By Connor Hart

Shares of Duluth were down after the company cut its full-year sales outlook and said total customer count fell during the third quarter, compared with a year earlier.

The stock fell 12%, to $2.75, in early trading Tuesday, extending its 5.8% decline so far this year.

The apparel company before the bell said it now expects sales of $555 million to $565 million for the year, down from a prior outlook of $570 million to $595 million. Analysts surveyed by FactSet had been expecting sales of $561.7 million.

Chief Executive Stephanie Pugliese said total customer counts were down in the recent quarter compared with last year, which she primarily attributed to a strategic pull back on promotions.

Despite this decline, she said key metrics remain strong: "Sales per customer and margin dollars per customer are up year over year, as are our average order values and units per transaction, reflecting our shift towards higher value customer engagement."

Duluth also raised the low end of its adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization outlook--to $23 million from $20 million, while maintaining the high end at $25 million.

For its quarter ended Nov. 2, Duluth narrowed its loss to $10.1 million, or 29 cents a share, from a loss of $28.2 million, or 84 cents a share, a year earlier. Stripping out one-time items, the company notched an adjusted loss of 23 cents a share.

Sales fell 9.6% to $114.9.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

December 16, 2025 10:19 ET (15:19 GMT)

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