Competition is high for clothing lines, but Spergo is thriving. Spergo is a luxury streetwear and lifestyle brand with a powerful message behind it. Founder Trey Brown, 15, found success at a young age and runs the company with his mother. His unique story landed him a deal with Shark Tank’s Daymond John. As of 2024, Spergo is valued at $2 million.
Trey Brown’s Background
Trey Brown grew up in a poor neighborhood in Philadelphia. However, he always tried to stay out of trouble and wanted to help others do the same. His mother, Sherrell Peterson, was his biggest supporter.
On Trey’s 12th birthday, he received $178, which he used to buy 16 T-shirts, which he then sold to family and friends. All of the clothes sold out within a day, and the young man used the money to buy more T-shirts.
Founding Spergo
Brown officially launched the Spergo clothing line in 2018. The day after his birthday, he sold 40 shirts to people in his local community. By the end of the year, he had made $40,000.
At 13, he helped his mother retire, and she played a major role in the startup’s growth as COO. In 2020, the business was so busy that Trey ended up in the hospital for exhaustion.
After a short break, he met P. Diddy through a barbershop owner. The billionaire rapper mentored him and provided $25,000 in funding for the startup. The money was used to open Spergo’s first brick-and-mortar store, and the company made $745,000 in 2020.
Shark Tank Appearance
In 2021, business is booming, but Trey and Sherell can’t manage the business on their own. They apply to compete on Shark Tank because they need to raise funds to improve digital marketing and hire professional designers. They entered the Tank on Season 13, asking for $300,000 in funding for 10% equity.
The Sharks were moved by the story behind the clothing brand and even more by his hard work. The quality of the clothing surprised the investors. Not surprisingly, Daymond John was the most interested.
As the founder of FUBU, Daymond John’s story mirrors Trey’s. Daymond’s mother also played an important role in FUBU’s early days. The young entrepreneur agreed to acquire a 20% stake for $300,000. Cuban’s offer undoubtedly helped Trey reach a better deal with Daymond.
Success after Shark Tank
Five days after the Shark Tank show aired, Spergo received over 1,000 online orders. This was a 2,000% increase over their typical online sales average. The publicity from Shark Tank alone landed Trey on Ellen and Fox Business.
Additionally, he received a lot of support from the NBA community, especially the Philadelphia 76ers, who gave him a $200,000 grant. This helped Spergo expand its product line, which is available in both stores and on its website, Spergo.com. The key driver of future growth will come from their e-commerce website.
The luxury brand has a strong presence on social media, with more than 112,000 followers on Instagram, but engagement is low. Spergo’s annual revenue for 2021 was $2.5 billion, with a profit margin of about 15%. The business is currently worth an estimated $2 million. Trey, now 18, aims to become a millionaire by the age of 21.
Categories: Shark Tank
Source: svlsf.edu.vn