If you work at Duluth Trading Company, you may be eligible to enroll in the employee stock purchase plan (ESPP). To help you make the most of this opportunity, we’ve put together a comprehensive guide to all the ins and outs of this program, from how it works to how you enroll.

If you’d like to learn more about how ESPPs work in general, be sure to read our blog about an overview of employee stock purchase plans.

Make More Money from your ESPP with Benny’s New Program

Benny 2.0 automatically manages your Employee Stock Purchase Plan (ESPP) to make you more money without disrupting your take-home pay.

Learn More

Here’s a quick rundown of how Duluth Trading Company’s ESPP works.

• You can buy Duluth Trading Company stock at a 15% discount.

• You can enroll 4 times a year. 

• Your next enrollment window closes on Dec 15, 2023.

• You can contribute up to 20% of your salary with a maximum of $21,250 per year.

Should You Participate In Duluth Trading Company’s ESPP?

When you enroll in Duluth Trading Company’s ESPP, you have the opportunity to purchase shares of your company stock at a discounted price through automatic payroll deductions.

The benefits of participating in an ESPP are clear – you can make gains and build wealth. In fact, Duluth Trading Company employees can gain $3,750 or even more annually through their ESPP.

Duluth Trading Company’s ESPP Discount

Duluth Trading Company offers employees an opportunity to buy Duluth Trading Company stock at a 15% discount.

Duluth Trading Company’s ESPP Discount

You can enroll in Duluth Trading Company’s ESPP 4 times a year, once in the spring and once in the fall. You can enroll by the following dates:

• Mar 15th

• Jun 14th

• Sep 14th

• Dec 15th

Duluth Trading Company’s ESPP Contribution Limits

The first thing you need to do is decide how much you want to contribute. You can contribute up to 20% of your salary, with a limit of $21,250 per year.

Duluth Trading Company’s ESPP Offering Period

The offering period is the time that employees can purchase the stock. Duluth Trading Company’s employee stock purchase plan (ESPP) has four 3-month offering periods every year. 

When you’re participating in Duluth Trading Company’s ESPP, you set aside money from each paycheck from the beginning of a purchase period through the end. At the end of this purchase period, the money that has been set aside is used to purchase company stock at a discount.

If you are interested in Duluth Trading Company’s ESPP, here are some key dates to keep in mind. 

The offering periods are 

• Mar 31st – Jun 29th

• Jun 30th – Sep 29th

• Sep 30th – Dec 29th

• Dec 31st – Mar 30th

The stock purchase dates are the last trading day before the end of each period.

Duluth Trading Company’s ESPP Lookback

Duluth Trading Company’s ESPP has a lookback provision for calculating the purchase price. A lookback provision is a beneficial feature that will base the purchase price for calculating the discount on the stock price either at the beginning of the offering period or at the end of the purchase period, whichever is lower.

So if Duluth Trading Company’s share price increases during the offering period, you pay 85% of Duluth Trading Company’s share price on the offering date. In this scenario, the discount from the market price will exceed 15%.

Let’s look at an example:

• Share price on Dec 31 =$100

• Share price on Mar 30 = $115

• Purchase price = $85 

• Gain / share = $30

To explain – the lookback feature would pick the lower of the two prices, which is $100, and then apply the discount of 15%.

This means you would buy shares at $85 ($100 – the 15% discount). However, they would be worth $115. In other words, you would earn $30 for every $85 you put into your ESPP.

In this scenario, someone who contributed $5,500 over just 3 months would receive shares valued at $7,441 …a gain of $1,941 in just 3 months.

Make More Money from your ESPP with Benny’s New Program

Benny 2.0 automatically manages your Employee Stock Purchase Plan (ESPP) to make you more money without disrupting your take-home pay.

Learn More