Core Insights - The report from Unleashed indicates a recovery in sales revenue for small and medium-sized firms in Q3 2025, with an average revenue of £500,517, marking a 4.3% increase from Q2 2025 but a 4.4% decline compared to Q3 2024 [2] - The clothing, footwear, and accessories sector has adapted quickly to safeguard margins, shifting from a cautious stock-building approach to a leaner just-in-time strategy due to ongoing cost pressures and weakened demand [4][5] Group 1: Sales and Profitability - Sales revenue for small and medium-sized firms in Q3 2025 was £500,517, reflecting a 4.3% increase from Q2 2025 but a 4.4% decline from Q3 2024 [2] - Gross Margin Percentage (GMP) decreased by 2.5 percentage points from the previous quarter, indicating challenges in maintaining profitability [2] - Across all sectors analyzed, firms experienced a 12.9% quarter-on-quarter increase in sales, with GMP rising by 1.3 percentage points to 39.66% [6] Group 2: Operational Changes - Lead times shortened from 32 to 22 days, representing a 31% reduction quarter-on-quarter, while purchase orders fell by 56% and stock on hand value dropped by 33.5% [3] - The shift to a just-in-time inventory approach reflects a strategic response to reduced demand and cost pressures, as firms aim to protect margins and cash flow [4][5] - The report emphasizes the need for fashion manufacturers to leverage data for forecast-driven replenishment and real-time tracking of costs as they prepare for 2026 [5]