Footwear maker Skechers USA Inc’s shares declined recently after same-store sales missed estimates in the second quarter ended June 30, 2018. Net earnings of the company were reported to be $45.3 million, declining by 24 percent year-over-year. Sales grew 10.6 per cent as a result of a 24.9 per cent increase in the company’s international wholesale business, and 12.8 per cent increase in its company-owned global retail business. Sales reached $1.13 billion.

Comparable same store sales in company-owned stores worldwide grew by 4.5 per cent, including a 2.2 per cent rise in the United States and an 11.3 per cent increase internationally, however the company suffered from a weak domestic wholesale business, which fell 7 per cent, and a 6.1 per cent decrease in the company’s international distributor business.

For the third quarter of 2018, the company expects to reach sales in the range of $1.200 billion to $1.225 billion, and diluted earnings per share of $0.50 to $0.55.

High street fashion retailer Primark has announced a three-year partnership with UNICEF where both will collaborate on education and emergency response. In total, Primark will commit $4.5 million towards UNICEF’s education work and a further $1.5 million has been pledged to support emergency response efforts following humanitarian crises.

Primark’s contribution to the charity’s education fund will enable vulnerable children to attend and keep their place in Cambodian schools. Activities in the program will include targeted support for children from minority language groups, children with disabilities and girls, investment in school sanitation facilities, and training for teachers in positive discipline approaches.

In 2017, UNICEF’s emergency response arm – which Primark is now directly supporting – responded to 337 humanitarian situations in 102 countries, most of which included children at risk, with women and children comprising 60 - 80 per cent of the affected population.

Spanish garment retailer Inditex will pilot at-home pick up service for recycled garments in China this September. The initiative, which currently operates nationwide in Spain, is a central part of the group’s strategic commitment to the so-called circular economy. It has enabled the collection of more than 25,000 tons of garments in 21 markets since launching in 2016.

The company’s integrated store and online model has boosted Inditex’s sustained growth. All of Inditex’s brands benefit from a robust integrated store and online platform. Last year, online sales accounted for 12 per cent of the total in the 47 markets in which e-commerce platforms are available, representing annual growth of 41 per cent.

The model has enabled sustained growth over the years, coupled with the consistent creation of economic, social and environmental value. Inditex owns international fashion brand Zara. Inditex has also recently embarked on a refurbishment drive for its entire global network of more than 7400 stores, accompanied by considerable growth in the Zara online platform.

Competitors have been unable to fully replicate Inditex's business model, which takes clothes from design to rack in weeks. The company’s gross profit margin is expected to bottom out this year as currency headwinds ease.

India has doubled the import duty on textile products including carpets, woven fabric, jackets and baby garments. Duties have been hiked from 10 per cent to 20 per cent. This is a move to provide relief to garment and carpet manufacturers who were under immense pressure post GST.

On some items, the rate would be 20 per cent or Rs 38 per meter, whichever is higher. The ad-valorem rate of duty for certain items is also raised. However, imports from less developed countries will remain duty-free, including Bangladesh. Bangladesh is the largest supplier of most of the goods on which duties are doubled.

The textile industry in Bangladesh has been structurally developed to manufacture value added textile products, due to lack of raw materials, for which it relies on imports from surplus countries like India and USA.

So it is imperative that the Indian textile industry move up the value chain and take the advantage of ample availability of cheaper raw materials. If raw material from India can go to Bangladesh, only to be converted into value added products and brought back to India, the Indian textile industry can restructure and produce high value products. China is already moving up the value chain and moving low value production outside the country.

Key commodities in Vietnam including apparel, leather, and footwear are likely to be hurt by the US-China trade war. However, it war may also present some opportunities as Vietnam may be able to boost shipments to the US with limits on Chinese import. Furthermore, the depreciated Chinese yuan will give Vietnam an edge when importing materials from China.

As the US imposes high taxes on Made in China goods, Chinese manufacturers are likely to move their operations to Vietnam to fill the gap. However, if there is a wave of Chinese investment in Vietnam, the US is likely to limit the import of goods with Chinese materials, thus putting Vietnam at a disadvantage.

The trade war has also indirectly hurt consumption market because US and Chinese consumers have switched to buying necessities instead of more luxury items such as leather, footwear, and handbags – leading to a slump in demand in the two countries.

Eurojersey has signed a new three-year extension of its existing partnership with WWF Italia aimed at the conservation of water as a planetary resource. The new partnership will take the form of multiple activities such as the calculation of exact water footprint for Eurojersey’s branded ‘Sensitive’ stretch nylon textiles, the problems of synthetic microfibres and other plastics in the marine environment, together with the launch of a new campaign to promote sustainable fishing and the protection of sharks, as indicators of healthy marine eco-systems.

The company has launched the next phase of its ongoing environmental program, which it first started back in 2007. It has signed an extension of its existing partnership with WWF Italia, which focuses on the protection of marine ecosystems in the Mediterranean Sea, which includes funding for programs looking at the protection of sharks, addressing overfishing and issues of pollution.

