Analysts Have Been Trimming Their Duluth Holdings Inc. (NASDAQ:DLTH) Price Target After Its Latest Report

One of the biggest stories of last week was how Duluth Holdings Inc. (NASDAQ:DLTH) shares plunged 27% in the week since its latest third-quarter results, closing yesterday at US$2.19. Revenues of US$115m came in a modest 3.1% below forecasts. Statutory losses were a relative bright spot though, with a per-share loss of US$0.29 coming in a substantial 48% smaller than what the analysts had expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the recent earnings report, the consensus from twin analysts covering Duluth Holdings is for revenues of US$547.8m in 2027. This implies a small 7.2% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 52% to US$0.39. Before this latest report, the consensus had been expecting revenues of US$576.4m and US$0.33 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.

Check out our latest analysis for Duluth Holdings

The average price target fell 29% to US$5.00, implicitly signalling that lower earnings per share are a leading indicator for Duluth Holdings' valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Over the past five years, revenues have declined around 2.0% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 5.8% decline in revenue until the end of 2027. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.6% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Duluth Holdings to suffer worse than 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Duluth Holdings going out as far as 2028, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Duluth Holdings .

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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.