Everlane, a socially minded clothing company, needed to open brick-and-mortar stores because “basically” no online-only companies are profitable, CEO Michael Preysman told CNBC’s Jim Cramer.
Preysman, who founded Everlane in 2011, made his remarks to the “Mad Money” host from the company’s brand-new store in Williamsburg, a hip neighborhood in Brooklyn, New York.
“What online-only company is really profitable? Basically none of them. That’s this dirty secret,” Preysman said in an interview that aired Thursday.
In 2012, Preysman swore off the world of physical retail, telling the New York Times he would rather “shut the company down” before opening a store. The San Francisco-based Everlane began as a direct-to-consumer brand.
But the situation has evolved for Everlane as the company matures. In addition to its new Brooklyn store, it has a shop in Manhattan, Los Angeles and San Francisco.