Instead of rushing in, the founders spent over a decade preparing. Mike learned design at Ralph Lauren, and Alex learned finance on Wall Street. This patient, deliberate skill acquisition provided the foundation for their venture.
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.
Facing limited capital, Faherty leaned on wholesale. They used factoring—getting advances on purchase orders from established retailers like Nordstrom—to manage cash flow and fund production, a capital-efficient alternative to dilutive venture rounds.
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.
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."
Inspired by food trucks, the founders created a custom "beach house" trailer to act as a mobile retail store. This low-cost, high-impact marketing tactic generated buzz, drove sales, and even served as their trade show booth.
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.
Inspired by Panera Bread's recession strategy, Faherty saw the 2020 pandemic as a unique chance for retail expansion. While others retreated, they aggressively signed 40 long-term leases, capitalizing on low rents and favorable terms.
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.
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.
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.
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.