
DUER posted 40% Q1 sales growth and doubled its women's business despite 50% tariffs on Canadian goods. CEO Gary Lenett explains the strategy.
President Trump is set to hit most Canadian imports with a 50% tariff on Aug. 19, the first use of the Smoot-Hawley Act since 1930. Retailers across the border are bracing for price hikes and margin pressure. Vancouver-based DUER, a denim brand that blends classic jeans with athleisure performance, isn't panicking.
“I dare say, we might be the fastest growing apparel brand in North America,” said CEO Gary Lenett. First-quarter sales rose 40% year over year. The company has been profitable every year since 2017.
DUER shifted its distribution model after the first round of tariffs last year. Half of its sales now flow through a U.S. warehouse, letting the company absorb the levy without raising prices. The move also helped double its women's line, launched in 2021, which is now the fastest-growing segment.
Lenett started his career as a lawyer. A call from his brother to help at the family clothing factory turned into 15 years producing jeans for Levi Strauss, Guess and The Gap. That background gave him a deep understanding of the denim supply chain.
He founded DUER in 2014 after spotting a gap in the market. “The question was ‘Does the world need another jeans brand?’ and the answer was emphatically no, unless it was clearly differentiated,” he said. The brand spent two years developing proprietary fabrics. The main one is a denim weave with 70% cotton, plus polyester and spandex, finished with an antimicrobial treatment. The other is a cotton-and-Tencel blend used in its “No Sweat Pant.” Together, those two fabrics account for about 70% of volume and have been bestsellers for five years.
DUER positions itself between pure denim heritage and synthetic athleisure. “Athleisurewear is based on a false premise – that people want to wear après-gym synthetic plastic clothing throughout their day,” Lenett said. “What the world needs now is more cotton-rich street clothing with performance attributes.”
Pants average $120, putting DUER in premium territory but well below Levi's ultra-premium Blue Tab line at around $300. The price also compares favorably to Lululemon leggings, while offering a more polished look.
Revenue is split evenly between wholesale and direct-to-consumer. The brand has roughly 1,000 wholesale accounts. REI and Nordstrom are its premiere partners. “Nordstrom speaks to our contemporary fashion, REI is a proof statement of our performance capability,” Lenett said. “We sit in this middle space.”
DUER runs 13 stores, with a 14th opening in Winnipeg this summer. U.S. locations include Los Angeles, Denver, Chicago and Portland. The U.S. business is growing faster than the Canadian side. Lenett plans four to five new stores per year in both countries, a pace he calls “pretty aggressive.”
“After 35 years in the fashion business, I thought I’d seen it all – but then we had the pandemic, then last year’s tariffs and now the new ones,” he said. “We’ve kept going strong, averaging 25% year-over-year growth and being profitable.”
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