How I Built This with Guy Raz

Episode: Faherty Brand: Alex and Mike Faherty – How Jersey Shore + Manhattan Chic Grew to 80 Stores
Released: October 13, 2025

Overview

In this episode, Guy Raz sits down with twin brothers Alex and Mike Faherty—co-founders of Faherty Brand, a lifestyle clothing label inspired by coastal vibes and Manhattan sophistication. Together, they recount their journey from childhood dreams on the Jersey Shore, through the lessons learned in finance and fashion, to building a $250 million business with over 80 retail stores across the U.S. The episode delves into their early inspiration, the unique blend of wholesale, DTC, and retail that set them apart, the hard realities of entrepreneurship, and the family dynamics that shaped their company’s trajectory.

Key Discussion Points & Insights

Early Inspirations & Founding Vision

• Mike’s love for fashion and coastal life: Childhood spent on the Jersey Shore and later New York City instilled in Mike a love for both surf culture and urban style ([04:47]).
  • Notable moment: The brand concept dates to Mike’s high school college essay—"coast to curb," merging surf with city style ([06:04]-[06:40]).
• Family bond and early support: The twins always envisioned running a business together. Their relationship was fostered from day one—“even before we could walk, we ended up in each other's cribs every night” (Mike, [10:55]).

Education & Gaining Experience

• Mike at WashU: Studied fashion, was the only male in his sewing courses, balanced basketball, and fashion shows ([08:03]-[08:37]).
• Alex at Yale: Studied finance, dabbled in eBay sales, always considering how to build business acumen for their future venture ([11:39]-[12:03]).
• Deliberately delaying their launch: Spent over a decade prepping—Mike at Ralph Lauren (especially the RRL line), Alex in finance, saving up capital and learning the ropes ([03:57]-[04:47], [13:22]-[14:33]).

Launching Faherty Brand

• Leaving secure careers: Both faced skepticism—friends, mentors, and even their own father doubted the risk of leaving stable jobs for an uncertain startup ([21:10]-[23:30]).
  • Quote: “I had one mentor of mine, and… he looked at me in straight face and said, ‘That is the dumbest thing I’ve ever heard.’” – Alex, [21:21]
• Product innovation: Mike’s textile engineering at Ralph Lauren paid off—first focus was on premium, recycled board shorts that could be worn both surfing and in the city ([19:18]-[26:12]).

Early Sales & Growth Tactics

• Resourceful launch: Raised a $1 million friends-and-family round (~44 investors, [33:04]-[33:30]), made their first run with help from Mike’s factory contacts.
• Breakthrough with the mobile beach house: Hit the road in a custom trailer/pop-up shop (designed with family and friends, [36:13]-[37:25]), creating organic brand buzz by taking the collection directly to consumers at festivals, stores, and on the literal roadside.
  • Memorable moment: "We sold $1,500 on the side of Pacific One by Big Sur. I'll never forget it." – Alex, [39:17]
• Inventory and cash flow challenges: Inventory management and retail logistics were far tougher than finance or business school could prepare them for ([34:29]-[35:21]).
  • Early revenue targets: $1,000/day; ended first year at ~$365k direct-to-consumer sales ([35:25]-[40:52]).

Distribution Model and Market Positioning

• Contrarian channel strategy: Rather than focusing solely on DTC like "smart" upstart brands, they blended wholesale, retail, and e-comm, inspired by legacy brands' balance ([03:09]-[03:48], [45:07]-[46:20]).
  • “This is how you build a brand...” – Alex, on segmenting business across wholesale and retail ([45:31])
• Early wins and setbacks: High-end specialty stores (Fred Segal, Journal Standard in Japan, etc.) fueled momentum; department stores were slower to adopt, requiring hustle and hands-on salesmanship ([44:23]-[50:59]).
  • Hustle tactic: Reorganizing their own products in department store racks to gain visibility (like Sara Blakely with Spanx) ([52:15]-[52:33]).

Marketing Experiments & Family Dynamics

• Print catalog gamble: In an era of digital everything, they saw success with print mailers, bucking the trend and differentiating from competitors ([53:34]-[54:45]).
• Family as foundation: Mom designed the stores; Alex’s wife became a co-founder; the tight family structure helped weather storms but also brought communication challenges ([76:09]-[78:02]).

