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Swedish fashion retailer, H&M Group reported a 16 per cent decline in operating profit, reaching approximately $621.1 million at constant currency in Q2, FY25 ending May 31.
H&M attributed this decline to a lower gross margin and negative currency translation effects. The group specified, margins were adversely impacted by external factors such as a more expensive US dollar and elevated freight costs, leading to higher purchasing costs in the quarter.
The continued internal investments in enhancing its consumer offering also played a role. Despite these challenges, the retailer anticipates that the external factors negatively affecting its purchasing in the first half will turn favorable in the latter part of the year.
The group’s sales rose by 1 per cent Y-o-Y in local currencies during the quarter. On a like-for-like basis, sales increased by 3 per cent, a notable achievement given that the retailer has reduced its store count by 4 per cent since May of last year. On a reported basis, Q2 net sales declined by 4.9 per cent Y-o-Y to approximately $5.96 billion at current exchange, due to a stronger Swedish krona.
Daniel Erver, Chief Executive Officer, H&M states, despite these subdued financial results, the company is beginning to see signs of progress, driven by its reduced store footprint and ongoing turnaround plan focused on improving product offerings and the shopping experience.
There have been positive developments in key areas like online sales, H&M womenswear, and H&M Move, along with a sustained focus on cost control, which are expected to contribute to profitable sales growth, he adds.
In H1, FY25, the brand’s sales in local currencies rose by 1 per cent. In reported terms, net revenues for the six-month period declined by 1 per cent to approximately $11.77 billion. Operating profit declined by 22 per cent decline, reaching approximately $748.3 million.
In a landmark move to boost India’s textile and apparel manufacturing ecosystem, India Exposition Mart (IEML) has entered into a strategic partnership with Garment Technology Expo Ltd (GTEL) to co-host one of India’s leading garment machinery and innovation trade show, GTE.
This collaboration brings together two powerhouses: GTE’s legacy of curating cutting-edge garment tech showcases for over two decades and IEML’s infrastructure muscle and proven expertise in organizing world-class industry events.
Under this joint venture, GTE will now operate with a more expansive vision extending into new geographies, increasing exhibitor participation and deepening visitor engagement. From automation to AI, smart factories to sustainable solutions GTE will become a pivotal launchpad for innovation and global collaboration.
IEML will integrate its digital expertise and expansive event network to ensure each edition is future-forward, tech-integrated and user-centric. Visitors and exhibitors can expect smarter layouts, seamless operations and robust on-ground experiences powered by IEML’s experience in hosting flagship shows like Bharat Tex, UPITS and IHE.
Reflecting on this new partnersip, Inderjit S Sahni says, With IEML now on board, GTE gears up to elevate the expo to new heights with bigger showcases, greater impact and broader reach.
Dr Rakesh Kumar, Chairman of IEML, emphasizes, this partnership is not just timely but also transformative. With IEML’s reach across cities like Mumbai, Ahmedabad, Hyderabad, and Kolkata, the organization will help amplify GTE’s scale, technology quotient, and national footprint.
GTE serves as India’s largest platform dedicated to garment and textile manufacturing innovations. Held annually in Delhi NCR and biannually in Ahmedabad and Bengaluru, GTE connects suppliers, buyers, manufacturers, and solution providers, establishing itself as a crucial node in India’s fashion and manufacturing value chain. Located in Greater Noida, IEML stands as South Asia’s most advanced venue for large-format trade exhibitions and global conventions, boasting unmatched infrastructure and a strong record of hosting premier events.
British sportswear giant Gymshark made in retail debut in Europe by opening the brand’ first permanent brick-and-mortar store in Amsterdam. This impressive three-story location spans over 1,000 sq m, marking a significant milestone for the UK-based brand's expansion.
Sam Kane, Head-Communications, Gymshark, notes, the store has been meticulously designed from We Do Gym’ wall text on the brickwork to the special CBum mannequin and the exclusive Amsterdam merchandise.
Founded in Birmingham, UK, in 2012, Gymshark reported a 9 per cent Y-o-Y rise in revenue to £607.3 million. The brand first entered the Dutch market in April 2025 with an outlet in Roermond, and now, boasts a prominent flagship store in the bustling heart of Amsterdam.
The decision to choose Amsterdam for its European flagship was strategically driven by the Netherlands' flourishing fitness market. Approximately 17 per cent of the Dutch population are gym members, one of the highest percentages in Europe, making it an ideal location for Gymshark's community-focused approach.
