Washington, D.C., a hub for power suits and professional polish, has long been a goldmine for M.M.LaFleur, a women’s workwear brand founded in 2013. The city ranks as the company’s second-biggest market, trailing only New York. But a storm is brewing: The Trump administration’s Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy, has swung a sharp axe at federal jobs, and the ripple effects are hitting M.M.LaFleur’s bottom line.
Since Trump took office in January, DOGE has axed thousands of government positions in a bid to shrink spending. In D.C., where one in five workers holds a federal gig, the fallout is palpable. Redfin reports median home prices in the metro area have cratered 20% since November, dropping from $699,000 to $560,000 by February, as laid-off workers flood the housing market with listings. For M.M.LaFleur, which outfits many of these professionals, the cuts spell trouble. “The biggest hurdle we’re facing is the uncertainty swirling around the government,” says founder and CEO Sarah LaFleur. “Our D.C. customers—lawyers, lobbyists, agency staff—are holding off on purchases because they don’t know what’s next.”
Sales in the capital have “noticeably softened” since late last year, LaFleur admits, though she won’t share exact figures for the privately held company. Nationwide, M.M.LaFleur’s revenue has climbed steadily, hitting $130 million in 2023 after a pandemic dip from its 2019 peak of $150 million. But D.C.’s downturn threatens that momentum. The brand’s downtown showroom near McPherson Square, a sleek space offering styling sessions and prosecco, still draws loyalists—70% of whom work in government-related roles, per LaFleur. Yet foot traffic tells a different story: Customers who once refreshed wardrobes for office life are now paring back amid hybrid work and job insecurity.
M.M.LaFleur isn’t sitting idle. Known for machine-washable blazers and “power casual” dresses, the company has leaned into versatility, targeting women navigating fluid work setups. It’s also doubled down on digital, with virtual styling and a subscription service that ships curated boxes. “We’re adapting to how women live and work now,” LaFleur says. Still, D.C.’s woes sting. The brand shuttered a smaller Union Station pop-up in 2022, leaving the K Street flagship as its lone local outpost. Closing it isn’t on the table—yet—but the pressure’s on.
The economic shift traces back to DOGE’s mission. Trump’s executive order birthed the advisory body to slash costs, and Musk’s team has delivered: mass buyouts, DEI contract purges, and a war on “wasteful” agencies like USAID. In D.C., where federal jobs fuel everything from retail to real estate, the cuts have sparked a chain reaction. LaFleur, a Harvard grad who built M.M.LaFleur to empower working women, now faces a test of resilience. “When your customer base is tied to a sector in upheaval,” she says, “you feel every tremor.”