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The Q1, FY24 revenues of US-based PVH Corporation, parent company of globally recognised brands such as Tommy Hilfiger and Calvin Klein, decreased by 10 per cent to $1.952 billion from $2.158 billion revenue reported during the same period last year.
Of this, the revenues of the brand Tommy Hilfiger decreased by 10 per cent compared to the prior year period. The brand’s revenues from international operations fell by 14 per cent with revenues from Europe declining. In contrast, Tommy Hilfiger’s revenues from North America increased by 2 per cent.
On the other hand, the revenues of Calvin Klein remained flat compared to the prior year period but increased by 1 per cent on a constant currency basis. The brand’s international revenues declined by 2 per cent while revenues from North America increased by 4 per cent.
Further, PVH Corp reported a significant 65 per cent decline in revenues from Heritage Brands including a 47 per cent decline resulting from the sale of the Heritage Brands women's intimates business.
PVH Corporation’s earnings before interest and taxes (EBIT) increased to $205 million on a GAAP basis and $195 million on a non-GAAP basis, compared to $199 million in the prior year period. On a GAAP basis, its EPS increased to $2.59 from $2.14 in the prior year period. On a non-GAAP basis, EPS rose to $2.45, compared to $2.14 in the prior year period.
Besides strengthening its brand positioning and pricing power in the marketplace, PVH Corp generated growth for Calvin Klein and Tommy Hilfiger combined in both North America and Asia Pacific in constant currency, while successfully driving strategic quality of sales initiatives in Europe, says Stefan Larsson, CEO.
Sri Lankan manufacturing giant MAS Holdings has committed to purchase 4,000 tons of recycled polyester from LA-based start-up Ambercycle over the next three years. This deal highlights the increasing engagement by suppliers in promoting recycling innovations in the market.
The agreement aims to support Ambercycle's expansion of textile-to-textile recycling capabilities besides ensuring a steady supply of the material for MAS. The process is viewed as a more environmentally sustainable alternative to recycling polyester from repurposed plastic bottles.
However, still in early stages, commercialising of such technologies faces many challenges. For example, Swedish textile-to-textile recycler Renewcell had to be recently saved from financial breakdown by private equity firm Altor.
To bring new materials to market, binding purchase commitments, such as the one between MAS and Ambercycle, are considered vital. It is also important for manufacturers to pledge their involvement in such initiatives. While big brands like H&M Group and Zara-owner Inditex have already announced investments in innovative fibers, suppliers are yet to make such commitments.
Hence, MAS views its deal with Ambercycle as strategic, aligning with the growing demand for recycled materials from its customers and its own goal to generate 50 per cent of its revenue from lower-impact.
Struggling against ‘uneven’ competition with foreign counterparts due to rising production costs, domestic textile millers, particularly spinners, have been losing yarn orders, even from local ready-made garment (RMG) exporters. These exporters now prefer importing raw materials, stalling the growth of the local spinning sector.
As per data from the Bangladesh Bank, Bangladesh’s yarn imports increased by double digits during the first nine months of the current fiscal year (FY), while imports of other raw materials like raw cotton, textiles, and staple fiber declined. From Jul-Mar’23-24, Bangladesh’s yarn imports increased by 10 per cent to $2.32 billion from $2.10 billion during the same period last fiscal year, according to data from the Bangladesh Bank.
The imports of other RMG inputs decreased by 9.1 per cent during the first nine months of the year. For instance, raw cotton imports declined by 24.9 per cent, imports of textiles and articles lowered by 8.2 per cent, staple fiber by 6.1 per cent, and dyeing and tanning materials by 3.1 per cent. Bangladesh’s imports expenditure also declined to $12.17 billion during the year from $13.39 billion the previous fiscal year.
Exporters attribute this rise in popularity of imported yarn to its lower cost compared to locally produced yarn. On the other hand, high utility costs and unreliable gas supply are driving up local yarn prices, add textile millers. Syed Nurul Islam, Chairman and CEO, Well Group, notes, a decrease in raw materials imports including raw cotton and staple fibers inevitably led to an increase in yarn imports during the year.
