Hoodie Range Planning: Why Growth Can Still Lose Margin
Hoodie sales are up on last year, the trading meeting is pleased, and yet category gross profit is flat. Which options are carrying the result, which are only carrying stock, and was the extra volume bought at a worse margin? Answering that is what hoodie range planning is for: it fixes the role of each option, the sales and margin it must deliver, and the stock it is allowed to hold, before the season is bought rather than after it has been marked down.
This guide is for buyers and buying directors who already run a hoodie category. It builds a hypothetical GBP 5m category step by step, so every target traces to an assumption, and explains the three measures that decide whether the range is healthy: net sales, gross profit and stock turn. All figures in the worked example are illustrative inputs chosen to make the arithmetic visible. They are not benchmarks, supplier prices or typical retailer results.
The tiles above are outputs of the model built later in the page, not targets to copy. Replace every assumption with your own data.
The Three KPIs: Net Sales, Gross Profit and Stock Turn
Range decisions go wrong when measures are blurred, so define each one before setting targets. Definitions vary between retailers, so confirm the version your finance team uses and apply it consistently across segments and seasons.
The three range KPIs and the measures that support them
| Measure | Formula | How to read it in a hoodie range |
|---|---|---|
| Net sales | Gross sales less returns and discounts, excluding VAT | The revenue the range actually keeps. Report it by segment, and say whether markdown sales are included at their reduced price. |
| Gross profit | Net sales less cost of goods sold | Cash margin in pounds. Check what sits in cost of goods sold: landed cost, duty, freight, and any markdown funding or stock provision, as definitions vary. |
| Gross margin % | Gross profit divided by net sales | Margin on the selling price. Do not confuse it with markup, which divides by cost. |
| Markup % | (Selling price less cost) divided by cost | Used in costing sheets. A 55% gross margin is a markup of roughly 122%, so the two numbers are never interchangeable. |
| Stock turn | Cost of goods sold divided by average stock at cost, over the same period | How many times stock is sold and replaced. A retail-value version exists, so state which one you use. |
| Sell-through % | Units sold divided by units received (or available), over the same period | Say which denominator you use. Full-price sell-through is a separate measure and excludes markdown units. |
| Range productivity | Net sales (or gross profit) divided by number of live options | Shows whether new options add sales or only split existing ones among more styles. |
Standard formulas with illustrative reading notes. Retailers differ on denominators, time windows and what counts as cost of goods sold, so confirm internally.
The distinction between gross margin and markup matters later in the worked example, where a core hoodie costing £22.50 and selling at £50 net of VAT carries a 55% gross margin and a markup of about 122%. Quote the wrong one in a range meeting and the target is out by tens of points. For selling-price mechanics, see our guide to pricing clothing for wholesale and retail.
Step 1: Create a Core, Seasonal and Experimental Architecture
The first decision in hoodie range planning is not the number of styles but the job each style does. A range architecture splits the category into segments with different demand certainty, different stock rules and different supplier commitments. Three segments are enough for most hoodie programmes: core, seasonal and experimental.
Three segments, three jobs
| Segment | Job in the range | Buying rule | Exit rule |
|---|---|---|---|
| Core | Proven hoodies that sell every year in the same silhouettes and colours; the availability promise to the customer | Deep, replenished, with fabric and trims booked early; protect in-stock above all | Replace only when sales per option fall under plan for several reviews in a row |
| Seasonal | Colour, fabric and wash updates on proven shapes; gives the range its timeliness | Moderate depth, one planned reorder window for options that prove themselves | Clear at season end; carry over only if the colour or finish is evergreen |
| Experimental | New silhouettes, fabrics, decoration or price points; buys information as well as sales | Shallow test quantities with a written read period and success criteria | Promote to seasonal or core, or exit; never extend by default |
A planning template, not a rule. Segment names and share of sales differ by retailer and customer.
The architecture also shapes the supply base. Core lines justify committed fabric and capacity; experimental lines need a supplier that makes small quantities and then scales a winner, the logic behind a test and scale approach. It reduces inventory risk but does not remove it.
