Women's Fashion Business

How Profitable Is A Women's Fashion Business? (Updated for 2024)

Pat Walls

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Updated: September 19th, 2024

How Profitable Is A Women's Fashion Business? (Updated for 2024)

So you want to start a women's fashion business?

And the first question that came to your mind was, “well, are women's fashion businesses actually profitable?”

With a market size of $877B - there’s plenty of business to go around.

Especially considering:

You could start a women's fashion business with as low as $3,000
Based on our data, women's fashion businesses generate an average of $1.29M per year
You could see gross margins as high as 45% with women's fashion businesses

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 women's fashion business.

Let’s dive in!

Is a women's fashion business profitable?

Yes, a women's fashion business 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 $1.29M 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 women's fashion business.

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 women's fashion business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a women's fashion business worth it?

If you’re wondering if a women's fashion business is worth it, the answer is a big YES. With women's fashion businesses, you have the potential to earn $1.29M 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 $877B, 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 women's fashion business 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 women's fashion businesses case studies.

Examples Of Profitable Women's Fashion Businesses

Here are a few examples of profitable women's fashion businesses, and a few more details about them:

1. Sustainably Chic ($204K/year)

Natalia's business idea for Sustainably Chic stemmed from her passion for sustainable fashion, which she developed after becoming fatigued with the industry’s wastefulness and unethical practices.

At the time, sustainable fashion was not a popular topic and she felt like no one talked about it.

Motivated by a desire to create an impactful platform and realizing the lack of resources in sustainable fashion, she started her online community to showcase ethical brands, which quickly gained a significant following.

Is it profitable? Yes
How much money it makes: $204K/year
How much did it cost to start: $3K

On Growing A Blog About Sustainable Fashion To 60K Monthly Visitors And $6K/Month In Revenue

This case study follows the founder of Sustainably Chic, a sustainable fashion blog with 60k monthly visitors and $6k monthly revenue, providing insights on building a successful blog, effective branding, and the importance of value and sustainability.

Read this case study

Read by 10,566 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 614 founders

3. KAHINDO ($60K/year)

Kahindo Mateene, Founder and Chief Creative Director of KAHINDO, came up with the idea for her luxury sustainable fashion brand after launching a successful Kickstarter campaign in 2014. She repurposed fabric scraps into clutches made by women in her hometown of Goma, Congo. Inspired by her Pan-African upbringing and desire to create positive change through fashion, she rebranded in 2017 and now incorporates original prints and African stories into her designs.

Is it profitable? Yes
How much money it makes: $60K/year
How much did it cost to start: $20K

I Started A Luxury Sustainable Womens Fashion Brand

KAHINDO is a sustainable women's luxury fashion brand that celebrates African fashion and promotes ethical work practices, with annual sales of $60k and wholesale clients like Rent The Runway.

Read this case study

Read by 3,895 founders

Learn more about starting a women's fashion business:

Where to start?

-> How much does it cost to start a women's fashion business?
-> Pros and cons of a women's fashion business

Need inspiration?

-> Other women's fashion business success stories
-> Marketing ideas for a women's fashion business

Other resources

How much can you make with a women's fashion business?

With a women's fashion business, you can make an average of $1.29M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $3,000. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a women's fashion business make a week?

Based on our data, average weekly revenue for a women's fashion business ranges around $26.8K. As such, you could see monthly revenues of $107K.

To know if your women's fashion business 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 women's fashion business.

How much do women's fashion businesses owners make?

The income of a women's fashion business 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 women's fashion business is about $26.8K. 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 women's fashion business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Women's Fashion Business Profit Margins

Generally speaking, a women's fashion business 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 women's fashion business, 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, women's fashion business 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, women's fashion business owners can ensure long-term sustainability and profitability for their business.

Women's fashion business owner salary

The salary of a women's fashion business 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 women's fashion business, in a prime position, might see an average weekly salary around the ballpark of $10.7K.

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 women's fashion business may be a promising business to start - but the success of your women's fashion business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable women's fashion business.

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Starting A Women's Fashion Business: Everything You Need To Know

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