Also a director of the Bangladesh Textile Mills Association (BTMA), Islam emphasises, the rise in Bangladesh’s production costs due to high utility costs and gas shortages is preventing textile millers from utilising their full production capacities, thereby reducing the competitiveness of local yarn. Consequently, garment exporters continue to source cheaper yarn from India, Pakistan, and China under bonded warehouse facilities.
For the sustainability of the garment industry, Islam emphasises on the need for strong domestic supply chain support and government policy intervention. Faruque Hassan, Former President, BGMEA, agrees, the industry needs to boost local consumption and attract more garment work orders, he says.
SM Mannan Kochi, President, BGMEA, explains, the rise in prices of local yarn makes them less competitive despite cash incentives from the local market. Mohammad Ali Khokon, President, BTMA, alleges, various policy supports from their governments and their own cotton production enables foreign competitors to sell yarn at ‘dumping prices.’
To retain US dollars within the country, the industry needs to increase local yarn sourcing, affirms Khokon. Many local textile mills may be forced to close if the current trend continues, he warns. Currently, local textile mills supply about 80 per cent of knitwear sector’s demand for yarn and 35 per cent of woven sector’s need for the material in Bangladesh, reveal industry insiders.
During Jul-Mar’23-24, Bangladesh exported RMG products worth $37.20 billion. Of this, knitwear exports contributed $21.01 billion and woven products $16.19 billion, data from Export Promotion Bureau (EPB) shows. The country exported RMG products worth $47 billion in FY 2022-23.
To boost the textile industry's contribution to the national economy through exports, investment, and employment, Asif Inam, Central Chairman, All Pakistan Textile Mills Association (APTMA), called for a reduction in the power tariff to 9 cents/kWh, a decrease in the interest rate to 12 per cent, and the restoration of zero-rating for the textile industry.
Addressing these demands during a press conference at the APTMA office in Lahore, Inam highlighted, the industry is currently burdened with Rs 240 billion in cross subsidies and over Rs 150 billion in stranded costs. Providing electricity at 9 cents/kWh would generate over 300 MW of additional grid demand and Rs 500 billion in revenue, he argued.
The press conference was also attended by Kamran Arshad, Chairman-North APTMA; Asad Safi, Senior Vice Chairman; and Mohammad Raza Baqir, Secretary General North. Inam also questioned the government over maintaining of the current interest rate at 22 per cent despite a decline in the country’s inflation rate to 11.8 per cent. Lowering the interest rate could save the government Rs 3 trillion in interest payments, he opined. Regarding the demand for zero-rating, Inam criticised the government for holding onto a Rs 300 billion float of industrial sales tax refunds and proposed that sales tax be collected at the retail stage, which could potentially yield over Rs 250 billion.
Kamran Arshad, Chairman, APTMA-North emphasised on the need to restore the zero-rating regime across all manufacturing stages of the value-added textile chain and levying of sales tax only on end products fit for consumer consumption. This would help arrest the decline in textile production and exports and improve the current bleak situation, he argued. Arshad advocated for levying sales tax on local consumption of textile products without disrupting exports, suggesting this would revive the economy, increase tax collection from the textile sector, and alleviate the liquidity crunch faced by exporters. He also highlighted that this change would curb malpractices such as fake invoices and tax frauds.
Regarding the reduction in markup, Arshad noted that overall inflation is projected to remain between 13-15 per cent in the next year due to falling global commodity prices, sustained domestic demand destruction, and modest currency depreciation. He urged the State Bank of Pakistan (SBP) to maintain positive real interest rates to ensure the continuation of declining inflation and to help achieve the SBP’s medium-term target of 5-7 per cent inflation by September 2025, making single-digit inflation a tangible possibility.
Asad Shafi, Senior Vice Chairman pointed out, the export sector had previously benefited from Regionally Competitive Energy Tariffs (RCET) of 9 cents/kWh in 2021-22, which led to a 54 per cent growth in textiles and apparel exports, from $12.5 billion in FY20 to $19.3 billion in FY22. However, he noted that power tariffs for export-oriented firms have since risen to approximately 17.5 cents/kWh (Rs 46/kWh), making production financially unfeasible. These tariffs are more than double those faced by competing firms in regional economies such as Bangladesh (8.6 cents/kWh), India (average of 10.3 cents/kWh; 6 cents/kWh for textile and apparel firms in Maharashtra), and Vietnam (7.2 cents/kWh).