Indicative risk profile by segment
1 dot = low, 5 dots = high
| Core | Seasonal | Experimental | |
|---|---|---|---|
| Demand certainty | ●●●●● | ●●●●● | ●●●●● |
| Fabric commitment needed | ●●●●● | ●●●●● | ●●●●● |
| Markdown exposure | ●●●●● | ●●●●● | ●●●●● |
| Value of fast replenishment | ●●●●● | ●●●●● | ●●●●● |
| Information value of the sale | ●●●●● | ●●●●● | ●●●●● |
Indicative 1-5 ratings that describe the typical shape of each segment, not measured data. Rate your own segments with your sales history.
Step 2: Set Sales and Gross-Profit Targets by Segment
Hoodie range planning that sets targets only at category level hides dilution, because a strong core can mask a weak experimental tail for a whole season. Set net sales and gross margin separately for each segment, then let the category total fall out as the sum. The example below assumes margins that fall as markdown exposure rises.
Assumptions for the illustrative GBP 5m hoodie category
- Net sales are excluding VAT and include markdown sales at their reduced price, so the average net price per unit is already net of planned markdown.
- Option counts, depths, prices and margins are hypothetical inputs chosen for clean arithmetic. They are not market data and not Ruhrose prices.
- Gross margin is gross profit divided by net sales. Cost of goods sold is the remainder and is assumed to be landed cost of the units sold.
- Average stock at cost is an assumed annual figure, used only to illustrate stock turn.
Illustrative GBP 5m hoodie category architecture
| Segment | Options | Units sold per option | Units sold | Average net price | Net sales | Gross margin | Gross profit |
|---|---|---|---|---|---|---|---|
| Core | 8 | 6,750 | 54,000 | £50 | £2,700,000 | 55% | £1,485,000 |
| Seasonal | 16 | 2,500 | 40,000 | £45 | £1,800,000 | 50% | £900,000 |
| Experimental | 10 | 1,250 | 12,500 | £40 | £500,000 | 40% | £200,000 |
| Total | 34 | – | 106,500 | £46.95 | £5,000,000 | 51.7% | £2,585,000 |
Illustrative and hypothetical. Check: £2,700,000 + £1,800,000 + £500,000 = £5,000,000 net sales; £1,485,000 + £900,000 + £200,000 = £2,585,000 gross profit; £2,585,000 divided by £5,000,000 = 51.7%.
Each net sales line is options multiplied by units sold per option multiplied by average net price: core is 8 x 6,750 x £50 = £2,700,000, seasonal is 16 x 2,500 x £45 = £1,800,000 and experimental is 10 x 1,250 x £40 = £500,000. The blended average price of about £46.95 is a result, not an input, which is why it should never be set top down.
Where the sales come from
Share of GBP 5m net sales, illustrative
Rounded to whole numbers from the worked example above.
Gross profit tells a different story. Because core carries the best margin, it earns about 57% of gross profit from 54% of sales, while experimental earns about 8% of gross profit from 10% of sales.
Where the gross profit comes from
Share of GBP 2.585m gross profit, illustrative
Rounded to whole numbers from the worked example above. The experimental segment buys information, so a smaller profit share is expected.
Step 3: Plan Option Count and Depth Against Demand
In hoodie range planning, option count and depth are separate decisions. Count is how many styles and colours you offer; depth is how many units each one is expected to sell, and therefore how many you must buy. Doubling the options does not double sales if the same customers simply split their choice. Work from the sales target to the buy with two formulas.
- Options = segment net sales target divided by (units sold per option multiplied by average net price).
- Buy depth per option = units sold per option divided by planned sell-through. State the sell-through denominator you use (units received is the common choice), and whether markdown units count as sold.
From sales target to buy plan (illustrative)
| Segment | Options | Buy depth per option | Total units bought | Planned units sold | Planned sell-through | Units left at season end |
|---|---|---|---|---|---|---|
| Core | 8 | 7,500 | 60,000 | 54,000 | 90% | 6,000 |
| Seasonal | 16 | 3,125 | 50,000 | 40,000 | 80% | 10,000 |
| Experimental | 10 | 2,000 | 20,000 | 12,500 | 62.5% | 7,500 |
| Total | 34 | – | 130,000 | 106,500 | 81.9% | 23,500 |
Illustrative and hypothetical. Planned sell-through is units sold divided by units bought over the season, with markdown units counted as sold. Units left over are assumed carried or cleared outside this plan.
The experimental segment is the clearest example. Ten options with a buy of 2,000 each commit 20,000 units to sell 12,500, so the plan accepts 7,500 leftover units in exchange for learning which silhouettes deserve a place in the seasonal range. If that exposure feels too large, reduce buy depth per option or reduce the number of experiments, not the sales target of the core. Our guides on which styles deserve a bigger buy and reducing hoodie overstock cover the read-and-reorder side of this decision.
Depth also interacts with fabric. Every extra colour or fleece weight adds a fabric commitment, and a long tail of small colours can force mill minimum surcharges. If the range has more fabric bases than the volumes justify, consolidate them before adding options. Our guide to reducing hoodie fabric MOQ explains how. For fabric weight choices within the core, see French terry versus fleece.
Step 4: Review Range Productivity Every Month
A range plan is a hypothesis, and the monthly review is where it is tested. It needs the same few measures applied consistently by segment and option, so a drifting option is spotted while there is still time to act on buy, price or marketing.
Net sales per option in the example
Range productivity, GBP per option per season
Illustrative. Net sales divided by options: £2,700,000 / 8, £1,800,000 / 16 and £500,000 / 10. The whole category averages £147,059 per option across 34 options.
The chart shows why option count is a cost, not a free choice. Each seasonal option earns about a third of a core option, and each experimental option about a seventh. Gross profit per option follows the same pattern: £185,625 for core, £56,250 for seasonal and £20,000 for experimental.
A monthly range review cycle
- Week 1: refresh the numbersPull net sales, gross profit, units sold, units received, returns and stock at cost by option, then roll them up to segment.
- Week 2: compare with planCompare each segment and option with its plan rate of sale and margin. Mark options as ahead, on plan or behind using thresholds the buyer set before the season.
- Week 3: decide and assignFor each behind or ahead option choose one action: reorder, hold, reprice, support or exit. Name an owner and a date.
- Week 4: reset the planUpdate the forecast, open-to-buy and supplier commitments. Record what the decisions changed so the next review can see their effect.
A suggested cadence. Fit it to your trading calendar and lead times.
Monthly review: signal, question and typical action
| Signal | Question to ask | Typical action |
|---|---|---|
| Option behind plan rate of sale, with good availability | Is the product weak, or is the price, image or placement wrong? | Test one change, then reduce future depth or exit if there is no response |
| Option ahead of plan with thin stock | How many weeks of cover remain against the replenishment lead time? | Reorder now, or accept lost sales on purpose |
| Segment margin below plan | Is the cause mix, markdown timing or higher landed cost? | Adjust the markdown plan, the buy mix or the cost, in that order of speed |
| Stock turn below plan | Which segment holds the extra stock and for how many weeks? | Stop further intake for that segment and review exit options |
Thresholds for each signal are set by the buyer and finance before the season. None are given here because they depend on the programme.
For the reorder step in particular, our guide on when to reorder a bestseller sets out the weeks-of-cover calculation, and a related guide covers improving full-price sell-through without cutting the range.
Stock Turn by Segment: Where Cash Gets Tied Up
Margin shows what a sale earns; stock turn shows how quickly the cash is recycled. A range can show a healthy gross margin and still tie up cash if slow segments hold more stock than their sales justify.
Stock turn by segment (illustrative)
| Segment | Cost of goods sold | Assumed average stock at cost | Stock turn |
|---|---|---|---|
| Core | £1,215,000 | £270,000 | 4.5x |
| Seasonal | £900,000 | £300,000 | 3.0x |
| Experimental | £300,000 | £150,000 | 2.0x |
| Total | £2,415,000 | £720,000 | 3.4x |
Illustrative and hypothetical. Check: £2,415,000 / £720,000 = 3.35, shown as 3.4x.
Core turns fastest because it is replenished against known demand, and experimental turns slowest by design. If experimental stock grew while core stayed thin, the same turn target would be missed for the wrong reason, which is why it is reported by segment. Turn can also be pushed too hard: a range that runs out of its best sellers loses sales rather than gaining efficiency.
