The brutal awakening of the Chinese economy: Between the real estate crisis and the fall in consumption

Shanghai, China Credits: Pexels



China, which for decades has been the main engine of global growth, is now facing a significant slowdown in economic activity. Despite Beijing's numerous efforts to stimulate the economy, it continues to show signs of weakening. The latest economic data, released on Thursday, reflects this trend: economic growth is slowing, unemployment continues to rise, and the real estate sector, once a mainstay, is in decline.


The erosion of real estate assets: A significant brake on consumption




At the heart of China's economic slowdown is the property crisis. Caused by a speculative bubble and excessive borrowing by developers, this crisis has led to a loss of confidence among consumers and a fall in property prices. Faced with the depreciation of their property assets, households have reduced their spending, which has strongly impacted domestic demand.


This reduction in consumption has had a knock-on effect on the industrial sector, whose growth rate has slowed significantly. Although there are signs of recovery, industry has shown its slowest pace since March. The high unemployment rate, especially among young people, remains an obstacle to the revival of consumption.


Trade wars and geopolitical tensions




At the same time, trade tensions with the US and the European Union, characterised by high reciprocal tariffs and technological restrictions, have affected the manufacturing sector and Chinese exports.


The Covid-19 pandemic and the “zero Covid” policy have also disrupted global supply chains and weakened certain companies. According to the General Administration of Customs of China, the year 2023 was marked by a significant decline in Chinese textile and clothing exports, which fell by -8.3 percent and 7.8 percent respectively.


While the days of double-digit growth may be behind us, China continues to show positive dynamics. IMF projections indicate solid growth, albeit below previous levels. “China’s economic growth is expected to remain robust at +5 percent in 2024 and decelerate to 4.5 percent in 2025,” the IMF said in a statement earlier this year.


This article originally appeared on FashionUnited.FR. Translation via AI and edit by Rachel Douglass.


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Goodwill Industries launches two million dollar textile recycling project at first sustainability summit

GII president and CEO Steve Preston touring the Goodwill of Greater Washington Sustainability Centre. Credits: Goodwill Industries.



Interview


We are quickly entering the age of regulation. And as we arrive at this next destination, it's imperative that we do so well prepared and with tangible next steps to ensure effective execution. That was the mindset of those who took part in last week’s two-day Goodwill Sustainability Summit, at least, where both private and nonprofit industry leaders, recyclers and researchers came together to discuss what exactly needs to happen in order to arrive at a regulated and sustainable future together.


Taking place for the first time from August 15 to 16 and held in Washington, DC, the conference was sponsored by Goodwill Industries and a number of the nonprofit’s regional subsidiaries and included the involvement of notable industry figures, such as former Patagonia exec, Rick Ridgeway. The event therefore provided Goodwill with a platform to share the findings of a textile circularity pilot project that it has run for two years. The 1.28 million dollar initiative, funded by the Walmart Foundation and initiated by Goodwill Industries International (GII), set out to develop skills, systems and infrastructure to aggregate, sort and prepare textiles for reuse and recycling across the Goodwill network.


“Goodwill is working with multiple partners across the textile circularity ecosystem to advance solutions for textiles that are traceable, circular and scalable,” said GII president and CEO, Steve Preston, in an interview on the project with FashionUnited. “Global textile waste is a multi-stakeholder issue and requires brands, retailers, policymakers and technology innovators to work together to close the loop on textile circularity and preserve the enormous economic and social value that resold goods provide.”


Four regional textile hubs help determine resellable and feedstock textiles




The pilot, launched mid-2022, involved the creation of four regional textile hubs in Canada, Michigan, the Northeast and the Southeast of the US, representing 25 local Goodwill organisations. Each location sorted and graded post-retail textiles to identify reusable materials that could be resold and non-reusable textiles that would instead be used to create feedstock to meet recycler specifications. Part of the research involved analysing the fibre composition of post-retail textiles, for which GII learned that approximately 60 percent of the material was found to be suitable for existing recycling technologies. “This finding reinforces Goodwill’s position as a key player and feedstock supplier in the emerging textile recycling ecosystem,” Preston noted.



“Global textile waste is a multi-stakeholder issue,”


Steve Preston, president and CEO of GII




These findings will play into a newly launched two million dollar project, also unveiled at the summit and again backed by the Walmart Foundation, which this time takes the form of a multi-stakeholder initiative following the global journey of secondhand textiles. Expanding on the prior study, the newest initiative hopes to inform reuse and recycling strategies to help shape industry standards for traceability and product lifestyle stewardship. It will play into GII’s wider mission of increasing waste diversion, improving accountability and transparency and maximising the value of donations.


