Hatch Collective to become ‘more of a powerful player’ in maternity space, CEO says
After completing its first growth equity funding round, maternity company Hatch announced it is partnering with Marquee Brands to consolidate several maternity brands under the umbrella of Hatch Collective.
The newly formed parent company will operate Hatch along with Marquee's brands, including Motherhood Maternity, A Pea in the Pod, and Destination Maternity.
"What we were doing in the maternity space is the gold standard from a brand level and how, together, we could be more of a powerful player," Hatch Collective CEO Ariane Goldman told Yahoo Finance Live (video above). "So it's an incredible opportunity right now to be at the helm of this strategy and architecture, really consolidating my competition under one purview."
Neuberger Berman-backed Marquee Brands, whose portfolio includes Martha Stewart, Sur La Table, and BCBG, began investing in maternity labels three years ago. Marquee will retain the intellectual property of its three maternity brands, according to RetailDive, but has ceded operational control to Hatch Collective, which is helmed by Goldman.
Goldman noted that the deal sets up Hatch Collective to potentially triple its revenue this year.
"We can get leverage across operations, distribution, really make wonderful negotiations with financial institutions," Goldman said. "So we can step on the gas when the world around us is a little bit quiet...2023 is really going to be spent on synergizing, prioritizing, understanding the business, architecting the lanes between the brands."
In recent years, Hatch has gained recognition as a direct-to-consumer brand, with celebrities such as Meghan Markle, Amy Schumer, and Kate Upton donning several pieces from the company. That has helped the brand reach audiences on a global scale.
According to Goldman, Hatch Collective is "poised for explosive growth" in 2024, even as a global economic slowdown weighs on consumer spending.
"The beauty about maternity is that it's a need-based niche business," Goldman said. "It's not fashion. It's not something that you just choose to want. It's something you need as you go through this chapter as a woman."
"And so providing women solutions at both price points now, both aspirational at HATCH and value-driven at the motherhood level, is going to be a huge win for us because people, when they need a nursing bra, when they need something, when their jeans bust, they're looking to buy something that makes them feel better during this time," she added. "And we're going to have it for them."
Edwin is a producer for Yahoo Finance. You can follow him on Twitter @Edwin__Roman.
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