Duluth Trading ($DLTH): Approaching The Inflection Point

Duluth Trading (DLTH) is a casual wear, workwear and accessories company, known for offering quality and durable products, with a loyal and satisfied customer base, and a widely recognized brand.

The Company started in 1989 as a catalog business and morphed into an omnichannel platform, adding first a website and opening later on its first store in 2010. Since then they have expanded their retail presence and as of today DLTH operates 65 stores (that represent approximately 36% of its net sales vs. 6% in 2013).

Why This Opportunity Exists?

DLTH is the perfect example of a successful company carrying out a messy and hurried geographic expansion. As commented, in 2010 the Company opened its first store and it was gradually expanding its store base, adding 1 to 3 stores per year between 2011 and 2015. However, in 2016 DLTH decided to accelerate the pace with the opening of 7 new stores, and even more i…