FW
Abercrombie's net sales rose nearly 11 percent to $730.9 million. The company expects its current-quarter revenue to rise in the high-single percentage digits.
Net loss attributable to Abercrombie & Fitch narrowed to $42.5 million from $61.7 million a year earlier.
Abercrombie's eponymous brand has seen higher demand this year after having struggled for the past five years, thanks to revamped stores and new advertisements.
Both the Abercrombie and Hollister brands topped Wall Street expectations for same-store sales, while the company's net loss remained much smaller than expected.
Rick Helfenbein, president and CEO of the American Apparel & Footwear Association, criticised the use of punitive tariffs by the Trump administration on U.S. imports of steel and aluminum from Canada, Mexico, and the European Union.
According to him, this move is likely to result not only in inflationary costs, but also retaliation by the country’s trading partners.
Canada, the European Union, and Mexico are the three largest markets for exports of Made in USA apparel.
Canada and the EU are the top two markets for Made in USA footwear.
The ability to export Made in USA product is essential for the health of the domestic manufacturing industry.
The tariffs will be detrimental for American companies and workers. They will not only inflate prices throughout the economy but also hurt job growth.
Recently, PVH the company behind typical American fashion brands has increased its full-year earnings outlook after posting better than expected revenue gains for the first quarter.
According to the company the sales in the three months up to May 6 rose 16 per cent from a year ago to $2.3bn. Earnings came in at $2.29 a share, versus 89 cents in the same period a year ago, thanks in part to a 20 cent-per-share boost from favourable currency exchange rates. Net income attributable to the company soared to $179.4m from $70.4m a year ago.
Tommy Hilfiger revenue rose 21 per cent to hit $1bn, alongside a 25 per cent jump in the brand’s sales in foreign markets to $655m. Calvin Klein revenue rose 18 per cent to $890m from a year-ago, with international sales ringing in 25 per cent higher at $475m.
Emanuel Chirico, PVH chairman and chief executive, stated the company is pleased with its first quarter 2018 results, its performance underscored the power of the diversified business model and the continued momentum in global designer lifestyle brands, Calvin Klein and Tommy Hilfiger.
PVH says it would lift its full-year earnings outlook, despite expectations that the foreign-exchange tailwinds would subside. Its previous guidance for earnings between $8.76 and $8.86 a share was raised to $8.81 to $8.91 a share.
Demand for PVH’s recognisable brand names has helped it weather tough times in the retail sector, among changing shopping habits and consumer tastes. After rising 52 per cent last year, their shares are up another 14.12 per cent so far in 2018.
Tokyo Girls Collection, a semiannual fashion show that attracts tens of thousands of women in arenas, had taken its event to New York for the first time on 31st May 2018.
The Tokyo Girls Collection, or TGC, event attracts an average of 30,000 spectators in arenas and is streamed live on the Internet. Models, singers and celebrities parade the latest casualwear from Japanese and international designers on the runway, while spectators can order the clothes on their smartphones instantly. TGC is promoted by Japan’s foreign affairs ministry and the nation’s tourist agency. TGC has been focused on international implementation of Tokyo street culture which is a semiannual event that started in 2005, taking place in spring and autumn.
TGC is one of the major fashion festivals in history. It has been held twice a year since August 2005 with the theme of international implementation of Tokyo street culture. A total of about 100 popular Japanese models perform in a fashion show displaying Japan street fashion. The festival also features live performances by important artists, a special stage filled with popular guests, booths where participants can touch and try popular items, and various other contents that are unique to TGC.
Moda Operandi, the online retailer that allows for consumers to preorder looks straight from the runway, is expanding to menswear. The company informed in a statement that it aims to cater to luxury minded men, offering them a curated selection of the season’s best offering.
The men’s section of Moda Operandi’s website will feature more than 50 brands, including Prada, Maison Margiela, Givenchy, Ralph Lauren, Thom Browne, Off-White, Balmain, Lanvin and Burberry. The launch is happening just in time for Milan and Paris men’s fashion weeks in late June.
Deborah Nicodemus CEO of Moda Operandi, says that the company has identified a gap in the market for men to experience the same exclusive opportunity. It saw strong interest in the menswear category over that last two holiday seasons, which led us to the decision to introduce Men's as a standalone business.
This is the third time in two years that Moda Operandi expands to a new market. Recently, the company also started selling home goods and fine jewelry, after securing 165 million US dollars in growth capital from C Ventures, K11 and Apax Digital in 2017. In total, the company has raised over 297 million dollars in funding.
