The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst
: Yeah, hi, good morning. Thank you, Stephanie, I want to follow up, if you could maybe share more on some of the specific metrics that you're
looking at and the team is looking at as you decide the appropriate level of pullback in your promotional activity. And then as you look forward
into the key selling period in fall and surrounding holiday, just any thoughts on your confidence level of being able to maintain more discipline on
the promotional side given some of the results you saw here in the quarter?
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SEPTEMBER 04, 2025 / 1:30PM, DLTH.OQ - Q2 2025 Duluth Holdings Inc Earnings Call
Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst
: Yes, that's encouraging to hear. Maybe a question then on gross margin. Just given some of the dynamics with the tariff impacts ramping up, but
obviously, some benefits from the activity you just mentioned and then the pricing that you're putting in place. Just any further color on the ability
to continue the gross margin rate expansion and especially in the fourth quarter, I know it looks like quite an easy comparison, but just any more
color on the back half gross margin rate expectation?
Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst
: Okay. Great. Two other questions for me. Just on the SG&A, the cost savings that you're targeting, the $10 million to be achieved in fiscal 2025. Any
further color just how much you achieved in the second quarter and then how the savings will ramp here looking forward?
Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst
: Okay. And then last question for me. Just stepping back, bigger picture. As you think about reestablishing appropriate margin targets for the
business, just I'm curious what you'd need to see in order to be able to share more detail on an appropriate levels of margin for the business or
longer-term expectations around the profitable sales base you need to get back to more reasonable annual profitability levels?
Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst
: Okay, great. That's very clear. Thanks again for taking all the questions.
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