UK fashion manufacturers recover margins ahead of 2026

Unleashed unveiled a study that draws connected information from much than 600 UK firms, utilizing its inventory absorption software, covering manufacturing categories including covering and fashion.

Clothing, footwear and accessories assemblage “moved quickly” to safeguard their margins successful the reported quarter, explained Joe Llewellyn, GM of ERP tiny concern astatine The Access Group, the genitor institution of Unleashed.

Llewellyn added: “The past 4th was characterised by a determined propulsion towards efficiency.”

Sales gross recovered successful Q3 2025, arsenic tiny and medium-sized firms recorded an mean of £500,517.

This represents an summation of 4.3% compared to the 2nd 4th of 2025 and a 4.4% diminution compared to Q3 2024.

Profitability, measured by Gross Margin Percentage (GMP), decreased by 2.5 percent points from the erstwhile quarter, alongside declines successful pb times, purchasing volumes, and the worth of banal connected hand.

Lead times shortened from 32 to 22 days, representing a 31% quarter-on-quarter reduction. Purchase orders fell by 56%, and banal connected manus worth dropped by 33.5%.

“Sales gross was healthy, adjacent if it didn’t scope the dizzy heights of the aforesaid play past year. But our information shows that purchasing and pb times were some down 4th connected quarter, a motion of weakened request reflected successful the contracted PMI for this period. This, on with ongoing outgo pressures, prompted manner manufacturers to act. They’ve moved from cautious ‘Just successful case’ banal gathering successful Q2 to a leaner conscionable successful clip approach, cutting their margins and banal connected manus to support their margins and currency flow,” said Llewellyn.

He besides highlighted the value of operational strategies for the future: “Going into 2026, manner manufacturers volition request to marque the astir of information to alteration forecast-driven replenishment, way landed costs successful real-time, and place and person excess banal into cash. Doing much with little is the caller reality, seen successful the continued inclination successful concern automation.”

The study recovered akin trends crossed different manufacturing categories tracked by Unleashed.

Across each sectors analysed, firms recorded a 12.9% quarter-on-quarter summation successful income alongside a 1.3 percent constituent emergence successful GMP to 39.66%.

At the aforesaid time, determination were declines successful acquisition orders by 30%, banal connected manus by 27.2%, and pb times were reduced by 8 days.

"UK manner manufacturers retrieve margins up of 2026" was primitively created and published by Just Style, a GlobalData owned brand.

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