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Duluth Trading Company (Nasdaq: DLTH) | Company Profile, History, Competitors

 

Duluth Trading Company (NASDAQ: DLTH) is a workwear lifestyle retailer in the United States. As of 2017, Duluth has 28 store locations in the United States. The company was founded in 1989 and headquartered in Belleville, WI.

Duluth was founded in 1989 by brothers Bob and Dave Fierek. Duluth manufactures comfortable workwear that is highly function. Their brand is customers who live for a "Modern Self-Reliant American Lifestyle". Duluth has an active national advertising campaign with recurring characters such as
the Buck Naked Guy, Giant Angry Beaver and Grab Happy Grizzly.

Business Overview

Duluth sells workwear that is designed to solve common problems in daily lifestyle. Duluth makes high-quality functional clothes for customers who live a "Modern Self-Reliant American Lifestyle". Duluth carries 11,000 SKUs and feature several dozen core styles, including:
  • Buck Naked Underwear: Designed to wick moisture and fight odor in men's underwear
  • Dry on the Fly Gear: Designed to dry quickly on hot days
  • Fire Hose Work Pants: Designed to be durable and flexible while kneeling and crawling
  • Longtail T-Shirts: Designed for better coverage while squatting
  • Armachillo Workwear: Designed for breathability in hot weather
  • Ballroom Jeans: Designed for extra room in the crotch to prevent pinching
  • DuluthFlex Workwear: Designed to be durable and light

Sales and Marketing

Duluth markets itself as a lifestyle brand serving those who live a “Modern, Self-Reliant Lifestyle.” It features a distinctive and humorous marketing that generates strong brand awareness. The national advertising campaigns consists of storytelling featuring recurring characters including the Buck Naked Guy, Giant Angry Beaver and Grab Happy Grizzly.

Duluth sells direct through e-commerce and catalog sales as well as through its retail stores. All products have a No Bull Guarantee, allowing for a full refund of the purchase price if the customer is not satisfied.

Its website offers the entire collection as well as online exclusives and supports all desktop and mobile devices. Its catalog transacts through two call centers in Wisconsin that is open 24 hours a day and 7 days a week. Catalogs are distributed seasonally.

As of 2017, Duluth has 28 retail stores in the United States. The average store size is 11,000 square feet.

Suppliers and Distribution

Duluth does not own any manufacturing facilities. They manufacture through third party vendors located in China, Thailand Cambodia and Indonesia. Their largest supplier is in Hong Kong and represents 50% of their purchases.

Duluth owns a distribution center in Belleville, WI that handles retail and direct operations in the Midwest. Duluth also contracts with two third-party logistics  centers in Nevada and Pennsylvania.

Competitors

Its main competitors are other direct and retail workwear/lifestyle brands including Charhatt, Columbia, LL Bean, Levi's, Lands' End, Eddie Bauer and Lee and Dickies.

History

The company was founded in 1989 by brothers Bob and Dave Fierek as a business focused on tools and accessories called "Bucket Boss". The company was called Pull'r Holding Company LLC and the headquarters was Duluth, MN. In 1993, they mailed their first catalog called Duluth Trading Co. In 1996, the company launched its first website. Also in that year, the company was acquired by Fiskars, a Finnish consumer goods company.

In 2000, the company was sold again to Gempler's, an agricultural supply business, and the headquarters was moved to Bellevue, WI. In 2002, the company introduced the Longtail T-Shirt for plumbers. In 2003, the company introduced the Fire Hose workwear for durable and long lasting clothing. In 2005, the company introduced its first women's line. In 2008, the company introduced Ballroom Jeans for less constricting jeans.

In 2010, the company introduced Buck Naked underwear for less restrictive men's underwear. In 2011, the company launched its first nationwide ads. In 2012, the company introduced DuluthFlex for lighter workwear. In 2013, the company introduced Armachillo for breathable and comfortable workwear. In 2014, the company introduced Dry on the Fly for workwear that dries quickly. In 2015, the company went public.

Management

Stephanie L. Pugliese (CEO): Stephanie Pugliese serves as CEO since 2015. Prior, she served in various roles at the company including COO, VP Merchandising and VP Product Development. She has also worked at Lands' End and Ann Taylor.

David Loretta (CFO): David Loretta serves as CFO since 2017. Prior, he served in various roles at Nordstrom including VP Treasury and Controller of Nordstrom.com

Financials

 $ USD in millions    2013    2014 2015 2016 2017 2018
 Revenues $160 
$163 
$232 
$304 
$376 
$471
 Gross Profit $90 
$92 
 $131 
 $174 
 $214 
 $261
 Operating Profit - 
$16 
 $24 
 $29 
 $35 
 $37
 Net Income - 
$15 
$24 
 $27 
 $21 
 $23
 EPS


$1.06 
$0.66 
 $0.72

Duluth Holdings, Inc.
 
  Type     Public
  Ticker     NASDAQ: DLTH
  Industry Retail
  Founded 1989
  Headquarters Belleville, WI
  Locations 28 (2017)
  Revenues
$471mm (2017)
  Employees 589 (2017)
  Website duluth
trading.com