Top 10 Most Profitable Retailers (2024)

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Apparel Magazine's annual Top 50 ranks the 50 apparel brands with the highest overall profit margin. Despite harsh weather across much of the nation negatively impacting sales, a handful of retailers were still able to keep profit margins healthy.

Overall profitability of the Top 50 fell from an average of 7.1% last year to 6.1% this year, signifying a switch in consumer spending from soft to hard goods.

Click here to download the entire Top 50 report. Here is a quick look at the top 10 retailers on the list:

lululemon athletica. Even though it’s been playing defense since former CEO Chip Wilson’s headline-grabbing comments that some women’s thighs may just not be a fit for lululemon’s yoga pants, the retailer still managed to nab the number one spot with a 17.6% profit margin, on top of an almost 20% profit margin the previous year. Profit margin: 17.6%.

The Buckle. The retailer's slightly lower-than-its-peers online sales growth of 7% is likely attributable to a non-promotional environment online as well the ability to have special orders shipped to stores for free. The denim focused retailer ended 2013 with 450 stores in 43 states, and this year plans 17 full remodels and 17 new stores, including a new store in Anchorage, Alaska. Profit margin: 14.4%.

Francesca’s Collections. Online sales at francescas.com grew by 92% in fiscal 2013, helped by a new Instagram program (which led to a gain of more than 1 million unique impressions). Francesca’s continues to refine its distinctive small-format boutique experience and its broad but shallow assortment strategy, as it keeps a close eye on trends. Profit margin: 13.2%.

Ralph Lauren. Over the next three to five years, Ralph Lauren expects sales and profit to be driven in large part by: intensified development of its Polo brand; expansion of its global e-commerce — which accounted for $500 million in revenues through its directly operated sites; and an emphasis on accessories, particularly leather goods, with a goal for the segment to represent 20% of revenue. Profit margin: 10.4%.

Nike. Nike sells more than one million pairs of shoes every day. It took the company 18 years to reach its first $2 billion in revenue, and it added about that much in just fiscal 2013. Nike expects one billion new customers over the next 10 years from growing middle class communities in Brazil, Russia, India, China and South Africa. Profit margin: 9.8%.

Urban Outfitters. Urban Outfitters reduced fulfillment times by more than 30% and shipping times by more than 15% by extending the number of shifts at its fulfillment centers. It is rapidly growing its online beauty business, which was up by 73% in the fourth quarter over the same period last year. Profit margin: 9.2%.

L Brands. The company is seeing a big hike in transactions via mobile phones, and it’s working to harness that movement across its channels. Overall comp-store sales for L Brands were up 2%, on top of 6% the prior year. Victoria’s Secret accounted for the largest share of revenue ($6.7 billion), followed by Bath & Body Works ($2.9 billion). Profit margin: 9.4%.

Ross Stores. Off-price retailers Ross and dd’s DISCOUNTS continued to benefit from wide assortments while maintaining reduced inventory levels, with same-store sales up 3% on top of a 6% gain the previous year. Ross expects comp-store sales to be up 1% to 2% this year with sales up 5% to 6%, as it adds about 75 Ross and 20 dd’s stores, moving toward its goal of approximately 2,000 Ross and 500 dd’s locations. Profit margin: 8.2%.

Gap. The company’s continued focus on bridging the digital and physical realms resulted in an e-commerce sales increase of 21% for the year. The Gap raised the minimum wage for its associates to $9 an hour this year and plans to bump the hourly rate to $10 in 2015. Profit margin: 7.9%.

TJX. TJX believes it can grow its 3,219-store fleet to 5,150, with an additional 172 stores expected this year on top of 169 in 2013. During the 2013 holiday season, its tri-branding campaigns for T.J. Maxx, Marshalls and HomeGoods allowed it to promote its three brands at the same time —customers who shop more than one of its chains, on average, spend considerably more. Profit margin: 7.8%.