Saturday, August 7, 2021

Puma terminates Nigeria's sponsorship after poor Olympic performance

Nigeria’s Olympic team has seen its sponsorship revoked by German sportswear giant Puma. Plagued by serious drug-testing disqualifications, poor performance, under preparedness and even a TikTok video of a Nigerian athlete washing his uniform with the caption: “When you made the Olympic Finals, but you only have one jersey.” It was enough to prompt Puma to end its 2.7 million dollar endorsement of the Nigeria’s entire Olympic athletes and team. According to a press release Puma said it ended its sponsoring and licensing agreement with the Athletics Federation of Nigeria “as a direct consequence of recent developments, particularly at the Tokyo Olympic Games 2020. We hereby terminate the Agreement with immediate effect.” In the initial contract Puma would have supplied apparel to all age categories of Nigeria’s Athletics team for four years at no cost. Financial sums would have been paid to medallists wearing their Puma uniforms, with gold receiving 15,000 dollars, silver 5,000 dollars and a bronze medal would fetch athletes 3,000 dollars. The statement continued: “Puma especially declares to be discharged from any or all obligations towards all stakeholders involved and reserves all rights against these entities and individuals.” According to Nigerian news outlet Punch a former senator representing Kaduna Central district at the National Assembly, Shehu Sani, has blamed officials of the Federal Ministry of Youth and Sports Development for the embarrassment faced by Nigeria’s athletes at the Tokyo 2020 Olympics. Sani posted on Facebook, “Puma donated these 2.7 million dollars kits freely to Nigeria and offered to financially reward our medal-winning athletes. Our officials rejected them and preferred to use public funds to purchase from other sources. Now our Athletes are embarrassed in Tokyo.”
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Levi Strauss enters activewear segment with acquisition of Beyond Yoga

Image: Beyond Yoga, Facebook Levi Strauss & Co has announced it is to buy US-based premium athletic and lifestyle apparel brand Beyond Yoga for an undisclosed sum as it steps into the high-growth activewear segment. The US denim giant said the move will help diversify its business and will “provide substantial net revenue opportunity over time through channel, geographic, gender and category expansion”. The transaction is expected to contribute more than 100 million dollars to Levi Strauss’ FF22 net revenue, and to be “immediately accretive” to gross margins, EBIT margins and EPS. And for Beyond Yoga, the benefits of linking up with one of the world’s biggest fashion names are clear: Levi Strauss said it plans to “significantly expand” the brand globally as it continues to tap into consumer trends of “premiumization, casualization and wellness”. The partnership will bring Beyond Yoga to more consumers through direct-to-consumer expansion, including brick-and-mortar retail, lead to gender and category growth, and further develop the label’s wholesale footprint with premium partners. The transaction will be financed with cash and is expected to close during the fourth quarter of 2021. ’Tremendous growth potential’ It comes as the activewear market continues to go from strength to strength, fuelled particularly in the past year by new work-from-home and healthy lifestyle habits adopted during the pandemic. Levi Strauss CEO Chip Bergh said the acquisition establishes the company’s presence in the fast-growing activewear segment “with a brand with tremendous growth potential,” he said. “Beyond Yoga’s values-led approach to business, centered on inclusivity and authenticity, makes it a natural fit to our company portfolio,” he said. Harmit Singh, Levi Strauss’ chief financial officer, added that Beyond Yoga has more than doubled its revenue and grown profitability “in a disciplined manner” over the last three years. Following completion of the transaction, Beyond Yoga will operate as a standalone division within Levi Strauss, with co-founder Michelle Wahler continuing as CEO. “We are honored and excited to become a part of the Levi Strauss family,” Wahler said. “Joining their portfolio will enable us to accelerate our growth by leveraging the experience and resources of their team and their global infrastructure.” Co-founder and chief creative officer Jodi Guber said: “I have always had one goal: to make women feel good in their bodies. “It was important to me that when the time came, the company would move into the hands of someone whose values matched ours. We are so excited about this partnership and look forward to a successful future.”
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Rihanna's net worth tops 1.7 billion dollars

Image: lvmh.com Rihanna’s been putting in that work as she would say. The musician turned entrepreneur Rihanna’s net worth is now 1.7 billion dollars. While Rihanna came to fame for her multiple Billboard chart toppers, her Fenty Beauty cosmetics line and Savage x Fenty lingerie line that have helped her amass her wealth. Rihanna’s Savage x Fenty line is reportedly worth 270 million dollars, while Fenty Beauty is worth 2.8 billion dollars according to Forbes. The growth of both lines is thanks to the investment and support of luxury conglomerate LVMH. Rihanna currently owns 50 percent of Fenty Beauty and 30 percent of Savage x Fenty. In Rihanna’s first year with Fenty, the brand’s revenues exceeded 600 million dollars. Savage x Fenty is also considered one of the fastest growing lingerie brands in the business. Recently, Rihanna’s been building on Fenty Beauty’s success. She launched Fenty skincare and recently launched a genderless Fenty fragrance.
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Friday, August 6, 2021

