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, maybe stepping back a bigger picture question, you referenced some encouraging customer
and then profitability metrics. How are you assessing the progress on your strategy to be more profitable and prioritize? Higher value
transactions, what are the key metrics that you focus on the most and how do you expect that to play out, into the holiday period, which,
typically is more promotional for the industry.
Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst
: And maybe one follow-up. I know last year there were some execution operational challenges, just any thoughts as you cycle over, some
of those periods, how the business is performing, and then maybe stepping back.
How long are you thinking that, roughly down 10% type run rate continues or said differently? When do you start to cycle? Some of the
factors that could start to mitigate those sales declines.
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DECEMBER 16, 2025 / 2:30PM, DLTH.OQ - Q3 2025 Duluth Holdings Inc Earnings Call
Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst
: Okay, great. Maybe just two last ones for me then, Gina. On the 4th quarter implied, adjusted even, looks significantly higher year over year,
maybe as much as double year over year. Could you just highlight the factors, driving that improvement?
Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst
: Okay, great. And then just last one balance sheet. I might have missed this in your remarks, did you mention, having fully paid down the
line of credit, so effectively, zero debt currently in the 4th quarter here just to clarify that and then any commentary you have looking forward
on capital needs. Thank you.
Question: Jonathan Komp - Robert W. Baird & Co Inc - Analyst
: Okay, great. That's it for me. Thanks for taking all the questions.
Question: Marcus Belanger - William Blair Capital Partners - Analyst
: Hi, this is Marcus Banger on for Dylan. Thank you for taking my question. During the quarter, I believe you said you cut days of sales in half.
So can you tell us the overall depth of promotional activity or maybe what your percentage of full price sales were, and then how far do you
think you are from an optimal level of promo? Thanks.
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