Financial Analysis

3. DEBT AND CREDIT AGREEMENT Debt consists of the following: May 3, 2026 February 1, 2026 (in thousands) TRI Senior Secured Note $ 20,628 $ 20,857 TRI Note 3,500 3,500 $ 24,128 $ 24,357 Less: current maturities 1,043 1,020 TRI long-term debt $ 23,085 $ 23,337 Duluth Line of credit $ 6,009 $ Less: current maturities 6,009 Duluth long-term debt $ $ TRI Holdings, LLC TRI entered into a senior secured note (TRI Senior Secured Note) with an original balance of $ 26.7 million. The TRI Senior Secured Note is scheduled to mature on October 15, 2038 and requires installment payments with an interest rate of 4.95 %. See Note 6 Variable Interest Entities for further information. TRI entered into a promissory note (TRI Note) with an original balance of $ 3.5 million. The TRI Note is scheduled to mature in November 2038 and requires annual interest payments at a rate of 3.05 %, with a final balloon payment due in November 2038 . While the above notes are consolidated in accordance with ASC Topic 810, Consolidation , the Company is not the guarantor nor the obligor of these notes. Credit Agreement On April 28, 2025, the Company entered into a credit agreement (the Credit Agreement) among the Company, certain financial institutions as Lenders thereto, and BMO Bank N.A., as Administrative Agent, a Swing Line Lender and a Letter of Credit Issuer. The Credit Agreement provides for borrowings of up to $ 100.0 million in aggregate principal amount that are available under an asset-based revolvin …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Sales disaggregated based upon sales channel is presented below. Three Months Ended May 3, 2026 May 4, 2025 (in thousands) Direct-to-consumer $ 57,133 $ 62,552 Stores 41,461 40,152 $ 98,594 $ 102,704

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8. STOCK-BASED COMPENSATION The Company accounts for its stock-based compensation plan in accordance with ASC 718, Stock Compensation , which requires the Company to measure all share-based payments at grant date fair value and recognize the cost over the requisite service period of the award. Total stock compensation expense associated with restricted stock recognized by the Company was $ 0.7 million and $ 0.3 million for the three months ended May 3, 2026 and May 4, 2025, respectively. The Companys total stock compensation expense is included in selling, general and administrative expenses on the Condensed Consolidated Statements of Operations. A summary of the activity in the Companys unvested restricted stock during the three months ended May 3, 2026 is as follows: Weighted average fair value Shares per share Outstanding at February 1, 2026 2,311,132 $ 2.47 Granted 1,389,208 3.14 Vested ( 269,748 ) 4.31 Forfeited ( 16,818 ) 5.71 Outstanding at May 3, 2026 3,413,774 $ 2.58 At May 3, 2026, the Company had unrecognized compensation expense of $ 7.1 million related to the restricted stock awards, which is expected to be recognized over a weighted average period of 2.4 years. …

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5. FAIR VALUE ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., an exit price). The exit price is based on the amount that the holder of the asset or liability would receive or need to pay in an actual transaction (or in a hypothetical transaction if an actual transaction does not exist) at the measurement date. ASC 820 describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last unobservable, as follows: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Companys assets and liabilities measured at fair value are categorized as Level 3 instruments. The fair value of the Companys available-for-sale security was valued based on a discounted cash flow method (Leve …

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11. INCOME TAXES The Companys provision for income taxes during the interim reporting periods has historically been calculated by applying an estimate of the annual effective tax rate for the full year to ordinary income or loss (pre-tax income or loss excluding unusual or infrequently occurring discrete items) for the reporting period. The effective tax rate related to controlling interest was ( 1.2 %) and ( 9.0 %) for the three months ended May 3, 2026 and May 4, 2025, respectively. The income from TRI was excluded from the calculation of the Companys effective tax rate, as TRI is a limited liability company and not subject to income tax. The Company maintains a valuation allowance against its deferred tax assets as of the three months period ended May 3, 2026. …

