FW
VF Corporation’s Q3 total revenue from continued operations fell one per cent. North Face brand revenue fell one per cent though European business increased more than 20 per cent. Vans revenue increased seven per cent and Timberland was down one per cent currency neutral.
Revenue for jeans wear, image wear, and sportswear fell six per cent, three per cent and 13 per cent, with Wrangler and Lee revenue dropping six per cent and Nautica decreasing 15 per cent. Gross margin was up 70 basis points to 48.4 per cent for the quarter and earnings per share were up 13 per cent compared to the previous third quarter. Operating income was down one per cent and operating margin increased 10 basis points on a reported basis. Changes in foreign currency negatively impacted reported operating margin by 40 basis points.
In its adjusted 2016 outlook VF expects total revenue to increase two per cent compared to the previous estimate of three to four per cent. Direct-to-consumer revenue is now expected to increase at a high single-digit percentage rate. Earnings per share are expected to increase three per cent compared to the previous expectation of a five per cent increase.
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) chairman Ijaz A Khokhar has stressed on the need to formulate a new sector-wise aggressive marketing plan to enhance exports and get maximum benefit from its GSP Plus status as the country is facing constant decline in export. Addressing the AGM, Khokhar vowed to take the Association to new heights.
Khokhar, who is a leading exporter of martial arts uniforms in Pakistan, said that PRGMEA has decided to devise a long-term aggressive strategy to get benefits of the GSP Plus status. He deplored that it seemed that Pakistan's textile industry has failed to get even minimum benefits of the GSP Plus status merely because of the government's lack of interest in this regard. He said that trade and industry dynamics was being changed globally and, as such, there is a need to educate our labour force as per requirement of the industry for producing quality goods. Later, Khokhar said that PRGMEA in collaboration with the textile secretary will work for the improvement of the industry as presently the industry is competing global market without any roadmap and support.
India’s cotton exports in 2016-’17 are likely to fall 28 per cent from a year ago. One reason is that Pakistan may halve its purchases. Pakistan is likely to import one million to 1.5 million bales in 2016-’17 down sharply from 2.7 million bales a year earlier. Pakistani buyers are turning to Brazil, the US and some African countries.
Pakistan is the world’s third largest cotton consumer. In 2015-’16, Pakistan surpassed Bangladesh to become India’s biggest cotton buyer and accounted for 40 per cent of exports. India has so far contracted 5,00,000 bales for export. Demand is weak from overseas buyers. By this time last year, Indian traders had signed contracts to export a million bales.
India’s cotton output in 2016-’17 could rise 3.8 per cent from a year earlier as yields are expected to increase due to good monsoon rains. This year, the area under cotton was lower but due to good monsoon rains and less impact from pests, the country is estimating higher per hectare yields.
Another reason for the fall in cotton exports from India was that domestic cotton prices were on the upside since April. During June and July this year, Indian cotton prices were higher than international prices.
Sri Lanka’s MAS Fabrics has come out with an athleisure range under the name Street Nic. The collection doesn’t compromise on style when it comes to performance wear. It is functionally elegant and versatile. MAS Fabrics brings into this collection cutting-edge textile technology with patented materials like Trischel, Textprint and Noyon. These specialty fabrics complement the collection’s smooth, streamlined and minimal modernism with material made just for the purpose.
The target audience is the New Age health and fitness obsessed traveler. MAS will cater to the modern idea of luxury athleticism with clothing that can transform from active to lounge while staying completely relevant to all contexts of travel, leisure and sport.
MAS Fabrics is an innovative fashion and apparel manufacturer from Sri Lanka. It is a $1.6 billion conglomerate and one of the world’s best recognised fashion, apparel and textile makers whose expertise ranges through the process from design to delivery. The behemoth has 48 manufacturing facilities placed across 15 countries and also owns several design led operational centers. It invests heavily in technology, innovation, material and product, operations and business and is a patron of female empowerment, sports as well as environmental and social sustainability. The collection will also be streamed live worldwide on digital media.
Dixcy Textiles will use business applications from Infor to enhance core business processes and user experience for employees. Dixcy Textiles is a leader in the branded hosiery segment in India. With over 3,000 employees, it has the capacity to produce up to 6,25,000 pieces of garments a day which get sold through 120,000 stores. Dixcy has witnessed excellent business growth over the last few years and was looking for an end-to-end software platform to achieve better process control and improve efficiencies. The company evaluated various solutions available in the marketplace and settled on Infor.
By selecting Infor, Dixcy will lay the foundation for feature-rich technologies that will create value-driven growth within the organization. Infor will support this innerwear major with the digital transformation of the enterprise.
Infor M3 is a comprehensive, centralized ERP, built for medium to large national and international manufacturers and distributors. The solution offers ultimate flexibility in operations, technology, and scale. As a multi-site, multi-country, and multi-company solution, M3 empowers organizations to adapt to changing business needs. It provides flexibility in managing mixed-mode and complex environments, with the agility to make quick adjustments at any time. Written in Java, M3 gives clients platform independence and choice.
