Vuori Vaults To $4 Billion In a Decade, It Is Just Warming Up

Yoga enthusiast, and former college athlete Joe Kudla recognized a significant market gap when it came to finding high quality men’s fitness apparel. That was unless a guy was cool with shinny synthetic fabrics emblazoned with big brand logos.

So, in 2014 the Encinitas California based Kudla began a mission to blend the SoCal lifestyle with high-quality performance fabrics, creating athletic clothing with a different perspective. And Vuori (the Finnish word for Mountain) was born.

Not a Straight Shot

But it was anything but a straight shot from the “friends and family” funded startup to its current $4 billion super-brand status. After an initial $700,000 funding round, he began marketing his products in yoga studios and fitness centers, and within two-years nearly ran out of money. His salvation became the e-commerce direct-to-consumer (DTC) model, after learning his customers were using the comfy brand in all-day settings.

Their marketing then became focused on social media ads to a broader audience, and the results were immediate, returning $2 for every dollar spent. Very quickly, they went to a three-to-one then four-to-one return ratio.

The decade-short but expansive climb is one few fashion brands have ever matched. And while the Vuori market cap remains only 10% of the publicly traded leader Lululemon, it has taken them a quarter-century to get there. It is also worth noting that privately held Vuori has a greater valuation than Under Armour, Gap, or Urban Outfitters, all publicly traded companies.

A Unified Commerce Approach

But like many other direct-to-consumer startups, they recognized that growth required a parallel wholesale strategy. Vuori has always embraced a holistic, omnichannel vision. While they initially focused on the internet, they never totally neglected wholesale. In fact, in 2016 Vuori joined REI’s incubation program, which would feature various legacy and emerging brands. Vuori became the number two brand across many of REI’s stores and was introduced in 150+ physical locations.

That same year Vuori opened its first brick and mortar store in Encinitas, California. Currently, they have thirty-two brick and mortar store locations, including one in London. In a recent e-mail, Vuori confirmed plans to have 100 stores open by 2026, complementing the over 2,000 global outlets featuring their brand. The carefully cultivated partners include both upscale independent retailers as well as major partners Nordstrom
JWN
, REI, Equinox, Selfridges, and Harrods.

Esteemed Brand, Supremely Managed

The common theme running throughout the brand’s execution has been quality. Quality in product design, fabric selection and fit, as well as unified product presentation across all its brand touchpoints, online and offline.

Vuori’s holistic, and tastefully understated approach was “brought home” quite literally with their newest store opening, at Mall of America in Minneapolis. I attended a preview gathering, a day ahead of the store’s May 12th opening. The 4,000 square foot space is on MOA’s first level.

The preview event embodied the brand’s sense of community building, summarized in their e-mail, stating “we have found engaging local communities in our retail stores through our V1 Community program, as well as in person events has allowed our customer to experience Vuori’s ‘“Investment in Happiness”’ philosophy firsthand.”

Talking The Walk (or stretch)

The “Zen” of the store, captured in a bold inscription reads “We Draw Inspiration from an Active Coastal California Lifestyle.” Colors not found in either the SoCal sand or surf are not present in either the men’s or women’s product lines. The visitor almost feels a subliminal surf sound (more Pet Sounds, than Surf’s Up) embodied by the lush feel of the fabrics.

Physically, the store’s footprint lands mid-point between the 1,400 square foot to 6,000 square foot buildout range, the largest being represented in Chicago. Aesthetically, the store pallet is predictably neutral. Light oak fixtures, natural oak and grey carpeted flooring and white walls create a great foil for the goods.

Upscale and Understated

The product displays have a lean upscale look, without getting too Apple
AAPL
-like. A complement of various shaped white and oak pedestals features folded products, mannequins, and an occasional potted plant. There is a “tailored randomness” to the staging which suggests a no rules “brand ethos,” not lost on this surviving store designer. Further the tightly edited offering keeps the shopper out of product overwhelm.

Perimeter product displays offer a nice mix of hanging and folded goods, topped off by simple lifestyle imagery, and more plants. The lighting is excellent, dominated by LED spots and floods highlighting product and augmented by a soft halo from cove lighting. No major store design awards will result, but the overall aesthetic supports the brand to a (performance) “T.”

Fringe Benefits of the “New Normal”

It cannot be denied that the pandemic played into Vuori’s brand plan. The cross-function, activewear turned office attire trend tends to mollify the premium price. Strong growth should be expected, as long as suits remain buried in the back of our closets. One can spread an entire pre-pandemic business wardrobe budget across the Vuori line, and still have spare change for Yoga classes.