Women in leadership: Angelika Schindler-Obenhaus, CEO Gerry Weber

INTERVIEW At the time of this interview, Angelika Schindler-Obenhaus was still COO of Gerry Weber International AG, in the meantime, she has been promoted to CEO. FashionUnited spoke with her about her plans for Gerry Weber, her leadership style and the quota of women on boards in Germany. Ms. Schindler-Obenhaus, please describe your career so far. I began my career in 1982 at the German department store chain Horten AG with an apprenticeship as a commercial assistant, after which I became a department manager. I quickly realized that I was drawn towards buying and after six years I started working in the buying department atSinnLeffers AG, a German retailer. There, I worked as a purchasing department manager for the Young Fashion division, at Bamboo. After eight years, I became a central buyer at Boecker GmbH and got to know private-label production in the Far East, which was an exciting new aspect - production in China and Hong Kong and being able to design the clothes myself. After that, I joined fashion brand Cecil as Head of Key Account. At the time, I was the first woman in the sales department. The tone was rough, and I had to get used to that. But after me, more women joined the sales team, which positively influenced the atmosphere. That's where I got to know the systems business from scratch. In 2004, Cecil was sold and the culture changed completely. That's when a headhunter approached me: Katag AG - a big wholesale fashion company in Bielefeld was looking for someone in the systems business. As their Buying Manager, I was involved in the verticalization of private labels from 2005 on. In 2010, I was appointed to the Management Board with responsibility for purchasing, and later joined Procurement, IT, Sales and Marketing. After ten years, I decided that I wanted to do something else again. And then Gerry Weber approached me. What attracted you to Gerry Weber? The Gerry Weber brand has 91 percent brand awareness [in Germany], which is incredible. I was thinking about how to make the brand more appealing again to the baby boomer generation - women aged fifty and up. My interest was piqued. What changes are you aiming for at Gerry Weber? We are putting a clear focus on the four core brands and have a clear objective for each of them. With Gerry Weber, we want to be the leader in Modern Classic Mainstream again. We always have been and we want to take this position again. Our USP is fit. Customers trust that products from Gerry Weber simply fit well. That's why, at Gerry Weber Edition, we focus mainly on the competence areas of knitwear, shirts, outerwear and pants. At Gerry Weber Collection, we also want to venture into more fashionable styles again and, among other things, include more statement pieces. Overall, we want to become more individual, move away from the previous coordinates idea. Generation Wow, as I also call our target audience, approaches fashion today with a different set of expectations. And we want to convey that in our visual language and communication. With Taifun, we want to become a relevant brand in the modern casual mainstream again, which will not be an easy undertaking, because we have strong competitors there like Opus, S.Oliver Tom Tailor, Street One in the German marekt. But I think we can do it. With Samoon, in the Curvy segment, we want to become the leader again, we are not far away from that. The curvy woman encompasses all age groups and is very self-confident. She is very much online - we want to take advantage of that and offer her a strong range there. In addition, we want to return to independent sales for each brand and also move away from the umbrella brand-construct in terms of communication. What qualities have particularly qualified you for your current position? I think I'm good at empathizing with a target group. You have to understand what the customer wants, not just what you personally think looks good. And then of course: I have experience. I spent many years working in the product and procurement as well as brand and production departments. It's also important to me to have a good employee culture. Not a culture of closed doors, not sitting in the ivory tower, but being close to the employees. "I always spoke up and was never comfortable" you were once quoted. Has that always helped you? Are uncomfortable women perceived differently than uncomfortable men? I was very often the first woman in my career and I never asked myself the question of whether I had to behave differently because I was a woman. I always spoke up and communicated my suggestions for improvement and ideas. As a manager, I think it’s the very worst thing when employees hold their breath. A company gets ahead when the people, who are involved in the operational processes every day, open their mouths and deliver suggestions for improvement. Companies thrive on these so-called "inconvenient" employees, not the followers. That is my conviction. And I think it has helped me personally. Do women have a different leadership style than men? I don't know if I would say that. Maybe. There are more patriarchs among men, I know few female patriarchs. But even there I wouldn't say: this is typically male or typically female. It varies from person to person. My management style is to encourage and challenge employees. That doesn't mean "cuddling" all the time but treating everyone with respect. It can't always be sunshine - as a boss, you sometimes have to make uncomfortable decisions and have hard conversations. I'd much rather hire someone than fire someone. But even a termination can be handled with dignity, decency, and respect for the other person. Do you share talk and exchange ideas with other women in similar positions? Yes, I have a very large network by now. We support each other. I think a lot has happened there. I didn't like the first of these networking events for women, I left them quickly. Now they are mostly worthwhile and well-organized events. For example, McKinsey had an event called "Women Matter in Luxury and Fashion". That was a great network with many exciting topics such as sustainability or digitalization, where women from different leadership positions discussed among themselves. My new circle has emerged from this. We talk about a wide variety of topics: Digitalization, sustainability, employee management, leadership. Sometimes, of course, we also talk about the men. How do you empower and support employees? To date, I have not paid attention to gender there, but to performance. The quota that has now been introduced will probably change that. It challenges us to then do even more in the second and third levels. Germany passed a quota law last year. What is your stance on that? In regards to the quota, much like German public opinion and discourse, I have undergone a transformation. In the past, I was strictly against the quota. I thought that it wouldn't do women justice if they got a job because they are the “token woman” and then they would have to fight that prejudice on top of the already existing sexism. But now, I think it won't work without a quota. Because nothing has changed on a voluntary basis. If a woman made it to a DAX board at all, it was often in the so-called "women's departments." I also find it problematic that the quota only takes effect from the fourth board member onwards. That wouldn't apply to my current position, for example, as the Gerry Weber Management Board only consists of three people. But I assume that the first step has been taken and that supporting more women will help companies, because they bring a different perspective. We all hope that at some point it will be quite normal to have women in the boardrooms. What needs to change structurally for this to happen? The social and operational framework must change. At Gerry Weber, for example, we have a daycare center. That is an example of these framework conditions that need to be created to enable parents to return to work after maternity or parental leave. The attitude toward women in Germany has to change in general. For example, I often have to justify not having children; people label me “career woman”. On the other hand, mothers who want to return to work quickly after having kids have are labeled “bad mother”. [At this point, Kristina Schütze, Press Officer & Head of Corporate Communications Gerry Weber, who is also on the video call, joins the conversation] Kristina Schütze: Incidentally, as a mother, I see it that way too. When I started the job at Gerry Weber in September 2019, I was asked on Linkedin by almost complete strangers, how I was going to manage this job with two young children. My husband had also recently started a new job - no one asked him that question. Angelika Schindler-Obenhaus: Yes, that's exactly what I mean. There's a lot that needs to happen socially. What recommendations would you give to current graduates (or your younger self)? I would advise them to learn languages, gain experience abroad, experience new perspectives, and be authentic. They should take time to find out what they are passionate about and then try to set the course for their professional life accordingly. And seize opportunities! I certainly didn't plan to become a board member when I was in school or even early in my career. It turned out that way because I always took chances, found mentors who believed in me, and wasn't afraid of failure. Also read: * Women in Leadership: Anne-Laure Descours, Chief Sourcing Officer at Puma SE * Women in Leadership: Silvia Azzali, Chief Commercial Officer, Wolford AG * Women in Leadership: Isabel May, Chief Customer Experience Officer & Managing Director at Mytheresa This article was originally published in January 2021 on fashionunited.de. Translation and editing: Barbara Russ Images: 1. Angelika Schindler-Obenhaus; 2 and 3: campaign images Gerry Weber.
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Columbia Sportswear’s EVP, global omni-channel steps down

