Colby Bauer, who founded Thread Wallets with his wife, McKenzie – Photo by SES
We met with the co-founder of Thread Wallets at Surf Expo to find out more about the brand after retailers have told us how well Thread sells.
Thread’s main products are minimalistic elastic wallets, in addition to lanyards and lip balm holders that feature lots of colors and prints.
It’s the classic industry story of starting with an idea and not much else, and creating a product that resonates with consumers. Colby Bauer and his wife, McKenzie, started selling Thread at farmers markets when they were living in Hawaii in 2014 as newlyweds. They really got it off the ground in 2015 while the couple was living at Colby’s in-laws in Utah and heat pressing product in their living room.
Thread mostly focused on DTC the first several years in business. Then in 2020 it expanded into wholesale with a bang, even though it was the middle of a pandemic.
“We were lucky, we had inventory and retailers needed product and were open to trying something new,” Colby said. “We also have a lot of reps that sell Pura Vida and Sun Bum so understand that counter space.”
Wholesale now comprises 21% of company sales. But some months that figure jumps even higher – this summer, wholesale accounted for 50% of company sales.
Thread is growing rapidly, and expects to reach $20 million in sales this year, Colby said. Last year, Thread recorded $12.5 million in sales.
Those figures are a far cry from the beginning, when the then newlyweds were hoping to generate $60,000 in sales a year so the business could support them.
The brand obviously sells – an empty Thread stand at Farias Surf & Sport on Long Beach Island, New Jersey – Photo by SES
Because their products are not expensive to make, Colby and his wife have not had to take on big outside investors and have used cash flow to fund the business thus far. The company currently has 38 employees.
“It’s hard at times because you could grow faster or take advantage of certain opportunities but it forces you to be profitable,” Colby said. “We’re very lean and optimized.”
Going forward, the company plans to expand into “all things carry,” Colby said. New products that have launched or may launch in the future include crossbody bags, AirPod and phone cases, tote bags, laptop bags, water bottle holders and more.
“A lot of expansion is in the works,” he said.
Thread’s customers are 85% female, which Colby believes is a differentiator among accessories companies in the industry.
Thread has also opened its version of retail with Thread kiosks at three malls – two in Utah and one in San Diego.
Colby, a big admirer of Stance, has been a fan of the industry for a long time.
“It’s a dream come true and humbling to be a part of the industry that has raised us,” he said.