Moda Operandi was launched in February 2011. Collections from some of the world’s top designers are made available for preorder at the website, months before they are available anywhere else.
Despite tough market conditions on the high street Menswear brands and buyers are feeling positive about the spring 19 season, and independents are keeping their budgets in line with last year.
The spring 19 trade show season starts on 12 June at Florence exhibition Pitti Uomo. Menswear sources have told Drapers they are keeping more budget in-season to react to the weather and are generally feeling optimistic about the season ahead.
Debra McCann, owner of The Mercantile in London’s Spitalfields, warned that economic uncertainty and changeable weather had resulted in a high level of unpredictability in the market. Ben Tattersall, sales manager at agency Just Consultancies, stated that despite a challenging year for retail, he expects the mood to be upbeat at trade shows. Likewise, Ravi Grewal, co‐owner of menswear independent Stuarts London hopes to be surprised at the upcoming exhibitions.
On the other hand Hoggett expected the casual appeal of retro sportswear to stay popular for spring 19.
Chandler agreed athleisure and looser styles would stay strong, and men would also become braver in their choice of colour, texture and print.
The 61st India International Garment Fair 2018, to be held on 16-18 July 2018 in New Delhi, India is one of the Asia's largest and most popular apparel and clothing trade shows. A perfect amalgamation of fashion, design and quality, the show brings together professionals and industry experts to share valuable experienced knowledge and innovative ideas to make advanced this sector in the world market.
Profile of exhibit based on Blazers, Blouses, Cardigan, Cashmere Products, Casual Wear, Children's Wear, Denim Wear, Infants' Wear, Jackets, Knitwear, Ladies Wear, Men's Wear, Pullover, Shirts, Shorts, Silk Garments, Skirts, Suits, Sweater, Sweat Shirt, T-Shirt, Trousers, Vest, Wool Garment, Designer's Labels, Bridal Wear, Cocktail Dresses, Evening Dresses, Leather Garment, Fur Garment, Maternity Wear, Uniforms, Work Clothes, Outerwear, Swimwear, Body Wear, Skiwear and Down Coats.
Visitors like CEO, Managing Director, General Manager, Chief Manager, Sales, Marketing, Planning, Department, Engineer, Technician, Consultant, Coordinator, Supervisor, Financier, Accountant related to the textile industry are the target industry.
IndustriALL’s steering committee meeting of the ICT, held on 28-29 May 2018, discussed global industry trends; evaluated current activities and future strategies to strengthen union power and respond to challenges faced by the trade union movement. 24 countries that will come under the scrutiny of the Committee on the Application of Standards for alleged violations of international labour conventions. Algeria, Belarus, Brazil, Haiti, Mexico, Nigeria and the Ukraine are few of the countries where IndustriALL Global Union trade union affiliates are directly affected.
The Committee on the Application Standards (CAS), checks how International Labour Organisation (ILO) standards ratified by member states are being applied.
The CAS will examine cases on violations of the fundamental ILO Convention 87 on Freedom of Association and Protection of the Right to Organise in Algeria and Mexico.
Belarus will be inspected under Forced Labour Convention 29, whereas Brazil and Nigeria, will come under examination for breaching ILO Convention 98 on the Right to Organise and Collective Bargaining Convention.
The CAS will address violations of multiple Conventions on hours of work and weekly rest (Numbers 91, 14, 30, 106) in Haiti and the Ukrainian government will be invited to supply information on violations of labour inspection Conventions 81 and 129.
Export to China in the first six months of the Ethiopian Fiscal Year 2017-18, which started July 9, accounted for 17.3 per cent of Ethiopia's total export, overtaking Somalia, now accounting for 14.32 per cent.
Ethiopia's largest export destination in 2017 was neighboring Somalia, which imported 269.3 million U.S. dollars' worth of goods accounting for 9.26 per cent of Ethiopia's total exports.
According to the Ethiopia Ministry of Trade (MoT) Ethiopia exported 239.82 million U.S. dollars' worth of goods to China in 2017, accounting for 8.25 per cent of its total exports. The second largest export destination for the East African country. Ethiopia exported about 2.9 billion U.S. dollars’ worth of goods in 2017.
The revenue was earned from the exports of agricultural products, textile and garment, leather products, minerals, flowers and construction materials.
