Jump to content

Spanx

From Wikipedia, the free encyclopedia
Not to be confused with Spandex.
Spanx, Inc.
Company typePrivate
IndustryApparel
FoundedAtlanta, Georgia, U.S.
(February 15, 2000 (2000-02-15))
FounderSara Blakely
Headquarters
Atlanta, Georgia, U.S.
Area served
United States
ProductsPantyhose, hosiery
RevenueIncrease est. $400 million (as of June 30, 2018)[1]
Number of employees
750
ParentBlackstone Inc.
Websitespanx.com

Spanx, LLC is a United States shapewear company, founded by Sara Blakely in Atlanta, Georgia in 2000.[2] The company offers innerwear and outerwear, including activewear, apparel, denim, shapewear, swimwear, intimates, leggings, and hosiery.[3] As of 2021, the company was valued at $1.2 billion and its products are sold in over 50 countries.[4]

History

[edit]

Founding

[edit]
Sara Treleaven Blakely is a billionaire businesswoman who founded Spanx, LLC in 2000.[4]

Sara Blakely created Spanx in 2000 as a solution to the discomfort she experienced wearing pantyhose in hot weather and disliking the seamed foot that stuck out of an open-toe shoe.[5] After graduating from Florida State University (FSU) in 1993, Blakely first worked at Walt Disney World Resort, followed by Danka, an office supply company, where she sold fax machines door to door. She cut the feet off her control-top pantyhose to achieve a “smooth look” under white pants but did not like that the pantyhose rolled up her leg. Blakely moved to Atlanta, where she continued working for Danka from 9-5, set aside her $5000 in savings, and spent two years creating her product.[5] Blakely explained that she chose the name “Spanks” because of the “k” sound in the internationally recognized “Coca-Cola” and “Kodak.”[6] She changed the spelling to “Spanx” at the last minute after reading that made-up names sold better.[7] After several hosiery factories turned down her product, Blakely brought her idea to Neiman Marcus, where she convinced the buying rep by modeling her white pants with and without Spanx.[8] She then brought the product to Bloomingdale’s, Saks Fifth Avenue and Bergdorf Goodman.[7]

Once the Spanx brand was created, Blakely sent several of her products to The Oprah Winfrey Show. In November 2000, the brand was featured in Oprah's Favorite Things.[9] In 2001, Blakely arranged with QVC to feature her product.[7] In 2011, Spanx reported revenue of just under $250 million,[10] and Forbes rated Blakely as the youngest self-made female billionaire.[10] Spanx opened its first brick and mortar store in 2012.[10] In 2013, Jessica Alba, Adele and Jennifer Garner wore Spanx to the Oscars.[11] Gwyneth Paltrow also wears the brand.[12]

In 2021, the asset manager firm Blackstone bought a majority stake in Spanx, valuing the company at $1.2 billion.[13] An all-female investment team from Blackstone prepared the deal,[14] and it was announced that the Board of Directors would be all-female, with Blakely serving as executive chairman.[13] At the same time, Oprah Winfrey, Reese Witherspoon, and Whitney Wolfe Herd also invested in Spanx.[15]

Launch

[edit]

In 2000, Blakely launched the Spanx brand from her apartment,[16] undertaking all initial calls and marketing herself. Her boyfriend at the time, a healthcare consultant, later resigned from his job and joined Blakely in the running of the nascent business.[2]

Blakely previously conducted a meeting with a representative of the Neiman Marcus Group, at which she changed into the product in the ladies restroom in the presence of the Neiman Marcus buyer to prove the benefits of her innovation.[17] Blakely's product was sold in seven Neiman Marcus stores as a result of the meeting;[2] Bloomingdales, Saks, and Bergdorf Goodman soon followed.[18]

2000 onwards

[edit]

Following the establishment of the company, Blakely's then-boyfriend eventually became Spanx's chief operating officer (COO) and met Laurie Ann Goldman at the Saks Fifth Avenue in Atlanta in 2001, while she was on maternity leave from her employer at the time, Coca-Cola. Goldman was specifically looking for a Spanx product, and the pair exchanged contact details—Goldman became the CEO of Spanx in 2002.[19]

Writing for Fortune magazine in February 2014, Colleen Leahey identified Goldman as a key aspect of the company's successful growth:

