Duluth Trading Co. faces fraud probe after stock crashes 29% in one day
Duluth Trading Co. faces a potential securities fraud investigation after its stock price plummeted in December 2025. The company, listed on NASDAQ as DLTH, saw shares drop sharply following a revised sales forecast. Law firm Pomerantz LLP is now examining claims on behalf of investors.
On December 16, 2025, Duluth Trading Co. announced a significant reduction in its third-quarter net sales guidance. The expected range fell from $570 million to $595 million down to $555 million to $565 million. The news triggered an immediate market reaction.
The company’s stock price dropped by $0.92 per share, a decline of 29.39%, closing at $2.21. Pomerantz LLP has since launched an investigation into whether Duluth Trading Co. or its executives engaged in securities fraud or other unlawful practices. While no specific officials have been named in the probe, the firm’s leadership includes Stephanie Pugliese as President and CEO, alongside CFO Heena Agrawal. The investigation focuses on potential misconduct that may have misled investors. Pomerantz is gathering information to determine whether legal action is warranted.
The stock’s steep decline followed Duluth Trading Co.’s revised financial outlook, raising concerns among shareholders. Pomerantz LLP continues to assess whether the company or its executives violated securities laws. The outcome of the investigation could have further implications for investors and the firm’s leadership.
