Overview
- Sixty‑three percent of apparel companies reported lower sales in January–February 2026, while only 30% saw increases.
- Half of firms labeled their inventories as excessive, the highest share in 18 months, reflecting slow sell‑through.
- Eight in ten companies face difficulties meeting financial commitments, with payment delays doubling to affect 60% of firms and the share without significant delays falling to 21%.
- Price pass‑through remains constrained, as 50% of companies could not raise prices to match costs and 43% managed to pass on less than half of increases.
- Labor adjustments are widening, with layoffs accounting for 21% of measures—up seven points from the prior bimonth—and 25% of firms not replacing departures, while 60% expect flat sales next quarter and only 16% foresee improvement.