The company was founded in 1994 by Peter Gifford, formerly the bass player for Midnight Oil, and named after his girlfriend's nickname. Initially, the company's products were trial marketed to Melbourne area strippers. The first store was opened in Cairns in 1995, and moved to Byron Bay the following year, where the company has remained since. Additional stores at Bondi and in Melbourne were unsuccessful, and were closed in 1998. The following year, 1999, Wicked Weasel went online, the first Australian swimwear maker to do so. By 2003, it was the largest Australian retailer of clothing via the internet. As of 2007, the website receives over 100,000 unique visitors per day. Wicked Weasel has 45-50 employees as of 2011.
Wicked Weasel also publishes online pictures of women who wear their products as part of a contest.