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, Munsingwear, Penguin), Oxford Industries (Tommy Bahama, Southern Tide), VF Corporation (The North Face, Dickies, JanSport, Easkpak), PVH Corporation (Calvin Klein, Izod, Olga, Warner's), and Carter's (Carter's, OshKosh B'gosh).
Industry Forecast
Apparel Wholesalers Industry Growth
Recent Developments
May 23, 2024 - Sales, Inventories Down
- Sales for apparel wholesalers were 8.8% lower in March 2024 compared to a year ago and were mostly flat compared to the prior month, according to the Census Bureau. Inventories for apparel wholesalers were 20.6% lower in March 2024 compared to a year ago and down 3.3% from the previous month. The inventories/sales ratio for apparel wholesalers declined 13% to 2:15 in March 2024 compared to a year ago and was 4% lower than the previous month. Meanwhile, producer prices for apparel and piece goods merchant wholesalers were up 2.6% in March 2024 compared to a year ago, according to the Bureau of Labor Statistics.
- US manufacturing activity contracted in April 2024 after a brief expansion in March, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 49.2% in April, down 1.1 percentage points from the 50.3% recorded in March. A reading above 50% indicates manufacturing expansion. Prior to March’s expansion, US manufacturing activity had fallen below the baseline for growth for 16 consecutive months. April’s New Orders Index was in the contraction zone at 49.1%. The April Production Index was 51.3%, a decrease from March’s 54.6%. Nine manufacturing industries tracked by the ISM reported growth in April: Nonmetallic Mineral Products; Printing & Related Support Activities; Primary Metals; Textile Mills; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Transportation Equipment; Chemical Products; and Plastics & Rubber Products. The industries reporting contraction in April were Miscellaneous Manufacturing; Machinery; Furniture & Related Products; Wood Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Paper Products.
- A new bipartisan coalition has been launched to examine the impact of a trade rule known as the de minimis import loophole, according to Just Style. US textile and garment manufacturers say their industry is being negatively impacted by de minimis, which they say gives an advantage to foreign producers. The provision allows foreign companies to ship goods directly to US customers without paying tariffs if the goods are worth less than $800. The nearly-century-old rule has seen a significant increase in use in recent years. The number of packages entering the US without tariffs under the policy rose from 150 million in the 2016 fiscal year to 1 billion by 2023, according to the New York Times. Half of the packages contain textile and apparel products, with about 30% coming from Chinese fast-fashion retailers Shein and Temu, per the article. The National Council of Textile Organizations (NCTO) supports eliminating the de minimis rule.
- Disruptions in the Red Sea are expected for the rest of 2024 due to continuing attacks by Iran-backed Houthi rebels, with diversions causing higher container freight rates, according to the Wall Street Journal. Container freight rates have increased about 30% in recent weeks, with most ship owners and brokers diverting large container ships from the Red Sea. The Red Sea serves as the entry point for ships to the Suez Canal on trips from Asia to Europe. According to the article, most of the diverted ships go around the Cape of Good Hope in South Africa, which adds about 2.5 weeks to the trip. Import volume is expected to increase in Q3, when retailers typically stock up for the holiday season.
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