Sporting Goods Store

How Profitable Is A Sporting Goods Store? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is A Sporting Goods Store? (Updated for 2024)

So you want to start a sporting goods store?

And the first question that came to your mind was, “well, are sporting goods stores actually profitable?”

Especially considering:

You could start a sporting goods store with as low as $100
Based on our data, sporting goods stores generate an average of $3.21M per year

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 sporting goods store.

Let’s dive in!

Is a sporting goods store profitable?

Yes, a sporting goods store 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 $3.21M per year with an estimated gross margin of 37%, you could expect to recover your investment within 10 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your sporting goods store.

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 sporting goods store is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a sporting goods store worth it?

If you’re wondering if a sporting goods store is worth it, the answer is a big YES. With sporting goods stores, you have the potential to earn $3.21M 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 $, 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 sporting goods store 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 sporting goods stores case studies.

Examples Of Profitable Sporting Goods Stores

Here are a few examples of profitable sporting goods stores, and a few more details about them:

1. Comfy Cup LLC ($300K/year)

At just 8 years old, Kyler was frustrated by the uncomfortable athletic cup his baseball coach required him to wear. Instead of complaining, his parents challenged him to come up with a solution, and thus the idea for the Comfy Cup was born. Now, at 12 years old, Kyler's invention has grown into a successful business venture, with the Comfy Cup grossing over $100,000 in revenue last year and being sold in all 50 states, Canada, and Australia.

Is it profitable? Yes
How much money it makes: $300K/year
How much did it cost to start: $25K

How A 12 Year Old Started A $100K Athletic Cup Product

A 12-year-old invented The Comfy Cup, a more comfortable athletic cup for boys, which has grown into a successful business venture grossing over $100k in revenue last year, available on Amazon, The Grommet, and in local sporting goods stores.

Read this case study

Read by 7,416 founders

2. Bold Tribe ($112K/year)

In June 2015, Temo Valle founded Bold Tribe with the goal of offering high-quality sports products for CrossFit. After conducting detailed market research, Valle identified resistance bands as the ideal starting product. Through strategic branding and content creation on platforms like YouTube, Instagram, and Facebook, Bold Tribe has become the #1 brand for resistance bands in Mexico, achieving impressive sales growth year after year.

Is it profitable? Yes
How much money it makes: $112K/year
How much did it cost to start: $300

How I Started A $9K/Month CrossFit Accessories Brand

Bold Tribe, a Mexico-based company, became the #1 resistance band brand in the country, with a sales growth rate from $25,000 in 2016 to $550,000 in 2020, by initially investing $300 in testing the product through one of the popular marketplaces.

Read this case study

Read by 4,428 founders

Learn more about starting a sporting goods store:

Where to start?

-> How much does it cost to start a sporting goods store?
-> Pros and cons of a sporting goods store

Need inspiration?

-> Other sporting goods store success stories
-> Marketing ideas for a sporting goods store
-> Sporting goods store names

Other resources

-> Sporting goods store tips

How much can you make with a sporting goods store?

With a sporting goods store, you can make an average of $3.21M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a sporting goods store make a week?

Based on our data, average weekly revenue for a sporting goods store ranges around $66.8K. As such, you could see monthly revenues of $267K.

To know if your sporting goods store 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 sporting goods store.

How much do sporting goods stores owners make?

The income of a sporting goods store 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 sporting goods store is about $66.8K. 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 sporting goods store owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Sporting Goods Store Profit Margins

Generally speaking, a sporting goods store can expect profit margin of around 37%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a sporting goods store, 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, sporting goods store 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, sporting goods store owners can ensure long-term sustainability and profitability for their business.

Sporting goods store owner salary

The salary of a sporting goods store 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 sporting goods store, in a prime position, might see an average weekly salary around the ballpark of $24.7K.

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 sporting goods store may be a promising business to start - but the success of your sporting goods store mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable sporting goods store.

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Starting A Sporting Goods Store: Everything You Need To Know

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