(Left) Keynote speaker Rick Ridgeway and (right) GII president Steve Preston at the first Goodwill Sustainability Summit. Credits: Goodwill Industries.



This highlights the extent of what must be achieved in order to get to move closer to an impactful end goal, a weighted challenge that does not go unnoticed by GII’s Preston: “In the US, many more systems need to be developed to fully power the circular economy – which includes sorting facilities, recycling infrastructure, and technology. At present, many technologies are in development; some are able to be moved to scale. Once they are available, facilities will need to be built and a new ecosystem of suppliers of goods and buyers of products will need to be established.”


Preston continued: “As a society and an industry, we need greater visibility/transparency into the global journey of secondhand textiles, increased use of textiles made of recycled materials by brands, and greater efforts to address the overproduction and overconsumption of garments made of cheap materials. When materials are not designed to last, it is difficult to keep them in circulation and challenging to recycle them.”


Goodwill efforts expand into regulation advice and building networks




With this in mind, Goodwill’s sizable network – the 120 year-old organisation operates over 3,300 stores across the US and Canada and comprises 154 independent local nonprofit organisations in the US – is seemingly the perfect driver for such a feat. “No other nonprofit is doing what we are doing in this space because no other profit has the scale that we do,” Preston said. “Smaller nonprofits, like Accelerating Circularity [which also supported GII’s prior study, ed.], are working to tackle this at scale by connecting all stakeholders needed to power a successful textile-to-textile recycling ecosystem.”


Efforts come as recycling technology finally catches up to demand, scale-wise, as seen in the global expansion of recycling plants across the world that are increasingly able to handle bigger and bigger volumes. Despite this, reuse remains at the height of priorities. “The Goodwill network’s role is not only to provide feedstock to recyclers, but importantly to ensure that all textiles go to their highest and best use. Reuse remains a higher priority than recycling because it is less energy intensive. In general, the best thing you can do is to keep an item in use for as long as possible,” Preston explained.



“Reuse remains a higher priority than recycling because it is less energy intensive,”


Steve Preston, president and CEO of GII




The timing of this latest project also falls perfectly in line with the aforementioned incoming of global regulation, which could result in the complete transformation of the textile industry as we know it. While Europe is making its own changes in the way of Digital Product Passports and other related legislation, to which Preston said GII was paying close attention, the US has also seen similar advancements both on state, federal and local levels. Preston believes that the region can learn from other countries that have already begun to implement related legislation in order to further incentivise recycling.


Lisa Rusyniak, President and CEO of GI, Chesapeake; Colleen Morrone, President and CEO of Goodwill, Delaware & Delaware County; Catherine Meloy, President and CEO of Goodwill, Greater Washington, and Steve Preston, President and CEO, GII. Credits: Goodwill Industries.



“As the Goodwill network works to develop scalable solutions that are traceable and circular, it is imperative for us to be a part of the conversations shaping the next generation of environmental policy,” Preston said. “GII and our local Goodwill organisations stand ready to partner with federal, state and local governments as they work to address textile waste and other materials and promote the circular economy.”


Local Goodwill subsidiaries have already been at the table for the California Bill as it moves through the legislative process, for example. The bill would involve the launch of a state Fabric Recycling Pilot Project, studying and reporting on the feasibility of recycling material. Similarly, regional Goodwill organisations were also on hand to inform on the Massachusetts Textile Waste Ban, which has now been implemented with the missing of reducing the statewide disposal of textile waste by 30 percent by 2030. Preston added: “Nonprofits need to continue to be involved in discussions as a key stakeholder early on. Local Goodwill organisations are in a unique position as a retailer, collection site, workforce developer, and potential sorter and can play a variety of roles in these initiatives.”


For now, GII and Preston have turned their attention to the launch of the latest secondhand textile project, which is currently in very early stages with more details yet to come in the following months. Preston concluded: “We believe there needs to be greater transparency and visibility in the global exchange of secondhand textiles. It furthers our goal of finding the highest and best use for donated goods. There are many players in the resale space. We hope to engage many of them in the textile circularity ecosystem on this traceability pilot.”


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The Platform Group achieves strong H1 results

The Platform Group headquarters, Duesseldorf Credits: The Platform Group



The Platform Group (TPG) achieved a gross merchandise volume of 442.5 million euros and generated sales of 231.5 million euros.


