Episode Summary: "Better Call Andrew" | Fashion People Podcast

Release Date: May 9, 2025
Host: Lauren Sherman
Guest: Andrew Rosen, Founder and Former CEO of Theory, Investor in Rag & Bone, Alice and Olivia, Veronica Beard, Skims, and Tells Tale & Whisper (TWP)

Introduction

In the episode titled "Better Call Andrew," Lauren Sherman, Puck correspondent and host of Fashion People, welcomes Andrew Rosen—a luminary in the American fashion industry. Rosen, renowned for founding Theory and his strategic investments in influential brands like Rag & Bone, Alice and Olivia, Veronica Beard, Skims, and TWP, shares his extensive insights into the evolving landscape of fashion retail, the dynamics of multi-brand stores, and his philosophies on nurturing emerging brands.

Andrew Rosen's Journey in Fashion

Andrew Rosen’s foray into the fashion world began at a young age, working alongside his father, a prominent clothing manufacturer. Rejecting the traditional college path, Rosen immersed himself in the operational facets of the business—from factories to warehouses—gaining a grassroots understanding of garment production.

"I started back in 1977 working for my dad... I learned the business from the inside out," Rosen explains (07:39). This hands-on experience laid the foundation for his future endeavors, particularly his pivotal role in the rise of designer-identified products in American fashion during the mid-1970s.

In 1997, recognizing a gap in the market for contemporary, high-quality apparel tailored for the modern woman, Rosen launched Theory. His vision was to blend European fabric excellence with American practicality, crafting clothing that was both stylish and functional.

Building and Selling Theory

Theory quickly became a staple in the contemporary fashion scene, known for its minimalist designs and superior fabric quality. By 2003, Rosen had steered the company to substantial growth, achieving a valuation of $150 million. Seeking new opportunities and recognizing the potential for greater global impact, he sold Theory to Fast Retailing, the parent company of Uniqlo.

"I felt like I could do a lot more with the money than I could with the business," Rosen notes (13:39). Contrary to his initial plans, Rosen remained at the helm of Theory during its integration into Fast Retailing, serving as CEO for an additional 16 years. His prolonged tenure underscored a deep mutual respect and a shared vision for Theory's future within the global market.

Life After Fast Retailing: Investing in the Future of Fashion

Upon retiring from his CEO role in 2019, Rosen didn’t retreat from the fashion scene. Instead, he pivoted to investing, leveraging his extensive industry knowledge to support burgeoning brands. His portfolio includes significant stakes in Rag & Bone, Alice and Olivia, Veronica Beard, Skims, and most recently, Tells Tale & Whisper (TWP).

Rosen emphasizes a hands-on approach to investing, focusing on the quality of the product and the integrity of the founders rather than traditional financial metrics. "I just look at the product and talk to the people and from there I can see what the opportunity is," he states (23:22). This philosophy has enabled him to identify and nurture brands that resonate with contemporary consumers while maintaining high standards of design and manufacturing.

The Dynamics of Multi-Brand Retail

A significant portion of the discussion delves into the role of multi-brand retail in today’s fashion ecosystem. Rosen advocates for the indispensability of specialty stores, which offer curated selections and personalized shopping experiences, as opposed to the often impersonal nature of large department stores.

"Multi brand retail is a necessity... those specialty stores have a loyal following," Rosen opines (44:07). He critiques the decline of traditional department stores, citing their inability to provide a distinct point of view or an engaging shopping experience. Instead, Rosen celebrates the rise of entrepreneurial merchants who create vibrant retail spaces that attract and retain customers through unique offerings.

Rosen also comments on the shifting strategies of major retailers like Neiman Marcus and Saks Fifth Avenue, highlighting their mergers and acquisitions as potential catalysts for reinvigorating luxury retail by fostering curated and edited assortments.

Advice for Emerging Brands Amidst Industry Challenges

Addressing the hurdles faced by new brands, particularly in the wake of tariffs and shifting market demands, Rosen offers pragmatic advice. He underscores the importance of aligning with specialty retailers who are more receptive to emerging brands than large department stores focused solely on high-volume sales.

"The real trick for young brands today is really the whole specialty store route," he advises (52:07). Rosen encourages entrepreneurs to seek partnerships with retailers that value innovation and are willing to champion new talents, thereby facilitating sustainable growth and market presence.

Future Outlook: Embracing Physical Retail and Innovation

Looking ahead, Rosen remains optimistic about the resurgence of physical retail. He envisions a future where shopping is an experiential endeavor, blending the tactile advantages of in-store browsing with the convenience of online access. Rosen believes that as malls and retail spaces evolve into lifestyle centers, they will better cater to consumer desires for both discovery and engagement.

"I believe that physical retail is definitely back, and physical retail is an important component in the future," Rosen concludes (57:08). His belief in the creative resilience of the American fashion industry fuels his optimism for ongoing innovation and adaptation in the face of economic and global challenges.

Key Takeaways

• Grassroots Beginnings: Rosen’s early immersion in the family business provided a solid foundation for his later successes in founding and scaling Theory.

• Strategic Growth: The sale of Theory to Fast Retailing exemplifies Rosen’s strategic foresight in positioning the brand for global expansion.

• Investment Philosophy: Favoring product quality and founder integrity over traditional financial assessments, Rosen has successfully invested in and nurtured several high-profile fashion brands.

• Advocacy for Specialty Retail: Rosen champions the role of multi-brand specialty stores in fostering a curated and engaging shopping experience, critical for the success of emerging brands.

• Resilience and Innovation: Despite industry challenges like tariffs and the decline of department stores, Rosen remains confident in the fashion industry's capacity for innovation and the enduring relevance of physical retail spaces.

Notable Quotes

• On Founding Theory:

  "Theory just worked. And it had a designer sensibility. It had fabrics from the best mills in Europe, and it had incredible quality. But it was simple in its design and thereby worked for lots of women." (11:21)

• On Investing in Fashion Brands:

  "I just look at the product and talk to the people and from there I can see what the opportunity is." (23:22)

• On Multi-Brand Retail:

  "Multi brand retail is a necessity... those specialty stores have a loyal following." (44:07)

• On Future of Physical Retail:

  "I believe that physical retail is definitely back, and physical retail is an important component in the future." (57:08)

Conclusion

In "Better Call Andrew," Andrew Rosen provides a comprehensive look into his influential career and the broader dynamics shaping the fashion industry today. From founding Theory to investing in the next generation of fashion brands, Rosen's insights offer invaluable guidance for industry veterans and newcomers alike. His emphasis on quality, integrity, and the indispensable role of specialty retail underscores a visionary approach to sustaining and evolving the business of fashion.