Rails founder Jeff Abrams discusses how the brand achieved significant growth and profitability by adapting to changing consumer demands, such as the surge in demand for comfortable clothing during the pandemic. He outlines their strategic expansion from a niche product to a full lifestyle collection, their approach to international markets, and their cautious, yet deliberate, move into physical retail, offering a valuable blueprint for brands seeking sustainable growth and omnichannel presence.
Key takeaways
Rails successfully pivoted their product strategy to meet emergent consumer needs, specifically comfortwear during the pandemic, highlighting the importance of market responsiveness for sustained growth.
Expanding product categories incrementally from a core offering (e.g., button-downs to a full lifestyle collection) allowed Rails to diversify revenue streams and build a comprehensive brand experience.
A "cautiously moving forward" approach to physical retail expansion, even for established e-commerce brands, can mitigate risks and ensure strategic alignment with overall business goals.
International market expansion is a key driver for growth, and brands should strategically evaluate global opportunities in conjunction with product and retail diversification.
Consistent year-over-year revenue and profitability growth, even amidst market disruptions, underscores the value of strong brand equity and effective customer engagement in the fashion industry.
When Jeff Abrams launched L.A.-based fashion brand Rails in 2008, he couldn’t have predicted the demand for comfortable clothes in 2020. The cashmere-like shirts that the line started with is now driving exceptional sales for the company.
“We actually grew over the course of this year,” Abrams said on the Glossy Podcast. To date, Rails has generated over $500 million in retail sales and increased topline revenue and profitability every year since launch. “When Covid came around, we were top-of-mind for people; we [provided] a natural transition into the changing fashion environment.”
Though sales of women’s button-downs drove nearly 100% of the business in its first 5-6 years, Rails has since slowly expanded to other categories that can serve as the “top-half” of denim, like T-shirts and “cozy” sweaters, said Abrams. More recently, it’s also introduced bottoms and dresses. It launched a men’s line in 2017.
“It’s now very much a full lifestyle collection,” he said, noting that a denim line is set to launch in the fall.
Abrams also discussed the brand’s expansion via international markets and physical retail.
What does this episode say about retail & omnichannel?
Rails successfully pivoted their product strategy to meet emergent consumer needs, specifically comfortwear during the pandemic, highlighting the importance of market responsiveness for sustained growth.
What does this episode say about brand & content?
Expanding product categories incrementally from a core offering (e.g., button-downs to a full lifestyle collection) allowed Rails to diversify revenue streams and build a comprehensive brand experience.
What does this episode say about product & merchandising?
A "cautiously moving forward" approach to physical retail expansion, even for established e-commerce brands, can mitigate risks and ensure strategic alignment with overall business goals.
What does this episode say about founder & leadership?
International market expansion is a key driver for growth, and brands should strategically evaluate global opportunities in conjunction with product and retail diversification.
What does this episode say about retail & omnichannel?
Consistent year-over-year revenue and profitability growth, even amidst market disruptions, underscores the value of strong brand equity and effective customer engagement in the fashion industry.
