Inventory Turnover › Apparel
Apparel Inventory Turnover Benchmarks 2026
Apparel retailers report inventory turnover of 2.9x to 4.8x per year in their fiscal 2024 / 2025 10-K filings. Sector median sits at 3.5x. Premium / luxury operators run slower (3x) and offset with higher gross margin. Mass-market operators (Old Navy via Gap) push above 4.5x.
2024 / 2025 10-K data, five named retailers
Turnover ratio calculated as fiscal-year COGS divided by average inventory (opening plus closing, divided by two). All figures pulled from the company 10-K filing linked in the source column.
| Retailer | Fiscal Year | Turnover | COGS | Avg Inventory |
|---|---|---|---|---|
| Lululemon Athletica(LULU) | FY24 (ended Feb 2025) | 3.4x | $3.93B | $1.16B |
| Gap Inc.(GPS) | FY24 (ended Feb 2025) | 4.8x | $8.92B | $1.86B |
| Ralph Lauren(RL) | FY25 (ended Mar 2025) | 3.2x | $2.92B | $0.91B |
| Urban Outfitters(URBN) | FY25 (ended Jan 2025) | 4.3x | $3.41B | $0.79B |
| Levi Strauss(LEVI) | FY24 (ended Dec 2024) | 2.9x | $2.95B | $1.02B |
Sources: SEC EDGAR 10-K filings. Average inventory derived from balance sheet opening and closing values; reported COGS taken from income statement.
Per-retailer notes
Lululemon Athletica (LULU)
3.4x turnoverInventory grew faster than COGS during FY23, recovering FY24. Premium positioning supports lower turnover at higher margin.
Source: Lululemon 10-K, fiscal 2024
Gap Inc. (GPS)
4.8x turnoverIncludes Old Navy, Gap, Banana Republic, Athleta. Old Navy drives the mass-market turnover higher.
Source: Gap Inc 10-K, fiscal 2024
Ralph Lauren (RL)
3.2x turnoverLuxury / premium pricing model. Slower turnover offset by very high gross margin (~67%).
Source: Ralph Lauren 10-K, fiscal 2025
Urban Outfitters (URBN)
4.3x turnoverMid-market specialty apparel. Anthropologie / Free People mix supports stable turnover.
Levi Strauss (LEVI)
2.9x turnoverLong product life-cycle (denim styles persist for years) tolerates a slower turn than fast fashion.
Source: Levi Strauss 10-K, fiscal 2024
Why apparel turnover sits below grocery and electronics
Apparel sells in seasons. Spring, summer, fall, holiday, resort. Each season has a 12 to 16 week sell-through window before markdowns begin. That structurally caps how fast inventory can churn versus grocery, which cycles in days, or consumer electronics, which cycles in weeks.
Three things explain the spread between operators:
- Price tier. Luxury / premium (Lululemon, Ralph Lauren) accepts 3x turnover because each unit earns 60-70% gross margin. Mass market (Old Navy under Gap) needs 4-5x to make the unit economics work at 35-40% gross margin.
- Style life-cycle. Levi's denim styles persist multi-year. Fast-fashion specialists cycle every 4-6 weeks. Levi at 2.9x is not a problem because the units are not aging out.
- Channel mix. Wholesale and outlet channels accelerate inventory exit faster than full-price retail. Ralph Lauren disclosing channel mix in their 10-K shows wholesale dilutes the turnover figure.
Sector reference table
| Sub-segment | Turnover range | Typical GM |
|---|---|---|
| Fast fashion (H&M, Zara segments) | 5-7x | 50-55% |
| Mass market (Old Navy, Target Apparel) | 4-5x | 35-42% |
| Specialty (Urban Outfitters, Anthropologie) | 3.5-4.5x | 40-48% |
| Premium athletic (Lululemon, Nike DTC) | 3-4x | 55-65% |
| Luxury (Ralph Lauren, LVMH brands) | 2-3x | 60-70% |
Related
Inventory Turnover (parent)
Cross-sector benchmarks, formula, days-on-hand conversion.
Footwear Turnover
Nike, Crocs, Foot Locker 10-K data.
Grocery Turnover
Kroger, Albertsons, Sprouts 10-K data.
GMROI
Gross margin return on inventory investment.
Carrying Cost
20-30% of inventory value per year breakdown.
Sell-Through Rate
Weekly sell-through and apparel-specific benchmarks.