FW
A recent report titled What Fuels Fashion?, by Fashion Revolution indicates, major fashion brands including DKNY, Tom Ford and Reebok have failed to outline plans to reduce carbon emission emissions in their supply chain.
The report ranks 250 of the world's largest fashion brands and retailers, each with a turnover of $400 million or more. It evaluates these brands based on 70 sustainability criteria, such as emissions targets, supply chain transparency, and the use of renewable energy in factories. As per the report, only four out of 250 brands have met the emissions reduction targets set by the United Nations. While 117 brands had decarbonisation targets, only 105 disclosed updates on their progress, with 42 reporting increased scope-3 emissions compared to their baseline year.
Additionally, the report highlights that 86 per cent of companies lack a public coal phaseout target, and 94 per cent do not have a public renewable energy target. Only 43 per cent of brands are transparent about their energy sources.
Another major concern for the brands is overproduction. Almost 89 per cent of large fashion brands failed to disclose the number of garments they produce annually. The industry's impact on supply chain workers, particularly in regions prone to severe weather events, is also troubling. In countries like Bangladesh, extreme weather conditions, such as floods, pose significant risks to workers. The report notes that only 3 per cent of major brands disclose efforts to support workers affected by the climate crisis.
Maeve Galvin, Global Policy and Campaigns Director, Fashion Revolution, emphasises the potential for the fashion industry to make a positive impact. She states, by investing at least 2 per cent of their revenue into clean, renewable energy and upskilling and supporting workers, fashion could simultaneously curb the impacts of the climate crisis and reduce poverty and inequality within their supply chains.
Expressing concerns over the critical condition of the domestic textile industry, Farhan, AqilSyauqi, Executive Secretary, Indonesian Filament Fiber& Yarn Producers Association (APSyFI) says, the release of 26,000 containers containing illegal imports at the port has further exacerbated the situation in Indonesia’s textile industry.
As factories continue to remain shut and thousands of employeeslaid off, Syauqi blames AirlangaaHartarto, Coordinating Minister for Economic Affairs and Sri Mulyani, Minister of Finance for the crisis. He alleges,information regarding the contents of the containers was never made public, and even the ministers responsible for trade and industry were unaware of what was inside.
The association has demanded transparency and clarity regarding the contents of the containers, emphasisingon the need for firm action by the government. The association calls for decisive measures to safeguard the domestic textile industry from the adverse impact of these illegal imports.
A global leader in sustainable chemicals, Indorama Ventures Public Company has joined the innovative T-REX (Textile Recycling Excellence) Project. This ambitious initiative aims to establish a harmonised blueprint across the European Union for the closed-loop sorting and recycling of household textile waste, facilitating the fashion industry's transition towards a circular and sustainable future. By uniting key stakeholders across the entire value chain, the T-REX Project positions itself as a frontrunner in sustainable innovation.
As the designated spinning partner, Indorama Ventures will process chemically recycled feedstock into polyester yarns and fibers through the extrusion process, ensuring the removal of impurities. This role aligns with the company's broader goals of promoting the circular economy and advancing the circular fashion industry through PET recycling and the supply of recycled materials. It underscores Indorama Ventures' strong commitment to sustainability.
Diego Boeri, Executive President-Fiber Business, Indorama Ventures, says, utilisingcircular feedstock across the value chain to help partners achieve their sustainability goals, Indorama Ventures plans to leverage its technical expertise to boost textile-to-textile recycling within the T-REX Project.
Funded by the EU, The T-REX Project aims to create a unified system for post-consumer textile waste recycling in Europe. It brings together a consortium of 13 major players from across the value chain, alongside research institutes, to transform end-of-life textiles from waste into valuable feedstock. The project's goal is to develop new business models that can be scaled up, ultimately making a significant impact on the sustainability of the textile industry.
A prominent player in the textile industry, RSWM plans to set up a new production unit in Jammu & Kashmir with an investment of Rs 730 crore. Spanning 32 acre, the upcoming facility will expand the region's industrial landscape and contribute to its economic development.
To be operational within the next 18-24 months, the new production facility will manufacture a wide range of textile products, leveraging advanced technology and machinery to ensure high-quality output. The plant will include state-of-the-art infrastructure, adhering to international standards and sustainability practices.