Goldman crafted a business model for the company based on lessons she learned during her 10-year stint at Coke: thinking big, starting small, and scaling fast. She advised her team at SPANX to focus on product quality over profit margins. “Every time somebody puts on a SPANX product, one of two things can happen: Our brand can get stronger, or our brand can get weaker. We gain leverage or we lose leverage.”[19]

In the first half of 2014, Blakely worked on building the company's first standalone retail stores in shopping malls along the East Coast of the U.S., and also introduced denim to an expanding Spanx product line for the "Fall" range in March.[20]

Goldman resigned from the company in February 2014, after over 10 years at the head of the Spanx.[19] Gregg Ribatt, who had previously worked as an executive for Bennett Footwear, Stuart Weitzman Holdings and Collective Brands' Performance & Lifestyle Group, was appointed as interim chief executive officer. Ribatt's appointment generated discussions about a potential footwear expansion by Spanx according to a statement Blakely made in October 2013 explaining her ambition to design the world's most comfortable high-heel shoe prior to retirement.[21]

In Blakely's June 2014 Forbes profile, the publication claims that the company generates "over $250 million in annual revenues and net profit margins estimated at 20%", while Blakely is very strongly committed to maintaining the private status of Spanx.[20] However, speculation arose about a possible IPO following Goldman's resignation.[21]

In July 2014, Jan Singer, formerly of Nike, joined Spanx as CEO.[22]

It was announced on October 20, 2021, that Blakely had sold a majority stake in the business to Blackstone.[23][24] The company was valued at $1.2 billion.[25] The deal was prepared by an all-female investment team from Blackstone, and it was announced that the Board of Directors would be all-female, including Blakely as the Executive Chairwoman.

Products and marketing

[edit]

Products

[edit]
Spanx Shaping Pantyhose Super Control Sheers

Spanx has a range of sizes, from XS-3X.[26] The company has expanded from shapewear, intimates and hosiery to apparel, activewear,[27] loungewear,[28] and denim.[29] Their core collections include SPANXshape Booty Boost,[30][31] SPANX Air Essentials,[32] SPANXsculpt Seamless Power, SPANXsculpt OnCore,[33] and SPANXshape EveryWear SPANXsmooth Perfectfit.[30][34]

The brand produces lines with names such as "Bod-a-Bing!" and "Hide & Sleek." In 2009, Spanx launched a deluxe collection called "Haute Contour" that included items such as a lace thong with waist reinforcements and color options like pink. Following the release, Blakely explained, "I said, 'Let's make it beautiful ... like shapewear in disguise.'"[35]

Spanx started manufacturing body-shaping undergarments for men ("Spanx for Men – MANX") in 2010,[36][37][38] and then introduced denim to an expanding Spanx product line for the brand's "Fall" range in March 2014.[20]

Marketing

[edit]

During the inception of Spanx, Blakely was contacting friends and acquaintances, including those from her past, and asking them to seek out her products at select department stores in exchange for a check that she would send to them by mail as a token of appreciation.[2] However, Spanx received a marketing boost shortly afterwards, when Oprah Winfrey endorsed the product as one of her "Favorite Things" on her television show in 2000.[39] Prior to officially establishing the company, Blakely had sent a basket of Spanx products to Winfrey's television program, with a gift card that explained what she was attempting to develop, and this garnered Winfrey's attention.[2]

Winfrey's production team explained to Blakely that, while Winfrey usually only promoted the product itself, they sought to travel to Blakely's apartment in Atlanta and interviewed her in her home, as Winfrey was especially interested by the entrepreneur's story. At the time, Blakely was still a fax machine salesperson and needed to enlist the help of friends to act as employees for the purposes of the filming of the episode.[2]

Other celebrities who wear the brand are Gwyneth Paltrow and Jessica Alba.[35]

Blakely was later caught on CCTV by a department store repositioning her products so they were displayed more prominently.[40]

Corporate affairs

[edit]

Ownership

[edit]

Spanx is a private company and has not released financial information. Forbes estimates its value at $540 million in 2021.[41] Blakely owns the entirety of the brand and employed approximately 100 personnel as of 2011.[38]