When Growth Is Offset by Mix and Markdown
Now test the buyer problem directly. Suppose next season the category grows to £5.5m, which is 10% more net sales than the base plan, but the extra volume comes from more experimental options, and heavier markdown pulls seasonal and experimental margin down. Core is unchanged. Every number below is illustrative.
Base plan versus a growth scenario (illustrative)
| Segment | Base net sales | Base margin | Base gross profit | Growth net sales | Growth margin | Growth gross profit |
|---|---|---|---|---|---|---|
| Core | £2,700,000 | 55% | £1,485,000 | £2,700,000 | 55% | £1,485,000 |
| Seasonal | £1,800,000 | 50% | £900,000 | £1,900,000 | 44% | £836,000 |
| Experimental | £500,000 | 40% | £200,000 | £900,000 | 28% | £252,000 |
| Total | £5,000,000 | 51.7% | £2,585,000 | £5,500,000 | 46.8% | £2,573,000 |
Illustrative and hypothetical. Growth scenario gross profit is £1,485,000 + £836,000 + £252,000 = £2,573,000, which is £12,000 lower than the base plan despite £500,000 more net sales.
Sales rose by £500,000 and gross profit fell by £12,000, because experimental went from 10% to about 16% of net sales and carried a much lower margin. A trading report that reads only net sales would call this a good season. A range plan that fixes segment margin targets and an experimental share ceiling would have flagged the plan as off course before the buy was placed.
If the experimental options were cheaper to make, or a read period let the weakest ones be cut before the second delivery, the margin gap would narrow. If returns on experimental fits rose, it would widen. Re-run the table with your own figures, and keep the gross profit line as the test of success, not net sales.
On a category this size each point of gross margin is worth £50,000. Levers for recovering margin are covered in our guide to improving hoodie gross profit without simply increasing sales.
How to Plan a Hoodie Range in Four Steps
The process above runs as a repeatable cycle each season. The order matters: roles, then targets, then the buy, then the review, so every later number has an owner and a reason.
The planning sequence
- 1Assign rolesSplit the category into core, seasonal and experimental, and write down the job, buying rule and exit rule for each.
- 2Set targetsSet net sales and gross margin for each segment, and let category gross profit be the sum.
- 3Size the buyWork from units sold per option to options and buy depth using planned sell-through, and fix an experimental ceiling.
- 4Review monthlyCheck range productivity, margin and stock turn by segment, then act on one decision per behind or ahead option.
A planning sequence, not a calendar. Lead times for fabric and production decide when each step must be complete; see the lead-time guide linked below.
Lead times decide how late each decision can be made. Our guide to clothing production lead times gives the structure to work back from.
Before you sign off the range plan
- Every option has a segment, a role and a named owner.
- Net sales and gross margin targets exist for each segment, not only for the category.
- Buy depth is derived from units sold and planned sell-through, with the denominator written down.
- An experimental ceiling is set as a share of net sales, with a read period and success criteria.
Adapt to your own approval process.
Common Hoodie Range Planning Mistakes
Most range misses come from a few repeated errors, nearly all visible in the plan before the season begins.
- Planning the category total only. A single sales and margin target hides the segment that is dragging the average.
- Adding options to hit a sales number. If the customer base does not grow, more options mean a lower rate of sale per option and a higher cost of stock.
- No exit rule for experiments. Without a stated end date, trial styles drift into the core range and dilute its productivity.
- Reporting stock turn only at category level. Fast core turns can hide slow experimental stock.
One precise question is worth asking before the next range review: if the category grew by 10% next season through the segment you have the least evidence for, which line of your own plan would show the gross profit falling, and who would be responsible for catching it?
How Ruhrose Approaches Hoodie Range Development
Ruhrose is a hoodie, jersey, denim and woven casualwear manufacturer with development and production in Bangladesh and UK buyer support. We do not do your hoodie range planning or set your sales targets; that sits with your buying and finance teams. What we can do is make the plan practical on the supply side: sampling every style before bulk, helping consolidate fabric bases where it makes sense, and working with a proposed test quantity such as 500 pieces per style and colour where it is commercially and technically feasible. Test quantities vary by fabric, dye, trims and factory, they are not a guaranteed minimum, and a test reduces risk without removing it. Our custom hoodie manufacturing guide explains how development works for UK buyers.