UK fashion manufacturers, using Unleashed data, saw sales revenue recover in Q3 2025, with small and medium-sized firms averaging £500,517, up 4.3% from Q2 but down 4.4% from Q3 2024. Gross Margin Percentage decreased by 2.5 points, lead times shortened by 31%, and purchasing volumes and stock on hand value fell significantly.

Efficiency drive led UK fashion manufacturers to cut margins and stock on hand to protect cash flow in Q3 2025. Sales revenue remained healthy, but purchasing and lead times decreased, reflecting weakened demand. Operational strategies for 2026 include data-driven replenishment and converting excess stock into cash.

Report by Unleashed highlighted trends across all manufacturing sectors, showing a 12.9% sales increase in Q3 2025. Gross Margin Percentage rose to 39.66%, but purchase orders, stock on hand, and lead times decreased. Fashion manufacturers adapted to the challenging market, focusing on leaner inventory management strategies for the future.

Read more at Yahoo Finance: UK fashion manufacturers recover margins ahead of 2026