co. Lose Millions in Q1 2025?
In its fiscal first quarter, Duluth posted a staggering $15.3 million loss —that’s 45 cents per share. A year ago, losses were less than half that. Even more troubling, revenue landed at $102.7 million, a significant drop from $116.7 million last year, missing expectations by nearly $3 million.
Multiple factors choked growth: increased business complexity, a 29% surge in inventory putting pressure on cash flow, and persistently sluggish consumer spending.
Who’s Steering Duluth’s Next Chapter?
2025 marks a dramatic leadership shakeup. Stephanie Pugliese, who previously drove Duluth’s explosive expansion from 2015-2019, has returned to the corner office. After stints at Under Armour and on the boards of top names like American Eagle Outfitters and Fortune Brands, Pugliese is now tasked with reigniting Duluth’s lost momentum.
Her strategy is bold: slash product offerings by 20% for a leaner, more profitable operation and trim $15 million in expenses by 2026. Her focus is razor-sharp—brand strength, product innovation, and exceptional customer service.
For background on Under Armour’s leadership moves, visit Under Armour. For a look at American Eagle’s own challenges, check American Eagle.
How Will Tariffs and Costs Impact Shoppers?
Tariffs aren’t just corporate headaches—they may soon squeeze shoppers’ wallets. Duluth faces $14 million in new product costs tied to global trade friction. While Duluth claims less than 1% of their goods come from China, targeted price hikes are coming for select items.
Pugliese’s team is negotiating directly with vendors to soften the blow, but some price increases are unavoidable. Expect higher price tags for the brand’s most popular gear in 2025 and beyond.
Curious how global tariffs could shake up other retailers? Head to National Retail Federation for industry-wide updates.
Q&A: What’s Next for Duluth Trading Co.?
Q: Will Duluth shut any stores?
A: No closures announced so far. The company continues to operate more than 60 locations nationwide, with a major presence in Wisconsin.
Q: Are layoffs expected?
A: No official layoffs revealed, but streamlining could impact some roles as part of the $15 million in planned cost cuts.
Q: Will product variety shrink?
A: Yes, by 20% over the next year. Duluth is cutting weaker-performing lines to sharpen its core offerings.
Q: Will prices rise for all products?
A: Price increases will roll out selectively—focused on items most affected by tariffs and cost spikes.
How Can Shoppers Save as Prices Rise?
- Watch for seasonal sales and promotions
- Join Duluth’s loyalty program for member discounts
- Visit outlet locations for clearance stock
- Follow Duluth on social channels for flash deals
How Are Investors Reacting?
Duluth’s stock tumbled nearly 13% in a single day after releasing its bleak earnings report. Wall Street remains wary as the company navigates heavy headwinds into next year.
Investors interested in more retail performance insights should check Bloomberg or The Wall Street Journal.
Your Next Move
Are you a fan of Duluth Trading Co.—or have money invested? Stay alert as 2025 brings sweeping changes that could hit your wallet or portfolio.
2025 Duluth Trading Survival Checklist:
- Sign up for email alerts on sales and product drops
- Monitor financial updates every quarter
- Review your favorite items—stock up before prices rise
- Keep tabs on leadership moves and cost-cutting measures
- Compare similar retailers (L.L.Bean, Carhartt) for the best value
Check back for the latest on Duluth’s comeback—and how it could reshape the workwear game nationwide.
References
https://youtube.com/watch?v=0-5CSmiiChk