Image: Columbia, Facebook Columbia Sportswear Company has announced the resignation of Franco Fogliato, executive vice president, global omni-channel, effective after a brief transition period ending September 3, 2021. Commenting on Fogliato’s departure from the company, Timothy Boyle, Columbia Sportswear Company’s CEO said in a release:, “During his tenure at Columbia, Franco helped power growth in the Columbia brand, bringing us to a record of 3 billion dollars in net sales in 2019.” “His understanding of markets and the dynamic nature of how our consumers are interacting with our products has been key to the success of the company in recent years. He has been a guiding force for our company, and he will be missed,” Boyle added.
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Rihanna's net worth tops 1.7 billion dollars

Image: lvmh.com Rihanna’s been putting in that work as she would say. The musician turned entrepreneur Rihanna’s net worth is now 1.7 billion dollars. While Rihanna came to fame for her multiple Billboard chart toppers, her Fenty Beauty cosmetics line and Savage x Fenty lingerie line that have helped her amass her wealth. Rihanna’s Savage x Fenty line is reportedly worth 270 million dollars, while Fenty Beauty is worth 2.8 billion dollars according to Forbes. The growth of both lines is thanks to the investment and support of luxury conglomerate LVMH. Rihanna currently owns 50 percent of Fenty Beauty and 30 percent of Savage x Fenty. In Rihanna’s first year with Fenty, the brand’s revenues exceeded 600 million dollars. Savage x Fenty is also considered one of the fastest growing lingerie brands in the business. Recently, Rihanna’s been building on Fenty Beauty’s success. She launched Fenty skincare and recently launched a genderless Fenty fragrance.
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Thursday, August 5, 2021

Taylor Stitch teams up with Atelier and Repairs on upcycled collection

Image: courtesy of Taylor Stitch San Francisco-based men’s apparel brand Taylor Stitch is reimagining its excess inventory in partnership with Atelier and Repairs. The ‘Reenvisioned Essentials’ collaboration will see the brand upcycling surplus stock on two of its essential styles, its Jack oxford shirt in white and blue and cotton chinos in khaki, navy and olive. In partnership with Atelier and Repairs, each piece will be embellished with archival fabrics and undergo a softening wash to achieve the look and feel of a treasured, one-of-a-kind vintage find. The aim is to avoid sending excess inventory to landfill, adds Taylor Stitch, which is looking to reduce its environmental impact. Image: courtesy of Taylor Stitch “Other brands wouldn’t think twice about disposing of excess inventory to make room for next season - sending it to the incinerator or, worse still, the landfill - but that’s not our style,” explains Taylor Stitch on its website. “Rather than simply chalking it up to bad luck and moving on, we knew we had to do right by these pieces, so we reached out to our buddy Maurizio Donadi.” Los Angeles-based Atelier and Repairs has used a mixture of damaged, deadstock or discarded garments and materials to give new life to Taylor Stitch’s pieces by adding tonal fabric patches to the chinos and accenting the shirts with subtle pops of colour and print on the chest pocket and hemline. Maurizio Donadi, founder of Atelier and Repairs, said in a statement: “The beauty of our collaboration with Taylor Stitch was not only about re-thinking staple styles in one man’s wardrobe but also in their commitment to reduce inventory excess in the most relevant way possible. Not by discarding, but by reengineering their original design proposition.” The Taylor Stitch x Atelier and Repairs Jack shirt retail for 195 US dollars, while the Chinos are 220 US dollars. Image: courtesy of Taylor Stitch Image: courtesy of Taylor Stitch Image: courtesy of Taylor Stitch
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Asos calls in lawyers to investigate claims of harassment

Image: Asos Asos has reportedly drafted in lawyers to investigate claims of sexual harassment and racist bullying at its head office and customer service centre. The company has called in law firm Lewis Silkin to investigate anonymous claims made on Instagram accusing Asos of being a “boys club” where inappropriate behaviour had occurred, according to The Telegraph. An Asos spokesperson told the news publication the company takes the issue “extremely seriously” and that it expects its employees “to behave responsibly and respectfully at all times”. “As soon as we became aware of the allegations about us and other brands…we launched an internal review, supported by legal experts,” the spokesperson said.
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Philipp Plein to accept cryptocurrency

