While the company offers a wide range of products

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” Marcario also said: “Costs after revenues (tuition fees) for running Patagonia’s child development center are approximately $1 million. With a yearly tax deduction of $150,000 and a second deduction of 35% of costs (35% of $1 million = $350,000), that’s a total of $500,000 in costs recouped, or 50%.” Patagonia Profit Patagonia’s estimated profit is around $100 million annually. Potential for Profitability Patagonia can leverage the numerous available opportunities to boost its profitability.


For example, opening more stores worldwide owner/partner/shareholder email lists will solidify its market presence, allowing it to reach and capture more customers. Currently, the company operates around the US and Canada, disregarding the high demand for outdoor apparel in other parts of the world. Patagonia should consider expanding globally to diversify its revenue streams. Digital shopping is fast becoming popular among shoppers. Patagonia can use e-Commerce channels to generate more revenue from online sales.


There is room for improvement. Stretching its product line is one of the most effective ways the company can increase its revenue. Conclusion Patagonia has been a successful company in the clothing industry and its efforts to save the environment. Its childcare program was a first in the U.S. and significantly improved the company’s reputation.