In 2002, Laurie Ann Goldman, formerly at Coca Cola, was appointed CEO of Spanx.[42] She stepped down in 2014 and was replaced by Jan Singer, Nike’s head of apparel.[43] In 2024, Caroline (Cricket) Whitton was appointed as CEO and Jeanne Jackson as executive chair of the board.[44]

To celebrate the company's $1.2 billion deal with Blackstone, employees received two first-class plane tickets and $10,000 each.[45]

Manufacturing

[edit]

Highland Mills in Charlotte manufactured the prototypes presented to Neiman Marcus.[46]

In 2000, Blakely recruited friends to fill orders out of her Atlanta apartment.[citation needed] Because Highland had no interest in distribution, Blakely took Spanx production to a small mill in Siler City, which then went out of business.[citation needed] Acme-McCrary Corporation,[47] a hosiery mill founded in Asheboro, North Carolina, in 1908, then took over production and distribution. Sales have grown from about $15 million in 2002, when Acme-McCrary began working with Blakely, to more than $400 million in 2014. The North Carolina firm is no longer the sole manufacturer of Spanx, but remains highly involved with Blakely in new product development, yarn specifications and manufacturing expertise.[citation needed]

References

[edit]
  1. ^ Berger, Sarah (June 30, 2018). "Self-made Spanx Billionaire Sara Blakely Has Never Had Coffee—Here's How She Starts Her Day Instead". CNBC. Retrieved 11 June 2021.
  2. ^ a b c d e f Inc. staff (2012-01-20). "How Sara Blakely Got Spanx Started". Inc. Retrieved 2021-05-14.
  3. ^ "SPANX | Shapewear, Clothing, Activewear & Intimates". Spanx. Retrieved 2025-01-03.
  4. ^ a b "Sara Blakely". Forbes. Retrieved 2025-01-03.
  5. ^ a b O'Connor, Clare (July 16, 2012). "How Sara Blakely of Spanx Turned $5,000 into $1 billion". Forbes.
  6. ^ "Spanx Founder Reveals How to Build a Billion-Dollar Business". ABC News. November 28, 2012.
  7. ^ a b c O'Connor, Clare (April 12, 2016). "Undercover Billionaire: Sara Blakely Joins The Rich List Thanks To Spanx". Forbes.
  8. ^ Lake, Sydney (February 27, 2024). "Spanx founder Sara Blakely's $1 billion idea started with just $5,000 in savings and wanting to solve her problem". Fortune.
  9. ^ Makinson, Rachel (October 21, 2024). "How Spanx Founder Sara Blakely Created A Billion-Dollar Brand". CEO Today.
  10. ^ a b c O'Connor, Clare (November 15, 2012). "Watch Out, Victoria's Secret: Spanx Billionaire Sara Blakely Opens First Retail Store". Forbes.
  11. ^ Chan, Jennifer (February 21, 2013). "2013 Oscars Fashion Scoop: Adele, Jessica Alba and Jennifer Garner Get Support From Spanx". E News.
  12. ^ Chan, Jennifer (April 25, 2024). "Karlie Kloss, Gwyneth Paltrow, and More Celebs Wear This Spanx Sweatshirt That's 'the Comfiest Thing' Shoppers Own". People.
  13. ^ a b Gottfried, Miriam (October 20, 2021). "Blackstone Buying Majority Stake in Spanx". The Wall Street Journal.
  14. ^ Haverstock, Eliza (April 21, 2022). "Sara Blakely Is A Billionaire (Again) After Selling A Majority Of Spanx To Blackstone". Forbes.
  15. ^ Hirsch, Lauren (November 18, 2021). "Oprah Winfrey and Reese Witherspoon join in a private equity takeover of Spanx". The New York Times.
  16. ^ "Spanx company info". Hoovers. D&B.
  17. ^ ABC News: "Spanx Founder Reveals How to Build a Billion-Dollar Business" By MELIA PATRIA November 29, 2012
  18. ^ Forbes: "How Sara Blakely of Spanx Turned $5,000 into $1 billion" by Clare O'Connor March 14, 2012
  19. ^ a b c Colleen Leahey (11 February 2014). "SPANX CEO out after building the mega-brand". Fortune Magazine. Fortune. Retrieved 8 June 2014.
