Duluth Holdings: The 'Build To Last' Strategy Is Pushing Profits Higher, Buy

Mayank Marwah 25 Followers Follow Summary Duluth's Q2 profit was helped by a one-time tariff refund of $16.3 million. Quarterly revenue was down 7.8%. In fact, the company's sales have been falling over the past four years. Duluth's balance sheet is in stellar shape with low debt, robust liquidity, and cleaner inventory. My DCF valuation states the stock is undervalued by roughly 109%. I rate DLTH a buy. Joe Hendrickson/iStock Editorial via Getty Images My Investment Thesis Duluth Holdings Inc. ( DLTH ) came out with its fiscal second-quarter financial results on September 3 rd . Although the company reported a sales decline during the quarter, its profits surged. Net This article was written by Mayank Marwah 25 Followers Follow I am a Chartered Accountant based in India (Equivalent of a US CPA). I like covering stocks that most people don't talk about, and closely look at the numbers to find good investment ideas that the market may have missed. I am closely associated with NM Market Insights. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.