Many fashion brands are struggling, but Mr Marvis is making millions in profit

This is evident from the most recent annual accounts of Mr Marvis Global Holding, which the company recently filed with the Chamber of Commerce.

Fierce competition, coronavirus debt, and high rents and personnel costs have crippled a string of previously highly successful fashion brands over the past year. Companies like Scotch & Soda , Adam Brandstores , Ted Baker , Esprit , Vanilia , and Balr went bankrupt, and Van Lier was forced to close its stores.

Mr. Marvis appears unaffected by the challenging market for clothing companies. Last year, the Amsterdam-based fashion company's revenue reached €83.5 million, an increase of almost 15 percent. Profit rose even more sharply, by over 28 percent to almost €3.5 million.

The fashion company also has exceptionally solid financial buffers, with a so-called solvency ratio of almost 50 percent.

Mr. Marvis was founded ten years ago by entrepreneurs Steven Vrendenbarg, David Sipkens, and Aafke Tuin. They started by selling men's shorts online and subsequently expanded their range to include pants, shirts, sweaters, and jackets.

Their company's rapid growth also attracted investors. In 2021, investor Capital A stepped in, and in 2022, former Tommy Hilfiger executives Fred Gehring and Ludo Onnink joined.

While many fashion and lifestyle brands have found in recent years that operating their own stores can be (sometimes) too costly, Mr. Marvis opted to open physical stores in addition to its online store. The fashion brand now has twelve stores in the Netherlands and eight in Belgium, Germany, and England.

The latest annual accounts show that the fashion company's online store generated over €64 million last year, representing more than three-quarters of its total revenue. Its physical stores generated nearly €19 million in revenue last year.

Co-founder Vrendenbarg was rather vague about Mr. Marvis's secret in a recent interview—which, incidentally, omitted the sales and profit figures mentioned here. "I find it difficult to say why it works for us and not for other brands," he recently told the AD newspaper.

He did, however, mention the brand's "summery and energetic look" as a strength, with its colorful and cheerful advertising. And thanks to the timeless collections, the company doesn't have to sell out of "old" inventory.

ING retail analyst Dirk Mulder attributes the success to Mr. Marvis' relatively simple design. "They started with simple shorts with a good fit, but in many sizes and colors. Initially, they sold 'online only,' so that was also simple," he says.

"Based on that offering, they expanded and also opened stores. These now offer a nice addition. Online for those who prefer convenience, and stores for the customer who wants to see and experience the product first. And although the clothing is quite pricey, the price-quality ratio is good."

Mulder wants to qualify the idea that expensive stores are often a drag on fashion brands these days. "Often, this applies to brands that are already out of step with the times. In those cases, cost increases at the stores often spell the end. But there are plenty of brands with stores that are still doing well."

Retail expert Olaf Zwijnenburg of Rabobank also believes the focus on the specific segment of "basic men's fashion" is a factor in the brand's success. A contributing factor, according to the expert, is that many men "value convenience and consistency." "The fact that a previously purchased model is still available in new colors or fabrics aligns well with their preferences."

Zwijnenburg also points out that Mr. Marvis controls the entire process from design to sale to the end customer, and will retain control over this process. The company could significantly boost sales through sales through other retailers, but this would also mean losing some control over the brand. "There's no guarantee that independent retailers will effectively project the brand image or avoid price competition."