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2. LEASES The expense components of the Companys leases reflected on the Companys condensed consolidated statement of operations were as follows: Consolidated Statement Three Months Ended of Operations May 3, 2026 May 4, 2025 (in thousands) Finance lease expense Amortization of right-of- use assets Selling, general and administrative expenses $ 722 $ 722 Interest on lease liabilities Interest expense 339 368 Total finance lease expense $ 1,061 $ 1,090 Operating lease expense Selling, general and administrative expenses $ 4,871 $ 4,898 Amortization of build-to- suit leases capital contribution Selling, general and administrative expenses 321 321 Variable lease expense Selling, general and administrative expenses 3,061 2,801 Total lease expense $ 9,314 $ 9,110 Other information related to leases were as follows: Three Months Ended May 3, 2026 May 4, 2025 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 659 $ 622 Operating cash flows from finance leases $ 339 $ 368 Operating cash flows from operating leases $ 5,061 $ 4,921 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 144 $ 1,398 Weighted-average remaining lease term (in years): Finance leases 9 10 Operating leases 6 6 Weighted-average discount rate: Finance leases 4.5 % 4.5 % Operating leases 4.7 % 4.4 % Future minimum lease payments under the non-cancellable leases are as follows as of May 3, 2026: Fiscal year …

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H. Significant Accounting Policies There have been no significant changes to the Companys significant accounting policies as described in the Companys Annual Report on Form 10-K for the year ended February 1, 2026. …

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13. RESTRUCTURING On January 8, 2026, as a result of additional analysis of the Company's fulfillment center network, the Company communicated its intent to close the Salt Lake City fulfillment center, as such, the Company recorded employment related termination benefits and other restructuring related expenses beginning in the fourth quarter of 2025. Three Months Ended May 3, 2026 May 4, 2025 (in thousands) Disposals of property and equipment $ 1,316 $ Employee termination benefit expense 8 Other restructuring expense 30 Total restructuring expenses $ 1,354 $ …

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10. REVENUE The Companys revenue primarily consists of the sale of apparel, footwear and hard goods. Sales disaggregated based upon sales channel is presented below. Three Months Ended May 3, 2026 May 4, 2025 (in thousands) Direct-to-consumer $ 57,133 $ 62,552 Stores 41,461 40,152 $ 98,594 $ 102,704 Contract Assets and Liabilities Contract assets and liabilities on the Companys consolidated balance sheets are presented in the following table: May 3, 2026 February 1, 2026 (in thousands) Contract assets $ 1,293 $ 2,020 Contract liabilities $ 7,883 $ 9,192 The following table provides the reconciliation of the contract liability related to gift cards for the three months ended: May 3, 2026 May 4, 2025 (in thousands) Balance as of beginning of period $ 9,192 $ 9,782 Gift cards sold 2,085 2,797 Gift cards redeemed ( 3,314 ) ( 4,034 ) Gift card breakage ( 80 ) ( 31 ) Balance as of end of period $ 7,883 $ 8,514 …

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12. SEGMENT REPORTING As of May 3, 2026 and May 4, 2025, the Company had one reportable segment. The Companys operating segment is based on how the Chief Operating Decision Maker (CODM) makes decisions about allocating resources and assessing performance. The Company's CODM is its Chief Executive Officer . The CODM has the ultimate decision-making authority for resource allocation and assessing the performance of the Company. Thereby, the CODM regularly reviews consolidated net income as the measure of segment profit or loss, as well as significant segment expenses included in the below table, to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. The CODM also uses these measures in monitoring plan versus actual results. The CODM does not review segment assets at a different level or category than those disclosed in the condensed consolidated balance sheets. The following table summarizes the Companys gross margin and selling, general and administrative expenses. Three Months Ended May 3, 2026 May 4, 2025 (13 weeks) (13 weeks) (in thousands) Net sales $ 98,594 $ 102,704 Cost of goods sold 41,960 49,349 Gross margin $ 56,634 $ 53,355 Less: Outbound shipping expenses $ 5,302 $ 6,186 Advertising expenses 9,426 10,076 Variable expenses 9,849 10,886 Overhead expenses 37,225 38,010 Total selling, general and administrative 61,802 65,158 Impairment of long-lived assets 2,709 549 Restructuring expense 1,35 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing