• The Acumen Wire
  • Posts
  • Branded Activewear DTC – $212K Profit – $500K Asking – 2.4x Multiple

Branded Activewear DTC – $212K Profit – $500K Asking – 2.4x Multiple

Listing Type (?): Solid

📸 Snapshot:

Direct-to-consumer fitness apparel brand with a clear identity and loyal following. The business boasts strong branded search volume, suggesting real consumer mindshare. Primarily powered by print-on-demand logistics and social media-driven marketing, it’s lean, fast-moving, and low overhead.

✅ The Good:

  • Brand Equity: Substantial branded search traffic—rare for ecommerce brands at this size (the listing actually gives the name of the business publicly).

  • Efficient Ops: Likely print-on-demand setup minimizes inventory risk and operational complexity.

  • Social Proof: Engaged following and features in major outlets (Forbes, Oprah Daily).

  • Valuation: At 2.4x profit and under 1x revenue, pricing seems reasonable—maybe even favorable.

⚠️ Watch Out:

  • Competitive Market: Activewear is fiercely competitive; scaling will require strong positioning and continued spend.

  • Why the Sale?: Owner cites family obligations, but the business looks quite hands-off. Could signal underlying issues like ad fatigue or declining ROAS.

  • Marketing Dependency: Heavily reliant on paid acquisition; diminishing returns here could flatten growth fast.

💡 Bottom Line:
A lean, branded activewear business with strong fundamentals and audience loyalty. The current owner has hit a personal ceiling—this could be a smart buy for an operator with marketing firepower and a fresh push. Competition is real, but the brand’s foothold gives it a head start.

Reply

or to participate.