Duluth Trading Company announces stock grants for new CEO Stephanie Pugliese, effective May 5, 2025, as part of her employment agreement.
Quiver AI Summary
Duluth Holdings Inc. (Duluth Trading Company) announced the appointment of Ms. Stephanie L. Pugliese as the new President and CEO, effective May 5, 2025. To incentivize her hiring, the company granted Pugliese 1,759,532 shares of Class B common stock through an Inducement Stock Award Agreement and an Inducement Restricted Stock Award Agreement. Of these, 586,511 shares were awarded immediately, while 1,173,021 shares are subject to vesting over the next three years. The grants were approved by the Board of Directors and comply with NASDAQ requirements for inducement awards, necessitating public disclosure. Duluth Trading, based in Mount Horeb, Wisconsin, specializes in high-quality workwear and accessories, emphasizing a commitment to customer satisfaction through its "No Bull Guarantee."
Potential Positives
- Appointment of Ms. Stephanie L. Pugliese as President and CEO may signal a strategic leadership shift aimed at strengthening the company's market position.
- Significant stock grants to Ms. Pugliese could enhance her commitment to the company’s long-term success and align her interests with those of shareholders.
- The inducement awards were approved by independent directors, indicating a focus on corporate governance and compliance with NASDAQ regulations.
- Duluth Trading continues to promote a strong brand identity centered on quality and customer satisfaction, as highlighted in the press release.
Potential Negatives
- The significant issuance of 1,759,532 shares of stock as an inducement for a new executive may raise concerns among investors about executive compensation practices and potential dilution of shareholder value.
- The press release highlights that the stock awards were granted outside the Company’s established Equity Incentive Plan, which might raise governance and compliance concerns.
- The requirement for Ms. Pugliese to reimburse shares if she leaves without good reason or is terminated for cause could imply potential instability or issues within the management team.
FAQ
What is the recent announcement by Duluth Trading Company?
Duluth Trading announced the hiring of Stephanie L. Pugliese as President and CEO, effective May 5, 2025.
What stock grants were made to the new CEO?
Ms. Pugliese received 1,759,532 shares of Class B common stock, including stock awards outlined in two agreements.
What are the vesting conditions for the stock granted to Ms. Pugliese?
33% of the restricted stock vests on May 5, 2026, and subsequent portions will vest annually until May 5, 2028.
What happens if Ms. Pugliese leaves the company before the vesting period?
If she terminates her employment without good reason or is fired for cause, she must reimburse the company for the granted shares.
Where can I find more information about Duluth Trading's products?
More information can be found on the Duluth Trading website at http://www.duluthtrading.com.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$DLTH Insider Trading Activity
$DLTH insiders have traded $DLTH stock on the open market 3 times in the past 6 months. Of those trades, 3 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $DLTH stock by insiders over the last 6 months:
- BRETT LEE PASCHKE purchased 50,000 shares for an estimated $90,500
- HEENA AGRAWAL (Senior Vice President and CFO) purchased 9,000 shares for an estimated $16,560
- DAVID COLE FINCH purchased 5,000 shares for an estimated $9,491
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$DLTH Hedge Fund Activity
We have seen 18 institutional investors add shares of $DLTH stock to their portfolio, and 34 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- MARSHALL WACE, LLP removed 250,960 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $775,466
- MILLENNIUM MANAGEMENT LLC removed 118,170 shares (-61.5%) from their portfolio in Q4 2024, for an estimated $365,145
- MILL ROAD CAPITAL MANAGEMENT LLC removed 93,019 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $287,428
- GSA CAPITAL PARTNERS LLP removed 75,579 shares (-72.1%) from their portfolio in Q4 2024, for an estimated $233,539
- DIMENSIONAL FUND ADVISORS LP added 58,991 shares (+7.5%) to their portfolio in Q4 2024, for an estimated $182,282
- BARCLAYS PLC removed 36,493 shares (-39.5%) from their portfolio in Q4 2024, for an estimated $112,763
- CREATIVE PLANNING added 32,190 shares (+64.6%) to their portfolio in Q4 2024, for an estimated $99,467
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
MOUNT HOREB, Wis., May 05, 2025 (GLOBE NEWSWIRE) -- Duluth Holdings Inc. (dba, Duluth Trading Company) (“Duluth Trading” or the “Company”) (NASDAQ: DLTH), a lifestyle brand of men’s and women’s workwear, casual wear, outdoor apparel, and accessories, today announced that it made an inducement grant to Ms. Stephanie L. Pugliese in connection with her employment as the Company’s new President and Chief Executive Officer, effective May 5, 2025, the material terms of which were previously disclosed.
The Company granted a total of 1,759,532 shares of Class B common stock to Ms. Pugliese pursuant to the terms of the Inducement Stock Award Agreement and the Inducement Restricted Stock Award Agreement, entered between the Company and Ms. Pugliese on May 5, 2025, each as a material inducement to Ms. Pugliese’s hiring.
Pursuant to the Inducement Stock Award Agreement, 586,511 shares were granted to Ms. Pugliese on May 5, 2025. If Ms. Pugliese terminates her employment without good reason or is terminated by the Company for cause prior to May 5, 2026, she will be required to reimburse the Company for a pro rata portion of the 586,511 shares granted to Ms. Pugliese under such agreement. In connection with the 1,173,021 shares of restricted stock granted to Ms. Pugliese pursuant to the Inducement Restricted Stock Award Agreement, (i) 33% percent of such shares will vest on May 5, 2026, (ii) 33% percent of such shares will vest on May 5, 2027, and (iii) the remaining 34% of the shares will vest May 5, 2028. If Ms. Pugliese’s employment with the Company is terminated (i) due to her death, (ii) due to her disability, (iii) without cause, or (iv) by Ms. Pugliese for good reason, then all unvested stock will vest immediately. If her employment with the Company is terminated for any other reason, all unvested stock will be forfeited and revert to the Company.
The stock awards were granted outside the terms of the Company’s 2024 Equity Incentive Plan and were approved by the Company’s Board of Directors, Compensation Committee, and the Subcommittee of the Compensation Committee of the Board of Directors, consisting of the independent directors of the Compensation Committee, in reliance on the employment inducement exemption under NASDAQ Listing Rule 5635(c)(4), which requires public announcement of inducement awards. Pursuant to the requirements of that rule, the Company is issuing this press release.
About Duluth Trading
Duluth Trading is a lifestyle brand for the Modern, Self-Reliant American. Based in Mount Horeb, Wisconsin, we offer high quality, solution-based casual wear, workwear and accessories for men and women who lead a hands-on lifestyle and who value a job well-done. We provide our customers an engaging and entertaining experience. Our marketing incorporates humor and storytelling that conveys the uniqueness of our products in a distinctive, fun way, and are available through our content-rich website, catalogs, and “store like no other” retail locations. We are committed to outstanding customer service backed by our “No Bull Guarantee” - if it’s not right, we’ll fix it. Visit our website at http://www.duluthtrading.com.