  20. ^ a b c "Power Women > #93 Sara Blakely". Forbes.com. June 2014. Retrieved 8 June 2014.
  21. ^ a b Carla Caldwell (13 February 2014). "Spanx CEO steps down". Atlanta Business Chronicle. American City Business Journals. Retrieved 8 June 2014.
  22. ^ Clare O'Connor. "Billionaire Spanx Founder Hires Nike Head Of Apparel As New CEO". Forbes.
  23. ^ Forbes: October 20, 2021: Sara Blakely is a billionaire again after selling a majority of Spanx to Blackstone
  24. ^ Fortune:October 26, 2021:Sara Blakely celebrates Spanx majority sale to Blackstone giving all employees first class plane tickets and $10,000 bonus checks
  25. ^ "Blackstone buys majority stake in SPANX, Inc". Blackstone press releases. 20 October 2021. Retrieved 2021-11-14.
  26. ^ Guerra, Julia (February 1, 2024). "What to Know About Spanx and Its Sculpting Benefits". InStyle.
  27. ^ "Active". Spanx. Retrieved 2025-01-03.
  28. ^ Braun-Silva, Bethany (April 12, 2024). "Get ready for Spring with these new arrivals from SPANX". ABC News.
  29. ^ Deyo, Jessica (March 5, 2024). "Spanx leans into apparel offering with first-ever global campaign". RetailDive.
  30. ^ a b Cepeda, Genevieve; Johnson, Erin; Denby, Laura (October 25, 2024). "The Best Spanx We Tested Goes Beyond Shapewear — Shop Our Favorite Lounge Pants, Jeans, Bras, and More". People.
  31. ^ Belfiore, Emily (October 17, 2023). "As a Travel Editor, I Live in These Celeb-loved Leggings — and They Just Dropped in a New Fall Color". Travel + Leisure.
  32. ^ VanDerBill, Brittany (April 20, 2024). "Gwyneth Paltrow Owns This 'Really Great' Spanx Half-Zip Sweatshirt and Leggings Set in at Least Two Colors". People.
  33. ^ Rodriguez, Chinea; Flanagan, Hanna (July 30, 2024). "The Best Shapewear Pieces for Summer". The Cut.
  34. ^ Baudler, Averi (September 17, 2024). "Spanx Restocked Its Sale Section with 130+ Fall-Friendly Fashion Finds, Including Popular Jeans and Leggings". People.
  35. ^ a b Dodes, Rachel (November 5, 2009). "Shapeware Has Women Bent Out of Shape". Wall Street Journal. Retrieved July 4, 2011.
  36. ^ Saint Louis, Catherine (2010-05-28). "Men's 'Shapewear' Is a Retail Hit". The New York Times. ISSN 0362-4331. Retrieved 2021-05-14.
  37. ^ "Spanx brand spanking new line for men". People. February 4, 2010. Retrieved July 5, 2011.
  38. ^ a b Drell, Laura (February 2, 2011). "My First Million: Sara Blakely, Spanx". AOL Small Business. Archived from the original on February 20, 2020. Retrieved March 8, 2012.
  39. ^ "How'd They Do that?". Oprah. February 1, 2007. Retrieved July 4, 2011.
  40. ^ "'Why Not?' inc. talk by Sara Blakely, section: 'growing the business' ~4:40sec".
  41. ^ Wang, Jennifer. "Spanx Is Reportedly Shopping Itself For $1 Billion, But Forbes Estimates The Shapewear Firm Is Worth Far Less". Forbes. Retrieved 2021-10-25.
  42. ^ Leahey, Colleen (February 12, 2014). "SPANX CEO out after building the mega-brand". Fortune.
  43. ^ O'Connor, Clare (June 5, 2014). "Billionaire Spanx Founder Hires Nike Head Of Apparel As New CEO". Forbes.
  44. ^ Lockwood, Lisa (February 5, 2024). "Spanx Appoints Caroline (Cricket) Whitton CEO and Jeanne Jackson Executive Chair". Women's Wear Daily.
  45. ^ Woodyatt, Amy (October 27, 2021). "Spanx employees given $10,000 and two first-class plane tickets". CNN.
  46. ^ Clare O'Connor. "Spanx Inventor Sara Blakely On Hustling Her Way To A Billion-Dollar Business". Forbes.
  47. ^ "Acme-McCrary". www.acme-mccrary.com. Retrieved 2025-01-03.
[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Spanx&oldid=1267206161"