Exports of clothing and footwear to the EU have been falling the enforcement of Brexit, says a recent study highlighting the impact of complex regulations and border red tape on businesses. Conducted by Retail Economics and online marketplace Tradebyte, the report reveals that exports of clothing and footwear to EU countries dropped from £7.4 billion in 2019 to £2.7 billion in 2023. This decline led to an 18 per cent overall decrease in sales of non-food goods exports to EU single market countries.
The report indicates, British brands and retailers have experiencing a significant drop in sales to the EU post-Brexit, despite the growth of the European e-commerce market. Particularly hit hard have been small and medium-sized businesses who have been bearing a larger burden from the increased red tape compared to multinational firms. Richard Lim, Head-Retail Economics and one of the report's authors, notes, some of this decline can be attributed to changes in trade routes. UK firms that previously repackaged Asian imports for sale in the EU have restructured their supply chains by establishing offices within the single market to circumvent border regulations.
The increased bureaucracy has also prompted many UK-based apparel manufacturers to relocate production to EU countries, adversely affecting UK jobs and skills. For instance, a long-standing sock manufacturer in Leicester has moved production to Italy, ending over a century of operations in the East Midlands.
The UK has also missed out on the surge in online goods sales in the EU since 2019. The report suggests, while the EU online retail market has added an estimated £323 billion in annual sales, Brexit-related trade complexities have hindered UK brands and retailers from capitalising on this opportunity. Lim describes this as a significant missed opportunity for UK brands.
The decline in trade value with the EU was partially mitigated by last year's inflation spike, which increased export goods' costs. Meanwhile, a separate report by the think tank ‘UK in a Changing Europe,’ highlights, while goods exports had declined, services exports had surged by nearly 30 per cent since February 2020. This growth has been driven by a boom in business services, making it the UK's largest export sector, surpassing manufacturing and transport equipment. The report notes, UK's services trade has not only recovered swiftly after the pandemic but has also exceeded pre-pandemic levels by late 2022, unlike services exports from France and Germany, which have declined.
The reason behind the resilience and growth of UK services exports, which were largely unaffected by Brexit rule changes, remains unclear, according to the report.
Rain Newton-Smith, Head, CBI, suggested reviewing the UK’s trading relationship with the EU as part of the business lobby group's wishlist ahead of the July 4 general election. She called for a ‘bold pitch’ to international investors and proposed that the 2026 review of the UK-EU trade deal could be an opportunity to reduce trading frictions affecting businesses.
The EU's Textiles, Clothing, Leather, and Footwear (TCLF) sectors are urging future EU policymakers to enhance their efforts to safeguard these industries, which provide over 1.5 million jobs and generate a combined turnover of more than €200 billion annually. The call comes from key industry players, including the European Confederation of the Footwear Industry (CEC), the European Confederation of the Leather Industry (Cotance), Euratex (the European Apparel and Textile Confederation), and industriAll Europe, all of whom have signed the Antwerp Declaration advocating for a European Industrial Deal.
The need for an EU industrial deal
The TCLF Social Partners stress the necessity of a comprehensive European Industrial Deal that complements the Green Deal, focusing on keeping quality jobs in Europe. The sectors face significant challenges such as intense global competition, high energy costs, an aging workforce, and a surge in new legislation. Given that over 99 per cent of companies in the TCLF sectors are SMEs, the call for increased support is critical to ensuring these industries can thrive amidst green and digital transitions.
Ensuring a just transition
A central demand is ensuring a just transition for TCLF industries and their workforce. The partners emphasize the importance of a robust industrial strategy that not only supports 'clean tech' investors but also aids in transforming existing industrial assets. This strategy should focus on maintaining and creating quality jobs, supported by a Just Transition framework that manages employment and skills effectively, provides security for companies and workers, and offers quality training.
Promoting skills development
A renewed industrial strategy must prioritize re-skilling and up-skilling. The TCLF sectors require a workforce equipped to handle new technologies and sustainable practices. Social partners play a crucial role in anticipating skills needs and organizing training, yet they need substantial support beyond existing frameworks like the EU Pact for Skills. Policies must attract young talent to the industry and ensure ongoing support for an aging workforce.
