Men's shirt maker Untuckit launches a line for kids as retailer grows offline

Key Points
  • Untuckit is launching a shirts line for children.
  • The apparel retailer also has plans to roll out a pants line later this month.
  • Untuckit is in discussions with such mall developers as Simon Property Group, Macerich and Taubman Centers about its plans to open 100 stores during the next five years.
Untuckit co-founder Chris Riccobono.
James Devaney | WireImage | Getty Images

Untuckit, the retail brand known for its signature men's shirts, is rolling out a line for children.

"We started with shirts and then started getting requests for new products," Founder and Executive Chairman Chris Riccobono told CNBC. "What we realized is we were growing into a brand, and people wanted to buy from Untuckit."

People were coming into Untuckit stores saying, "This [shirt] would be perfect for my son," Riccobono added. "Kids has been in the works for a really long time, but we wanted to do it at the right time."

The children's polo shirts and button downs, in sizes 2 to 14, will retail from $35 to $48. The line is available in stores and online starting Thursday.

"This is perfect for our demographic," co-founder and CEO Aaron Sanandres told CNBC. "Our customers either have kids, are having kids, or have grandkids."

Untuckit launched online in 2011. Riccobono said he was struggling to find a dress shirt that wasn't too big or too baggy.

Riccobono later ran into Sanandres, who shared a similar retail vision, while pursuing his MBA at Columbia Business School. The two opted to pursue creating a men's shirt that's designed to be worn untucked.

The brand's offerings now include performance wear, shoes and a women's line, which just launched this spring. After kids apparel, it plans to roll out a pants line later this month.

"All of our ventures are meant to be profitable," Sanandres said.

Untuckit, which opened a brick-and-mortar store in 2015, is building key relationships with folks within the real estate industry. Untuckit is opening stores at a rapid clip, and plans to have 50 by the end of next year.

The company has said it aims to open 100 stores over the next five years, and is in discussions with such mall developers as Simon Property Group, Macerich and Taubman Centers regarding those plans.

"One thing e-commerce companies struggle with is not having a physical place to go to create a strong bond between the online business and the consumer," Sanandres said about opening new stores. "We started to see our stores were extremely profitable, and the stores also offer a lift to the online business."

Eyeglass company Warby Parker and clothing rental service Rent the Runway have made similar moves from digital to brick and mortar.

"There is a need for retail," Riccobono said. "Men were saying they wouldn't buy our shirts without touching and trying [it] on."

In June, venture capital firm Kleiner Perkins invested $30 million in the company's first major round of fundraising. The transaction reportedly valued Untuckit at around $200 million at the time.

Untuckit said it is using the funding to launch new product lines with its materials and to open stores around the countries.