The company’s adjusted EBITDA rose to 17.6 million euros, an increase of 33 percent compared to the same period last year. Reported EBITDA reached 30 million euros and consolidated net income increased to 21.7 million euros, corresponding to earnings per share of 1.09 euros, an increase of 33 percent.


Commenting on the company’s performance, Dr. Dominik Benner, CEO of The Platform Group AG said in a release: "Our results in the first half of the year show that we are well on the way to achieving the already increased forecast for the full year 2024. The communicated medium-term goal of operating our platform solutions in 30 industries and profitably implementing a GMV of 1.1 billion euros is absolutely realistic for 2025."


For the year ahead, TPG expects GMV to increase to between 840 million euros and 870 million euros and net sales to increase to between 480 million euros and 500 million euros. Due to the positive earnings development and the impact of the implemented cost and efficiency program, the company’s management board expects a further increase in adjusted EBITDA to between 26 million euros and 30 million euros for the 2024 financial year.


The company made four acquisitions in the first half of 2024, two of which were consolidated in the reporting period.


The Platform Group’s medium-term goal is to achieve a GMV of 1.1 billion euros and to increase the operating margin to 7 to 10 percent by 2025 from 5.1 percent reported in the 2023 financial year.


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Asos shareholders approve exec pay plan and incentive scheme

Credits: Asos x Nordstrom, New York City



Following a general meeting, shareholders of British e-tailer Asos have approved the company’s new executive pay plan, which would apply amendments to its long-term incentive plan.


Proposed earlier in August as part of its Remuneration Policy, the newly dubbed ‘Value Creation Plan’ (VCP) intends to make changes to the current dilution limits proposed in Asos’ 2022 incentive scheme, deferred bonus plan and sharesave plan.


Ultimately, the VCP aims to align the interests of executive directors and senior leadership with the company’s growth objectives, increasing employee interest in long-term business goals as part of further attempts to turnaround widening losses.


Asos noted that the VCP would only deliver value to recipients “to the extent the share price exceeds 6.70 pounds”. It currently sits at 365 pence-per-share.


The plan received a 91.82 percent approval rate.


At the beginning of the year, CEO José Antonio Ramos Calamonte dubbed FY24 a “year of continued transformation” for Asos, setting about on a mission to take necessary actions to deliver a more profitable business.


In Asos’ latest financial report, Calamonte said: “Asos is becoming a faster and more agile business, and we are reiterating our guidance for the full year as we lay the foundations for sustainable profitable growth in FY25 and beyond."


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Shein reportedly mulling selling shares to British public

Shein pop-up in Hamburg, Germany. Credits: Shein



Fast fashion giant Shein is understood to be considering selling its shares to the British general public as part of its controversial listing on the London Stock Exchange. Plans for such a procedure, which is being backed by the company’s bankers, including JP Morgan, are believed to be at an early stage, according to The Telegraph, which initially reported the news.


This strays from the typical set up for listings, which usually only allow individual investors to buy shares on an open market after other parties, such as banks and funds, have snapped up their own stakes.


The potential IPO, which has been valued at around 50 billion pounds, has already faced backlash from human rights organisations and UK politicians that are urging that it be halted due to scrutiny surrounding Shein’s alleged lack of transparency and resulting environmental issues.


Similar concerns had already been raised in the US, where Shein was initially planning to list on the New York Stock Exchange, a move it was ultimately forced to shelve due to retaliation from lawmakers and regulators in the region.


As such, it appeared Shein turned its full attention to the LSE, with which it was previously reported that it had confidentially filed for an IPO back in June. Evidence of such was believed to have been seen in an update with Chinese authorities regarding a change in listing venue.


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Béis opens first physical UK store location in Selfridges

Béis pop-up in Selfridges. Credits: Béis.



Travel brand Béis has opened its first brick-and-mortar retail location in the UK in the form of a pop-up inside London-based luxury retailer Selfridges. Shoppers will be able to visit the Oxford Street store from August to December, during which time they can view and purchase both current and upcoming offerings of the brand.


The idea behind the concept is to allow customers to see, touch and experience Béis products prior to purchasing, the company said, in order to help build a robust community in the UK. The decision to partner with Selfridges was also intended to contribute to this mission, with the department store described by Béis CEO, Adeela Hussain Johnson, as the “perfect partner” to facilitate the UK expansion due to its “strong connection with local customers”.


Béis' Selfridges pop-up. Credits: Béis.



In a release, Johnson continued: “Our strategy revolves around creating retail partnerships that allow us to showcase our physical product in a way that brings our digitally native brand to life. We know that once customers experience our product and brand, repeat purchases and word-of-mouth referrals follow.”


