Seasonal Industry

Definition of 'Seasonal Industry'


A subset of companies that earn the majority of their income during a small part of the year because of factors such as weather, holidays and/or customs. The businesses in a seasonal industry will make little or no money outside of the season that their business revolves around. These businesses must either make enough money during their seasons to last the business owners the entire year, or the business owners must have other sources of income to sustain them during the off season.

Investopedia explains 'Seasonal Industry'


An example of a seasonal industry tied to weather is skiing. Most ski resorts only have the quantity and quality of snow necessary for skiing at certain times of the year. Another example of a seasonal industry tied to a holiday is Christmas tree sales. There is little to no demand for these trees outside of the time between Thanksgiving and Christmas.



comments powered by Disqus
Hot Definitions
  1. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  3. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  5. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  6. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
Trading Center