Ben Francis, Gymshark's Founder and CEO, notes, with over nine million visitors per year, Kalverstraat is a logical choice. Moreover, fitness truly thrives here. This new Amsterdam store consolidates Gymshark's commitment to engaging its European customer base directly and expanding its global footprint.
With the successful completion of third edition of Global Sourcing Expo Sydney, Julie Holt, Global Business & Exhibition Director, Global Sourcing Expo, Australia— shares her reflections on buyer trends, city-specific sourcing mindsets, and her vision for how Melbourne 2025 will shape the future of sourcing in the Asia-Pacific.
Q: With the third Sydney edition wrapping, how would you describe your experience of the show? Any standout highlights or surprises?
Julie Holt: The energy at Sydney this year was remarkable. We saw a 22 per cent rise in unique visitor numbers, building on the 26 per cent growth from the 2024 edition—which itself followed our debut in 2023. There was a palpable sense of momentum on the ground. What really stood out was the diversity in our audience—particularly the number of start-ups and new-age brands looking for sustainable, agile partners. The Global Sourcing Seminars were a big draw again, and both exhibitors and buyers expressed strong confidence in the platform.
Q: Was there a noticeable shift in the buyer profile or sourcing preferences this year?
Julie Holt: Absolutely. Buyers are increasingly prioritising suppliers with short lead times, flexible MOQs, and strong sustainability credentials. Apparel buyers in particular were looking for more than just products—they wanted partners with smart, differentiated solutions. There was also growing interest in functional textiles, from moisture-wicking sportswear to temperature-regulating fabrics. AI-driven tools like virtual try-ons and design assistance were another area that caught attention. It’s clear the industry is in transformation mode.
Q: What differences did you observe between buyers in Sydney and Melbourne? Are they driven more by geography or mindset?
Julie Holt: It's more about mindset than geography. Sydney buyers are trend-forward, agile, and digitally focused—think fast fashion, influencer brands, and e-commerce. Melbourne buyers are design-led and relationship-oriented. They value craftsmanship, storytelling, and ethical production. These differences directly influence how we curate each edition. Melbourne leans toward depth and long-term partnerships, while Sydney thrives on speed and experimentation.
Q: Would you say Sydney has now carved out its own identity, or is it still developing as a complementary edition to Melbourne?
Julie Holt: Sydney has absolutely established its own identity. It’s no longer “the new show”—it’s a headline event in its own right. That said, both cities offer unique value. Melbourne is the strategic sourcing hub—broader, deeper, and more legacy-driven. Sydney is fast, fresh, and experimental. Together, they give us year-round relevance and allow exhibitors and buyers to engage with different phases of their sourcing cycles.
Q: With exhibitors from over 15 countries participating, how do you maintain a balanced representation and ensure no single country dominates?
Julie Holt: While China still has a strong presence—thanks in part to the long-standing China Clothing Textiles Accessories Expo—we’ve worked hard to diversify. This year in Sydney, we saw over 30 Indian exhibitors, and we’re expecting over 200 Indian companies at Melbourne 2025. Countries like Vietnam, Nepal, Indonesia, and Bangladesh are stepping up too, each offering unique strengths. We support country pavilions, curate seminar content around their capabilities, and ensure buyers see the comparative value each region brings.
Q: Are you seeing the ‘China +1’ strategy come to life at the expo level? Or are buyers still anchored to traditional supply networks?
Julie Holt: It’s absolutely real—and evolving. It’s no longer just ‘China +1’; it’s becoming ‘China +2 or +3’. Buyers are actively de-risking, building flexibility into their supply chains, and looking for innovation beyond cost. India is leading in sustainable sourcing and artisanal craftsmanship, Vietnam in ready-to-wear and athleisure, and Indonesia in ethical natural fibres. China remains key, but the sourcing model is undeniably becoming more distributed.
Q: Has sustainability become a baseline expectation, or is it still more aspirational for most exhibitors?
Julie Holt: It’s definitely moved from aspirational to expected. Exhibitors are now proudly displaying certifications for WRAP, OEKO-TEX, GOTS, and more right at their stands. Buyers want verifiable proof, not greenwashing. ESG, circularity, and transparency are now fundamental parts of the sourcing conversation, and that will be even more visible at the Melbourne 2025 edition through curated showcases and expanded seminar content.
Q: Have you noticed new buyer verticals emerging—like lifestyle, homeware, or private label?