Enhancing social dialogue
Effective industrial transformation hinges on strong social dialogue. Sectoral social partners advocate for a regulatory environment that supports businesses and fosters mutually beneficial working conditions through collective bargaining and other mechanisms. Given the increase in EU legislation targeting TCLF sectors, it is vital that social partners are consulted appropriately, ensuring regulations are well-informed and sector-specific impact assessments are conducted.
Creating a stable regulatory environment
The TCLF sectors operate in a complex global market and require a stable and coherent regulatory environment to succeed. The EU must streamline and improve Single Market rules, enforce regulations uniformly, and conduct thorough impact assessments before proposing new legislation. These steps are essential to maintain the competitiveness of TCLF industries during their green and digital transitions.
Ensuring access to resources
Access to green and affordable energy is critical for TCLF sectors, especially in light of recent energy crises. Additional measures are necessary to secure decarbonized energy and ensure the sustainability of TCLF manufacturing. Beyond energy, securing access to raw materials with a focus on traceability and transparency is crucial, as is ensuring fair trade practices to prevent the influx of low-cost, non-compliant products.
Promoting fair trade
The TCLF Social Partners advocate for free and fair trade to maintain a level playing field. This includes preventing the dumping of low-cost products in the EU market and ensuring adherence to international labor laws and environmental standards. Support for SMEs in implementing new directives and regulations is also critical to maintaining competitiveness and sustainability.
Boosting demand for European products
Increasing demand for green TCLF products made in Europe is necessary to ensure economic sustainability. The partners support the production of high-quality, sustainable products, which should lead to decent wages and quality jobs. Incentives for consumers to buy European-made products and public procurement policies focusing on green and social production aspects are essential steps toward this goal.
The TCLF Social Partners are ready to collaborate with the new EU policymakers in the upcoming mandate (2024-2029) to implement an EU Industrial Deal that ensures the future competitiveness and sustainability of the TCLF sectors while safeguarding quality jobs across Europe.
The Schneider Group introduces Authentico, a brand committed to providing a transparent, verified, traceable, ethical, and high-quality wool supply chain—from farm to garment. Authentico strives to establish a global benchmark for premium, fully traceable, and responsibly sourced wool, verified through a comprehensive approach that encompasses every stage of the supply chain.
The launch event, hosted at Schneider Group’s Italian site in Verrone, introduces the Authentico Verification System. This system includes the Authentico Integrity Scheme, ensuring best practices at the farm level, focusing on animal welfare, mulesing-free processes, and sustainable land management. Wool is sourced from dedicated growers and processed in Schneider’s certified mills worldwide.
The Authentico Brand Guidelines provide criteria for all supply chain participants—spinners, weavers, knitters, garment makers, and retailers—to ensure alignment with the brand’s values. Additionally, the pioneering traceability platform TextileGenesis is incorporated to digitally track wool throughout the supply chain.
Schneider Group CEO Laura Ros emphasizes the company’s commitment to sustainability and traceability at both farm and industrial levels, guaranteeing respect for people and the environment. This commitment is reflected in the group’s certified network of mills and sustainable practices, including the ZDHC Roadmap to Zero Program.
Founded in 1922, Schneider Group is a global leader in high-quality animal fibres. The group’s mills are RWS, GOTS, and SFA certified, and it is dedicated to reducing environmental impact through various sustainability initiatives.
Authentico will debut at Pitti Filati from June 25-27.
Held in Miami Beach, the 10th edition of the Miami Swim Week The Shows 2024 featured eye-catching swimwear shows, panel discussions, and a series of activities designed to introduce beauty and wellness to both men and women. The event not just showcased brands, but also helped designers connect with resources, consumers, and other supporters to help elevate their businesses, says Moh Ducis, Founder and CEO, The Shows,
From May 31-June 2, 2024, the event featured 50-minute facials from German skincare brand Babor at the Tara, Ink, Miami Swim Week Oasis. This included the debut of Babor’s Cleanformance Stress Defense Mushroom Cream, inspired by traditional Chinese medicine, offering customised treatments that left skin hydrated, plump, and glowing.
