- Annual Gross revenues over £18m (last 12 months)*
- 75% year-on-year growth (last 12 months)*
- Over 200,000 customers to date
- 20% of new customer orders repeat within 30 days, 50% in 6 months
Introduction
We’re building the world’s most personal menswear brand.
We believe that for most men, fit comes first. And yet, many traditional brands and retailers struggle to deliver. When you spread your stock thin across lots of shops and stockrooms, something has to give - and one of the first things to give is sizing.
Most of us fall between the gaps.
There was a time when all clothes were made to order. It was slow and expensive - but at least they fit. In the age of mass production we traded that fit for choice, trend and novelty - and we never got it back. ‘Ready to wear’ usually isn’t. And today, the rarefied craft of bespoke tailoring doesn’t make much sense, outside the expensive suiting category.
That’s the opportunity.
With a centralised e-commerce model, a digital shopfront and 21st century supply chain, it’s possible to carve out a sweet spot, somewhere between ready to wear and bespoke.
By finishing to order, we can run to more than 400 size options where traditional brands offer 30 or 40. We’ve developed our own proprietary fit-finder tool, helping customers match to their perfect size, in 60 seconds.
We offer a flawless, personalised fit, without the hassle or expense of bespoke.
And today we ship more than 20,000 products a month to the UK, USA, the EU and beyond - growing at 75% year on year*.
Monetisation strategy
We generate revenue when customers purchase SPOKE products on spoke-london.com, our 3 localised websites for the USA, Germany and the EU, and additionally from SPOKE products listed on johnlewis.com.
We manufacture our products at factories across Europe, the Near East, and Asia - and we finish them to order at our workshop in Yorkshire. We operate at an average intake margin of 71%; that's the margin we make on the selling price of products vs the cost to us of producing them with our suppliers.
We invest in marketing media online and offline, to acquire new customers. 20% of new customer orders repeat within just 30 days, 50% repeat within 6 months. Customer lifetime value (cumulative profit) exceeds £180 – and we continue to see robust purchasing from cohorts acquired 5 years ago, and more.
Our LTV:CAC ratio is over 3x. Our repeat purchase P&L (the revenues from repeat orders less associated costs to service them) absorbs around 80% of our company overheads - and is now profitable* (at an EBITDA level).
- based on unaudited management accounts.
Use of proceeds
We’ve created an extraordinary range, a custom finishing supply chain, a passionate customer base, and a foothold in exciting new markets.
Working from this stable, scalable platform your investment will fuel our growth across 4 key areas:
- Acquisition Marketing - While our repeat business is now cash generating, we plan to keep investing in acquisition ahead of this, to maintain our fast growth momentum, especially in the US.
- USA Dedicated Resource - We plan to hire a dedicated team responsible for the US for the first time - including a GM (London based) to own the P&L.
- Digital Services - We’ll invest in the ongoing process of digitising personal services, expanding on video-based Fit Tune Ups and a next generation Fit Finder.
- Brand Investments - Brand investments are expected to include US & EU localisation and a refresh of TV creative.