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.
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.
Selling Your ESPP Shares
Once Duluth Trading Company purchases the shares on your behalf, they will be deposited into your brokerage account. From there, you can do what you want with them…sell immediately (as long as it’s during the open trading windows), hold for a short time, hold for an extended time, etc.
How does Benny help me make the most of Duluth Trading Company’s ESPP?
Benny makes it easy to participate in Duluth Trading Company’s employee stock purchase plan by giving you cash to match your ESPP paycheck deduction so you can get the benefits of your ESPP without impacting your take-home pay.
For example, if you’re contributing $350 per paycheck to Duluth Trading Company’s ESPP, Benny will deposit $350 in your bank account before each paycheck’s pay date.
Use our ESPP calculator to see how much you can earn with Duluth Trading Company’s ESPP.