How I Built This with Guy Raz

Faherty Brand: Alex and Mike Faherty. How Jersey Shore + Manhattan Chic grew to 80 stores.

October 13, 2025

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  • The Faherty brothers spent over a decade preparing for their brand launch, with Mike learning fashion craft at Ralph Lauren and Alex learning business mechanics in finance. 
  • Mike Faherty's design philosophy centered on elevating surf culture with luxury fashion elements, exemplified by creating board shorts that felt like premium casual wear. 
  • The initial business strategy, despite investor skepticism, embraced an 'all channels' approach (online, wholesale, and eventually retail) which proved crucial for early momentum, particularly through specialty retailers. 
  • The success of Faherty Brand, as detailed in this episode of "How I Built This with Guy Raz," involved a contrarian, multi-channel strategy (wholesale, retail, online) that proved to be a competitive advantage, especially when the COVID-19 pandemic shifted demand heavily toward e-commerce. 
  • The launch of a hero product, the 'legend sweater shirt' around 2016, provided the necessary momentum and profitability proof to attract their sole significant outside investor, who found them via a customer service email. 
  • Inspired by Ron Shaich of Panera Bread, the Faherty brothers leveraged the economic downturn during COVID-19 to aggressively secure long-term leases for 40 new retail locations, betting on cheaper real estate terms to rapidly scale their physical footprint. 

Segments

Early Fashion Inspiration
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(00:05:41)
  • Key Takeaway: Mike Faherty’s early exposure to high-quality fabrics like cashmere at Bergdorf Goodman sparked his interest in fashion design.
  • Summary: Mike discovered fashion inspiration through his father’s style and later by experiencing luxury materials in New York City stores. This early exposure led him to write about starting a clothing company, ‘Coast to Curb,’ in a college essay. His mother encouraged his artistic pursuits, while his father promoted an optimistic, ‘go do it’ attitude.
Balancing Sports and Design
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(00:07:48)
  • Key Takeaway: Mike persevered through skepticism from basketball teammates and coaches to master garment construction through rigorous college sewing coursework.
  • Summary: Mike faced teasing for majoring in fashion design and taking sewing classes while playing basketball at Wash U. He often stayed up all night sewing projects after returning from games, demonstrating commitment to learning the craft. Alex, playing football, recognized his brother’s vision early on and committed to joining the future clothing company.
Pre-Launch Preparation Years
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(00:11:21)
  • Key Takeaway: Both brothers strategically chose college majors and early careers to acquire specific skills (design/craft and finance/capital) needed for their future venture.
  • Summary: Mike studied fashion and worked at Ralph Lauren for eight years, focusing on garment engineering and factory relationships, especially with the premium Double RL line. Alex worked in finance, saving capital and seeking consumer project exposure, despite a mentor calling the clothing brand idea ’the dumbest thing I’ve ever heard.’ Alex’s fiancée, Carrie, supported his decision to leave finance for the startup.
Defining the Brand Concept
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(00:19:03)
  • Key Takeaway: Faherty Brand aimed to merge the high quality and craftsmanship of luxury American fashion with the relaxed, desirable aesthetic of surf culture.
  • Summary: The brand sought to compete with billion-dollar surf companies by introducing premium quality and design sophistication. The initial product focus was board shorts, designed to be stylish enough for city wear, not just the beach. The concept capitalized on the high-end appeal of brands like Vilebrequin while offering a distinct, accessible luxury coastal vibe.
Launching and Initial Funding
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(00:31:53)
  • Key Takeaway: The brothers launched Faherty online from Puerto Rico, securing $1 million from 44 angel investors, including a key factory owner who provided early production access.
  • Summary: The website launched while the founders were surfing in Puerto Rico, initially selling only men’s board shorts and women’s bikinis. Inventory management proved immediately challenging, consuming capital quickly. A supportive factory owner invested and offered production capacity for their first small-quantity orders.
Mobile Pop-Up Strategy
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(00:36:28)
  • Key Takeaway: To combat slowing online sales, the founders toured the country in a custom-built, reclaimed wood mobile beach house to create in-person brand experiences.
  • Summary: The custom trailer opened hydraulically on both sides, functioning as a mobile pop-up store at festivals and independent retailers’ parking lots. This direct, in-person sales approach generated $1,500 in sales on one stop along the PCH in Big Sur. The trailer later served as their booth for trade shows, attracting initial wholesale interest.
Wholesale vs. Direct-to-Consumer
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(00:44:47)
  • Key Takeaway: The initial business plan favored a balanced mix of wholesale, retail, and online sales, but wholesale quickly dominated due to capital constraints and the ease of factoring orders.
  • Summary: Studying annual reports of luxury brands like Ralph Lauren confirmed the value of a multi-channel approach for building brand equity. Wholesale took over, accounting for 75% of business in year two, driven by early wins with specialty stores and Japanese boutiques like Journal Standard. Wholesale allowed the use of PO financing to manage the inventory cycle without needing massive venture capital.
Gaining Retail Visibility
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(00:49:35)
  • Key Takeaway: Success in department stores like Nordstrom was initially slow, but the brand gained traction through smaller specialty retailers whose owners were also the primary salespeople.
  • Summary: The plaid shirt became the first high-velocity product in Nordstrom, differentiating itself from the solid, preppy styles dominating the market then. Mike personally visited all 10 initial Nordstrom locations to train sales staff and reposition merchandise, recognizing that personal connection with frontline sellers yields significant returns. Specialty stores were crucial early adopters because the owner-buyers had to sell the product themselves.
Family Business Control and Exit Strategy
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(01:15:13)
  • Key Takeaway: The Faherty brothers intend to run Faherty Brand indefinitely, prioritizing brand integrity over a traditional sale to a conglomerate.
  • Summary: The founders have no desire to sell the business if they retain control, aiming to operate it as long as they are able, similar to Ralph Lauren. They have sold minority stakes to investors but maintain a strong commitment to long-term, independent operation. This family-centric approach contrasts with the high-growth, venture-backed models often seen in direct-to-consumer brands.
Managing Family Dynamics
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(01:16:13)
  • Key Takeaway: Starting a brand with family members, including spouses and parents, adds complexity, requiring strong underlying trust to navigate inevitable conflicts.
  • Summary: The dynamic of having four family members involved in the business creates inherent conflict points that must be managed. The brothers acknowledge they are not always the best communicators in these situations. However, the foundational trust established since childhood helps them navigate these challenges to keep the business successful.
Grind Versus Luck in Growth
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(01:18:17)
  • Key Takeaway: The Faherty brothers attribute their current success primarily to relentless hard work and a positive attitude rather than luck.
  • Summary: Mike emphasizes that the brand’s journey has been achieved through ’the grind,’ comparing the fashion industry to a repetitive cycle of seasonal production. Alex reinforces this by stating their success stems from an attitude of figuring things out, regardless of setbacks. Maintaining positive energy is crucial for motivating staff through difficult periods.