Scaling and Surviving Challenges

• Breakthrough product: “Legend Sweater Shirt” became their ‘hero product’ in 2016, fueling DTC growth ([59:10]-[60:19]).
• Key investment: A low-key investor found them after buying shirts in Nantucket, providing crucial capital ([60:55]-[61:36]).
• Slow burn vs. rocket ships: Unlike some DTC "rocket ships," their growth was “the hard way”—steady, not viral—attributed to the grind, resilience, and patience ([62:00]-[64:01]).
  • “If you know, you know.” – Mike, on their cultish, under-the-radar brand loyalty ([62:36])
• Retail expansion and COVID pivot: Pre-COVID, seven stores; took the pandemic as an opportunity to sign longer leases cheaply, expanding from 13 to 40, then 80+ stores post-pandemic, aided by family teamwork and fast action ([69:06]-[71:17]).
  • “I had listened to your podcast… Panera Bread. In recessions, real estate’s cheaper…” – Alex, [68:40].

Current Outlook & Business Philosophy

• Navigating market turbulence: Tariffs, economic slowdowns, layoffs—all hit hard, but grinding through cycles, focusing on profitability, and remaining nimble with their global supply chain have kept them afloat ([73:15]-[74:52]).
• Staying independent: No immediate plans for acquisition; intend to keep Faherty a family-run, founder-led company, even as minority investments increase ([75:21]).

Notable Quotes & Memorable Moments

• On family dynamic:
  “My mom talks about… when we were zero years old and couldn’t walk or crawl, [but] we still ended up in each other's cribs.” – Mike, [10:55]
• On skepticism and self-doubt:
  “That is the dumbest thing I’ve ever heard. Like, you’re joking, right?” – Alex, recalling a mentor’s reaction ([21:21])
• On grit and perseverance:
  “It’s the grind, Guy. It's the grind. And we've done it the hard way. Fashion's like a hamster wheel… every season something gets a little bit better.” – Mike, [78:16]
• On positive leadership:
  “If you’re just positive every day and you're like, we’re gonna figure this out…good vibes, positive energy. We can do it. Goes a really, really long way.” – Alex, [79:16]
• On business models:
  “When you do the financial model… [e-commerce] is not $1 profitable in a meaningful way. … Wholesale just naturally makes the most sense.” – Alex, [47:25]-[48:10]
• On the pivotal investment email:
  “He sent me an email to hello@fahertybrand.com...‘Hey Alex, I bought some shirts in Nantucket. They’re great shirts. If you’re ever looking for money, let’s talk.’” – Alex, [60:55]
• On expansion philosophy:
  “I was like, this is going to be the best time ever for an up-and-coming clothing brand to get an amazing retail fleet.” – Alex, [69:21]

Timestamps for Key Segments

• Founding Vision and Early Inspiration: [04:47]–[07:43]
• Inspiration for Fashion and Art: [05:04]–[06:40]
• Sibling Partnership and Family Dynamic: [10:07]–[11:08]
• Launching and Early Risk: [21:10]–[23:30]
• Innovating with Board Shorts: [19:18]–[26:28]
• First Mobile Pop-Up/Beach House: [36:13]–[39:17]
• Inventory Management & Cash Flow: [34:29]–[35:21]
• Multi-Channel Strategy: [45:07]–[46:20]
• Hustling Sales in Department Stores: [52:15]–[52:33]
• Print Catalog Gamble: [53:34]–[54:45]
• Breakthrough Product (“Legend Sweater Shirt”): [59:10]–[60:19]
• Key Investment Email Story: [60:55]–[61:36]
• COVID Pivot and Store Expansion: [66:50]–[71:17]
• Recent Layoffs, Market Realities: [71:43]–[73:15]
• Founders’ Reflection (Luck vs. Grind): [78:02]–[79:16]

Summary Tone

The episode is candid, uplifting, and practical—showcasing the warmth and resilience of a close-knit family business that chose patience over hype, closeness over conglomerates, and creative contrarianism over following the DTC herd. Alex and Mike’s storytelling is humble, self-deprecating, and honest; Guy Raz maintains his signature warm curiosity throughout.

For New Listeners

This episode is a masterclass in the value of long-term vision, leveraging industry experience, balancing channel strategies, and the realities of bootstrapping a brand—proving that enduring businesses often depend on patient experimentation, relentless hustle, and the support of those closest to you.