Following the pop-up, after which the brand’s products will continue to be available in the Selfridges store and website, Béis said that it was looking ahead to future collaborations with other UK retailers which are already in the pipeline. Its approach in the region mirrors similar efforts as part of an ongoing international strategy, focused on links with like-minded retailers.


This could already be seen in Béis’ launch with Canadian retailer Indigo, which became the brand’s first international partner last year. The company has also been expanding its presence in experiential projects, such as the travelling Béis Hotel.


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Walmart sold its entire stake in JD.com

Walmart Credits: Walmart Inc.



In a move that underscores the evolving landscape of global retail, Walmart has divested its entire stake in Chinese e-commerce giant JD.com for 3.6 billion dollars, as reported by the Financial Times this week. This strategic decision comes on the heels of Walmart's recent earnings report, where the company emphasised its commitment to diversifying its business mix and investing in the future of retail.


The sale marks a significant pivot in Walmart's approach to the Chinese market, with the retail behemoth opting to concentrate on expanding its own brands within the country. In a statement, Walmart explained, "This decision allows us to focus on our strong China operations for Walmart China and Sam's Club, and deploy capital toward other priorities."


This shift in strategy comes amid a highly competitive and rapidly evolving e-commerce landscape in China. Walmart's choice to offload its JD.com stake may reflect a reassessment of its position in this dynamic market, suggesting the investment in JD.com no longer aligns with the company's long-term objectives.


Despite this divestment, Walmart's presence in China remains substantial. According to the Financial Times, the company's China business saw impressive growth, with sales increasing by 16 percent to 17 billion dollars in the financial year ending January 31. However, it's worth noting that this figure represents less than 4 percent of Walmart's total sales, highlighting the potential for further growth in the world's most populous country.


As Walmart recalibrates its international strategy, this move underscores the importance of adaptability in global business, as companies like Walmart navigate complex market dynamics and evolving consumer preferences in pursuit of sustainable growth.


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Astrid & Miyu opens first global flagship store: ‘Experiential retail is integral’

Interview


Astrid & Miyu, Carnaby Street store. Credits: Astrid & Miyu.



Physical retail remains an avenue in which brands can evolve and experiment with their identity in the context of the real world. It is exactly this that has led London-based jewellery brand Astrid & Miyu (A&M) to open its first global flagship store, achieving a dream that its team has held for years and thus cementing its presence further within the brick and mortar sphere.


‘House of A&M’ (HOAM), the 1,900 square foot concept store, is located in the bustling heart of the brand’s home city in the Carnaby Street area, placing it among other brands of its calibre that, compared to the usual high street regulars, hold a more contemporary character, such as Ba&sh, Ganni, Stine Goya and Nobody’s Child. A quick stroll through the district also reveals a trend favoured among this specific lineup of labels. That of experiential retail.


Astrid & Miyu, Carnaby Street store. Credits: A&M.



Home to the first A&M Café




The concept of experience-based stores – in which traditional shopping takes on a more immersive, interactive and personalised form – is one that the team of A&M believes is the future of retail, and something that customers are already seeking in the present day. “Customers want to have an elevated shopping experience where they can create memories through experiential retail. This is integral to the future of retail and it’s something we’ve been passionate about since opening our first store over seven years ago,” Sarah Hrywnak, A&M’s chief marketing officer told FashionUnited.


Astrid & Miyu, Carnaby Street store. Credits: A&M.



Astrid & Miyu, Carnaby Street store. Credits: A&M.



With this in mind, the store was built on the foundation of being a ‘Home from HOAM’, designed to give the brand’s already existing community a “sense of belonging” and a space that they can create memories in. Next to the usual presence of core, seasonal and exclusive collections, which dominate the ground floor, in-store experiences are offered in the form of welding stations for bracelets and anklets and three studios for piercing and fine-line tattoos. It also marks the first time the brand has included its A&M Café concept in store, where customers can enjoy Instagram-friendly coffees.


Another unique aspect comes into play when customers purchase an item. Upon selecting their desired product, shoppers can order via store staff and collect their purchase at a kiosk upstairs where it will be packaged. All of these elements sit within a space designed by Seen Studios, which has merged design features, like an abstract 3D orb made of lighting, with A&M’s staple brand signatures, such as its colour palette of soft pinks and neutrals.


Astrid & Miyu, Carnaby Street store. Credits: A&M.



