Apparel Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 9,300 apparel wholesalers in the US act as middlemen between apparel manufacturers and retailers. They purchase apparel and accessories in large quantities from manufacturers and importers and resell them to retailers. Wholesalers often represent multiple apparel manufacturers and carry a variety of categories, brands, and styles. Some firms specialize in past season or overstock merchandise.
Trends, Fads, and Seasonality
The apparel market is driven by fashion trends and fads, which create uneven demand for wholesalers.
Complex Supply Chain
The apparel supply chain is long and complex, and typically involves numerous parties, many of which are located overseas.
Industry size & Structure
The average apparel wholesaler operates out of a single location, employs 16 workers, and generates about $16 million annually.
- The apparel wholesale industry consists of about 9,300 firms that employ 149,400 workers and generate about $150 billion annually.
- The apparel wholesale industry is somewhat concentrated; the top 50 companies account for 50% of industry revenue.
- Most domestic apparel companies (which are technically classified as apparel manufacturers) own or license brand names and outsource the majority of production to third-party manufacturers overseas. These apparel companies are often referred to as wholesalers because they sell apparel at wholesale to major accounts.
- Large apparel companies with wholesale operations include Perry Ellis (Perry Ellis, Penguin), Oxford Industries (Tommy Bahama, Southern Tide), VF Corporation (The North Face, Dickies), PVH Corporation (Calvin Klein, Tommy Hilfiger), and Carter's (Carter's, OshKosh B'gosh).
Industry Forecast
Apparel Wholesalers Industry Growth
Recent Developments
Mar 28, 2025 - Domestic Manufacturers’ Business Complicated by Tariffs
- According to Sourcing Journal, US-based apparel manufacturers face higher prices on foreign-made inputs, loss of business in sectors affected by duties, and waning goodwill from non-US customers thanks to new tariffs levied on China, Mexico, and China by the Trump administration. On a positive note, Mitch Gambert, CEO of Gambert Shirtmakers, said he has seen about a 20% increase in interest from brands and retailers looking for domestic sourcing. However, costs in key areas have increased due to tariffs. Gambert is paying an additional $5,400 on each order of 5,000 buttons sourced from China. When a Canadian fabric wholesaler implemented a 33% surcharge on all shipments, Gambert had to cut 50 fabric options from the portfolio and cancel already-placed orders. US apparel manufacturers are also concerned with higher costs for machinery, most of which are sourced from Asia or Europe.
- According to the Global Port Tracker report from the National Retail Federation (NRF) and Hackett Associates, tariff turmoil will contribute to elevated imports at major US container ports in spring 2025, but volume could decrease by the summer. Higher tariffs on goods from China announced by the Trump Administration are driving the elevated imports, with additional tariffs looming. Jonathan Gold, NRF VP for Supply Chain and Customs Policy, said retailers are bringing as much merchandise into the US ahead of rising tariffs as possible, noting, “Retailers have been working on supply chain diversification, but that doesn’t happen overnight.” Tracker data showed that US ports handled 2.2 million 20-foot equivalent units in January 2024, which was up 4.4% month over month and up 13.4% year over year. Imports may also be affected by a proposed fee of $1-$1.5 million for each time a Chinese-built ship docks at an American port.
- A new global luxury market forecast from McKinsey projects that apparel, including ready-to-wear and footwear, will grow between 2% and 4% between 2025 and 2027, according to Fashion Dive. The “State of Luxury: Fashion” report found that the US is expected to outpace other regions in luxury market growth, with the market expected to grow between 4% and 6% compared to lower projections for Europe and China. The personal luxury goods market, which includes fashion, leather goods, watches, and jewelry, has grown in recent years, with 5% growth each year between 2019 and 2023, mostly propelled by price increases.
- Wholesale Trade is one of the 14 industries reporting growth in February’s Services ISM Report on Business. Executives in the Wholesale Trade industry reported increases in business activity, new orders, and employment, while reporting slower deliveries, decreased inventories, and higher prices paid for materials and services. Services industries reporting growth during the period included Finance & Insurance; Other Services, Utilities; Agriculture, Forestry, Fishing & Hunting; Mining; Real Estate, and Rental & Leasing. The three services industries reporting contraction during the period were Management of Companies & Support Services; Retail Trade; and Educational Services. Overall, economic activity in the services sector expanded in February, with the Services PMI registering 53.5%.
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