From Finance to Footwear: How Two Brothers Built a $45M Sock Empire in Just 3 Years

Summary:

Christian and Justin Arquilla transformed from finance to a sock business, founding Pacas.
Their journey started with the need for no-show socks that don’t slip.
They launched Gekks in 2015, which became popular among women, especially for ballet flats.
Amid the COVID-19 pandemic, they pivoted to making alpaca fiber socks.
In just three years, Pacas achieved over $45 million in revenue and sold 3.2 million pairs.

The Birth of Pacas

In 2015, brothers Christian and Justin Arquilla transitioned from finance to the sock industry, founding Pacas. Their entrepreneurial journey began in 2013 when Justin's wife suggested he wear no-show socks due to his smelly shoes.

Identifying a Gap in the Market

Justin struggled to find a suitable pair of no-show socks that didn’t slip or show. This prompted him to call Christian, leading to the creation of Gekks, a no-show sock made with silver antimicrobial yarn. By 2019, 90% of Gekks' revenue stemmed from women's products, particularly a ballet flat design.

Adapting to Challenges

With the onset of the COVID-19 pandemic in March 2020, the brothers faced declining sales as fewer professionals needed office wear. They pivoted towards alpaca fiber socks after discovering the material during a visit to a hosiery mill.

Launching Pacas

In 2017, they began developing alpaca socks to provide comfort for children in hospitals. The Pacas brand launched in October 2020, generating $400,000 in its first month and achieving over $45 million in revenue within three years, selling 3.2 million pairs of socks. They also partnered with local children's hospitals to donate socks.

The Future of Pacas

Today, Pacas is the brothers' main focus, while Gekks continues to generate revenue. They've learned that as they scale, the challenges become more complex, emphasizing the importance of problem-solving in entrepreneurship. The brothers highlight that the entrepreneurial landscape is increasingly competitive, driven by social media and direct-to-consumer channels.

Pacas Socks Image credit: Courtesy of Pacas