Three friends who pooled $3,000 to launch direct-to-consumer apparel brand True Classic have since generated over $250 million in revenue – but not without nearly bankrupting their company first, co-founder Ryan Bartlett revealed to CNBC Make It.
Humble Beginnings
The idea emerged when Bartlett, a former digital marketer and restaurant pianist, grew frustrated with ill-fitting mass-market shirts. He partnered with investment banker Matthew Winnick and Venley sportswear co-founder Nick Ventura to create affordable, well-fitting tees.
“We weren’t thinking about becoming a $250 million company. We just wanted to solve a problem,” Bartlett said. Their initial $3,000 investment in samples and $100/day Facebook ads yielded $26,000 in first-month revenue through precise audience targeting.
The $40 Million Mistake
The founders made what Bartlett calls their “stupidest decision”: ordering $40 million in inventory based on gut instinct rather than data. The overestimation nearly collapsed the business.
“We basically sat around a table guessing numbers. It took 18 months to dig out,” Bartlett admitted. The crisis required renegotiating vendor payments with interest, accepting unfavorable financing terms from inventory lender Wayflyer, and slashing profit margins.
Course Correction
True Classic has since implemented rigorous financial controls, hiring a team of retail-experienced demand planners. The company now projects conservatively between middle-to-lower sales estimates rather than optimistic highs.
This disciplined approach has fueled international expansion, with overseas markets now comprising 30% of revenue. The company expects sales to match its cumulative $250 million lifetime revenue in just this single year.
Industry Competition
Despite rapid growth, True Classic faces formidable competition. While rival Vuori holds a $4 billion valuation and Ralph Lauren maintains an $8 billion market cap, Bartlett remains ambitious: “We dream of becoming a billion-dollar company.”
The founders credit their near-failure with teaching crucial lessons. “Now everything is methodical,” Bartlett said. “If we sell out, that’s the worst outcome – much better than going out of business.”
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