Sustainable footwear brand Rothy’s reports a 17% revenue increase in 2024, driven by strategic retail expansion and improved same-store sales.

Rothy’s, the sustainable footwear brand known for its eco-friendly shoes and accessories, has announced a significant milestone in its growth trajectory, with revenue surging to $211 million in 2024, marking a 17% increase over the previous year. The rise in revenue is attributed in part to the brand’s expansion of its physical retail footprint, which has played a crucial role in driving sales beyond the $200 million mark.

The company reported a solid performance in same-store sales, which jumped by 20% year-over-year. Rothy’s has strategically increased its brick-and-mortar presence, opening nine new stores this year, elevating its total to 26 locations across the United States. Speaking about the brand’s success, Rothy’s President Dayna Quanbeck shared insights during an interview with Modern Retail, stating, “We have a very profitable and productive fleet.”

Rothy’s first ventured into physical retail in 2018 with a modest 336-square-foot store in San Francisco. Over time, the brand has found that larger store spaces, averaging about 1,567 square feet, are more effective for showcasing its offerings. Over the past two years, Rothy’s has diversified its sales channels significantly; in addition to expanding its retail locations, the brand has initiated sales through Amazon. Quanbeck emphasized that 2024 marked a turning point for Rothy’s, as it began to experience “critical mass” from its combined retail, e-commerce, and wholesale endeavors.

Quanbeck, who transitioned from serving as chief financial and operating officer to president at the beginning of this year, has extensive experience in retail management, having previously held the position of interim CEO at Charlotte Russe. She noted that the lessons learned from overseeing a brand with a vast store network of approximately 600 locations during Charlotte Russe’s peak have informed Rothy’s more measured approach to growth.

The footwear brand plans to continue its expansion with an aim to open between five and ten stores annually. Currently, Rothy’s is in the lease negotiation phase for another location, having evaluated multiple options to ensure it captures the right retail environment with the ideal co-tenants.

Rothy’s view of its physical stores extends beyond mere sales; they serve as educational spaces for consumers new to the brand, highlighting its sustainability mission and showcasing its wide range of products. Originally known for its recycled ballet flats, Rothy’s now also retails accessories such as tote bags and clutches. “Our brand has so many attributes that make it unique, it is really hard to tell that in one sentence,” Quanbeck mentioned, hinting at the complexities of communicating the brand’s identity.

To enhance customer engagement, Rothy’s is focused on storytelling within its retail spaces. For instance, its flagship store on Fifth Avenue serves as a testing ground for innovative initiatives, such as a display that tracks the number of water bottles repurposed by the company and a chandelier constructed from sustainable materials. These elements not only contribute to the aesthetic of the store but also act as conversation starters for employees.

Industry analyst Beth Goldstein from Circana noted that physical retail presents a unique advantage for brands like Rothy’s. She explained that the company’s approach to opening its own stores is strategically designed to avoid market oversaturation while enhancing brand visibility in tandem with wholesale efforts. Rothy’s has recently begun testing partnerships with prominent retailers such as Anthropologie, Bloomingdale’s, and Nordstrom, with plans to expand its retail presence further, particularly in the southern U.S., where a location in Houston is anticipated.

As Rothy’s continues to establish itself in new markets, Quanbeck observed that having multiple stores in close proximity can create a synergistic effect, stating, “Two to three great stores in a market really grows our brand in a way that’s hard to do just online or in just one store.”

Source: Noah Wire Services