By Hilary Milnes.
Last year, the direct-to-consumer apparel brand Dstld (a vowel-less version of “distilled”) turned to its customers to raise capital after recognizing that the cash flow from venture capitalists had all but dried up for clothing startups that offer meager returns for investors.
Since this time last year, now saddled with $1.2 million in investment from 1,700 customers, Dstld has tripled its revenue, from $3 million in July of 2016 to $9 million today, as well as doubled its customer base. It also saw 194 percent compounded annual sales growth, and doubled sales in the first half of this year. The company declined to disclose profit.
Co-founder Corey Epstein said the brand has used the investment to make new hires in its departments — product design, manufacturing and fulfillment, and marketing — who can support the company’s 20 percent-per-month growth rate. According to Epstein, the company hires five more people than it needs in each department in anticipation of its next phase of growth.
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