Finance in fashion
fashion finance: sell-through and markdown risk, gross margin and inventory, the economics of seasons, and DTC vs wholesale.
This block builds financial fluency specific to apparel and fashion, an industry defined by seasonal collections, volatile demand, deep markdowns, and long, often global supply chains. You will learn how core finance concepts adapt to inventory-heavy, working-capital-intensive fashion businesses, from fast fashion to luxury. It covers the metrics and benchmarks that matter across US and European retailers, including margin structures, inventory turns, and sell-through. It also addresses sector regulation, financial risks tied to unsold stock, currency and sourcing exposure, and the due-diligence checks buyers and investors run on fashion brands. The goal is practical judgment on how these companies make, lose, and report money.
What you'll master
- Read and interpret an apparel brand's financials, focusing on gross margin, markdowns, and inventory health
- Calculate and benchmark key sector metrics like inventory turnover, sell-through rate, and GMROI against US and European norms
- Identify the main financial risks in fashion, from obsolete stock and FX exposure to supply chain and demand volatility
- Run targeted financial due diligence on a fashion company, spotting red flags in inventory, discounting, and working capital