LuxeCoat Fashion Scaled Meta Ads to €180K/Month Revenue
A DTC fashion brand went from €30K to €180K monthly revenue by mastering creative testing, audience expansion, and full-funnel Meta advertising.
Context
LuxeCoat Fashion is a DTC brand selling premium outerwear and layering pieces online. Shopify-based, shipping across Europe. Before working with us, they had strong organic social presence and a loyal customer base, but paid advertising had been inconsistent — bursts of spending followed by pauses when ROAS dipped below targets.
Monthly revenue was around €30K with €4K in ad spend. They wanted to scale aggressively but had been burned by a previous agency that scaled spend without maintaining profitability.
Funnel type: Ecommerce (DTC fashion) Average order value: €145 Customer LTV (12 months): €290 Target blended ROAS: 3.5x (we exceeded consistently)
Constraints
- Budget: Starting at €4K/month, scaling to €45K/month over 6 months
- Tracking: Shopify + Meta Pixel configured. No Conversions API initially. iOS attribution gaps of roughly 30%
- Creative: Strong photography but limited video. Founder did some UGC but no systematic production
- Seasonality: Fashion — strong in fall/winter (Aug-Jan), softer in spring/summer
Hypotheses & Experiments
Hypothesis 1: Creative testing at volume will find scalable winners
The brand had only tested 8 ad creatives total. In our experience, you need to test 50+ before identifying formulas that can absorb significant spend.
Experiment: We built a systematic creative testing framework — testing 10-15 new creatives per week across hooks, formats, and messaging angles.
Hypothesis 2: UGC-style content will outperform polished brand photography
Fashion tends to live in the polished end of creative. But Meta’s algorithm often rewards authentic, relatable content over studio perfection.
Experiment: We produced UGC-style content alongside the existing brand photography. Real people wearing the coats, filmed on phones, with genuine reactions and styling tips.
Hypothesis 3: Full-funnel structure will enable scaling without destroying ROAS
Scaling just prospecting campaigns causes CPM to spike and ROAS to decline. A full-funnel approach (prospecting + retargeting + retention) allows more aggressive top-of-funnel spending because the retargeting and retention layers recover margin.
Experiment: We built a three-layer campaign structure: cold prospecting (60% of budget), warm retargeting (25%), and customer retention/upsell (15%).
Week-by-Week Progress
Weeks 1-3: Implemented Conversions API. Restructured campaigns into the three-layer funnel. Launched first creative testing batch of 20 variations. Weeks 4-6: Identified first 3 winning ad concepts. UGC “try-on haul” style videos outperformed studio photos by 2.5x on CPA. Retargeting immediately profitable at 8x ROAS. Weeks 7-10: Scaled winning creatives. Budget increased from €4K to €12K. ROAS held at 4.5x. Added Google Shopping for brand and high-intent terms. Weeks 11-16: Continued creative testing — 60+ creatives tested by this point. Win rate stabilized at 22%. Budget scaled to €25K. Launched TikTok as additional prospecting channel. Months 5-6: Full scale. Budget at €42K/month. 120+ creatives tested total, win rate 28%. Revenue hit €180K/month. TikTok contributing 15% of new customer revenue at better CPI than Meta.
Results
| Metric | Before | After (Month 6) | Change |
|---|---|---|---|
| Monthly Revenue | €30,000 | €180,000 | +500% |
| Monthly Ad Spend | €4,000 | €42,000 | +950% |
| Blended ROAS | 3.2x | 4.2x | +31% |
| New Customer Revenue | €12,000 | €57,600 | +380% |
| Returning Customer Revenue | €18,000 | €122,400 | +580% |
| Creatives Tested | 8 total | 120+ | — |
| Creative Win Rate | Unknown | 28% | — |
| Average CPM (Meta) | €12 | €9.80 | -18% |
What Did Not Work
- Broad interest targeting without strong creative: Early broad targeting campaigns had CPAs 2x higher than refined audiences. Broad only worked after we had winning creative — then the algorithm could find the right people without us specifying interests.
- Discount-led creative: “20% off” ads drove high click-through but attracted discount shoppers with low repeat purchase rates. We shifted to value-based messaging emphasizing quality, sustainability, and style.
- Static carousels: Product carousel ads were our worst performing format consistently. The algorithm and audience both preferred video and single-image formats with strong visual hooks.
- Scaling budgets by more than 20% at once: Every time we increased budget aggressively (30-50% jumps), campaigns tanked for 3-5 days. We learned to scale gradually — max 20% every 3 days.
Takeaways
- Creative volume and testing velocity are the number one growth lever for DTC brands on Meta. You cannot outsmart the algorithm — you need to feed it better creative.
- UGC outperforms polished content for most direct-to-consumer brands. It is not about low production quality — it is about authenticity. People trust people more than brands.
- Full-funnel structure enables scaling. Prospecting alone gets expensive at scale. Retargeting recovers margin. Customer retention maximizes LTV. All three must work together.
- ROAS can improve as you scale if your creative testing is strong. Counterintuitive, but true — better creative lowers CPMs and increases conversion rates, which can offset the diminishing returns of higher spend.
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