Generation Tux sales up as consumers return to the altar
Generation Tux, the online tuxedo rental service, will see a double-digit increase in revenue this year, with weddings up about 25% year over year, founder and CEO George Zimmer says.
Why it matters: That growth is expected despite a likely flat second half of the year for those tying the knot, he tells Axios.
It's a note of caution during a year when a record number of weddings are expected.
What they're saying: "Being in the wedding business is recession proof over the long term," Zimmer says.
- But: "I think it’s going to be a flat back-half of the year. Just raising interest rates alone will do that," he predicts.
The big picture: Against that backdrop, Zimmers says he is "open to the future unfolding in several ways," including taking Generation Tux public, selling it, or bringing on board a significant PE partner.
- The California-based company is now banking with JPMorgan, he says.
- "I’m always open to any idea that makes sense," he adds.
Yes, but: "We’re making money, so there’s no impetus to do anything different," Zimmer cautions.
- It’s a small company that makes money, is well capitalized and well organized, and runs with little supervision, he adds.
Flashback: Men's Wearhouse vet Zimmer founded Generation Tux in 2014, investing $20 million of his own money with PeopleSoft and Workday founder David Duffield investing an equal amount.
How it works: Without physical stores where customers can try on the garments, Generation Tux's fit algorithm cuts down on ill-fitting suit orders, Zimmer claims.
- Initial delivery arrives two weeks in advance of an event, leaving the e-commerce company with enough time to ship a replacement garment.
- "We do have a fit algorithm that does learn, so it gets better all the time," he says.
What's next: Zimmer says there's an opportunity to potentially expand into other businesses, hinting the company might get into the subscription or rental fashion business.
- Generation Tux could also consider having some kind of brick-and-mortar presence, perhaps one location per city where customers can browse, to drive its online business.
Catch up fast: Zimmer was the face and voice of Men's Wearhouse, a company he founded but was ousted from almost a decade ago.
- "You're going to like the way you look, I guarantee it," was his signature tagline.