Orvis reels in the sales

Vermont Business Magazine, Jan 1994 by Bell, Mary Day

The easy answer to the question why Orvis Company Inc sales climbed through the roof in 1993 is the movie "A River Runs Through It," which focused worldwide attention on the sport of fly fishing. But to explain the sporting equipment and apparel company's steady growth over time, look beyond the obvious impact of the movie.

Produced and directed by Robert Redford, the academy award-winning "A River Runs Through It" used Orvis fishing equipment and named Orvis in its credits. The movie's success certainly had a favorable influence on the Manchester-based company's 25 percent net sales increase in 1993 from $85 million to $106 million, said public relations officer Pat Theodorus.

The company is projecting sales of $121 million in 1994, an increase of another 14 percent.

That kind of growth is based on more, and new, products and services, Theodorus said, as well as encouraging a flair for, "outfitting the lifestyle of country gentlemen and gentlewomen," as the Orvis catalog puts it.

Custom binding of catalogs was a significant new service this year. Catalogs are separated into merchandize segments, and Orvis can bind catalogs to reflect each customer's buying history, Theodorus said.

Founded in Manchester in 1856 by Charles F Orvis, the retail and mail order company specializes in fly fishing equipment, a tradition since 1874 when Orvis invented the prototype for modern flyreels -- the first ventilated, narrow spool flyreel to be mounted upright.

When Leigh H Perkins Sr bought the Orvis Company in 1965, annual sales were $500,000. Two years later, Orvis started America's first fly fishing school in Manchester. Under Perkins' management, Orvis continued to grow. By 1973 annual sales were $5 million, and Orvis started the first dedicated wingshooting school in the US. In 1982 the company expanded to England, opening a mail order and retail business, and in four years annual sales reached $50 million. Perkins' son, also named Leigh, but who goes by the name "Perk," an avid fly fisherman, became chief executive officer in 1990.

Although Orvis now has over 400 authorized dealers worldwide, its major market is still the United States, and the bulk of sales are through direct mail. However, most fishing equipment is sold at the dealer level -- perhaps because selecting a rod is a highly personal decision for a fisherman.

Orvis' flagship, retail store and headquarters are in Manchester, where employment stands at 150. Manchester facilities include two sales outlets, purchasing and executive offices, warehousing and shipping, rodmaking, advertising and catalog production.

Company-wide, employment is about 500. The Roanoke, VA, customer service fulfillment center and accounting office is in the process of expansion. A third plant -- Orvis Gokey in Missouri -- makes luggage and footware.

Commenting about doing business in Vermont, Perk Perkins said, "I worry that the Vermont income tax will push partnerships and Sub S shareholders out of state."

Vermont's tax structure is a disadvantage to companies like Orvis that do business as a Subchapter S corporation under the Internal Revenue Code, he said. Sub S corporations pay income taxes on the higher individual rate instead of the corporate rate.

Mary Day Bell is a freelance writer from Pownal.