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 product

• The power of a single SKU that anchors 20% of a company’s revenue

• Managing inventory, gross margins, and contribution margins in apparel

• Why lifetime value (~$500–$600 per customer) shapes everything in DTC

• The challenge of seasonality and cash flow in fashion businesses

• Navigating the K-shaped consumer economy without diluting brand value

• How Naadam balances DTC (60–65%) vs wholesale and Amazon

• Why wholesale can actually produce similar contribution margins to DTC

• How iOS changes permanently altered the economics of performance marketing

• Why diversified distribution matters more than ever in apparel

• The right way to use credit vs equity to finance inventory and growth

• Why overfunded brands often lose discipline

• The long time horizon required to build a real apparel brand

• How Naadam grew its Amazon business 300% in 2025

• The 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.