"A million bucks of big hooters"— Shark Tank's Kevin O'Leary reacts to Legit Kits' sales

Founder Mike O'Dell appeared on Shark Tank in season 16 episode 9, which aired on January 24, 2025, to pitch his company Legit Kits which offered a unique approach to mastering quilting.

Mike revealed that he launched the company in 2020, generating $30,000 in sales during its first year. In 2021, sales grew to $140,000, followed by an impressive $400,000 in 2022. By 2023, the company had reached the $1 million milestone.

Shark Kevin O'Leary was highly impressed by Legit Kits' rapid growth and remarkable sales trajectory. He was particularly astonished to learn that the company had hit the $1 million mark in just three years.

"A million bucks of big hooters," Kevin reacted after hearing the 2023 sales.

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Legit Kits on Shark Tank: Mike O'Dell secures a deal with Kevin O'Leary after intense negotiations

What are Legit Kits?

Mike O'Dell appeared on season 16 episode 9 to pitch Legit Kits and sought a $150,000 investment in return for 5% equity in his company.

"It may not look like it, but I love quilting. It's a relaxing, creative and meaningful hobby. But when I was getting started, the quilt kits out there were tedious and the resulting quilts were dull. I created a company that is not your grandma's quilt patterns. I'd like to introduce you to Legit Kits!" he pitched.

The Shark Tank entrepreneur explained that Legit Kits were easy to sew, foundation paper piece patterns, and kits that would help the user to make beautiful masterpieces.

Mike added that his company stood apart from their competition because of their prolific use of colors. He noted that some of their quilts had over 100 shades of fabric which contributed to its level of detail.

The founder revealed that their average customer was a dedicated quilter, noting that there are over 11.1 million quilters in the United States alone. Additionally, the company offered 60 unique designs, proudly stating that they had "a pattern for everyone."

"If anything gets passed down to you, it's a quilt. Money gets spent, clothes go out of style, and property gets sold. But quilts get passed down. So, the neat thing about this is even if the company closed down these quilts will be around for sometimes hundreds of years," the Shark Tank entrepreneur explained.

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Cost of making and profits

The Legit Kits founder later revealed that the average customer acquisition cost for them was around $17. The large kit cost them $125 to produce and they sold it for $399.

While Mike shared that they had huge sales numbers over the year, their profit marking was a bit lesser at the time. He shared that in 2023 they made a profit of 8.7%, however, at the time of filming in 2024 they were "revenue neutral."

The Shark Tank entrepreneur further noted that despite a lesser profit margin than last year they now had a larger facility that they could scale from

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Deal with Kevin O'Leary

David shared that he was struggling with marketing and had once paid $3000 in marketing which made him a sale of just $10,000. Most of the Sharks lost their interest because of the niche customer market. Lori Greiner felt that instead of pushing all of the 60 types of quilting sets he was offering he should instead focus on the top 20 best-selling sets.

Mark Cuban, Barbara Corcoran, and guest Shark Jamie Kern Lima showed no interest in the quilting business and decided to opt-out, joining Lori.

However, Kevin O'Leary recognized the potential in the business and struck a deal with the contestants, offering $150,000 for 5% equity, along with a $10 royalty per unit sold in perpetuity

"I'm a high risk entrepreneur, but having a deal with Kevin in perpetuity is not high risk. I know he's going to boost our business to the next level, and I can't wait to get started. Let's go," the Shark Tank entrepreneur reacted in his confessional

As of January 2025, Legit Kits is still in business as their website (legitkits.com) features their quilting sets. The company also has an active social media presence on Facebook and Instagram, where the founder and staff promote the latest offers on their set.

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Shark Tank season 16 episodes air every Friday on ABC.