Clothing Line

How Profitable Is A Clothing Line? (Updated for 2024)

Pat Walls

•

Updated: October 10th, 2024

How Profitable Is A Clothing Line? (Updated for 2024)

So you want to start a clothing line?

And the first question that came to your mind was, “well, are clothing lines actually profitable?”

With a market size of $1.71T - there’s plenty of business to go around.

Especially considering:

You could start a clothing line with as low as $2
Based on our data, clothing lines generate an average of $23.8M per year
You could see gross margins as high as 45% with clothing lines

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a clothing line.

Let’s dive in!

Is a clothing line profitable?

Yes, a clothing line is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $23.8M per year with an estimated gross margin of 40%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your clothing line.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your clothing line is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a clothing line worth it?

If you’re wondering if a clothing line is worth it, the answer is a big YES. With clothing lines, you have the potential to earn $23.8M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $1.71T, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a clothing line to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful clothing lines case studies.

Examples Of Profitable Clothing Lines

Here are a few examples of profitable clothing lines, and a few more details about them:

1. Chemo Cozy ($36K/year)

Ellen Hamilton came up with the idea for Chemo Cozy after her late husband, Greg, went through chemotherapy and realized the need for accessible and comfortable clothing for patients. They launched with a successful Kickstarter campaign that raised $30k in 30 days, and now have customers in all 50 states and internationally. They have three online stores and have managed to sustain the business without outside funding.

Is it profitable? Yes
How much money it makes: $36K/year
How much did it cost to start: $25K

Creating A Clothing Brand That Supports Patients Fighting Cancer

Chemo Cozy is a company that produces fashionable and functional clothing for cancer patients during treatments, launching through a Kickstarter campaign that raised $30k in 30 days and now operates through their website, Etsy, and Amazon stores, with customers in all 50 states and internationally.

Read this case study

Read by 4,561 founders

2. STOCK ($3.6M/year)

Jim Snediker, CEO of Stock Manufacturing Company, pivoted from high-end menswear to B2B uniforms after being approached by a Michelin-star restaurant in 2013. This strategic shift propelled their business to $3.4 million in revenue by 2023.

Is it profitable? Yes
What's the gross margin? 45%
How much money it makes: $3.6M/year

How We Built A $3.4M/Year Custom Uniforms Manufacturing Business

Case study on the transformation of a D2C menswear brand into a successful B2B uniform provider for hospitality industry giants, achieving revenue growth from $700k in 2019 to $3.4M in 2023, through strategic collaborations, product expansion, and community-driven initiatives during the COVID-19 pandemic.

Read this case study

Read by 672 founders

3. Bombas ($300M/year)

David Heath and Randy Goldberg didn't plan to start a sock company. Instead, they stumbled upon the idea in 2011 when David saw a Facebook post mentioning that socks were the most requested item in homeless shelters. This surprising fact struck a chord and stayed with him.

Seeing the success of companies like TOMS and Warby Parker, which coupled product sales with charitable giving, inspired them. They wondered if a similar model could solve the sock shortage in homeless shelters by donating a pair for every pair sold.

They started by deeply researching the sock market and testing various designs. With initial skepticism from some quarters, they used feedback to refine their product, focusing on high-quality features like seamless toes and arch support. The combination of a strong social mission and a superior product won them early adopters and set the stage for success.

Is it profitable? Yes
How much money it makes: $300M/year

How Bombas Built a $300M Sock Empire

Bombas co-founders David Heath and Randy Goldberg turned a $140,000 Indiegogo campaign into a $300M/year business by blending mission-driven marketing with high-quality, innovative socks, leveraging Shark Tank exposure, effective use of Facebook ads, and strategic wholesale partnerships.

Read this case study

Read by 81 founders

Learn more about starting a clothing line:

Where to start?

-> Clothing line plan
-> How to finance a clothing line?
-> How much does it cost to start a clothing line?
-> Pros and cons of a clothing line

Need inspiration?

-> Other clothing line success stories
-> Marketing ideas for a clothing line
-> Clothing line names

Other resources

-> Clothing line tips

How much can you make with a clothing line?

With a clothing line, you can make an average of $23.8M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $2. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a clothing line make a week?

Based on our data, average weekly revenue for a clothing line ranges around $496K. As such, you could see monthly revenues of $1.98M.

To know if your clothing line achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your clothing line.

How much do clothing lines owners make?

The income of a clothing line owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established clothing line is about $496K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a clothing line owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Clothing Line Profit Margins

Generally speaking, a clothing line can expect profit margin of around 40%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a clothing line, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, clothing line owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, clothing line owners can ensure long-term sustainability and profitability for their business.

Clothing line owner salary

The salary of a clothing line owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established clothing line, in a prime position, might see an average weekly salary around the ballpark of $198K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a clothing line may be a promising business to start - but the success of your clothing line mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable clothing line.

Part of

Starting A Clothing Line: Everything You Need To Know

‹

›