Tipsy Elves Ugly Sweaters Update | Shark Tank Season 5
Ugly Christmas sweaters have become a holiday tradition, and one brand that helped fuel this trend is Tipsy Elves.
Founded by Evan Mendelsohn and Nick Morton, the company gained national attention after appearing on Shark Tank Season 5.
Their fun and quirky holiday apparel caught the Sharks’ interest, leading to a deal that changed the trajectory of their business.
In this post, we’ll revisit Tipsy Elves’ Shark Tank pitch, break down the Sharks’ responses, and provide updates on how the company has grown since their appearance on the show.
Tipsy Elves on Shark Tank: Pitch Recap
Founders & Business Concept
- Founders: Evan Mendelsohn & Nick Morton
- Business: Ugly Christmas sweaters and novelty holiday apparel
- Funding Ask: $100,000 for 5% equity
- Outcome: Accepted a deal with Robert Herjavec – $100,000 for 10% equity
Evan and Nick started Tipsy Elves in 2011 after noticing a lack of fun, high-quality ugly sweaters in the market.
Their brand stood out with bold, humorous designs, and the business quickly gained traction through online sales.
By the time they pitched on Shark Tank, Tipsy Elves had already generated $1.35 million in sales within two years.
Each sweater costs around $12 to produce and sells for $65, making their profit margins highly attractive.
Shark Tank Responses & Deal Breakdown
Each Shark had a unique take on the business. Here’s how they responded:
| Shark | Response | Reason |
| Mark Cuban | ❌ Out | Concerned about moving into wholesale retail markets. |
| Lori Greiner | ❌ Out | Felt the sweaters weren’t unique enough. |
| Kevin O’Leary | 💰 Offer: $100K, but with a $2 per unit royalty until repayment, then $1 per unit forever. | Preferred a royalty-based deal over equity. |
| Daymond John | ❌ Out | Agreed with Mark’s concerns about retail expansion. |
| Robert Herjavec | ✅ $100K for 10% equity | Believed in the brand’s potential for long-term growth. |
Evan and Nick ultimately accepted Robert Herjavec’s offer of $100,000 for 10% equity, rejecting Kevin O’Leary’s royalty-based deal.
Tipsy Elves Post-Shark Tank Growth
Tipsy Elves has grown exponentially since securing a deal with Robert, expanding beyond ugly Christmas sweaters into other seasonal apparel.
Below, we break down the company’s significant milestones.
Sales & Revenue Growth
| Year | Revenue |
| 2012 (Pre-Shark Tank) | $862,000 |
| 2013 | $1.35 million |
| 2014 | $10 million+ |
| 2015 | $20 million+ |
| 2023 | Estimated $125 million+ in lifetime sales |
The brand’s revenue skyrocketed following its Shark Tank appearance, surpassing $10 million within a year and continuing to grow at an impressive rate.
Retail Expansion & Distribution Deals
Tipsy Elves started as an online-only business, but after Shark Tank, they expanded into retail stores and partnered with major brands:
| Retail Partner | Expansion Year |
| Amazon | 2013 (before Shark Tank) |
| Nordstrom | 2015 |
| Target | 2017 |
| PetSmart (Pet Line) | 2022 |
Their expansion into brick-and-mortar retail and pet apparel helped them reach new customers beyond the holiday season.
New Product Launches & Strategic Partnerships
Beyond ugly Christmas sweaters, Tipsy Elves has expanded into:
- Halloween costumes
- Ski & winter apparel
- Patriotic and 4th of July-themed clothing
- St. Patrick’s Day & other holiday wear
They also partnered with PetSmart to launch a pet clothing line, capitalizing on the growing demand for festive pet apparel.
Key Factors Behind Tipsy Elves’ Success
What contributed to the company’s impressive post-Shark Tank growth?
✔ Strong Online Sales Model – Their direct-to-consumer strategy via Amazon and their website allowed for high profit margins.
✔ Expansion Beyond Christmas – They created year-round revenue streams by adding other holiday apparel.
✔ Shark Tank Effect – The exposure from Shark Tank significantly boosted brand recognition and trust.
✔ Retail & Strategic Partnerships – Partnering with major retailers and launching new product lines helped them scale.
✔ Robert Herjavec’s Guidance – His expertise helped them navigate business challenges and make intelligent growth decisions.
Final Thoughts: The Legacy of Tipsy Elves
Tipsy Elves has grown from a niche holiday apparel brand into a multi-million-dollar business with a strong retail presence.
Their journey from Shark Tank to mainstream success offers key lessons for entrepreneurs:
- Leverage online sales before expanding into retail.
- Capitalize on seasonal trends, but find ways to sell year-round.
- Brand identity and humor can differentiate a product in a competitive market.
- Shark Tank exposure, when used strategically, can lead to long-term growth.
From ugly Christmas sweaters to an extensive holiday clothing empire, Tipsy Elves continues to thrive—a true Shark Tank success story.
Want to grab your own Tipsy Elves gear? Check out their latest designs on Amazon and their official website!
That’s our latest Tipsy Elves Ugly Sweaters Shark Tank update! What do you think of their journey? Let us know in the comments!