Image: courtesy of Philipp Plein by Steven Klein German brand Philipp Plein has confirmed that it will become the first major luxury fashion group to accept payment in cryptocurrency. In a statement, Philipp Plein said that 15 different forms of cryptocurrency will be accepted, including Bitcoin and Ethereum. Consumers will be able to use the digital currency to pay for items in the group’s brick and mortar retail stores around the world, as well as on the brand’s e-commerce platform, Plein.com. German designer and founder Philipp Plein said in a statement: “Being among the most progressive and disruptive fashion brands is nothing new for Philipp Plein. “I believe that cryptocurrencies are the future and my team and I have made a major commitment in time and resources, performing all necessary system modifications in order to adopt this new type of currency. I am very pleased to be able to offer to our customers this additional payment tool and the flexibility associated with it.” Philipp Plein has turned e-commerce into its most lucrative channel and is expected to reach a record turnover of 100 million euros in 2021.
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Wednesday, August 4, 2021

Hugo Boss forecasts further business recovery in H2

Image: Boss, Facebook Currency-adjusted group sales at Hugo Boss Ag increased 133 percent compared to the prior-year period. In group currency, sales rose 129 percent to 629 million euros. The company said, compared to the second quarter of 2019, the decline in currency-adjusted group sales was limited to 4 percent, with all regions, channels, and brands contributing to this development. “Our strong performance in the second quarter impressively demonstrates the great potential of our two brands Boss and Hugo,” said Daniel Grieder, chief executive officer of Hugo Boss, adding, “We are well prepared to further drive our business recovery also in the second half of the year.” Hugo Boss posts business recovery across regions The company added that while sales more than doubled by 130 percent currency adjusted to 385 million euros in Europe and they more than quintupled by 416 percent to 123 million euros in the Americas. Currency adjusted revenues in Asia/Pacific were up by 51 percent as compared to the prior-year period, totaling 104 million euros. On a two-year-stack basis, the company further said, currency-adjusted sales in Europe remained 4 percent below 2019 levels, as the lifting of lockdowns and accompanying temporary store closures over the course of the quarter supported the business recovery in key markets. Sales in the UK exceeded 2019 levels, with currency-adjusted revenues up 7 percent on a two-year stack. In the Americas, sales remained 5 percent below 2019 levels. In Asia/Pacific, currency adjusted sales were down 3 percent against the second quarter of 2019, with sales in mainland China up 28 percent against the prior-year period and 33 percent on a two-year-stack basis. Hugo Boss performance through retail channels From a channel perspective, Hugo Boss more than doubled sales by 124 percent to 422 million euros in company-owned retail against the prior-year quarter, while retail sales remained only 5 percent below 2019 levels. The company’s own online business recorded currency-adjusted growth of 27 percent, implying triple-digit, 122 percent growth on a two-year stack. Sales in wholesale rose 170 percent currency-adjusted to 189 million euros and came in 2 percent below 2019 levels. Momentum in casualwear strongly accelerated sales for both brands, Boss and Hugo, with currency-adjusted revenues up 139 percent and 102 percent, respectively. On a two-year-stack basis, sales for Boss declined 5 percent, while Hugo returned to growth with sales up 2 percent, both currency-adjusted. Hugo Boss returns to profit in Q2, expects further growth in H2 Hugo Boss generated an operating profit (EBIT) of 42 million euros compared to minus 250 million euros in the second quarter of 2020. The group’s net income amounted to 25 million euros compared to minus 186 million euros in Q2 2020. Despite persisting uncertainties regarding the further development of the pandemic, Hugo Boss is confident that the company’s overall business recovery will continue in the second half of 2021. The company anticipates currency-adjusted group sales in fiscal year 2021 to increase by between 30 percent and 35 percent, with a contribution expected from all regions. EBIT is forecast to amount to between 125 million euros and 175 million euros in fiscal year 2021 compared to minus 236 million euros in 2020.
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Safilo posts strong improvement in sales and profitability