Julie Holt: Yes, and it’s one of the most exciting shifts. Lifestyle and homewares are gaining serious traction, especially in Melbourne. Private and white label interest is also growing—brands want exclusivity and speed, and they’re looking for suppliers who can co-create. We’re seeing more exhibitors now offering both apparel and lifestyle products, reflecting this holistic sourcing approach. Buyers want partners who can support their entire brand ecosystem.
Q: Do you see Global Sourcing Expo Melbourne evolving beyond a sourcing platform into a hub for innovation and industry dialogue?
Julie Holt: Without a doubt. From day one, our aim has been to go beyond transactional value. Through our Global Sourcing Seminars and country showcases, we’re creating a space for knowledge exchange, collaboration, and strategic thinking. We see both Sydney and Melbourne as platforms for discovery—whether that’s new materials, digital tools, or policy discussions. Sourcing is no longer about just price or product—it’s about partnerships and purpose.
Q: And finally, your bold prediction for Melbourne 2025? How do you see it raising the bar for sourcing in the Asia-Pacific region?
Julie Holt: Melbourne 2025 will position Australia as the Asia-Pacific’s sourcing nerve centre—not just a buyer’s market, but a thought leader in the region. With more than 900 exhibitors expected, expanded representation from countries like Indonesia, Japan, Fiji, and New Zealand, and a focus on women-led enterprises, we’re moving toward a model of inclusive, forward-facing sourcing. This dual-city strategy—Sydney and Melbourne—will cement our role as the Southern Hemisphere’s most influential sourcing platform.
The global apparel industry, often a reliable barometer of consumer confidence and trade health, is passing through a delicate recalibration. The June 2025 update of ‘Apparel trade scenario in key global markets and India’ from Wazir Advisors doesn’t just present numbers—it tells a story of shifting gears, stubborn resilience, and subtle pivots in the world’s wardrobes. While imports and exports increase, retail narratives in some major economies hint at deeper consumer moods, platform fatigue, and structural change.
West’s import appetite returns
April 2025 brought a visible hunger for fashion back to the fore in developed economies. In the US, apparel imports climbed to $6.2 billion, a 9 per cent year-on-year (YoY) increase. Retailers, perhaps bracing for a summer resurgence, or simply replenishing post-holiday inventories, seemed ready to restock.
But it was Europe that truly led the resurgence. The EU posted 26 per cent YoY growth, hitting $7.8 billion in apparel imports—a clear sign that the bloc’s fashion sector is powering back with force. The UK, not far behind, logged $1.8 billion, marking a 13 per cent rise that may reflect early signs of consumer thaw post a challenging winter.
Even Japan, traditionally conservative in retail behavior, registered $2.1 billion in apparel imports—a 17 per cent YoY increase. It seems like from Tokyo to Berlin, shop floors and online carts were restocking with new collections and consumer hope.
Asia’s export engines steady and strong
While the West bought more, Asia continued to produce—relentlessly, and in some cases, spectacularly.
China, still the world’s largest garment manufacturer, posted $13.1 billion in exports in May 2025—a modest 5 per cent YoY growth. While that may seem subdued, it reflects quiet dominance in a climate of shifting sourcing preferences and global supply chain recalibrations.
More dynamic was Vietnam, moving ahead with $3.1 billion in apparel exports—up 19 per cent YoY. Its lean manufacturing model, trade alliances, and rising productivity seem to be positioning it as a preferred alternative to China.
Bangladesh, known for its mass-market efficiency, held its ground with $3.9 billion in exports, a healthy 11 per cent growth. And India, steadily expanding its global apparel footprint, notched $1.5 billion, up 7 per cent YoY. Not dramatic, but steady—as if laying the foundation for bigger moves.
Bright spots in retail recovery
If trade numbers suggested movement and momentum, retail data offered a more grounded—and in some cases, sobering—view of the consumer endgame.
In the US, apparel store sales in May 2025 inched up just 1 per cent from the year before. While that’s still positive territory, it suggests hesitation or perhaps a shift in spending toward other categories. Even more telling: online clothing sales were down 6 per cent in Q1 2025 compared to Q1 2024. In fact, for last several quarters, several major retailers in the US including Walmart, Target, VF Corp, Gap among others have reported lower inventory levels compared to same period in the previous year Could this be digital fatigue or just consumers adjusting their wardrobes after years of online splurges?
The UK, grappling with economic uncertainty, didn’t fare well. May’s apparel store sales dropped 3 per cent YoY, landing at £3.6 billion—a reflection, perhaps, of high inflation and cautious wallets.
