The pound has fallen to its lowest value against the dollar in nearly three decades, and that is a scary thing for British fashion houses for a number of reasons.
For starters, any designers that outsource their production to China will see manufacturing costs increase because they pay for Chinese manufacturing in dollars, and a weaker pound means that production will inherently be more expensive.
To absorb those added costs, retailers will have to increase prices, perhaps not immediately, as many have currency hedges in place to offset the depreciated pound in the short term, but eventually, prices will rise. With consumer confidence already bleak in the months leading up to the Brexit, the timing couldn't be worse for retailers.
Those hoping to survive the rapid economic shifts stemming from the Brexit will have to adapt quickly.
First, they must keep their staff calm. It is critical that sales associates convey confidence and continue to foster an exceptional shopping experience to keep customers coming back for more.
Furthermore, now is the time for retailers to invest in Made in Britain manufacturing initiatives. Bringing production back to the U.K. is a logical way to offset rising manufacturing costs associated with the weaker pound, and it could help substantially with long-term growth from both a financial- and public-image perspective.
Beyond economics, the Brexit could have a lasting impact on Britain's fashion industry from a creative standpoint.
The overwhelming sentiment in the industry following last week's vote was one of disappointment, with many designers flocking to social media to express their sadness.
This isn't surprising, as a recent poll from the British Fashion Council found that 90% of British designers supported remaining in the EU.
Beyond that, many designers proactively called for voters to show up at the polls and vote to stay.
For example, sibling designers Sid Bryan and Cozette McCreery took their bows at the recent London Collections Men fashion show wearing T-shirts that read "IN."
Meanwhile, designer Vivienne Westwood took to Instagram to communicate her stance, posting a photo of herself sporting a T-shirt encouraging citizens to register to vote, adding that they shouldn't let the older generation decide on the future.
The fashion industry thrives on diversity, with many fashion houses boasting designers from a variety of backgrounds and cultures.
For example, Peter Pilotto, a designer who founded his namesake company in London, is Austrian-Italian, and his partner Christopher de Vos is Belgian-Peruvian.
Pilotto said in an interview with The New York Times that he estimates that 70% of his team is international, adding that the whole company might have to migrate because of the Brexit.
In addition to worrying about how to retain existing international talent, British fashion houses may very well be dealing with a shortage of new talent in the wake of the Brexit. London has historically enjoyed a reputation for having a world-renowned fashion education system, and up until now, it has benefited from EU investment in that system, not just in the form of research funding and support of technical innovation but also in terms of European talent.
While Britain was part of the EU, all European students were eligible for lower tuition at London's fashion schools than at other international students. As a result, London has enjoyed a constant influx of new fashion talent, with many students opting to set up shop in the city after graduation.
That will all change because of the Brexit. London is known for having a high cost of living, so it is likely that many European students will opt to study fashion elsewhere because they are no longer eligible for lower tuition.
It is possible the Britain's fashion industry will find ways to navigate a post-Brexit world successfully, bringing more manufacturing jobs to the U.K. and finding alternative ways to attract new design talent. It is also possible that the industry will never fully recover from its country's decision to leave the EU.
The only thing that is certain is that change is inevitable, and the rest of the fashion world is surely hoping that its British family will overcome these hurdles and identify a path to long-term success.
See full Brexit coverage here.