The Monthly Edit | December 2025: Finish the Year Strong: Protecting Margin, Cash & Clarity
10 Minute ReadAs the year winds down, the final weeks before Christmas can feel deceptively quiet or unexpectedly intense. Promotions peak, inboxes fill, and decision fatigue starts to creep in.
But for strong fashion businesses, this period isn’t about doing more.
It’s about finishing well.
Many brands experienced a softer September and October, followed by a November where competing on price became unavoidable. That context makes clarity, discipline and intention even more important as the year closes.
December isn’t just the end of the trading calendar. It’s a moment where the right decisions around margin, cash and inventory set the tone for the year ahead.
This final edition of The Monthly Edit is designed to help you close the year with intention, protect what you’ve built, and carry clarity into January.
Author: Elizabeth Formosa | 16 December 25
What We’re Seeing Right Now
Less Noise. More Discernment.
Across the brands we work with, a few consistent patterns are showing up in these final weeks.
Consumers are still spending, but they’re more selective.
Purchasing decisions are more considered. Customers are gravitating towards clear offers, quality and confidence, rather than urgency or constant discounting.
Promotional fatigue is real.
Brands that continue to perform aren’t increasing volume or frequency. They’re refining their message and executing fewer initiatives well.
Operational discipline matters more than marketing volume.
This isn’t the moment for something new. It’s about backing the decisions you’ve already made and seeing them through.
This is why December is best approached as a month of commercial discipline, not expansion.
December’s Commercial Priorities:
What Scaling Brands Are Focusing on Now
In the final weeks of the year, focus matters more than activity. These are the three areas that deserve your attention.
1. Protect Margin vs Chasing Volume
Discounting should never be the default, especially now.
Before introducing or extending promotions, ask yourself:
Is this driving profitable sales, or just movement?
What margin am I sacrificing for urgency?
Would a tighter, more targeted offer deliver the same or a better result?
Brands finishing the year strongest are:
Maintaining price stability across hero styles and core ranges
Limiting site-wide discounting
Using controlled promotional periods with clear intent
High sales weeks don’t always equal healthy months.
Margin protection is what creates confidence going into the new year.
2. Be Clear on Cash, Not Just Sales
Top-line sales can be misleading in December.
This is the time to look beyond revenue and assess:
Stock already paid for versus stock still to land
Returns and exchanges likely to roll into January
Advertising and promotional spend with delayed conversion
Clear visibility on cash allows you to:
Avoid overcommitting late in the month
Enter January without pressure
Make calmer decisions around buying, hiring and marketing
Strong Januarys are built on clear December visibility.
3. Make Intentional Inventory Decisions
Not everything needs to sell out before year end.
The key is understanding the role each category plays.
Ask yourself:
What genuinely needs to clear before Christmas, and where should I double down?
What can carry into January without pressure discounting?
What stock is tying up cash without a clear role going forward?
December isn’t the time to panic-clear inventory.
It’s the time to decide deliberately what moves forward and what doesn’t.
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Founder POV: Clarity Is a Leadership Skill
The final weeks of the year can amplify decision fatigue.
There’s more noise, more pressure, and less space to think clearly.
The most effective founders we work with aren’t doing more. They’re doing less, but thinking more clearly.
In our strategy sessions with our clients, we actively discuss and strategise together, working through key business decisions in real time. We unpack the issues, explore options, and agree on a clear direction before actions are taken.
That often looks like:
Bringing concerns and competing priorities into the session
Talking through trade-offs and implications before committing
Sense-checking assumptions and stress-testing ideas
Saying no to unnecessary initiatives
Letting some decisions wait
Making clear calls soundly, rather than under pressure
Having a structured space to discuss and strategise changes the quality of decision-making. It creates clarity, alignment and momentum.
December doesn’t reward urgency.
It rewards clarity.
When you close the year with decisions that have been properly discussed and strategised, January becomes strategic rather than reactive.
Metric to Keep in View: Sell-Through vs Sell-Out
December can distort performance if you only focus on sell-outs.
Instead, take a moment to review:
Sell-through by category
Margin retained per unit sold
Stock left that still has a clear role in Q1
This perspective helps avoid rushed decisions and supports cleaner planning for the year ahead.