By contrast, India continued to show domestic strength. April 2025 saw a 5 per cent YoY growth in apparel retail—buoyed by rising urban disposable income, lifestyle shifts, and deeper retail penetration into smaller cities. The pulse of Indian consumers remains optimistic, and their closets are expanding.
Macroeconomic undercurrents, the US paradox
Zooming out, the broader US macroeconomic climate added complexity to the narrative. Inflation in May rose to 2.4 per cent, a factor that typically cools spending. But strangely, consumer confidence jumped to 98.0 from 86.0 in April—a sign that sentiment might be outrunning numbers.
This divergence paints a curious picture: consumers feeling better, even as price pressures linger. For apparel brands and retailers, it means strategizing around perception as much as reality.
A story still being sewn
Wazir Advisors' June 2025 report reveals a global industry at a point of delicate transition. The data is clear—trade is picking up, Asia remains the backbone, and consumer behavior is cautiously optimistic in some markets while cooling in others.
But the real story lies between the lines: of shifting sourcing allegiances, digital retail fatigue, and an increasingly segmented global consumer base. The apparel industry, like the garments it produces, is constantly being reshaped—by taste, by economics, and by time.
As the threads tighten and loosen across markets, one thing is certain: fashion remains both mirror and motor of global change.
A UK-based biotechnology company, Colorifix has secured an $18 million investment, with Inter IKEA leading the funding round. This significant capital injection is set to propel Colorifix's commercial expansion across the global market, particularly in Europe and Asia. A pioneer in developing the world's first biological textile dyeing process, Colorfix aims to boost its production capacity and strengthen commercial engagements with major brands and textile manufacturers worldwide.
A core part of Colorifix's strategy involves utilizing this new funding to further develop its proprietary bio-processes and microorganisms for creating colors. With ongoing support from the H&M Group, Colorifix employs engineered microorganisms to deposit colors directly onto fabric. This innovative method drastically reduces the need for harsh chemicals, resulting in substantial savings in water and energy—a critical advancement for an industry known for its environmental footprint.
Emphasizing on the importance of this investment, Orr Yarkoni, CEO, Colorifix, calls it a ‘critical milestone.’ The funding shifts Colorifix's narrative from simply proving its technology to delivering it at an industrial scale, he states. The combined investment from Inter IKEA and continued backing from H&M will be instrumental in introducing their biology-based dyeing solution across global supply chains, Yarkoni further highlights This technology is specifically designed to eliminate the reliance on petrochemicals in dyeing production, offering a truly sustainable alternative, he adds.
Since its last funding round in 2022, Colorifix has made considerable progress in establishing its dyeing technology across various countries. The company currently operates in Europe and Latin America, with licenses already granted to customers onboarding from India and Sri Lanka. Beyond the fashion industry, which remains its primary focus, Colorifix has also secured partnership agreements with key players in the cosmetic and homeware sectors, further diversifying its reach and impact.
India has extended the export obligation period for imports of viscose staple fiber (VSF) exempted from the Quality Control Order (QCO). The new period is now 18 months, a move that comes after persistent demands from the country's textile industry. This decision is expected to significantly ease the burden on exporters who import QCO-exempted VSF and are required to re-export it as finished goods. The Confederation of Indian Textile Industry (CITI) has publicly welcomed the government's announcement.
According to industry sources, the government has permitted Export Oriented Units (EOUs), Special Economic Zone (SEZ) units, and Advance Authorization holders to import VSF without needing to adhere to the QCO, provided they meet specific pre-import conditions. Under the standard Advance Authorization scheme, exporters are typically granted an 18-month window to re-export raw materials imported duty-free. While this 18-month timeline was initially applied to QCO-exempted VSF imports, it was later shortened to just 180 days.
Exporters had consistently appealed to the government to reinstate the original 18-month period, citing operational challenges. Responding to these appeals, the government has now agreed to restore the extended timeline, providing much-needed flexibility to the textile sector.
Türkiye's premier exhibition for apparel and ready-to-wear technologies, Garment Tech Istanbul welcomed an unprecedented number of visitors from 82 countries. The event features 249 companies and their representatives, establishing itself as a crucial meeting point for the global garment industry. Over four days, the exhibition in Istanbul will serve as a platform to showcase innovations, forge international collaborations, and illuminate the future of apparel production.