With Chinese firms located in Ethiopian industrial parks tentatively starting to export industrial goods to China. The volume of Ethiopian exports to China is expected to significantly increase in the coming years.
"For the past many years, two of the biggest global textile buyers, US and European, have been following the China + 1 or China + many sourcing strategies. Among these +1 or +many would be Asian countries, viz., Bangladesh, Vietnam, India, Sri Lanka. However, recent OTEXA statistics reveal even though US imports from these countries remain the highest they have not clocked in the highest growth rates. Rather imports have enhanced from Turkey, Myanmar, Cambodia, AGOA countries for mass apparel as well as from Italy, France, and Spain. The reason for this is the consumers’ growing thrust on high value clothing rather than mass produced low end commodities."
For the past many years, two of the biggest global textile buyers, US and European, have been following the China + 1 or China + many sourcing strategies. Among these +1 or +many would be Asian countries, viz., Bangladesh, Vietnam, India, Sri Lanka. However, recent OTEXA statistics reveal even though US imports from these countries remain the highest they have not clocked in the highest growth rates. Rather imports have enhanced from Turkey, Myanmar, Cambodia, AGOA countries for mass apparel as well as from Italy, France, and Spain. The reason for this is the consumers’ growing thrust on high value clothing rather than mass produced low end commodities.
China’s dominance stays
US apparel imports from China from January-March 2018, at $5802.021 million, were 0.87 per cent higher than in the same period of 2017. In volume
terms, Chinese exports to the US amounted to 2482.089 million SME, an increase of 3.74 per cent during the period under review. In 2017, China’s apparel exports to the US fell 3.17 per cent to $27030.289 million, which was still 33.67 per cent of total apparel imports of the US in terms of value, and 42 per cent in volume. In the first three months of 2018, China’s share remains the highest, but the share seems to be on downfall. In value, China's share in US apparel imports was 30.17 per cent, and in volume, 38 per cent. If experts are to be believed, Chinese imports are set to fall further owing to ongoing tariff and trade wars. Having said that even after an overall 25 per cent tariff increase by the US on imports of Chinese apparel, China will still be far more competitive than its counterparts. Vietnam, Indonesia and India will still remain costly affairs barring Bangladesh, which is set to boost the country’s exports in near term.
Other countries’ share
Vietnam is the second largest apparel supplier to the US. Apparel inports from Vietnam during January-March 2018 were $2858.357 million, an increase of 3.32 per cent compared to the same period in 2017. The US imported garments worth $1356.166 million from Bangladesh during January-March 2018, a drop of 0.92 per cent. In 2017, imports from Bangladesh were down by 4.46 per cent. The fourth largest supplier to the US market, Indonesia, has fell further 5.78 per cent to $1149.891 million. In 2017, imports were Indonesia were down 3 per cent. While India’s share remained stagnant. During January-March 2018, US imports of apparel from India at $1036.066 million, were marginally lower by 0.79 per cent, compared to CPLY. In 2017, India’s apparel exports to the US registered an increase of 1.17 per cent.
Emerging sourcing destinations
Latest statistics indicate Cambodia can emerge as an important apparel sourcing destination for the US. While it offers the lowest prices, it does not have the capacities to match the demand of the US buyers. US imports from Cambodia went up 12.52 per cent to $587.715 million. In volume terms too, imports registered a similar increase of 12.75 per cent to 262.845 million SME. US imports from Myanmar are quite negligible but growing at a fast pace. During January-March 2018, US apparel imports from Myanmar amounted to $33.785 million. Moreover, there has been an increased sourcing pattern from Turkey over the years. During January-March, US apparel imports from Turkey at $147.996 million were 21.75 per cent higher than in the CPLY. In 2017, the US imported apparel worth US$ 526.546 million from Turkey, which were 11.51 per cent higher than in 2016.
Egypt also indicated high demand. During January-Marcy 2018, imports from Egypt were up 15.78 per cent, to $203.355. In 2017, imports from Egypt at $726.547 climbed 5.13 per cent compared to 2016. Imports from Italy rose 20.52 per cent during the first three months of 2018. Imports from France recorded a growth of 11.24 per cent, to $41.756 million. Top exporting countries from AGOA include: Kenya, Lesotho, Madagascar, Mauritania, Morocco, Ethiopia and Tanzania. While most of these countries registered double-digit export growth to the US this year, Ethiopia’s apparel exports grew 101.58 per cent during January-March 2018. US buyers imported apparel worth $21.955 million from Ethiopia.