Invista’s Cordura brand has launched a new Cordura Combat Wool fabric made in collaboration with Marlane, a division of Biella Manifatture Tessili S.R.L, a leading producer of fabrics for elegant and high-end casual wear of Mongrando BI, Italy. Marlane combines traditional wool with innovative research and technology to offer leisure-chic fabrics for the workplace. Officina Endurance that will come into the market at the end of this year is a range of performance wool fabrics for menswear, crafted to merge fashion and function in the contemporary suiting market.
Cordura combat wool fabrics are designed not only to look fashionable, but also to function comfortably making them an ideal choice for the stylish professional on-the-go. The new fabric is Marlane’s prestigious addition to its family of Cordura brand authorized mills.
Cordura combat wool woven fabric, a durable wool blend technology, aims to offer enhanced abrasion resistance and longevity. From the commute to the boardroom, the Officina Endurance collection is the epitome of fashion meets function for the modern male, according to the manufacturer.
With leading brands including Lycra, Coolmax, Cordura, Stainmaster and Antron, Invista is one of the largest integrated makers of chemical intermediates, polymers and fibres. The company’s Cordura fabric, known for its resistance to abrasions, tears and scuffs, is a primary ingredient in many high-performance gear and apparel products ranging from luggage, upholstery and backpacks to footwear, military equipment, tactical wear, work wear and performance apparel.
Sixty-five readymade garment factories in Bangladesh have completed corrective measures recommended by the two platforms of western buyers and retailers. Thirty of these factories come under the Accord on Fire and Building Safety in Bangladesh, a platform of European retailers and buyers. Forty-one factories come under the Alliance for Bangladesh Worker Safety, a platform of North American buyers and retailers.
The total number of these factories is 71 but six of them are common on the lists of Accord and Alliance. These readymade garment factories received a letter of recognition from the buyer groups. Alliance expects all factories to sustain their commitment to safety through ongoing efforts to maintain the investments already made. Accord will do follow-up inspections at the factories which successfully completed remediation. These might identify new safety findings that would also require remediation.
Following the Rana Plaza building collapse, North American retailers and EU buyers undertook a five-year plan which set timelines for inspections and training and workers’ empowerment programs in Bangladesh’s readymade garment sector.
Alliance has so far conducted initial inspections at 759 factories while Accord inspected 1,600 factories. Due to failure to make required progress in remediation, Alliance so far has cut business relations with 104 supplier factories and Accord has terminated business ties with 41 factories.
Baba Ramdev-helmed Patanjali will soon to enter the textile manufacturing sector. The yoga guru expressed hope that the group's growth rate will swell to 200 per cent in the next fiscal with this inclusion. After venturing in the textile manufacturing sector, Haridwar-based Patanjali group will not only make traditional kurta-pajamas, it will come out with foreign wears like jeans as well, revealed Ramdev. He further disclosed that the Patanjali group wants to throw up Rs 10,000 crores income avenues to farmers in farming, milk production and other sectors in the next 2-3 years. He said that big economies globally were facing a slowdown but our economy stands strong.
Pakistan has taken a number of steps to enhance exports of cotton products. The textile policy for 2015-19 envisions doubling the exports of the textile and clothing sector from 13 billion dollars to 26 billion dollars. In order to reduce the cost of doing business, electricity tariff for industrial units has been reduced. Availability of affordable finance for the export sector has considerably improved.
Duty-free import of textile machinery is continuing during the current financial year. A technology up-gradation fund scheme for the textile sector has also been formulated to help boost exports of textile products. Exports of cotton yarn from Pakistan have risen while its consumption by the domestic value added textile sector has declined. Since consumption of cotton yarn by the value added textile sector has reduced exports of cotton yarn have increased.
Pakistan is the fifth largest producer of cotton in the world, the third largest exporter of raw cotton, the fourth largest consumer of cotton, and the largest exporter of cotton yarn. Meanwhile the power loom industry in Pakistan is facing a serious financial crunch. It has to bear the brunt of imports as well as multiple direct and indirect taxes including sales tax. More than half the power loom units have already closed down and unemployment has reached dangerous levels.
From January to September 2016 textile production in Kyrgyzstan has decreased by 30.3 per cent and clothing production by 15.8 per cent. Reasons include the financial crisis in partner countries such as Kazakhstan and Russia. The textile and clothing industry in Kyrgyzstan comprises mainly of small and medium-sized enterprises. It’s the highest export earner after gold and food.
Kyrgyz sewing companies have benefited from Kyrgyzstan's entry into the EEU. The cost of fabrics imported to Kyrgyzstan has increased only by seven to eight per cent while there are now no customs procedures at the border and delivery of goods to Russia has become one day shorter. Freight forwarders have reduced the cost of delivery of clothes from Kyrgyzstan to Russia by half.
At the same time, the garment industry faces problems. Most apparel businesses do not have their own premises, and the rented premises are often not suitable for production. The industry also suffers from limits on electricity consumption and shortage of skilled workers and working capital.
In order to adapt to increasing competition, apparel companies need better knowledge of the market, administrative and operational management skills, and better access to financial resources. The dollar appreciation and depreciation of the Russian ruble against the Kyrgyz som affected Kyrgyz exports.