Image: Blenders Eyewear, Facebook In the second quarter of 2021, Safilo’s net sales of 259.4 million euros increased 137.1 percent at constant exchange rates and 126.6 percent at current exchange rates. The company said in a statement that the significant year-on-year rebound translated into a sequential top line acceleration of 9.4 percent at constant exchange rates and 4.3 percent at current exchange rates compared to Q2 2019. Commenting on the trading update, Angelo Trocchia, Safilo chief executive officer, said: “We are very pleased that the second quarter continued the solid sales and profitability momentum of the first three months of the year, allowing us to close the first half of 2021 with a significant year on year rebound and well above H1 2019, growing 7.7 percent at constant exchange rates on the top line and 20.5 percent at the adjusted EBITDA level.” Safilo’s Q2 performance across geographies The organic sales performance by the group’s comparable brands was up high-single digits at constant exchange rates versus Q2 2019. In Q2 2021, the group’s online business reported strong growth of 64 percent, reaching 14.4 percent of the group’s total net sales. The company’s net sales in North America totaled 121 million euros, up 198.9 percent at constant exchange rates and 174.6 percent at current exchange rates. Compared to Q2 2019, Safilo’s net sales in the region were up 60.3 percent at constant exchange and rose 41.8 percent in Q1 2021 vs Q1 2019. Net sales in Europe reached 106.7 million euros, recording a rebound of 87.5 percent at constant exchange and 86.5 percent at current exchange rates. This positive performance, Safilo said, was on the other hand still not sufficient to allow the region to return to pre-pandemic levels and to fully compensate for the sizable terminated business in the base period. Compared to Q2 2019, Safilo’s net sales in Europe were down 11.4 percent at constant exchange rates, although improving compared to the first quarter. Net sales in Asia Pacific equaled 12.9 million euros, recording growth of 49.6 percent at constant exchange and 46.4 percent at current exchange rates. The business in the region instead declined by 48.5 percent at constant exchange rates in comparison with Q2 2019, which was a record quarter in APAC in particular for the travel retail business. Net sales in the rest of the world equaled 18.7 million euros, recording growth of 340.4 percent at constant exchange rates and 330.3 percent at current exchange rates. Compared to Q2 2019, net sales in the region increased by 4.9 percent at constant exchange rates, with both Middle Eastern and Latin American markets contributing to the positive sales performance. Safilo posts strong growth in profitability Second quarter gross profit rose to 135.6 million euros compared with 39.2 million euros recorded in Q2 2020 and in line with the gross profit of 135.9 million euros recorded in Q2 2019. Gross margin reached 52.3 percent, compared to 34.2 percent in Q2 2020 and 54.7 percent in Q2 2019. On an adjusted basis, gross profit equaled 139.4 million euros and a margin of 53.7 percent. EBITDA rose to 37.7 million euros compared to the EBITDA loss of 42 million euros recorded in Q2 2020, and posting an increase of 116.6 percent compared to the profit of 17.4 million euros reported in Q2 2019. The company’s EBITDA margin increased to 14.5 percent compared to 36.7 percent in Q2 2020 and 7 percent in Q2 2019. Second quarter adjusted EBITDA equaled 23.8 million euros compared to the adjusted EBITDA loss of 34.1 million euros in Q2 2020 and posting an increase of 12.2 percent compared to the adjusted EBITDA profit of 21.2 million euros reported in Q2 2019. Adjusted EBITDA margin increased to 9.2 percent compared to negative 29.8 percent in Q2 2020 and was 70 basis points higher than the 8.5 percent adjusted EBITDA margin recorded in Q2 2019. Safilo’s H1 net sales improve 59.9 percent In the first half of 2021, Safilo’s net sales totaled 510.7 million, posting a rebound of 59.9 percent at constant exchange rates and 52.2 percent at current exchange rates. Compared to the first half of 2019, total net sales recorded an increase of 7.7 percent at constant exchange rates and 3 percent at current exchange rates, with strong sales momentum throughout the first two quarters consistently driven by the rebound in growth experienced in the US and in China, and by some of the group’s key strategic drivers. In H1 2021, Safilo’s total online sales reached 13.6 percent of the group’s total business, from 11 percent in H1 2020 and 3.8 percent in H1 2019. The company’s first half gross profit stood at 262.2 million euros, recording a significant increase of 76.5 percent compared to H1 2020, and a 1.5 percent decline compared to the gross profit in H1 2019. The gross margin was 51.3 percent compared to 44.3 percent in H1 2020 and 53.7 percent in H1 2019. On an adjusted basis, gross profit equalled 270.6 million euros and a margin on sales of 53 percent. EBITDA increased to 51 million euros from the loss of 38.6 million euros in H1 2020 and an increase of 40.8 percent compared to the EBITDA of 36.3 million euros recorded in H1 2019. EBITDA margin increased to 10 percent compared to negative 11.5 percent in H1 2020 and 7.3 percent in H1 2019. H1 2021 adjusted EBITDA equaled 49.7 million euros compared to the adjusted loss of 28.3 million euros in H1 2020 and posting an increase of 20.5 percent compared to the adjusted EBITDA of 41.2 million euros in H1 2019. The adjusted EBITDA margin increased to 9.7 percent compared to negative 8.4 percent in H1 2020 and was 140 basis-points higher compared to the 8.3 percent adjusted EBITDA margin recorded in H1 2019. Operating result was back to a profit of 22.3 million euros, while operating margin stood at 4.4 percent of sales. Adjusted operating result equalled 24.7 million euros compared to the adjusted loss of 55.2 million euros in H1 2020 and an increase of 85.5 percent compared to the adjusted operating profit of 13.3 million euros in H1 2019. The adjusted operating margin stood at 4.8 percent of sales from negative 16.4 percent in H1 2020, improving 210 basis-points compared to the 2.7 percent in H1 2019. Group net result equalled a profit of 2 million euros, compared to the net losses of 74.8 million euros and 246.9 million euros recorded in H1 2020 and H1 2019 respectively. H1 2021 adjusted group net result equalled a profit of 4.4 million euros compared to the adjusted net loss of 63.7 million euros recorded in H1 2020 and registering a decline of 48.5 percent compared to the adjusted net profit of 8.5 million euros posted in H1 2019. Based on the better than expected H1 2021 performance and the continuation of positive trends into the beginning of the third quarter, Safilo now expects the group’s full year 2021 net sales above 2019 levels, up mid-single digits at constant exchange rates. Adjusted EBITDA for the year is also forecasted to surpass 2019 levels.
http://dlvr.it/S51Dvl

