NAICS 424350 Quarterly Industry Report
Clothing and Clothing Accessories Merchant Wholesalers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 424350Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 424350 draws on verified data from the U.S. Census Bureau[4], Bureau of Labor Statistics[6], and Small Business Administration[5] to profile the clothing and accessories wholesale sector. Our research team analyzes apparel trade data and fashion distribution patterns to provide accurate intelligence for business valuation. The report covers SBA size standards, related NAICS classifications, and the global sourcing dynamics shaping apparel distribution. Fair Market Value updates this NAICS 424350 profile quarterly to reflect new Census releases and apparel industry developments.
Industry Snapshot
Key metrics for the clothing and clothing accessories merchant wholesalers industry.
Industry Definition & Overview
Clothing and Clothing Accessories Merchant Wholesalers (NAICS 424350) encompasses establishments primarily engaged in the merchant wholesale distribution of clothing and clothing accessories. Product categories include dresses, sportswear, outerwear, lingerie, nightwear, hosiery, swimwear, fur clothing, uniforms, infant and children's apparel, handbags, belts, scarves, gloves, and millinery. This industry also covers wholesale distribution of baby products like bottles and diapers when distributed through apparel wholesale channels. Wholesalers connect garment manufacturers and importers with the retail stores, department stores, and online sellers that bring clothing to consumers.
The industry reflects the global nature of apparel production, with most clothing sold in the United States manufactured in Asia, Central America, and other offshore locations. Wholesalers manage international sourcing, customs compliance, quality control, and domestic logistics across diverse product categories and seasonal collections. Fast fashion has compressed product development cycles, requiring wholesalers to accelerate turnaround times between trend identification and retail delivery. Off-price and closeout distribution channels handle excess inventory from overproduction or canceled orders. According to the U.S. Census Bureau[4], merchant wholesalers take title to clothing before distributing it to retail customers.
The SBA[5] sets the size standard at 150 employees for this industry. E-commerce growth has created new wholesale fulfillment models, with distributors providing drop-ship services for online retailers who list products without holding physical inventory. Social media platforms and influencer marketing have opened wholesale channels to micro-retailers and small online boutiques that purchase in smaller quantities than traditional retail buyers. Counterfeit goods and intellectual property enforcement present ongoing challenges for brand-authorized wholesale distribution networks operating in fashion categories.
What's Included in This Industry
- Wholesale distribution of women's dresses and sportswear
- Distribution of men's suits, shirts, and outerwear
- Wholesale of children's and infant apparel
- Distribution of lingerie, nightwear, and hosiery
- Wholesale of handbags, belts, and fashion accessories
- Distribution of uniforms and workwear
- Wholesale of swimwear and seasonal apparel
- Distribution of fur clothing and luxury outerwear
- Wholesale of scarves, gloves, and millinery
- Distribution of baby products through apparel channels
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Wholesale Trade | 42 |
| Subsector | Merchant Wholesalers, Nondurable Goods | 424 |
| Industry Group | Apparel, Piece Goods, and Notions Merchant Wholesalers | 4243 |
| NAICS Industry | Clothing and Clothing Accessories Merchant Wholesalers | 42435 |
| National Industry | Clothing and Clothing Accessories Merchant Wholesalers | 424350 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 424310 | Piece Goods, Notions, and Other Dry Goods Merchant Wholesalers | Distributes piece goods, fabrics, and notions through wholesale channels, providing the raw materials that become the finished garments distributed by clothing wholesalers |
| 424340 | Footwear Merchant Wholesalers | Handles footwear wholesale distribution, frequently serving the same retail accounts and department store buyers who purchase clothing alongside shoes |
| 424990 | Other Miscellaneous Nondurable Goods Merchant Wholesalers | Covers other miscellaneous nondurable goods wholesale distribution, sometimes handling fashion accessories and personal care items sold alongside clothing |
| 315120 | Apparel Knitting Mills | Operates apparel knitting mills that produce knit garments flowing through wholesale distribution channels to retail stores and online sellers |
