business

Tom Sega missed the hunting opener for the first time in 30 years in November, but you won't hear him complaining.

Instead of hunkering down in a deer stand, the president of Duluth Pack was standing in the Barneys New York flagship store in Manhattan, promoting a new line of canvas bags designed specifically for the iconic luxury retailer.

The 128-year old Duluth Pack built its name making canoe packs and other gear for the rugged wilderness, but it is riding a new wave of popularity from style-conscious urbanites who have a taste for Made in the USA craftsmanship.

"There's a lot of buzz around 'heritage' right now," said Sega, who took over the slumping company in 2007 and has restored it to profitability. "We've made a conscious decision to ride that horse for everything it's worth, because we can truly claim it."

Duluth Pack and a host of other Minnesota workhorse brands are hitting the high end. Red Wing Shoes are now carried in Brooks Brothers and Nordstrom. St. Paul's J.W. Hulme's briefcases and women's handbags also can be found in Barneys. Bemidji Woolen Mills, Frost River and Pierrepont Hicks have made inroads around the country, most notably in New York.

"Minnesota is exporting cool," said Michael Williams, a New York-based men's apparel marketer and expert in the so-called heritage brands trend. His blog, "A Continuous Lean," often features Minnesota companies.

"I don't know what's in the water in Minnesota, but these companies have stayed true to their roots. That's something fairly rare."

Their success comes from a convergence of factors, Williams said. The recession caused many consumers to rethink their throwaway lifestyles and to invest in things that last. The shop-local movement helped raise awareness of organic food and locally made goods. And the rugged-but-tailored look became fashionable.

"Being patriotic and being 'Made in the USA' used to be a truck driver thing," Williams said. "Now all these creative young people are doing it. That's a seismic shift."

Men's retail in general has weathered the economic downturn better than women's apparel stores. Men shop with purpose, not as an indulgence, and more are shopping for themselves, according to NPD Group.

During the thick of the recession in 2009, a survey of wealthy households by the American Affluence Research Center found that 23 percent of men said they hadn't reduced spending, compared with 14 percent of women. Coach, Hermès, Ralph Lauren and J. Crew recently have opened upscale men's-only stores.

Duluth Pack is trying to ride that wave.

At the century-old headquarters and factory in the West End of Duluth, six sewing stations have been added to handle an order for 5,100 Safari duffels, which must be shipped out by March 1 to an East Coast retailer the company wouldn't name.

"We're hustling," said Sue Oja, a 20-year Duluth Pack veteran, as stacks of the company's signature olive-drab fabric surround her.

It's Duluth Pack's single largest order, and it comes on top of 11 percent growth last year. Aside from the collaboration with Barneys, Duluth Pack is making bags for Urban Outfitters and for Vancouver-based editor and fashion curator Ryan Willms' Inventory.

The company has been featured in GQ, Outside, Redbook and Country Living magazines. A child's pack sells for $65, a utility backpack for $165 and a leather duffel for $325. A Barneys exclusive leather and canvas Wanderer Pack goes for $595.

"We've gone from survival mode the first couple of years to total growth mode," said Sega, who expects to add to his 35-person production crew this year.

Along with junior high classmate, chief financial officer and co-owner Mark Oestreich, Sega has cut costs and instituted procedures on everything from payroll to the production floor in order to improve efficiencies.

The partners boldly slashed catalog distribution from 1.8 million copies when they took over four years ago to just 325,000 last year. For decades it had been the core marketing tool, but it became too expensive to produce.

The company now is focused on building online sales and brand recognition through the social media work of Molly Solberg, an outdoors enthusiast known to followers as Duluth Pack Molly.

It seems to be working. Sales at Duluth Pack's lone retail store in Canal Park grew this year and still make up about half of revenue. The company also doubled its dealer network, which Sega and Oestreich aim to keep growing.

Learning Americana from Japan

Red Wing Shoe Co., on the other hand, has been exporting its brand of work-wear cool to Japanese and European fashionistas for nearly 25 years. But only recently has the $200 to $300 dress-up boot made its way back to America.

"Japan taught America everything we know about work wear and Americana," said Michael Williams, who was recently hired to do marketing work for Red Wing Shoes. "They have whole magazines dedicated to this stuff."

Red Wing's partnership with J. Crew in the fall of 2006 put it on the men's fashion map, and now is Red Wing's biggest U.S. account.

This fall, Red Wing dress boots showed up for the first time in a Brooks Brothers catalog as well as a limited number of Nordstrom stores. They've been available for years at Bergdorf Goodman, selling alongside Ferragamo, Prada, Ralph Lauren and Gucci.

"We're not taking our current models and making them more fashionable by adding tassels or buckles," said Dan Dahl, Red Wing Shoe Co.'s senior director of the lifestyle division. "We're literally remaking the same boots we made in 1910 and 1920 and 1940 and 1950. That's what's popular right now."

He describes the current trend as "America's flight to quality."

Even with the shaky economy, sales of the Red Wing high-end boots are up 28 percent over last year, said Dahl.

While fashion boots make up 10 percent of pairs sold, they account for nearly 16 percent of overall shoe sales. Coming to the U.S. this spring: an oxford low-cut shoe that has been popular in Japan and Europe for some time.

A symbol of nostalgia

For St. Paul-based J.W. Hulme, the renewed interest on Madison Avenue helped lift the company from near-death a year ago. Founded in 1905, J.W. Hulme has similar roots to Duluth Pack as a tent and awning maker.

Its current line of canvas and leather bags is more expensive than Duluth Pack and aimed at a more upscale market, CEO Jen Guarino said.

Designer Steven Alan became smitten with J.W. Hulme a year ago. Besides stocking products in his Manhattan store, Alan became a distributor and landed the brand in Barneys, where Hulme sells women's handbags for $340 to $450 and its Field Briefcase for $350. Allen Edmonds carries many of its leather goods, including the popular $295 iPod cases, in about 10 stores.

"I laugh and say we're a 100-year overnight success story," Guarino said.

Unable to get financing after the recession hit and banks quit lending, J.W. Hulme laid off all but five employees in January 2009.

The fashion rebirth of the past year has allowed the company to rehire everyone, and then some, for its factory on W. 7th Street. Sales were up 29 percent last year, led by hot sales of its men's briefcase.

Hulme also co-sponsored a pop-up flea market, "Northern Grade Men's Market" this September with Pierrepont Hicks of Minneapolis. The one-day event at Architectural Antiques featured nearly 20 vendors from the Upper Midwest.

"People have begun to understand and appreciate the workmanship and quality," said Guarino. "The perceived value of the investment is really high, and it's a nostalgic movement. We symbolize that."

Jackie Crosby • 612-673-7335