VUOri’s Rise to the Top: From Garage to $5.5 Billion Valuation
Athleisure brand Vuori has come a long way since its humble beginnings in a garage in 2015. The company has managed to attract investors, including General Atlantic, SoftBank, and Norwest Venture Partners, and has raised $825 million in a funding round that valued the company at $5.5 billion.
Vuori’s success has been impressive, with the company reporting growth and profitability since 2017. The company’s sales have seen a significant increase, with growth of 23% in the first half of 2022, outpacing the overall sportswear market which is expected to grow by 4.3%. Vuori’s success is not just limited to the US, as the company has also expanded into Europe and Asia, with plans to have 100 stores by 2026.
The company’s success can be attributed to its focus on product, with CEO and founder Joe Kudla stating that “if you were to just survey our customer base and ask, ‘Why is Vuori so special?’ They would tell you it’s because of our product, it’s because of the comfort, the textile, the fabrics we work with, and the fit. We are all about product, product, product, and that’s ultimately what results in great performance in our industry.”
Despite its success, Vuori faces challenges ahead, including the crowded athleisure space and concerns about the quality of its products. Some consumers are worried about how the brand will maintain its quality as it scales and faces the demands of being a publicly traded company. Additionally, the company must also contend with the same issues as other consumer discretionary companies, including the need to win customer loyalty and adapt to changing consumer preferences.
Lululemon, a competitor to Vuori, has faced challenges of its own, including a sales slowdown in its largest region, the Americas. The company’s struggles have been attributed to a lack of desirable products, including unflattering fits and poor color assortment. Lululemon has acknowledged that its core customer is slowing down and is working to remedy the situation.
Overall, Vuori’s success is a testament to its focus on product and the power of bootstrapping. The company’s journey from a small startup to a $5.5 billion valuation is a remarkable one, and it will be interesting to see how the company grows and develops in the future.
