Apparel & Fashion
Apparel & Fashion Gross Margin Benchmark
Gross margin measures the percentage of revenue remaining after subtracting cost of goods sold. This page provides apparel & fashion-specific ranges, drivers, and improvement tactics.
Typical Range
50–60%
Industry Average
55%
Formula
((Revenue − Cost of Goods Sold) ÷ Revenue) × 100
Why this benchmark looks like this in Apparel & Fashion
- Seasonality drives markdown pressure
- Private label commonly 65+ percent
Industry context: Seasonal, markdown-heavy, fashion cycles.
How to improve gross margin in Apparel & Fashion
- Tighter buy plans on fashion items
- Build private label to 20-30 percent of mix
Universal drivers
- • Pricing strategy
- • Markdown discipline
- • Vendor cost negotiation
- • Mix shift toward higher-margin SKUs
- • Private label penetration
Gross Margin across other retail industries
| Industry | Range | |
|---|---|---|
| Grocery & Supermarkets | 20–30% | View → |
| Consumer Electronics | 10–20% | View → |
| Home & Furniture | 35–50% | View → |
| Health & Beauty | 40–50% | View → |
| Luxury & Jewelry | 60–75% | View → |
| Sporting Goods | 35–45% | View → |
| Home Improvement | 30–38% | View → |
| Toys & Games | 30–42% | View → |
| Pet Supplies | 35–45% | View → |
| Auto Parts & Accessories | 40–50% | View → |
| Office Supplies | 28–38% | View → |
| Department Stores | 32–42% | View → |
| Dollar & Discount Stores | 30–38% | View → |
| Footwear | 45–58% | View → |
Calculate Your Gross Margin
Gross Margin Calculator
The cleanest read on how much of every sales dollar you actually keep after paying for the goods. Gross margin drives every downstream financial decision in retail: what to price, what to promote, what to keep on the shelf. This calculator returns the margin percent plus the markup equivalent, cost-as-percent-of-revenue, and the price-to-cost multiplier so operators can translate between the three lenses in one view.
Open calculator
Markup Calculator
Set a selling price from cost or reverse-engineer the markup baked into an existing price. Markup is the buyer’s language of pricing (percent added on top of cost), while [margin](/calculators/retail-finance/gross-margin-calculator) is the finance language (percent kept from revenue). This calculator returns markup percent alongside profit per unit, the margin equivalent, and the price-to-cost multiplier so pricing decisions get made in the right language across both teams.
Open calculator
Markdown Calculator
The pricing tool every buyer and merchandiser reaches for when inventory is running behind sell-through pace. This calculator returns the markdown amount, markdown percent, final selling price, and (when cost is entered) the resulting gross profit and margin percent. It also flags whether the markdown depth is promotional, seasonal, aggressive or clearance-tier, and generates practical next-step recommendations tied to [gross margin](/calculators/retail-finance/gross-margin-calculator), [GMROI](/calculators/retail-finance/gmroi-calculator), [sell-through rate](/calculators/retail-finance/sell-through-rate-calculator) and [inventory turnover](/calculators/inventory-management/inventory-turnover-calculator).
Open calculator
Deep-Dive Guides
Gross Margin Explained: The Retail Operator’s Guide to the Number That Runs the P&L
How buyers and finance actually work gross margin. The formula, three what-if scenarios, the margin-vs-markup translation, category benchmarks, GMROI, and the seven levers that move margin on purpose.
Gross Margin vs Markup: The Difference Every Retailer Must Know
These two numbers are not the same. Confusing them is the most common pricing mistake in retail. Here is a clear, example-driven breakdown with a conversion chart.
Explore Related Resources
Handpicked benchmarks, templates and guides to help you dig deeper.