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Yahoo
10-06-2025
- Business
- Yahoo
UK fashion manufacturers see record Q1 sales performance with 171% surge
New data from the Manufacturing Health Index provided by Unleashed indicates this growth occurred despite a decline in small-medium enterprise (SME) business confidence to its lowest point in two years. The negative sentiment among businesses due to global uncertainty, inflation, and tax increases may not be entirely justified, the data suggests. The index is created by compiling data on purchases, sales, and stock movements from over 600 UK manufacturers, using Unleashed's inventory management software. Unleashed owner The Access Group ERP Small Business GM Joe Llewellyn said: 'Anecdotally, what we're hearing from some of our customers is that Q1 brought welcome windfalls. Some tariff-affected international customers have turned to UK firms to do business, while others raced to order more before tariff pauses came off. That's delivered a shot in the arm for some firms, but more importantly we're hearing that steadily falling bank rates are starting to stimulate the economy, which obviously is very welcome to UK manufacturers who've posted a really strong start to the year.' Although sales revenue increased, profitability metrics such as gross margin return on inventory (GMROI) experienced a downturn. Clothing manufacturers saw a 53% decline in GMROI compared to the previous quarter and a 36% decrease YoY, with returns of £4.14 for every pound invested in inventory. Decline in profit comes as excess stock level rose by 76% on a YoY basis and 51% on quarterly basis. Delivery lead times averaged 19 days as per the index, marking a 24% decline from 25 days in previous quarter and 14% decline from 22 days in the same period last year. However, purchase orders stood at 313 as of Q1 2025, declining by 7% from last year's quarter of 336 orders and declined 22% previous quarter orders of 399. When examining all 12 manufacturing categories analysed by Unleashed, there was an overall increase of 30% in sales in Q1 2025 compared to Q4 2024 and a YoY rise of 13%. Profitability also saw an upturn of 10% in Q1 with £4.03 generated per pound spent on stock. The broader manufacturing sector's profit margins may have been influenced by purchasing managers delaying inventory purchases due to unfavourable GBP-USD exchange rates earlier in the year. However, by April's end, the exchange rate had improved. Except for electronics & telecoms and food categories, which saw declines of 23% and 34% respectively, most manufacturing sectors experienced positive sales performance quarter-on-quarter. Lead times reduced across all categories, with Sports & Entertainment leading at a 45% reduction. Additionally, many categories reported decreases in excess stock levels, with industrial machinery observing the most significant drop at 68%. "UK fashion manufacturers see record Q1 sales performance with 171% surge" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
09-06-2025
- Business
- Fashion Network
UK fashion manufacturers sales surged in Q1, but profits fell
UK fashion manufacturers enjoyed a 'remarkable' sales performance in the opening quarter of 2025 'flying in the face of low business confidence among SMEs'. New figures show the average small-to-medium UK clothing and fashion manufacturer made 68% more sales revenue in Q1 than Q4 2024, and 171% more year-on-year, according to The Access Group. The findings, based on direct data from over 600 UK firms and processed by Access's Unleashed software, shows that across all of the 12 manufacturing categories analysed, sales were up 30% in Q1 2025 compared to Q4 2024 – and 13% year-on-year. However Unleashed's data also showed Q1 profitability dropped compared to last year. Gross Margin Return on Inventory (GMROI) for the average clothing manufacturer declined 53% against Q4 and by 36% year-on-year to £4.14 return for every pound spent on buying stock. Lead times fell to 19 days on average, which offers some reassurances, noting 'faster delivery times allow businesses to reorder in smaller quantities, which is a more cost-efficient way to generate sales that improves margins'. Joe Llewellyn, GM of ERP Small Business at The Access Group, said: 'Unusual business conditions of the first three months of the year had generally played out well for the country's smaller producers, as had falling bank rates. 'Anecdotally, what we're hearing from some of our customers is that Q1 brought welcome windfalls. Some tariff-affected international customers have turned to UK firms to do business, while others raced to order more before tariff pauses came off. That's delivered a shot in the arm for some firms, but more importantly we're hearing that steadily falling bank rates are starting to stimulate the economy, which obviously is very welcome to UK manufacturers who've posted a really strong start to the year.'