Sneaker store Afew launches first own sustainable sneaker

After successful collaborations with brands like Nike, Adidas, AsicsTiger, Diadora and KangaROOS in recent years, German sneaker store Afew Goods has launched its own sneaker. The development of the Yamasura “Soil” took three years and eleven trial runs, as Afew used no existing model as a template but rather designed the shoe from scratch. “Our goal was to create the ultimate running shoe with the cool look of the 80s and 90s. The Yamasura ‘Soil’ colourway is symbolic of the foundation we laid with our shoe for Afew Goods. For the midsole design, we took inspiration from the Ferrari Testarossa. For the design inspiration of the two-tone outsole, we used our Afew Goods logo,” explains Afew in a press release. Yamasura “Soil” by Afew is sustainable and made in Portugal Thus, the sole of the Yamasura “Soil” is made of the special Bloom algae material “Bloom Algae EVA”. By combining it with normal EVA, each sole can clean 16 liters of water and 10 cubic meters of air. Afew did not take the decision where to produce the shoe lightly either: after meeting with 15 different manufacturers, the company chose Tofel in Portugal. “For the first ‘Soil’ colourway, we used a combination of synthetic (vegan) suede, nubuck leather and mesh. The upper is combined with a recycled PU insole and Bloom Algae EVA midsole. Almost all fabrics are sourced in Europe,” says Afew. The first few pairs of the new “Soil” went on sale on Saturday for a price of 210 euros (around 180 British Pounds/249 US dollars) and are already sold out. Now the store will have to make sure to restock soon to meet demand. Also read: 5 sustainable sneaker brands to watch
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Tuesday, August 3, 2021

Mr Porter launches multi-brand capsule, Super Mart

Image: Mr Porter On Monday, luxury menswear retailer Mr Porter launched its latest multi-brand capsule collection Super Mart. The on-site marketplace showcases a specially curated selection of international streetwear brands and collectables. The collection includes more than 330 products from 28 in-demand and cult brands, including Burned Out, Aries, Midwest Kids, Polite Worldwide, Better Gift Shop, Gallery Dept. and General Admission. The product range spans across ready-to-wear, accessories and contemporary lifestyle pieces, including rugs by Billionaire Boys Club and Neo Legend arcade games. A total of 82 items are exclusive to Mr Porter. Products from the highly demanded brand Undercover Madstore, are a distinctive highlight in the store. The 54 exclusive pieces come in the form of limited edition Medicom novelties and Madstore merchandise. It will be the first time these products can be purchased on an international scale, away from the brand’s pop-up in Japan. “It’s been fantastic for us to work on a large multi-brand collection that champions diverse contemporary products from both established and cult brands; many of which have loyal fan bases but have not been available on a global scale before,” said Sam Kershaw, Mr Porter’s buying director. “Mr Porter has always been a place for discovery and Super Mart celebrates this by giving global access to rare and unique collectables. This launch is very much in line with our 10th anniversary focus of discovery, inclusivity, craftsmanship and community.” In addition to the already highly coveted collection is a handful of collector Tom Hunt’s most popular original brand T-shirts from his Burned Out archive. The tees have been selected based on their cultural significance and are available in one size. UK and Middle Eastern customers can exclusively purchase this selection. August also sees the beginning of Mr Porter’s global digital campaign, featuring shop imagery replicating the pop-up look and feel if social distance measures weren’t still in place. The campaign can be viewed through its online magazine The Journal, and throughout its social platforms.
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Uniqlo Japan posts marginal improvement in July same-store sales

Image: Uniqlo website July 2021 same-store sales including online sales at Uniqlo Japan increased by 0.1 percent year on year while total sales including online sales increased by 2 percent. The company, part of the Fast Retailing Group, said in a statement, same-store sales rose slightly year on year in July thanks to favourable seasonal weather, with summer ranges selling strongly as temperatures remained high throughout the month. At the end of July, the company added, a total of six stores remained temporarily closed and 143 stores were operating shorter working hours due to Covid-19. The company closed one store in Japan during the month under review.
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Columbia Sportswear reports 79 percent rise in Q2 sales, raises full year forecast

Image: Columbia Sportswear, Facebook Columbia Sportswear net sales increased 79 percent to 566.4 million dollars for the second quarter of 2021, which the company said primarily reflects a strong fundamental recovery in the U.S. wholesale and direct-to-consumer (DTC) brick & mortar channels and fewer pandemic related disruptions and temporary store closures compared to second quarter 2020. The company added that gross margin expanded 540 basis points to 51.6 percent of net sales from 46.2 percent of net sales for the comparable period in 2020. Operating income was 35 million dollars or 6.2 percent of net sales, compared to an operating loss of 70.3 million dollars or 22.2 percent of net sales, for the comparable period in 2020. Net income reached 40.7 million, or 61 cents per diluted share compared to net loss of 50.7 million dollars or 77 cents per share, for the comparable period in 2020. Commenting on the trading results, the company’s chairman, president and CEO Tim Boyle said: “Our record financial performance clearly reflects the powerful fundamental recovery that is underway in our business. Overall, our Spring sell-through has been exceptional and our fall 21 and spring 22 order books point to continued momentum in the business. We are raising our full year financial outlook for 2021 despite ongoing pandemic-related supply chain disruptions and higher ocean freight costs.” Highlights of Columbia Sportswear’s first half results For the first half period, the company’s net sales increased 35 percent to 1,192 million dollars. Gross margin expanded 430 basis points to 51.5 percent of net sales from 47.2 percent of net sales for the comparable period in 2020. The company said, operating income increased 246 percent to 105.5 million dollars or 8.8 percent of net sales compared to an operating loss of 72.3 million dollars or negative 8.2 percent of net sales, for the same period in 2020. Net income increased 291 percent to 96.6 million dollars or 1.44 dollars per diluted share compared to a net loss of 50.5 million dollars or 76 cents per share, for the same period in 2020. Columbia Sportswear raises full year outlook The company further said that net sales are expected to increase 25 to 26.5 percent compared to prior outlook of 21.5 to 23 percent to 3.13 to 3.16 billion dollars (prior 3.04 to 3.08 billion dollars) from 2.50 billion dollars in 2020. Gross margin is expected to improve 95 to 115 basis points compared to prior guidance of 110 to 130 basis points to 49.9 to 50.1 percent of net sales (prior approximately 50 to 50.2 percent) from 48.9 percent of net sales in 2020. Operating income is expected to be 365 to 386 million dollars against prior outlook of 347 to 369 million dollars, resulting in operating margin of 11.7 to 12.2 percent (prior 11.4 to 12.0 percent) compared to operating margin of 5.5 percent in 2020. Net income is expected to be 287 to 304 million dollars (prior 271 to 288 million dollars), resulting in diluted earnings per share of 4.30 dollars to 4.55 dollars compared to prior forecast of 4.05 dollars to 4.30 dollars. The company expects low-20 percent year-over-year net sales growth in the second half of 2021. Based on current forecasted product delivery dates, the company anticipates that both third and fourth quarter year-over-year net sales growth will be in the low-20 percent range. The company’s board of directors has approved a regular quarterly cash dividend of 26 cents per share, payable on August 26, 2021 to shareholders of record on August 12, 2021.
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Monday, August 2, 2021

