Apparel Is Not a Venture Business

What does it actually take to build a durable apparel brand in 2026?Matt Scanlan, Co-Founder of Naadam, joins In The Money to break down the real economics behind building a modern apparel business, from hero products and inventory discipline to channel mix and financing strategy.Naadam became famous for its $98 cashmere sweater, challenging luxury pricing while maintaining quality and ethical sourcing. But a decade later, Matt says the biggest lesson isn’t expansion, it’s discipline.This episode is a candid operator’s playbook on product focus, capital structure, and surviving the constant shifts in consumer, marketing, and retail.We cover:Why Naadam has resisted expanding too far beyond its hero productThe power of a single SKU that anchors 20% of a company’s revenueManaging inventory, gross margins, and contribution margins in apparelWhy lifetime value (~$500–$600 per customer) shapes everything in DTCThe challenge of seasonality and cash flow in fashion businessesNavigating the K-shaped consumer economy without diluting brand valueHow Naadam balances DTC (60–65%) vs wholesale and AmazonWhy wholesale can actually produce similar contribution margins to DTCHow iOS changes permanently altered the economics of performance marketingWhy diversified distribution matters more than ever in apparelThe right way to use credit vs equity to finance inventory and growthWhy overfunded brands often lose disciplineThe long time horizon required to build a real apparel brandHow Naadam grew its Amazon business 300% in 2025The surprising growth lever: brand licensing (NFL, pop culture, entertainment)Matt also shares why many apparel businesses shouldn’t chase venture growth and why building a great brand still takes a decade of consistency, product truth, and operational discipline.If you’re building or investing in consumer brands, this is a masterclass in the unglamorous mechanics of running an apparel company.