Retail
In Most Recent Filing, Duluth Trading Sets Pricing Terms for IPO
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Duluth Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company expects to price its 6.67 million shares in the range of $14 to $16 per share, with an overallotment option for an additional 1.00 million shares. At the maximum price, the entire offering is valued up to $122.67 million. The company intends to list its Class B shares on the Nasdaq Global Market under the symbol DLTH.
There are two classes of authorized common stock. The rights of holders of Class A common stock and Class B common stock are identical, except for voting and conversion rights. Each share of Class A common stock is entitled to 10 votes per share and is convertible at any time into one share of Class B common stock. Each share of Class B common stock is entitled to one vote per share.
The underwriters for the offering are William Blair, Baird, Raymond James and BMO Capital Markets.
This company is a rapidly growing lifestyle brand of men’s and women’s casual wear, workwear and accessories sold exclusively through its own channels. Duluth offers a comprehensive line of innovative, durable and functional products, such as Longtail shirts, Buck Naked underwear and Fire Hose work pants, which reflect its position as the Modern, Self-Reliant American Lifestyle brand.
The brand has a heritage in workwear that transcends tradesmen and appeals to a broad demographic of men and women for everyday and on-the-job use. Approximately 88% of fiscal 2014 net sales consisted of proprietary products sold under the Duluth Trading brand name.
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In the filing, Duluth said:
We believe the foundation of our success is our culture of “poking average in the eye” by seeing things for what they could be and should be and finding a way to make them exactly that, and we like to do it all with a big, toothy grin. Our brand is defined by: solution-based products manufactured with high quality craftsmanship, humorous and distinctive marketing and an outstanding customer experience.
The company has established a strong track record of growth and profitability as demonstrated by its net sales and operating income compound annual growth rates between calendar 2009 and fiscal 2014 of 28% and 51%, respectively. Duluth believes that the foregoing attributes have enabled it to deliver strong financial results:
The net proceeds from this offering are intended to be put toward paying down indebtedness, working capital and general corporate purposes.
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