One of the key highlights of this project is its potential to create employment opportunities for around 3,000 individuals. This will not only provide job prospects for the local population but also enhance skill development in the region. The new unit will employ a diverse workforce, including skilled technicians, engineers, and administrative staff, contributing to the socio-economic upliftment of the area.
RSWM's decision to invest in Jammu & Kashmir underscores its commitment to foster industrial growth and supporting the government's initiatives to promote investment in the region. The company's move aligns with broader efforts to stimulate economic activity, attract investment, and develop the region's infrastructure. By setting up this facility, RSWM aims to strengthen its market position, expand its product portfolio, and meet the growing demand for textiles in both domestic and international markets.
The recent unrest over the quota reform movement has severely impacted Bangladesh's garment sector, leading to significant financial losses. Industry associations estimate that the garment and textile sector suffered losses of approximately $800 million over five days due to disruptions. Furthermore, the communication blackout during this period resulted in an estimated $4 billion loss in orders.
The unrest began on July 17 when mobile internet services were suspended following violence and clashes during a "complete shutdown" called by BoishommoBirodhiChhatraAndolon, a platform advocating for quota reform in government job recruitment. The situation escalated, leading to a shutdown of broadband services on July 18, the declaration of a general holiday, and the imposition of indefinite curfews, resulting in the closure of all industrial establishments.
Operations resumed on July 24, but the damage was already done. Mohammad Hatem, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), reported, the sector lost approximately $4 billion worth of orders to competitors due to the inability to communicate with buyers during the blackout.
To mitigate these losses, garment manufacturers have requested a one-year loan at a 2 percent interest rate and appealed to the finance minister and Bangladesh Bank to suspend loan installments and interest payments for the next six months. Hatem noted, currently 80 percent of garment sector owners are in critical condition and without government intervention, many factories risk defaulting on loans and closing.
SM Mannan Kochi, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), estimates, the garment export sector incurred losses of Tk 11,050 crore, with the production sector alone losing Tk 7,400 crore. The washing and linkage sectors faced losses of approximately Tk 3,000 crore. The supply chain collapse left workers without wages, and interest on bank loans will still need to be paid, exacerbating the situation.
In response, Khalid Mahmud Chowdhury, State Minister announced the waiver of delay fees on imports and exports for the period when port services were halted, aiming to provide some relief to businesses.
Kontoor Brands, the global lifestyle apparel company known for its Wrangler and Lee brands, has announced impressive financial results for the second quarter of 2024, exceeding market expectations. Despite a slight decline in overall revenue, key financial indicators showed significant improvement, driving the company's decision to raise its outlook for the rest of the year.
Kontoor reported $607 million in revenue for the quarter, a 1 per cent decrease from the previous year. This decline was mainly due to inventory management actions by retailers in the US and a reduction in seasonal product sales. However, growth in direct-to-consumer sales helped offset these decreases. US revenue stood at $496 million, also down by 1 per cent, while international revenue was $111 million, marking a 6 per cent decline (5 per cent in constant currency).
The Wrangler brand saw a 1 per cent increase in global revenue, reaching $429 million. In the US, Wrangler's revenue remained flat, with a 10 per cent growth in direct-to-consumer sales balancing out a slight decline in wholesale. Internationally, Wrangler's revenue grew by 7 per cent, driven by significant gains in direct-to-consumer and wholesale segments.
Conversely, the Lee brand experienced a 7 per cent drop in global revenue to $175 million, attributed to reduced shipments in the US wholesale channel and declines in international markets.
Kontoor's gross margin increased by 410 basis points to 44.7 per cent, reflecting benefits from lower product costs, improved product mix, and supply chain efficiencies. The company reported an operating income of $75 million, with adjusted operating income up by 10 per cent to $80 million. Adjusted earnings per share (EPS) rose by 27 per cent to $0.98.
Kontoor ended the quarter with $224 million in cash and equivalents and $750 million in long-term debt. Inventory levels decreased by 22 per cent compared to the previous year. The company returned $53 million to shareholders in the second quarter, bringing the year-to-date total to $101 million.
CEO Scott Baxter expressed confidence in the company's performance, raising the full-year outlook based on better-than-expected Q2 results. Kontoor now expects revenue between $2.57 billion and $2.63 billion. Adjusted gross margin is projected to be approximately 44.8 per cent, with adjusted operating income at the higher end of the $377 to $387 million range. Adjusted EPS is expected to be around $4.80.
