Patented Zipper Technology Delivers Five-Finger Freedom
Hand Out Gloves is a snow glove manufacturer that generates 99% of its sales in the six months between November and April. This year, when ski resorts and shops began shutting down in March due to COVID-19, it cut the company’s revenue stream, which it relies on to survive in its offseason. Several retail partners delayed or canceled orders for next season, causing inventory risk and cash flow issues for 12 months out.
“As with many of our friends in the outdoor industry, inventory stopped moving out the door,” said Jonny Murdock, co-owner of Hand Out Gloves. “Despite our best efforts to close it all out at huge discounts to our retailers, we couldn’t find any takers and watched helplessly as the season came to an end with ten times the inventory on our shelves than we anticipated.”
Fortunately, with only two full-time employees and one part-time employee, the company acted quickly during the buying season to lock down as many retailer pre-orders as possible. It also drastically reduced its bulk order for the 2020-2021 snow season to minimize its cash flow obligations.
The company also benefited by receiving a Shop in Utah grant just in time to pay its employees and bills. The grant enabled the company to justify otherwise impossible discounts on backstock inventory and promote it heavily via emailers, social channels, and affiliates. This Shop in Utah campaign resulted in a 1,800% increase in sales over the 2019 off-season!
“Thanks to the Governor’s Office of Economic Development, and customers globally who are jumping at our Shop In Utah promotion, Hand Out Gloves is positioned to not only survive one to two years of significant economic hardships but to come out of the coronavirus pandemic with increased market share and brand awareness,” said Murdock.
Hand Out Gloves also believes in giving back to community members. The company donated $2,000 worth of gloves and mittens to the nonprofit Wasatch Adaptive Sports, which increases independence and mobility for individuals engaging in sports and other outdoor activities. Just before the coronavirus pandemic emerged in the United States, the company also had the opportunity to donate $2,000 worth of product to the Navajo Reservation south of Paige, Arizona.
“Through practical measures to reduce expenses, staying involved in our community and accessing both federal and state resources, Hand Out Gloves successfully navigated the most turbulent environment since its 2013 inception, and remade itself into a significantly more profitable company in the process. Thank you, Utah.” Murdock added.