| 315210 | Cut and Sew Apparel Contractors | Manufactures cut and sew apparel for contractors, producing garments on contract that wholesalers then distribute to retail markets nationwide |
| 315990 | Apparel Accessories and Other Apparel Manufacturing | Produces apparel accessories and other apparel manufacturing products that supplement the core clothing items distributed through wholesale channels |
SBA Lending Summary
1,184
Total SBA Loans
$460.3M
Total Loan Volume
$389K
Average Loan Size
10 yrs
Average Loan Term
10.61%
Average Interest Rate
8,192
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[3]
Key Insight: The SBA[5] classifies NAICS 424350 under merchant wholesale trade with a size standard of 150 employees. Businesses at or below this threshold qualify as small for federal contracting preferences and SBA loan programs. Clothing wholesalers can access SBA 7(a) loans[7] for inventory acquisition and import financing. Distributors expanding showroom or warehouse space may qualify for 504 loans[8]. International trade loans help fund overseas manufacturing deposits and letters of credit for garment factories in Asia and Central America.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Bank of Hope | 192 | $43.9M | $229K |
| 2 | Heritage Bank Inc | 8 | $40.0M | $5.0M |
| 2 | American Continental Bank | 8 | $40.0M | $5.0M |
| 4 | Newtek Bank, National Association | 64 | $30.8M | $481K |
| 5 | Northeast Bank | 128 | $28.4M | $222K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 424350?
NAICS 424350 includes merchant wholesalers distributing clothing (dresses, sportswear, outerwear, lingerie, uniforms), accessories (handbags, belts, scarves), and related products like baby bottles and diapers. These firms buy from manufacturers and resell to retail stores, department stores, and online sellers. Source: U.S. Census Bureau[4]
How is the clothing wholesale industry structured?
The industry includes brand-authorized distributors, independent wholesalers sourcing from multiple manufacturers, off-price distributors handling closeouts, and import agents coordinating overseas production. Most product sourcing originates from factories in China, Vietnam, Bangladesh, and Central America. Showrooms in fashion centers like New York and Los Angeles serve as buying venues.
What is the SBA size standard for NAICS 424350?
The SBA sets the size standard at 150 employees for clothing and clothing accessories merchant wholesalers. Businesses at or below this level qualify as small for federal contracting preferences and SBA financing programs. Source: SBA Size Standards[5]
What NAICS codes are related to clothing wholesaling?
Key related codes include 424310 (piece goods wholesalers), 424340 (footwear wholesalers), 315210 (cut and sew apparel contractors), and 315250 (apparel manufacturing). These represent upstream supply and parallel distribution channels. Source: Census NAICS[4]
What industries interact most with clothing wholesalers?
Primary customers include department stores, specialty clothing retailers, mass merchandisers, online fashion retailers, and uniform supply companies. Upstream partners include domestic and international garment manufacturers. Customs brokers, freight forwarders, and third-party logistics firms support the import supply chain.
What products are included in NAICS 424350?
Products include dresses, sportswear, outerwear, lingerie, hosiery, swimwear, uniforms, fur clothing, handbags, belts, scarves, gloves, baby products, and millinery distributed through wholesale channels. Footwear is excluded and classified under NAICS 424340. Source: Census Bureau[4]
Can clothing wholesalers get SBA loans?
Yes, small businesses under NAICS 424350 can access SBA 7(a) loans for inventory and working capital, 504 loans for warehouse and showroom facilities, and international trade loans for import financing. Seasonal inventory buildups for spring and fall fashion seasons create peak borrowing needs. Source: SBA Loan Programs[9]
Where are clothing wholesalers concentrated?
Clothing wholesalers concentrate heavily in New York City (Garment District and surrounding areas) and Los Angeles. Miami serves as a hub for Latin American trade. Dallas, Atlanta, and Chicago host regional wholesale markets. Import distributors cluster near major ports including Long Beach, New York/New Jersey, and Savannah. Source: BLS QCEW[10]
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [4]U.S. Census Bureau census.gov
- [5]SBA sba.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA 7(a) loans sba.gov
- [8]504 loans sba.gov
- [9]SBA Loan Programs sba.gov
- [10]BLS QCEW bls.gov
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