How a Bad Santa Suit Sparked a $100M Holiday Apparel Empire

A single ill-fitting costume launched a festive fashion revolution. Now, their ugly Christmas sweaters are a worldwide sensation—and a philanthropic force.

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2026 April 2 . 11:02 PM

2 min read

The image shows a book with a picture of Santa Claus and a woman on the cover. The book is titled... — The image shows a book with a picture of Santa Claus and a woman on the cover. The book is titled "Puck Christmas 1905" and the cover features a festive illustration of Santa wearing a red and white suit with a black belt and boots, and a white beard and moustache. The woman is wearing a white dress with a red bow in her hair and a red hat with a white pom-pom on top. The background of the image is a bright blue sky with white clouds.

How a Bad Santa Suit Sparked a $100M Holiday Apparel Empire

Tipsy Elves, the brand famous for its quirky and festive clothing, began with a simple problem: a poorly fitting Santa suit. Founded in 2010 by Evan Mendelsohn and Nick Soman, the company has since grown into a global name in holiday apparel. Their big break came after appearing on Shark Tank in 2012, where a single investment transformed their fortunes. The idea for Tipsy Elves struck Evan Mendelsohn when he struggled to find a Santa suit that fit well. Together with Nick Soman, a former investment banker, they launched the business in 2010. Their early focus was on humorous and festive outfits, from elf costumes to reindeer sweaters.

In 2012, the pair took their pitch to *Shark Tank*, seeking $100,000 for a 5% stake in the company. Robert Herjavec saw potential and offered $100,000—but for 10% ownership. The deal went ahead, and the exposure proved life-changing. After the show, revenue skyrocketed. Pre-*Shark Tank*, annual sales stood at just $40,000. By 2023, that figure had climbed to over $100 million. The brand expanded from a niche holiday seller to a major player, stocked by retailers like Amazon and Macy's. Alongside commercial success, Tipsy Elves also engaged in charity work, donating Christmas sweaters to children in need. The company's playful designs and rapid growth earned it features in magazines and on television. Today, it remains best known for its ugly Christmas sweaters, a staple of festive celebrations worldwide.

From a single Santa suit to a multi-million-dollar business, Tipsy Elves has cemented its place in holiday fashion. The Shark Tank deal and subsequent expansion turned a small startup into a household name. With products sold globally and a reputation for both fun and philanthropy, the brand continues to thrive over a decade later.