The Situation
The company had grown into a household name in men’s and women’s underwear. More than 95% of new customers began their journey with underwear SKUs.
Growth was strong, but the brand carried a single-category risk: if underwear slowed, there wasn’t an obvious second engine.
The Blind Spot
Dashboards showed channel performance, not customer behavior. Merch and planning teams optimized around historical demand. The assumption: underwear was the gateway for all new customers.
But assumptions can blind. In a fast-changing environment — especially during Covid — signals shift before old dashboards catch up.
The Insight
Our quarterly Customer Insights Report flipped the story. In one quarter, we saw a new cohort forming:
10% of first-time buyers placed loungewear-only baskets.
Their 30-day LTV was significantly higher than average, due to larger first orders and higher-margin SKUs.
This wasn’t noise. It was a demand spike — a new segment with different economics.
The Action
Because the data system was in place, cross-functional teams could act immediately:
Merch & Planning: Rebalanced buys and fast-tracked containers of loungewear to arrive earlier.
Product: Prioritized design and launch of new lounge styles.
Marketing: Activated influencer partnerships focused on at-home lifestyles, shifting away from underwear positioning.
This wasn’t just a marketing tweak. It was an organizational pivot, fueled by data.
The Outcome
Revenue grew 2.5x in under two years.
Loungewear became a permanent, high-value category.
The company reached its highest-ever valuation, supported by new growth investment.
The Bigger Story
This shift wasn’t a lucky catch it was the result of building the right people, processes, and tooling.
Our system of reporting and insights allowed leaders to:
See beyond channel metrics to customer-level behaviors.
Spot and size new cohorts with confidence.
Move resources cross-functionally in a single quarter.
Without that foundation, the loungewear opportunity might have been missed or delayed. With it, the brand was able to evolve from a category player into a lifestyle company and reach its highest valuation yet.
