Streetwear Brand

How Profitable Is A Streetwear Brand? (Updated for 2024)

Pat Walls

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Updated: October 6th, 2024

So you want to start a streetwear brand?

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

With a market size of $85.8B - there’s plenty of business to go around.

Especially considering:

You could start a streetwear brand with as low as $300
Based on our data, streetwear brands generate an average of $4.08M 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 streetwear brand.

Let’s dive in!

Is a streetwear brand profitable?

Yes, a streetwear brand 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 $4.08M per year with an estimated gross margin of 43%, you could expect to recover your investment within 9 months or even less.

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

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 streetwear brand is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a streetwear brand worth it?

If you’re wondering if a streetwear brand is worth it, the answer is a big YES. With streetwear brands, you have the potential to earn $4.08M 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 $85.8B, 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 streetwear brand 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 streetwear brands case studies.

Examples Of Profitable Streetwear Brands

Here are a few examples of profitable streetwear brands, and a few more details about them:

1. LacedUp ($13.2M/year)

Andrew Pevzner and his brother, Phillip, started their business journey at a young age with various ventures. Their transition into the world of high-end collectible sneakers came when they opened a retail store called Flowboard, and after realizing the potential in the resale shoe market, they rebranded the store to focus on sneakers and launched Laced Up. With a passion for business and hard work, they successfully grew Laced Up into a chain of four retail stores and a thriving online business, achieving over $5 million in annual sales.

Is it profitable? Yes
How much money it makes: $13.2M/year

How Two Brothers Started A $500K/Month Chain Of High-End Sneakers

Two brothers built a $5M annual sales business, Laced Up, from a lawn care service they started at age 10, and have since grown from one store to 4 locations in New York and New Jersey, specializing in high-end collectible sneakers and providing great customer service.

Read this case study

Read by 9,149 founders

2. Dropout SRL ($1.68M/year)

Kola Tytler, the founder of dropout, came up with the idea for his business after learning about the underground sneaker resale market and self-teaching himself to code a sneaker bot. He later teamed up with others to create software that collected data and ran statistical analysis, which led to the creation of HypeAnalyzer. Frustrated with university, Kola decided to bring the ultimate sneaker shopping experience to Italy, leading to the birth of dropout.

Is it profitable? Yes
How much money it makes: $1.68M/year
How much did it cost to start: $120K

How I Started A $840K/Year Business Selling Limited Edition Sneakers [Italy]

Founder Kola Tytler managed to build a profitable business, Dropout, worth over $2.5 million by selling limited edition sneakers and streetwear, despite having no prior experience and juggling medical school; the company saw over 50,000 in-store visitors and over $100k in sales in December 2021 alone and raised €750k via equity crowdfunding in 6 days.

Read this case study

Read by 4,119 founders

Learn more about starting a streetwear brand:

Where to start?

-> Streetwear brand plan
-> How to finance a streetwear brand?
-> How much does it cost to start a streetwear brand?
-> Pros and cons of a streetwear brand

Need inspiration?

-> Other streetwear brand success stories
-> Marketing ideas for a streetwear brand
-> Streetwear brand slogans
-> Streetwear brand names

Other resources

-> Streetwear brand tips

How much can you make with a streetwear brand?

With a streetwear brand, you can make an average of $4.08M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $300. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 9 months.

How much does a streetwear brand make a week?

Based on our data, average weekly revenue for a streetwear brand ranges around $85K. As such, you could see monthly revenues of $340K.

To know if your streetwear brand 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 streetwear brand.

How much do streetwear brands owners make?

The income of a streetwear brand 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 streetwear brand is about $85K. 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 streetwear brand owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Streetwear Brand Profit Margins

Generally speaking, a streetwear brand can expect profit margin of around 43%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a streetwear brand, 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, streetwear brand 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, streetwear brand owners can ensure long-term sustainability and profitability for their business.

Streetwear brand owner salary

The salary of a streetwear brand 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 streetwear brand, in a prime position, might see an average weekly salary around the ballpark of $36.6K.

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

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

Part of

Starting A Streetwear Brand: Everything You Need To Know

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