Closing Thought: Finish Well So You Can Start Strong
You don’t need December to do everything.
You need it to:
Close with intention
Protect margin and cash
Carry clarity forward
A strong finish isn’t loud.
It’s controlled, considered and confident.
Here’s to finishing the year well and setting up the next one with purpose.
Fashion Business Mindset Podcast:
Thank You for Tuning into the Pod!
As we wrap up the year, we want to take a moment to say a genuine thank you.
In 2025, the Fashion Business Mindset podcast continued to grow in ways we’re incredibly grateful for. The conversations were honest, practical and deeply relevant, and that’s because of the people who showed up, shared openly and tuned in.
Here are our three most listened-to Fashion Business Mindset episodes for 2025:
Leading Stylerunner | Anna Brennan on Growth, Strategy & Style
Your 2025 Blueprint: Level Up Your Fashion Business for Growth, Impact, and Resilience
Michaela Wessels, CEO of Style Arcade | Unlocking 44% Growth for Fashion Brands & Retailers
Taryn Brumfitt & Dr Zali Yager | How Fashion Can Empower Positive Body Image
To every guest who joined us on the podcast this year, thank you for your generosity, insights and willingness to share what really goes on behind the scenes of building and growing a business.
And to everyone who tuned in, shared an episode, sent a message, or listened while driving, walking or working through big decisions, thank you. Your support is what makes these conversations matter.
We’re proud to be part of your journey, and we look forward to bringing you more meaningful conversations in the year ahead.
Your Next Move
As you close out the year, clarity matters more than speed.
If you’re looking for a clear roadmap to guide your business growth in 2026 and beyond, our consulting, mentoring and roadmapping services are designed to support you through your next phase.
We help fashion founders and business leaders:
Increase profit and performance through clearer commercial decision-making
Build future-fit foundations that support sustainable growth
Grow with clarity and confidence, backed by a considered plan
“I do this work because I’ve been in the seat. I know how heavy decision-making can feel, especially at critical moments in the business. My role is to be in my clients’ corner, helping founders and business leaders step back, think clearly, and make decisions they can stand behind.”
— Elizabeth, Founder of Fashion Equipped
Tap into Our Continued Partnership with WGSN in 2026!
As we head into 2026, we’re proud to be entering our seventh year of partnership with WGSN, the world’s leading trend forecasting and consumer insights platform.
At Fashion Equipped, we work with founders and leadership teams who want to make informed, commercially sound decisions.
Our partnership with WGSN allows us to support brands with global trend intelligence, data-led insights, and future-focused analysis, integrated directly into our consulting, mentoring and roadmapping work.
In a fast-moving and increasingly competitive fashion landscape, relying on instinct alone is no longer enough.
WGSN provides visibility into emerging trends, consumer behaviour shifts and category opportunities, helping brands plan ranges, marketing and growth strategies with confidence.
Used well, this insight becomes a strategic advantage. It supports better decisions, reduces risk, and helps brands position themselves clearly in the market.
This partnership is part of our commitment to giving fashion businesses the tools, structure and clarity they need to grow sustainably and strategically.
If you’d like to tap into our WGSN partnership as part of your 2026 planning, you’re welcome to contact Elizabeth directly at elizabeth@fashionequipped.com.au to discuss how this powerful insight could support your business.
Image: WGSN
If you’re ready to start the year with a clear plan, you can book a 1-hour strategy session or a complimentary clarity call directly with Elizabeth when it suits you.
Led by Industry Expert, Elizabeth Formosa
With 20+ years of experience across buying, product development, brand building, marketing, strategic planning, and team management, Elizabeth Formosa has worked with corporate brands, independent labels, and her own successful wholesale business.
As the Founder of Fashion Equipped, a leading consultancy working with fashion and lifestyle brands across Australia and globally, Elizabeth has helped fashion entrepreneurs, brand owners, and industry leaders build profitable, scalable, and purpose-driven businesses.
Through the Fashion Business Growth Roadmap, Elizabeth works 1:1 with you to deep-dive into your business, assess opportunities and challenges, and develop a structured, high-impact strategy to ensure your next 12 months are your most successful yet.
“Let’s keep growing — sustainably, profitably and strategically.”
Until next month,
Elizabeth & The Fashion Equipped Team
