Faherty Brand: Alex and Mike Faherty. How Jersey Shore + Manhattan Chic grew to 80 stores.
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
Mike and Alex Fairey transformed a childhood dream from a college essay into a $250 million clothing brand by taking the road less traveled in retail. (02:34) While other entrepreneurs were going all-in on direct-to-consumer, the Fairey twins built their business through a combination of wholesale, retail, and online sales - a strategy most thought was outdated. Starting with board shorts inspired by premium surf culture meets luxury fashion, they spent twelve years preparing before launch - Mike gaining expertise at Ralph Lauren while Alex built financial acumen on Wall Street. (31:17) Their unconventional approach included driving a custom mobile store across the country and opening 81 retail locations during COVID, proving that patience and an "all of the above" strategy could build lasting success.
- Main themes: Strategic patience in business building, the power of combining traditional retail channels with modern approaches, and maintaining authentic family business values while scaling nationally
Speakers
Mike Fairey
Co-founder and creative force behind Fairey Brand, Mike spent eight years at Ralph Lauren honing his craft in fashion design and garment engineering. He majored in fashion design at Washington University while playing Division I basketball, learning to sew and developing expertise in premium American workwear. His experience traveling to factories in Asia and working on Ralph Lauren's Double RRL line gave him the technical skills to engineer high-quality coastal-inspired clothing from the ground up.
Alex Fairey
Mike's twin brother and business co-founder, Alex built his business acumen in private equity and investment banking after graduating from Yale. He spent years saving money and learning finance specifically to fund their eventual clothing venture. Alex handles the business operations, retail expansion, and strategic planning while bringing Wall Street discipline to their family-run operation. His wife Carrie later joined as a co-founder, adding legal expertise to the team.
Key Takeaways
Take the Long View: Strategic Patience Pays Off
The Fairey twins spent twelve years preparing before launching their brand - Mike learning fashion design and manufacturing at Ralph Lauren while Alex built business skills and capital in finance. (11:34) This extended preparation period allowed them to launch with deep expertise rather than just passion. Mike became a "garment engineer" understanding everything from yarn construction to washing techniques, while Alex mastered financial modeling and inventory management. This patience-first approach meant they could avoid many of the costly mistakes that sink early-stage brands and gave them credibility with manufacturers and retailers from day one.
Don't Pick Just One Channel - Build an Integrated Approach
While other direct-to-consumer brands were raising millions to focus solely on online sales, the Fairey brothers studied annual reports from Ralph Lauren, Coach, and Louis Vuitton to understand how premium brands really operate. (45:14) They discovered that successful brands typically split their business 50-50 between wholesale and retail/ecommerce. This multi-channel approach provided crucial cash flow through wholesale factoring, built brand credibility through premium store placement, and created multiple revenue streams that protected them during market downturns. During COVID, when their retail and wholesale channels temporarily died, their ecommerce foundation saved the business.
Turn Constraints Into Creative Advantages
With limited capital compared to venture-backed competitors, the Fairey brothers couldn't afford massive marketing budgets or inventory mistakes. This forced them to innovate with their mobile beach house store concept and focus on relationship-building with specialty retailers. (36:37) Their cross-country road trip wasn't just marketing - it was market research that revealed the power of face-to-face customer connections. These constraints also pushed them toward wholesale relationships with factoring companies that provided crucial working capital, creating a sustainable business model that didn't require constant fundraising.
Master Your Product from the Ground Up
Mike's obsession with fabric engineering and garment construction became Fairey's competitive moat. He spent years perfecting their signature board shorts, experimenting with recycled polyester and cotton blends until finding the exact 17% cotton ratio that maintained quick-dry properties while feeling like premium fabric. (24:45) This technical mastery meant they owned their "fabric recipes" and could manufacture anywhere in the world, providing flexibility during supply chain disruptions and tariff changes. Their deep product knowledge also enabled them to command premium prices and build customer loyalty through superior quality.
Use Economic Downturns as Expansion Opportunities
During the 2020 pandemic, while most retailers were contracting, Alex took inspiration from Ron Shaich of Panera Bread and decided to expand aggressively. (68:37) With landlords desperate for tenants, construction costs low, and prime locations available, they signed 40 new store leases over two years. This contrarian move during crisis allowed them to secure premium locations at below-market rents with long-term lease protections. The strategy required significant courage and operational discipline, but positioned them perfectly for the post-COVID recovery while competitors were still rebuilding.
Statistics & Facts
- Fairey grew from $365,000 in first-year sales to $250 million in annual revenue, with Japan representing 40% of their first year's wholesale business. (44:05) This international success came from an unexpected email in Japanese from Journal Standard boutique, demonstrating the power of quality products finding global markets organically.
- During COVID-19, Fairey's business model shift resulted in 100% year-over-year growth in ecommerce when 70% of their business (retail and wholesale) initially shut down. (66:05) Their inventory that seemed like a liability became an asset when ecommerce demand exploded and they could fulfill orders at higher direct-to-consumer margins.
- The company expanded from 11 stores to 81 locations by leveraging the pandemic real estate market, signing 40 new leases during 2020-2021 when landlords offered favorable terms and tenant allowances. (70:04) This aggressive expansion during economic uncertainty positioned them in premium locations at below-market rates.
