After years of steady growth, the brand launched a flannel-sweater hybrid that "evaporated" from shelves. The success of this single item gave them the confidence and clear signal needed to build a true direct-to-consumer business around it.
While VCs pushed direct-to-consumer, Faherty's founders blended wholesale, retail, and online sales. This diversified revenue, managed cash flow via wholesale factoring, and built brand presence in a way a pure-play DTC model couldn't.
By developing and owning the exact specifications for their fabrics—from the yarn to the finish—Faherty can move production between different manufacturers. This de-risks their supply chain from tariffs and geopolitical issues, as the "makers become less important."
The company never proactively pitched major retailers. Instead, they focused on creating a powerful digital presence and a superior product. This strategy made the brand so desirable that major players like Sephora initiated the partnership, flipping the traditional wholesale sales dynamic.
In 2015, Faherty made a counterintuitive marketing bet by launching a print catalog precisely when industry giants like J.Crew were discontinuing them. This classic, tangible medium cut through the digital noise and became their first successful paid media channel.
Despite beverages being a category people rarely buy online, Breeze generated tens of millions in DTC sales. This built a huge base of customers who preferred to buy in-store, creating a powerful demand flywheel. When Breeze launched in retail, it sold four months of inventory in two weeks.
While surrounded by high-growth, venture-backed DTC brands, the Faherty founders learned from those same founders that their slower, more controlled growth was an advantage. This perspective reinforced their decision to avoid the "grow at all costs" pressure of VC funding.
Mike Faherty's deep engagement with overseas factories while at Ralph Lauren built strong personal relationships. These factory owners later became his new brand's first investors and manufacturing partners, a crucial advantage for a startup.
Numi initially used a wholesale model but found it ineffective. They were relying on third-party retail staff to explain a new product category and address the social stigma around sweating. Shifting to direct-to-consumer (DTC) allowed them to control the narrative, educate customers directly, and grow 300%.
Before gaining traction in major US department stores, Faherty received unsolicited interest from prestigious Japanese boutiques. This early international demand provided critical validation and accounted for 40% of their initial wholesale business.
To compete in department stores, Alex Faherty personally visited all 10 initial Nordstrom locations. He told the brand story directly to salespeople, recognizing they were the ultimate gatekeepers to customers and their buy-in paid long-term dividends.