The Swim Week also organised a private dinner at Peruvian restaurant Pasta to celebrate its first US location in Wynwood. On May 31, Snatched Plastic Surgery held an intimate panel discussion exploring the relationship between body trends and fashion. Industry experts, including Claudia Borges, Founder and CEO; Dr. Paul Boulos, Plastic Surgeon and Lila Nikole, Swimwear Designer discussed aesthetics and fashion, moderated by Miami Fashion influencer Timur Tugberk.
Primarily held at the SLS South Beach Hotel, The Shows featured an array of designers from across the globe, showcasing their interpretations of ready-to-wear summer and resort styles. This diverse lineup included Miami-based Ema Savahl, Australian brand Omray Swimwear, and Salty Mermaid Swim, offering men’s swimwear that complemented their bikini sets.
On June 1, Fashion Group International South Florida collaborated with Art Hearts Fashion for the global Communiqué presentation at The Gates Hotel, led by Erik Rosete. This panel explored emerging styles and trends beyond 2024. Additionally, Sharpie Creative Markers partnered with lifestyle brand Acacia for their first-ever runway show featuring the Resort 2025 Collection.
Sharpie also supported the annual Swim Up Cycle Challenge, encouraging fashion students to design apparel using donated deadstock fabrics and Sharpie markers. The challenge celebrated Miami Swim Week’s 20th anniversary, with finalists showcasing their creations on the runway. The winner received mentorship, a cash prize, and a collection of Sharpie markers, judged by a panel including Gina Lazaro of Sharpie and representatives from Anthropologie, Urban Outfitters, and Elle Magazine.
A vibrant blend of beauty, fashion and fashion, the Miami Swim Week 2024 fostered innovation and sustainability in the swimwear industry.
Gucci plans to organise the brand’s spring 2025 menswear show at the Triennale Milano museum on June 17. The show will be launched as a part of the Milan’s Men’s Fashion Week from June 14-18, 2024.
Earlier this month, Gucci launched its 2025 cruise collection along with the first destination show of Sabato De Sarno, Creative Director, at the underground concrete exhibition space Tate Modern Tanks in London.
Founded in 1923, the Triennale Museum blends fashion with a broader cultural conversation. The museum aligns with Gucci’s vision to provide a space for new encounters through exchange and the freedom evoked by art in its wider conception, says a statement by Gucci.
An art collector, De Saro’s passion for the arts is demonstrated throughout the newly renovated Milan Via Montenapoleone flagship, housing a selection of modern and contemporary works by both midcareer and established artists. The space also displays art pieces of various artists chosen by curator Truls Blaasmo including Lucio Fontana, Getulio Alviani, Liliana Moro and Franco Mazzucchelli, to Nathlie Provosty, Jaime Poblete, François Durel, Michael Rey, Herbert Hamak, Adji Dieye and Augustas Serapinas, etc.
Unveiled last December, the store at the museum pays tribute to Italian furniture designs. Some of the noteworthy pieces displayed at the store include Cassina’s ‘Utrecht’ armchair by Gerrit Thomas Rietveld; the ‘Maralunga’ sofa by Vico Magistretti for Cassina’s iMaestri Collection; the ‘La Bambola’ armchair by Mario Bellini, and ‘Tufty-Time’ sofa system by Patricia Urquiola for B&B Italia, etc.
In line with the analysts’ expectations, sales of Zara owner Inditex grew by 7 per cent during Q1, FY24. To counter growing intense competition from rivals like H&M, the brand aims to chase new trends faster and expedite product deliveries.
In recent quarters, benefitting from improved shopping experiences, both online and in-store, the company outperformed many of its competitors. It currently faces intense competition from rapidly growing Chinese-owned online retailers Shein and Temu.
One of the world’s largest listed fashion retailers, Inditex’s sales during the first quarter of FY24 increased to €8.15 billion compared to the average analysts’ forecast of €8.1 billion, show results from an LSEG poll.
The company’s net profit during the quarter increased by 11 per cent to €1.29 billion in line with the €1.3 billion average forecast by analysts, according to the LSEG poll. This was against the 54 per cent rise in profits recorded in the first quarter of the last year.
