After six months of slight recovery, the clothing industry shows signs of deterioration again. The overall, the lack of demand and the impossibility of transferring costs at prices complicate the landscape of companies.
The Sale of clothing registered an interannual fall of 7.7% in the third two-month period of 2025 (May-June), according to data from the Argentine Industrial Chamber of clothing (CIAI). The report warns that, after six months of weak rebound, the activity showed a setback again, COn a direct impact on employment, the level of stocks and expectations for the rest of the year.
“The fall in sales affects a growing number of companies, with consequences such as accumulation of merchandise, labor adjustments and impossibility of transferring costs to prices, which compromises the perspectives of the sector,” says the document.
According to the CIAI, 56% of the firms reported a decrease in their sales, exceeding 32% that managed to increase them, thus reversing a trend that had been maintained for three bimester.
Among the factors that explain this setback, companies indicate the lack of domestic demand as the main concern (77%), followed by the increase in costs (17%). In parallel, The overall problem grows: 35% of companies claimed to have excessive inventories with respect to the volume of sales, a considerable increase compared to 24% of the anterior two -month period.
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The report too Highlights the difficulty in moving cost increases —Stepterly work – at the final prices. In the last bimester, 58% of the companies failed to adjust their prices, compared to 40% of the previous period.
As for employment, 24% of companies applied cuts through retirement or resignations not replaced, While 18% made dismissals, reflecting a growing adjustment trend in staffing.
Expectations of the clothing item for the remainder of the year
Import opening, the flexibility of the shopping regime to the door and the reduction of garments to garments and footwear, added to local prices up to 40% higher than those of neighboring countries, also exert pressure on an industry characterized by their high demand for labor.
Facing the second semester, Expectations are moderately negative. Only 14.5% of companies anticipate an improvement in sales for the next three months, while 60% do not expect variations. The pessimistic forecasts also grew: the percentage of companies that foresee a drop in the activity went from 21.7% to 25.8%.
From the sector chamber they warned that a “marked deterioration ”of the economic landscape for the remainder of 2025, which forces companies to act with caution and to review their production, employment and prices strategies.
Source: Ambito