Global trade: Vietnam overtakes Bangladesh in apparel exports

Image: Pexels Vietnam has overtaken Bangladesh as the world’s second largest exporter of ready-made garments (RMG). Bangladesh is now in third position, with China remaining the largest exporter, according to the latest figures from the World Trade Statistical Review 2021 released by World Trade Organization (WTO). Vietnam’s clothing exports grew 6.4 percent in 2020 with a market value of 29 billion dollars. Over the past decade Vietnam’s share in the global apparel export market surged, just ten years ago Bangladesh still had 85 percent greater dominance, which in 2020 dropped form 6.8 percent to 6.3 percent. Bangladesh greatly suffered during the pandemic Bangladesh output declined during the pandemic, with factories closed as many western brands cancelled orders or delaying payments. Ongoing compliance issues have also forced closures while Vietnam managed to diversify its production making not just low-end, fast fashion garments but also mid and high-end clothing and accessories. In 2019 Vietnam and the European Union signed a free trade agreement which significantly boosted trading to the world’s largest bloc. China remains the world’s largest exporter of RMG with 31.6 market share, despite a 7 percent drop in 2020, valuing its exports at 142 billion dollars. Why Vietnam is an attractive destination for apparel sourcing Global companies have been reducing their reliance on China since the outbreak of Covid-19. Much of Vietnam’s GDP growth has been driven by garment production and manufacturing, giving it a comparatively better infrastructure towards supply chains than countries such as India and Bangladesh. Vietnam’s currency is also fixed in relation to the US dollar, so there is little price fluctuation when the market falls. Vietnam’s proximity to China is beneficial for sourcing raw materials and machinery for production. Some brands moving out of China will want to mitigate risk and stay close by distributing their supply chains. Politically Vietnam is more stable than countries like Bangladesh and India and its citizens have access to better education infrastructure and healthcare.
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SMCP taps former Balenciaga chief Isabelle Guichot as CEO

Image: Maje French fashion group SMCP has named Isabelle Guichot as its new CEO following the resignation of Daniel Lalonde, who has exited the business to pursue new professional opportunities outside the group. Guichot, a veteran of the luxury industry, joined SMCP as CEO of Maje in 2017, before which she spent nine years as CEO of Balenciaga. Earlier still in her career, Guichot spent stints as CEO of Sergio Rossi and Lancel. SMCP said Guichot’s “passion for retail and fashion”, combined with her understanding of the French group and her “international exposure” in the luxury sector make her the “natural successor” of Lalonde. A search for a successor to Isabelle as CEO of Maje is underway, SMCP said. New leadership at SMCP “I would like to thank the board for the confidence it has placed in me to lead the group and confront new challenges with the support of all SMCP’s teams,” said Guichot in a statement. “As we have done under Daniel’s leadership, together with the Executive Committee, we will be aiming at delivering our strategic roadmap while addressing the current challenges of our industry to strengthen our leadership in affordable luxury and fulfilling our client’s expectation in a world becoming every day more global, digital, and responsible.” Outgoing CEO Lalonde, who has been at the helm of SMCP for seven years, will leave the group by October 2021 to ensure a smooth transition, SMCP said. The news comes a week after SMCP reported a strong increase in revenue in the second quarter of the year as it narrowed in on 2019 sales levels. The group, whose portfolio includes brands Sandro, Maje, Claudie Pierlot and De Fursac, reported sales of 229.4 million euros in Q2, an increase of 59.1 percent on a reported basis and 61.1 percent on an organic basis compared to a year earlier. SMCP is now 14 percent behind Q2 2019 levels, compared to the 17 percent it was behind in Q1. The group said it “remains cautiously optimistic about H2 2021 in all our markets”.
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Luxury retail rebounds despite covid continuing to curtail travel

