Clothing lines are a competitive space but Spergo is thriving. Spergo is a luxury designer clothing line with a powerful message behind them. 15-year-old founder Trey Brown believes that anyone can be successful. His story got him a deal with Daymond John on Shark Tank. As of 2023, Spergo is worth $2 million.
About the Founder
Trey Brown was raised in a rough neighborhood in Philadelphia. However, he always tried to avoid trouble, and he wanted to help others do the same. His mother, Sherell Peterson, is his biggest supporter.
On Trey’s 12th birthday, he received $178 and used it to purchase 16 shirts, which he sold to family and friends. All the clothes sold out in a day and the young man reinvested the money to buy more t-shirts.
Founding the Company
Brown officially launched the Spergo clothing line in 2018. The day after his birthday, he sold 40 shirts to people in the local neighborhood. By the end of the year, he earned $40,000.
When he turned 13, he helped his mother resign from her job, and she was instrumental in the growth of the startup as COO. In 2020, the business got so busy that Trey went to the hospital because of exhaustion.
After a short break he got connected with P. Diddy through a barbershop owner. The billionaire rapper mentored him and granted the startup $25,000 in funding. The money was used to open Spergo’s first physical store and the company made a whopping $745,000 in 2020.
Shark Tank Appearance
The business exploded in 2021, but Trey and Sherell weren’t able to manage the business on their own. They applied to Shark Tank because they needed to raise capital to improve their digital marketing and hire a professional designer. They entered the Tank on season 13, asking for $300,000 for 10% equity.
The Sharks were touched by the story behind the clothing brand and were more impressed by his hustle. The quality of the clothing also surprised the investors. To no one’s surprise, Daymond John was the most interested.
As the founder of FUBU, Daymond John’s story is identical to Trey’s. Daymond’s mother also played a vital role in the early days of FUBU. The young entrepreneur eventually agreed on a deal for $300,000 in return for 20%. Cuban’s offer definitely helped Trey secure a better deal with Daymond.
After Shark Tank
Five days after the Shark Tank episode aired, Spergo received over 1000 online orders. A 2000% increase on the average number of sales they make online. The publicity he got from Shark Tank led to him appearing in Ellen and Fox Business.
He also received a lot of support from the NBA community, especially from the Philadelphia 76ers, who gave him a $200,000 grant. This helped Spergo expand its product collection, which is available in its stores and website, Spergo.com. The key driver of future growth will need to come from their ecommerce website.
The luxury brand has a strong social media presence and has over 100,000 followers on Instagram but engagement is low. Spergo made $2.5 in annual revenue for 2021 with a profit margin of around 15%. Currently, the business is worth an estimated $2 million.