Duluth Trading boosts inventory health with SKU cuts, enterprise planning
The workwear retailer reported a 25% year-over-year decline in inventory levels due to rightsizing buys, clearing excess stock and optimizing receipt scheduling.
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An article from Dive Brief Duluth Trading boosts inventory health with SKU cuts, enterprise planning The workwear retailer reduced inventory levels 25% year over year due to rightsizing buys, clearing excess stock and optimizing receipt scheduling.
Published June 26, 2026 Kelly Stroh Senior Editor Share Copy link Email / Print License Add us on Google A Duluth Trading Co. storefront in Illinois. The workwear retailer has been working to rightsize its SKU mix, and in Q1 2026 tallied its fourth consecutive quarter of year-over-year improved inventory health as a result.
Getty Images Listen to the article 2 min This audio is auto-generated. Please let us know if you have feedback. Dive Brief: Duluth Trading Co. achieved its fourth consecutive quarter of year-over-year inventory gains in Q1 due to strategic SKU management and its enterprise planning process, Heena Agrawal, SVP and CFO, said during a June 8 earnings call.
Total inventory for the quarter was down 25% YoY, Agrawal said, adding that rightsizing buys and clearing excess stock also helped lower spring and summer seasonal inventory by 42%.
“Through the integrated planning process, we successfully synchronized inventory levels with our sales projections and optimized the scheduling of receipts,” Agrawal told analysts. Dive Insight: Duluth Trading has been targeting improved inventory health by rightsizing its balance sheet.
During a Q3 earnings call in December 2025, CEO Stephanie Pugliese said that the planned reductions in SKUs and style counts aimed to drive more assortment clarity and overall improved margins. That quarter, the company reported a 17% YoY decrease in inventory.
“By intentionally narrowing our assortment and buying smarter, we ensure that our capital and floor space are hyperfocused on the core high-margin hero product lines that resonate most deeply with our self-reliant audience,” Agrawal said on the June call.
Agrawal also noted that the retailer’s inventory allocation prioritized availability at its automated fulfillment center in Adairsville, Georgia, as well as its stores. In turn, Duluth Trading’s in-stock levels at stores improved by 900 basis points.
“By reinstating price integrity through our promotional reset and maintaining discipline across inventory management, costs and capital allocation, we have made structural improvements to profitability and secured a strong balance sheet,” Agrawal told analysts.
Elsewhere in its supply chain operations, Duluth Trading has been looking to draw in Amazon shoppers and use Prime shipping benefits. During an investor and analyst event earlier this month, executives said that the retailer began using Amazon’s fulfillment capabilities for orders made on Amazon’s marketplace.
Recommended Reading Duluth Trading’s efforts to rightsize inventory receipts pay off By Kelly Stroh • Dec. 23, 2025 Duluth Trading taps Amazon for fulfillment on e-commerce giant’s site By Max Garland • June 22, 2026 Add us on Google Share Copy link Email / Print License Filed Under: Risk and Resilience, Operations Management, Retail
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This briefing is based on reporting from Supply Chain Dive. Use the original post for full primary-source context.
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