Photo: Gucci Facebook The luxury sector has flashed back from the Covid-19 pandemic but the crisis is still putting a crimp in travel, a key part of the market. Industry giants have reported results that show the world's well-heeled are splurging on luxury goods as sales surpass even pre-pandemic levels. LVMH -- home to Louis Vuitton, Moet, Fendi, and Kenzo brands among others -- saw first-half sales climb by 11 percent above their pre-pandemic level to 28.7 billion euros (34.1 billion dollars) as it reported a profit of 5.3 billion euros, a whopping 64 percent increase from 2019. Rival Kering -- which owns the Gucci and Balenciaga brands -- bested its pre-pandemic level by 8.4 percent with a record 8 billion euros in sales. Hermes reported a 29-percent jump to 4.0 billion in sales. Both recorded profits of more than a billion euros, beating expectations. The Swiss luxury group Richemont -- Cartier, Piaget, and Montblanc -- beat its pre-pandemic level in the second quarter by 18 percent, while Italy's Prada bested 2019 first-half sales by eight percent. It is the "upper middle class, the rich and ultra-rich untouched by the crisis" who could not travel or eat out and instead bought luxury goods, said Arnaud Cadart at asset manager Flornoy. The Chinese, "who represent 35 to 40 percent" of luxury customers, are still crucial, he added. But while Chinese buyers previously made a lot of their purchases while visiting Europe, they are now making them at home. 'Violent rebound in the United States' In fact, "what was surprising was not so much the recovery in China but the violent rebound in the United States," remarked Erwan Rambourg a sector analyst and author of "Future Luxe: What's Ahead for the Business of Luxury". Compared with previous crisis recoveries, after the September 11 terror attacks or the 2008 economic crisis for example, "the feeling of guilt, the idea that it is inappropriate to buy luxury goods, disappeared," Rambourg told AFP. "There is a young generation in the United States that feels comfortable with luxury purchases," in particular among the African-American, Hispanic and Asian populations, he explained. Hermes chief executive Axel Dumas told a telephone news briefing: "We've seen a very strong rebound in activity in the United States from our loyal clients as well as a new clientele that came to us thanks to digital" marketing by the company. Hermes's sales in the US jumped by a quarter from their pre-pandemic level. Citigroup analyst Thomas Chauvet noted that the fact that a roaring US stock market had made many Americans more wealthy, on paper at least, had also provided an important psychological boost to consumption. In Europe, the sector's performance was better than might be expected given the absence of tourists who normally generate half of sales, because local clients turned out. "Europeans had to a considerable extent deserted this market" but this year the trend was reversed, said Flornoy's Cadart. Rambourg added: "To everyone's surprise, the brands discovered that by stimulating the local clientele" via social networks "the French, Italians, Spanish turned out more than hoped". Chauvet cautioned that "the rebound in local demand doesn't compensate for the loss of tourists." The luxury market will nonetheless "remain dominated by local buyers for at least another year," Rambourg forecast.(AFP)
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Sunday, August 1, 2021

Hermès rebounds to pre-corona sales and profit levels

Image: Hermès SS22 French luxury group said Friday that its sales and profit had bounded past pre-pandemic levels in the second quarter. While the firm known for its leather handbags and silk scarves acknowledged the exceptional nature of its performance due to the fact its stores were closed in many countries during the second quarter of last year, it also said it had momentum to grow further. First-half profit more than tripled from last year to nearly 1.2 billion euros (1.4 billion dollars). It was also an increase of 56 percent from the first half of 2019, before the pandemic began. Strong revenue growth at Hermès Sales came in at 4.2 billion euros, a jump of 70 percent from the same period last year and 29 percent from 2019. "The results for the first half of the year have been exceptional in nature," chief executive Axel Dumas said in a statement. "But this performance also reflects the momentum and resilience of our model," he added. The firm said the impacts of the Covid-19 pandemic on its operations this year are difficult to assess. "In the medium-term, despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates," it said. Hermès shares rose 0.8 percent just after trading began in Paris, where the blue-chip CAC 40 index shed 0.4 percent.(AFP)
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YNAP meets renewable electricity target across operated facilities

Image: YNAP Italian luxury group Yoox Net-a-Porter (YNAP) says it achieved its goal of sourcing 100 percent of renewable electricity across the operated facilities it manages by the end of 2020. The group announced the target in November last year as part of a broader sustainability strategy called ‘Infinity’. YNAP revealed on Thursday it met that target set out within the RE100, a corporate initiative bringing together top businesses from across the world committed to 100 percent renewable electricity. The group was the first online luxury fashion retailer to join RE100, which was established in 2014. As part of YNAP’s ‘Infinity’ strategy, the group aims to become climate positive across its operations and private label value chain by 2030. Past key sustainability milestones for YNAP include achieving 100 percent renewable power across the group’s Italian operations in 2018 and then across its US operations in 2020.
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Mothercare reports widening full-year losses

Image: Mothercare Mothercare has reported widening losses and a drop in full-year turnover as the pandemic put a spanner in the works of the maternity and childrenswear specialist’s ongoing transformation strategy. For the year to March 27, the company’s statutory loss widened to 21.5 million pounds from 8.5 million pounds a year earlier, while its turnover fell 47.9 percent to 85.8 million pounds. Adjusted EBITDA was 2.2 million pounds, down from 6.2 million pounds. The company estimates that over 80 percent of its partners’ global retail locations are currently open, but said trade continues to be “challenging” in the key markets of Russia, India, Indonesia and Malaysia due to Covid. Chairman Clive Whiley said the past financial year has been “challenging”, but added that “a tremendous amount of progress” has been made in “fundamentally transforming the group”. Mothercare posts 47.9 drop in FY turnover The company has undergone a significant restructuring in recent years. In August, it announced the launch of a “more sustainable and less capital-intensive” business model from the AW20 season onwards. That came after the company put its UK business into administration in 2019, which saw the closure of all 79 of its stores. In March, Mothercare moved from The London Stock Exchange to the junior market, AIM, as part of its restructuring. “We expect 2022 to be a year of further progress as we focus upon developing our strategy and future plans to optimise the Mothercare brand globally over the next five years,” Whiley said in a release. “These are exciting times as, notwithstanding the continued impact of the pandemic in many of our franchise partners territories, without the distractions of the last three years we are seeking to accelerate the growth of the business and the Mothercare Brand.” Whiley said the company looks to the future “with great optimism having established a strong and efficient platform with multiple opportunities for growth”.
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