The opening ceremony for the Garment Tech Istanbul Garment, Embroidery Machines, Spare Parts, and Sub-Industry Exhibition was held at the Istanbul Fair Center. Organized by Teknik Fuarcılık AŞ in collaboration with the Apparel Automation Machinery Manufacturers Association (KOMID), the event attracted numerous sectoral associations, union and chamber presidents, along with top executives from both local and international companies and members of the press.
Spanning five halls this year, Garment Tech Istanbul brings together Türkiye’s leading garment machinery manufacturers and globally renowned brands. The exhibition presents a comprehensive array of products and solutions covering every stage of garment production. Its wide product range includes everything from advanced sewing machines and automated cutting systems to ironing and packaging solutions, and cutting-edge digital printing systems.
This year's event is particularly significant for its display of many innovative technologies making their debut. These highlights promise to inject fresh energy into the sector, featuring advancements such as AI-optimized production systems, cloud-based remote access and inventory control solutions, and fully automated fabric cutting and sewing systems. These innovations underscore the industry’s shift towards more efficient, intelligent, and interconnected manufacturing processes.
Beyond being a product showcase, Garment Tech Istanbul is designed to be a dynamic platform for establishing new business partnerships. Over the four-day event, international investors, manufacturers, suppliers, and brand representatives will have dedicated opportunities for one-on-one meetings. These interactions are expected to facilitate the formation of long-term business relationships and generate significant machine sales and partnerships, thereby contributing to the growth of both Türkiye’s economy and global trade volumes. The exhibition truly embodies its role as a nexus for the future of garment technology.
South Korea's retail industry experienced a robust 7.0 per cent Y-o-Y in May 2025, according to the Ministry of Trade, Industry and Energy (MOTIE). This overall expansion was primarily fueled by a significant rise in online sales, which increased by 13.0 per cent, while offline sales saw a modest gain of 0.9 per cent.
MOTIE's monthly retail sales data is compiled from surveys of 23 major retailers. This includes 13 brick-and-mortar retailers—comprising three department store chains, three hypermarket chains, three convenience store chains, and four super supermarket (SSM) operators—along with 10 prominent online retailers.
Offline retail channels showed varied performance. Hypermarkets and department stores recorded growth for the first time since the Seollal holiday season in January. This positive shift was attributed to increased sales of high-priced items and higher revenue per customer visit. Meanwhile, convenience stores saw a slight dip of 0.2 per cent, but SSM operators continued their upward trend for the third consecutive month, growing by 1.0 per cent due to a steady increase in visitors.
By category, offline sales expanded in essential areas like luxury goods which increased by up 8.1 per cent. However, several categories such as fashion experienced continued slowdowns
Online sales maintained strong momentum. The services category increased by an impressive 37.3 per cent, driven by demand for food deliveries, e-coupons, travel packages, and cultural goods.. However, similar to offline trends, online fashion/clothing declined by 4.6 per cent This data highlights a clear consumer preference for convenience and high-value purchases in the online space, while certain discretionary categories face headwinds across both channels.
The company that formerly operated Forever 21's US stores, F21 OpCo, has received court approval for a plan to partially repay its vendors and other creditors who were facing significant losses in the retailer's bankruptcy proceedings. This approved plan includes a crucial settlement with lenders and the former Forever 21 parent company, Sparc Group, designed to increase the recovery for unsecured creditors.
Operator of fashion brands including Aeropostale and previously Forever 21, Sparc Group, agreed to completely waive a substantial $323 million claim. This waiver is pivotal because that claim would have severely diluted any funds available to unsecured creditors, potentially leaving them with mere pennies on the dollar. Under the newly approved agreement, unsecured creditors will now receive 70 per cent of any net proceeds F21 OpCo obtains during its liquidation.
F21 OpCo filed for Chapter 11 bankruptcy protection in March of this year. This filing occurred just two months after Sparc Group announced its merger with JCPenney, forming a new combined entity.
A committee representing the unsecured creditors in the bankruptcy case stated that it had thoroughly investigated the Sparc transaction. In a court filing from June 11, the committee explained its decision to opt for the settlement approved this week. Their investigation concluded that they did not uncover any potential legal claims that would ‘materially improve recoveries for general unsecured creditors’ beyond what the settlement offered.
Earlier reports from Bloomberg News indicated, some vendors to F21 OpCo claimed that F21 OpCo had requested discounts on orders and accepted shipments shortly before filing for bankruptcy, allegedly without disclosing its impending reorganization plans. This current settlement aims to bring some resolution to these various claims and concerns within the bankruptcy framework.
