DLTH - Duluth Holdings downgraded at Baird amid rising macro risks

Duluth Holdings ( NASDAQ: DLTH ) shares slid during Thursday’s premarket trading as Baird analyst Jonathan Komp told clients he is losing confidence in the company in 2022.

Komp downgraded the stock from “Outperform” to “Neutral” on Thursday, explaining that recent reports from apparel retailers and adverse economic data caused him to adjust his rating. He added that his Buy-equivalent rating was not one of high-conviction, making the move to Hold somewhat easier.

“[Duluth Holdings] ( DLTH ) has been among our lowest-conviction Outperform-rated stocks balancing our optimistic view of the long-term earnings potential under the current strategic direction, with external risks amid a more challenging macro environment,” Komp wrote. “Following several mixed apparel reports, we have become less confident in the ability for DLTH to navigate mounting external headwinds without resorting to greater discounting activity.”

Alongside a downgrade, Komp reduced his EPS targets for the next two fiscal years, prompting a price target cut from $18 to $11. Shares of Duluth Holdings ( DLTH ) fell about 1% in premarket trading on Thursday.

Read more on the company’s inventory position as of the end of May .

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