TOMS Revenue and Financials | Fashionbi (2024)

FAQs

Does Blake still own TOMS? ›

Though he is no longer an owner of TOMS, Mycoskie's leadership efforts have not stopped. He is currently a co-founder of the wellness program Madefor and is also investing in research into the use of psychedelics for therapeutic purposes.

Toms shoes financial performance began to decline after 2016 due to a number of factors. One of the main reasons was increased competition from other socially responsible brands that offered similar products and services. There is evidence to suggest that Toms shoes strategy was effective between 2006 and 2016.

The Toms Shoes Business model is one-for-one. The one-for-one business model means the company donates one pair of shoes to someone in need for every pair of shoes it sells. This unique business model was invented by Blake Mycoskie, the founder of the company, after he saw some children in Argentina who had no shoes.

In 2006, TOMS founder Blake Mycoskie pioneered the One for One® model—giving away one pair of shoes for every pair sold, supporting larger health, education and community development programs through strategic partnerships. Today we give ⅓ of profits for grassroots good. When you wear TOMS, you Wear Good.

One of the downfalls of the brand was that it relied too much on its trademark Alpargata slip-on, which made up half its revenue in the past. That especially hurt as Americans turned even more toward athletic-looking footwear—or not buying shoes at all—during the Covid-19 pandemic.

In June, reports surfaced that Toms, best known for its canvas espadrilles, had hired bankers to explore a sale. Financial terms of the private transaction were not disclosed although sources told the New York Times that Bain's purchase of 50 percent of the company valued Toms at about $625 million, including debt.

There are several big problems with TOMS' model: by giving away shoes, it creates a dependency, and it disrupts local economies. Values and Capitalism points out that the TOMS model “needs improvement” because “giving away free stuff… almost always has a negative long-term impact on local economies.”

Toms (stylized as TOMS) is a for-profit company based in Los Angeles, California. Founded in 2006 by Blake Mycoskie, an entrepreneur from Arlington, Texas, the company designs and markets shoes as well as eyewear, coffee, apparel and handbags.

Toms is one of the highest-ranked brands on LS:N Global's Luxury Matrix.

Their strategy is based on a differentiation strategy because some of the competitors don't offer the opportunity to give to others. TOMS enables their charitable work and social media presence generate interest for the company organically a difference of their competitors.

What is the motto of TOMS company? ›

At TOMS, we are proud to wear our impact on our feet. Wear TOMS. Wear Good.

The name TOMS derived from the term the "shoe for Tomorrow Project" and the first designs were based on the classic Argentinian Alpargata designs, also known as espadrilles. Blake started out by having a run of just 500 pairs made, within 6 months this had grown to 10,000.

TOMS slogan is, “With every pair you purchase, TOMS will give a pair of new shoes to a child in need. One for one”. This slogan is TOMS unique selling proposition (USP); every time you buy TOMS shoes, they will give a new pair to a child in need.

TARGET MARKET

TOMS tend to target the age range of 13-30 year old, men and women, as well as high school or college degree holders. The groups that TOMS have focused on in their target market tend to be hip, socially involved individuals who tend to be in the demographics of the middle class.

Blake Mycoskie, TOMS Founder. Blake Mycoskie is the Founder of TOMS and the brains behind the brand's One for One® model.

In August 2014, Mycoskie sold 50% of Toms to Bain Capital, retaining his role as Chief Shoe Giver.

Bain Deal Makes TOMS Shoes Founder Blake Mycoskie A $300 Million Man. This article is more than 9 years old. Blake Mycoskie's TOMS business card reads 'chief shoe giver. '