Shoe Brand

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

Pat Walls

•

Updated: July 21st, 2024

So you want to start a shoe brand?

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

With a market size of $468B - there’s plenty of business to go around.

Especially considering:

You could start a shoe brand with as low as $1,000
Based on our data, shoe brands generate an average of $5.43M 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 shoe brand.

Let’s dive in!

Is a shoe brand profitable?

Yes, a shoe 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 $5.43M per year with an estimated gross margin of 46%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your shoe 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 shoe brand is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a shoe brand worth it?

If you’re wondering if a shoe brand is worth it, the answer is a big YES. With shoe brands, you have the potential to earn $5.43M 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 $468B, 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 shoe 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 shoe brands case studies.

Examples Of Profitable Shoe Brands

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

1. Xero Shoes ($48M/year)

Steven Sashen, co-founder and CEO of Xero Shoes, came up with the idea for his business after experiencing the benefits of barefoot running. He designed his own "barefoot sandals" based on ancient designs and started selling DIY sandal making kits. Through online marketing strategies and identifying target customers, Xero Shoes quickly grew into a successful business.

Is it profitable? Yes
How much money it makes: $48M/year

Xero Shoes: Growing A Shoe Brand to $460K/month

Xero Shoes, co-founded by Steven Sashen, is a minimalist shoe company that has grown at a rate of 80-102% per year since 2014, with 2017 sales of $5.53M, and has been repeatedly listed as one of INC. 5000’s fastest-growing companies, and has a projected $15M in sales for 2019.

Read this case study

Read by 15,665 founders

2. KASA ($960K/year)

KASA, an online luxury shoe and accessory boutique, was founded by Kartik Gurmule at the age of 16. After a failed sneaker business, Kartik discovered the potential in the luxury shoe market during a trip to Italy and decided to focus on designing and selling high-quality leather footwear. Since its launch in November 2018, KASA has experienced rapid growth, with over 250,000 social media followers and a monthly profit of $80k.

Is it profitable? Yes
How much money it makes: $960K/year

How I Started A $80K/Month Luxury Shoes And Accessories Brand

16-year-old entrepreneur founds KASA, an online luxury shoe and accessory boutique with over 270 luxury shoes in the collection, generating $80k in monthly profits and exploring expansion into lower-end shoes and custom shoes for the poor.

Read this case study

Read by 20,884 founders

Learn more about starting a shoe brand:

Where to start?

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

Need inspiration?

-> Other shoe brand success stories
-> Marketing ideas for a shoe brand
-> Shoe brand slogans
-> Shoe brand names
-> Shoe brand Instagram bios
-> Shoe brand Instagram captions

Other resources

-> Shoe brand tips
-> Blog post ideas for a shoe brand
-> Shoe brand quotes

How much can you make with a shoe brand?

With a shoe brand, you can make an average of $5.43M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $1,000. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a shoe brand make a week?

Based on our data, average weekly revenue for a shoe brand ranges around $113K. As such, you could see monthly revenues of $453K.

To know if your shoe 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 shoe brand.

How much do shoe brands owners make?

The income of a shoe 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 shoe brand is about $113K. 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 shoe brand owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Shoe Brand Profit Margins

Generally speaking, a shoe brand can expect profit margin of around 46%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a shoe 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, shoe 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, shoe brand owners can ensure long-term sustainability and profitability for their business.

Shoe brand owner salary

The salary of a shoe 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 shoe brand, in a prime position, might see an average weekly salary around the ballpark of $52.1K.

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, a shoe brand is quite promising if you plan on starting such. With a market size of $468B, you can enjoy a potential revenue of around $5.43M per year with a gross margin of 46%.

Considering this information, you can enjoy a return of investment within 12 months, especially if you have a monthly profit of $208K. Overall, the success of your shoe brand also depends on your effort and knowledge about it. If you persevere with these things, you can ensure that this shoe brand is profitable.

Make sure you have a proper shoe brand plan and know how to get clients for your shoe brand.

Part of

Starting A Shoe Brand: Everything You Need To Know

‹

›