U.S. Markets close in 5 hrs 45 mins

Is Duluth Holdings Inc. (NASDAQ:DLTH) Overpaying Its CEO?

Andy Nguyen

Stephanie Pugliese has been the CEO of Duluth Holdings Inc. (NASDAQ:DLTH) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Duluth Holdings

How Does Stephanie Pugliese’s Compensation Compare With Similar Sized Companies?

Our data indicates that Duluth Holdings Inc. is worth US$811m, and total annual CEO compensation is US$1.3m. (This figure is for the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$559k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO compensation of that group was US$2.3m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Duluth Holdings has changed from year to year.

NasdaqGS:DLTH CEO Compensation January 7th 19

Is Duluth Holdings Inc. Growing?

Duluth Holdings Inc. has increased its earnings per share (EPS) by an average of 3.4% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 25%.

It’s great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn’t shabby. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives!

You might want to check this free visual report on analyst forecasts for future earnings.

Has Duluth Holdings Inc. Been A Good Investment?

I think that the total shareholder return of 66%, over three years, would leave most Duluth Holdings Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary…

It looks like Duluth Holdings Inc. pays its CEO less than similar sized companies.

Stephanie Pugliese receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. So you may want to check if insiders are buying Duluth Holdings shares with their own money (free access).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.