Fashion Network
09-06-2025
- Business
- Fashion Network
UK fashion manufacturers sales surged in Q1, but profits fell
UK fashion manufacturers enjoyed a 'remarkable' sales performance in the opening quarter of 2025 'flying in the face of low business confidence among SMEs'. New figures show the average small-to-medium UK clothing and fashion manufacturer made 68% more sales revenue in Q1 than Q4 2024, and 171% more year-on-year, according to The Access Group. The findings, based on direct data from over 600 UK firms and processed by Access's Unleashed software, shows that across all of the 12 manufacturing categories analysed, sales were up 30% in Q1 2025 compared to Q4 2024 – and 13% year-on-year. However Unleashed's data also showed Q1 profitability dropped compared to last year. Gross Margin Return on Inventory (GMROI) for the average clothing manufacturer declined 53% against Q4 and by 36% year-on-year to £4.14 return for every pound spent on buying stock. Lead times fell to 19 days on average, which offers some reassurances, noting 'faster delivery times allow businesses to reorder in smaller quantities, which is a more cost-efficient way to generate sales that improves margins'. Joe Llewellyn, GM of ERP Small Business at The Access Group, said: 'Unusual business conditions of the first three months of the year had generally played out well for the country's smaller producers, as had falling bank rates. 'Anecdotally, what we're hearing from some of our customers is that Q1 brought welcome windfalls. Some tariff-affected international customers have turned to UK firms to do business, while others raced to order more before tariff pauses came off. That's delivered a shot in the arm for some firms, but more importantly we're hearing that steadily falling bank rates are starting to stimulate the economy, which obviously is very welcome to UK manufacturers who've posted a really strong start to the year.'
Yahoo
08-04-2025
- Business
- Yahoo
UK fashion suppliers face tough 2025 as Q4 sales dip, lead times rise
The results of Unleashed's Manufacturing Health Index report for Q4 2024 has come in against a backdrop of market volatility and changes to international tariffs that have led to uncertainty among those responsible for making strategic decisions. The report is released on a quarterly basis and aggregates data concerning purchases, sales, and inventory fluctuations among small and medium-sized manufacturing enterprises throughout the UK. Manufacturing performance data in the fashion industry shows that small to mid-sized companies saw their average sales revenue decline 32.78% to £352,000 ($449,000) in Q4 2024 from nearly £524,000 in the third quarter of 2024. Concurrently, the number of purchase orders declined by half, dropping 49.49% from 790 in Q3 of 2024 to 399 in Q4. Lead times increased marginally on a quarterly basis from 23 days to 25 but declined 34.2% from 38 days in the same period the prior fiscal. The analysis also showed that sales revenues had fallen by nearly 3% compared to the same timeframe in the prior year with purchase orders decreasing by more than 8%. This data emerged alongside other statistics showing a decline in confidence among retailers and wholesalers to a two-year low, influenced by escalating taxes and stagnant sales growth. Unleashed examined 12 manufacturing categories for its latest Manufacturing Health Index Report. The study revealed a sector-wide decline in average sales revenue of over 40% in the last quarter, from £468,215 to £275,953. The frequency of purchase orders also saw a nearly halved rate, falling from 322 to 167. When compared year-over-year, sales revenues had diminished by roughly 22%, and purchase orders by close to 18%. Unleashed parent company The Access Group small business ERP GM Joe Llewellyn said: 'Low consumer confidence and newly-volatile international trading conditions seem to be taking their toll on manufacturers across almost every category we looked at – which made it a tough start to the year for many businesses. 'While many will be rightly concerned about this drop-off, it's worth bearing in mind that Q3 2024 was a bumper quarter, when we saw both sales revenue and POs surge. That suggests performance is returning to more normal levels, albeit a little more subdued than we'd all like to see. 'The figures also suggest that manufacturers are keeping a tight rein on their inventory, with excess stock significantly down, and a corresponding rise in its profitability (GMROI). While market conditions have impacted sales and orders, they're controlling what they can, enabling them to weather the storm and make the most of the recovery. 'Finally, it's reassuring that total sales for the year were up compared to 2023, showing an overall more positive direction of travel.' "UK fashion suppliers face tough 2025 as Q4 sales dip, lead times rise" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
