Have you been paying attention to shares of Duluth Holdings (DLTH)? Shares have been on the move with the stock up 56.5% over the past month. The stock hit a new 52-week high of $5.09 in the previous session. Duluth Holdings has gained 125% since the start of the year compared to the -8.1% gain for the Zacks Consumer Discretionary sector and the -4.9% return for the Zacks Textile - Apparel industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on June 8, 2026, Duluth Holdings reported EPS of -$0.2 versus consensus estimate of -$0.45 while it beat the consensus revenue estimate by 3.67%.
For the current fiscal year, Duluth Holdings is expected to post earnings of -$0.26 per share on $549.6 in revenues. This represents a 39.53% change in EPS on a -2.76% change in revenues. For the next fiscal year, the company is expected to earn -$0.12 per share on $560.4 in revenues. This represents a year-over-year change of 53.85% and 1.97%, respectively.
Valuation Metrics
While Duluth Holdings has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Duluth Holdings has a Value Score of B. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of A.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Duluth Holdings currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Duluth Holdings meets the list of requirements. Thus, it seems as though Duluth Holdings shares could have potential in the weeks and months to come.
How Does DLTH Stack Up to the Competition?
Shares of DLTH have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Hugo Boss (BOSSY). BOSSY has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. Hugo Boss beat our consensus estimate by 50.00%, and for the current fiscal year, BOSSY is expected to post earnings of $0.65 per share on revenue of $4.64 billion.
Shares of Hugo Boss have gained 7.9% over the past month, and currently trade at a forward P/E of 14.09X and a P/CF of 4.37X.
The Textile - Apparel industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DLTH and BOSSY, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).