Kontoor is making strategic investments to support brand growth and market expansion, anticipating significant revenue growth and cash generation in the latter half of the year.
Scott Baxter, CEO of Kontoor Brands, is optimistic about the second half of the year, as the company’s improving fundamentals provide opportunities for long-term value creation. Kontoor remains committed to delivering shareholder value while navigating the current economic landscape.
A new study by Public Desire ranks the United States with a 10.873 per cent share as the eighth largest sustainable fashion market in the world.
Leading the rankings is the United Arab Emirates, followed by Estonia, Finland, Japan, France, Canada, Australia, the US, India, and Latvia. The study analyses over 20 countries to determine those most advanced in sustainable fashion. The analysis considers metrics such as the size of the apparel market, fast fashion and slow fashion revenue in 2024, and the proportion of these revenues in the overall market. Data sources include Statista, IBIS World, and official reports from various countries.
To gauge public engagement with fast fashion and sustainable fashion, the researchers identified the top fast fashion brands in each country, examining the number of online searches for these brands. Shein emerged as the most searched fast fashion brand across all analysed countries. For sustainable fashion, the study also looked at the frequency of searches for ‘thrift stores near me’ as an indicator of the public's interest in sustainable shopping options.
At the end of August (27-29), the National Exhibition & Convention Centre in Shanghai will host China’s premier textiles and apparel trade shows amid a backdrop of slowing consumption and economic growth.
The event features the Intertextile materials show, co-organized by the Chinese Textiles Chamber of Commerce (CCPIT-Tex), the Textile Information Centre of China, and Messe Frankfurt, which is celebrating its 30th anniversary in Asia. In March, Intertextile attracted nearly 3,000 exhibitors and 90,000 visitors from 116 countries, recovering from pandemic-related disruptions.
Intertextile will run alongside the Yarn Expo and Chic, a fashion and apparel show sponsored by CCPIT-Tex, the China World Trade Centre, and the China National Garment Association. Chic's March edition saw 158,000 visitors and 1,250 exhibitors showcasing 1,398 brands. Additionally, PH Value, a key knitwear market event, will also take place concurrently.
These trade shows come at a crucial time for China’s textiles and apparel market, which faces challenges from inflation affecting Western brands and declining domestic consumption. Despite this, the luxury and sportswear segments show some resilience. In response to the economic slowdown, China has recently introduced a short-term interest rate cut to stimulate growth.
Following a successful debut in 2022, global denim icon Wrangler has unveiled the second edition of its upcycled denim collection, Wrangler Reborn. This latest collection marks the brand's first collaboration with BVH Services' brand, Beyond Retro, a prominent vintage retailer in Europe known for producing trendy fashion with minimal carbon footprint.
Thoughtfully designed with circularity and sustainability at its core, the Wrangler Reborn collection features sustainable reinterpretations of some of Wrangler's classic styles, including the Greensboro Straight Leg Jean, Reworked Short, Icon Jacket, and Heritage Shirt. These pieces offer consumers timeless wardrobe staples that can be worn for years while also helping to divert textile waste from landfills. By reviving discarded denim and transforming it into durable apparel, Wrangler provides consumers with an opportunity to purchase high-quality, long-lasting pieces that can be repurposed and cherished.
The brand Wrangler has been creating durable and long-lasting products since 1947, helping to reduce waste in landfills. Aligning with the brand WeCare Wrangler goals, the Wrangler Reborn collection aims to create a better future through sustainable practices.
Despite experiencing negative financial performance in the previous quarter, Vishal Fabrics has shown signs of improvement, with the company's net sales rising toRs 411.51 crore in Q1, FY25, the highest in the last five quarters, indicating a positive trend in near-term sales.
The operating profit (PBDIT) for the quarter also hit a five-quarter high at Rs 30.16 crore, suggesting a positive trend in operating profit. Additionally, the company's operating profit margin peaked at 7.33 per cent.
However, the profit after tax (PAT) declined by 38.9 per cent Y-o-Y, amounting to Rs 6.52 crore. The near-term trend for PAT remains negative. Furthermore, the company's interest costs increased by 13.88 per cent Q-o-Q reaching Rs 11.65 crore, the highest in the last five quarters, indicating higher borrowings.
Overall, Vishal Fabrics delivered a mixed performance for the quarter ending June 2024.