The company is also collaborating in a new study with the CNR a National Research Council of Biella to produce a comparative analysis between Eurojersey’s ‘Sensitive fabrics’ and other synthetic fabrics of different blends to identify the amounts of released microplastic particles after washing and drying garments.

The company claims garments made of ‘Sensitive’ fabrics require little water during their production, are quick to dry and are durable which it says means they have an above average lifecycle and a general lower environmental impact that similar fabrics made elsewhere.

The company has recently joined the ZDHC. By joining the ZDHC, it will address the issue of hazardous chemicals and their associated risks in a systemic manner, by integrating special measures and controls in the manufacturing cycles without neglecting its responsibility and a greater transparency in its customer relations.

The India-EU free trade agreement (FTA) will soon be discarded. Although the EU has asked for two weeks to decide on future course of action, sources have concluded that resumption of negotiations would be a fruitless exercise. There have been no negotiations since 2013. In 2017, both at India-Germany summit in June and the India-EU summit in October, there was an attempt to restart negotiations. But nothing happened.

Indian negotiators are of the opinion that India might be better off waiting for Brexit to happen before looking at EU. The UK has the lion's share of India-EU trade and investment, and the nation is keen on working out a trade deal with India as they near their separation date. On the other hand, the UK's departure might make FTA talks with EU easier as the nation is biggest roadblock in denying Indian entry into EU.

Cordura in partnership with Carhartt has launched a line called Full Swing Steel. This has a collection of three pairs of pants and a jacket. The line delivers flexible, versatile and durable solutions for carpenters, roofers, aircraft and diesel mechanics, landscapers, and engineers.

Engineered Cordura fabric technologies in combination with ergonomically placed kneepad pockets were incorporated to provide an enhanced level of comfort and protection. The material, knee pads, fit, flex and durability are amazing, and the pocket layout and reinforced areas were very well thought out. The Full Swing steel multi-pocket pant not only has extra rugged stretch Cordura Nyco fabric for mobile durability it has additional Cordura fabric reinforcement in critical wear areas.

Established in 1889, Carhartt, based in the US, is a global premium workwear brand with a heritage of developing rugged products for workers on and off the job. Cordura is a brand belonging to Invista, one of the world’s largest integrated polymer, intermediates and fibers businesses. Known for its resistance to abrasions, tears and scuffs, Cordura fabric is a primary ingredient in many of the world's leading high-performance gear and apparel products ranging from luggage, upholstery and backpacks to footwear, military equipment, tactical wear, workwear and performance apparel.

Cinte Techtextil will be held in China from September 4 to 6. A number of leading international and Chinese brands across the fair’s 12 product application areas will feature at the event with an expected 500-plus total exhibitors from around 20 countries and regions.

Lenzing will feature its brand Veocel. This is a premium range of nonwoven fibers for daily care, which provides the nonwoven industry with fibers that are certified clean and safe, biodegradable, from botanic origin, and produced in an environmentally responsible production process. Products in this range can be applied to a multitude of uses including baby care, beauty and body care, intimate care and surface cleaning.

Johns Manville from the US will showcase polyester spunbond, micro glass fiber nonwoven, hybrid nonwoven, glass fiber needle mat and glass microfiber product lines, among others, at the fair. JH Ziegler from Germany offers products for acoustic absorption in automotive interiors and exteriors, nonwoven foam composites for leather lamination, needle-punched nonwovens, foam nonwoven composites, laminated nonwovens and natural-fiber nonwovens.

TDF Nonwovens from China will display specialties like polyester spunbond geotextiles, polyester filament roofing carriers, filter nonwovens, high-strength coarse denier polypropylene spunbond geotextiles and medical and health nonwovens. Perlon from Germany will present a PET based monofilament, HighGrip, which guarantees long-lasting efficiency of conveyor belts, and is available in various types with different tribological characteristics.

Bangladesh, Vietnam and Indonesia are prominent markets for Indian cotton.
Traditional buyers such as China and Pakistan have cut down on their purchases.

Exports to China fell by 55 per cent between 2016-17 and 2017-18. Exports to Pakistan remained almost flat in 2016-17 and in 2017-18.

Bangladesh is now the biggest buyer for India. More than 25 lakh bales have been bought till now.

However, higher prices are hurting exports. For most of the time last year, Pakistan had banned imports from India. But when Pakistan wanted the fiber, purchases were made around March-April. But cotton exports are again being banned by Pakistan.

The current rate of Rs 49,000 per candy seems to be high for the trade considering the grim situation in the export market.

Forward contracts are also lackluster. For November-December forward contracts have been executed for about five lakh bales. Uncertainty on the crop and yield is impacting the price scenario.

On an all-India level, about 40 per cent cotton sowing is yet to take place as rains in most regions were delayed.

Though India remains the largest exporter of cotton yarn in the world, the country’s share declined to 25 per cent in 2017 from 30 per cent in 2015.