Retail revolutionising jewellery experience is brand trademark




Founder of the brand, Connie Nam, who set up A&M in 2012 from her Notting Hill flat, further highlighted the brand’s reliance and relationship with retail, stating in a release: “Our ongoing investment into experiential physical retail and where we have focused on revolutionising the jewellery experience has become a trademark for us as a brand, so to bring this immersive A&M experience to our largest, two-level store feels like a natural next step.”


Astrid & Miyu, Carnaby Street store. Credits: A&M.



Astrid & Miyu, Carnaby Street store. Credits: A&M.



This sentiment towards the retail sector comes despite British high streets and fashion retail having endured a turbulent relationship in recent years. Yet, one sector’s misfortune can be another’s opportunity. This seems to ring true for the jewellery and accessories industries, ones that appear to have retained faith in the physical retail landscape amid growing appreciation for the categories from UK consumers. Such confidence is only bolstered by anticipated growth for the market’s future.


According to Statista, for example, the UK jewellery market is projected to generate a revenue of 4.77 billion dollars (3.68 billion pounds) this year, with a further forecasted compound annual growth rate (CAGR) of 3.58 percent, from 2024 to 2028. This is in spite of an ongoing cost-of-living crisis in the region, which has seen many consumers turn away from the fashion sector as their spending power diminishes. Yet, data gathered by Business Gateway has shown that jewellery purchases have “remained resilient” and, together with high-end watches, are in fact stimulating the growth of the UK’s luxury industry.


Astrid & Miyu, Carnaby Street store. Credits: A&M.



Jewellery sector remains resilient in face of fashion’s uncertainty




This sign of strength is reflected in A&M’s own performance, and resulting expansion plans. While the brand’s financials for the years 2023 or 2024 have not yet been made public, Hrywnak ascertained that the company was still growing year-on-year at a “steady rate”. This comes after an uplifting 2022 when, alongside reporting a turnover of 20.7 million pounds, A&M returned to a profit-making position, with an operating profit of 1.6 million pounds, up from a loss in the year prior.


Astrid & Miyu, Carnaby Street store. Credits: A&M.



Astrid & Miyu, Carnaby Street store. Credits: A&M.



It was already then that A&M had outlined a growth plan focused on international expansion of both e-commerce and retail on the back of opening its first permanent retail location in the US. This strategy largely came in the form of regional store openings, with new locations appearing in UK cities like Bristol, Edinburgh and Brighton, as well as pop-ups – one having been hosted in Paris – and concessions – a Harrods location opened in March 2024.


These efforts are all part of the brand’s attempts to widen its community, Hrywnak said, particularly when it comes to omnichannel experiences. “Omnichannel has always been important in our mission of ‘Revolutionising the jewellery experience’ and it’s something we were passionate about adopting early on into our A&M journey,” said Hrywnak, together with global store design manager, Shannon Hatfield. “Experiential retail is at the heart of the brand alongside building communities, so physical spaces are integral in this. When we’ve opened a new store in a new location, we see a great halo effect on our e-commerce showing the importance of having a physical presence alongside e-commerce.”


Ultimately, each step A&M takes contributes to its wider vision of becoming a “cult brand” that has “a purpose people can relate and resonate with”. As such, the company wants to continue bringing its experiences closer to the community it has built, with no plans to slow down on a global expansion, particularly in the US and Europe, the latter to receive its first A&M store outside of the UK and Ireland later this year. “As a business, we are constantly innovating and ensuring we’re ahead of the curve,” Hrywnak concluded.


Astrid & Miyu, Carnaby Street store. Credits: A&M.


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Target, TJX & Macy's Q2 earnings top all estimates

Credits: Target.



Retailers Target Corp. (TGT), TJX Cos.
Inc. (TJX) and Macy's, Inc. (M) reported Wednesday profits for the
second quarter that topped analysts' estimates. Quarterly revenues at
Target and TJX also beat estimates, while it misses by a whisker at
Macy's. The improved results at the retailers were driven by gross
margin expansion.


Target and TJX raised its earnings guidance for the full year, while
Macy's maintained its earnings outlook for the full year.


In Wednesday's trading session on the NYSE, Target shares are up
20.22 dollars or 14.12 percent to trade at 163.43 and TJX shares are also
up 6.41 dollars or 5.64 percent to trade at 119.71, while Macy's shares are
down 2.41 dollars or 13.59 percent to trade at 15.33.


Discount retailer Target reported that second-quarter net earnings
soared to 1.19 billion or 2.57 dollars per share from 835 million or 1.80 dollars
per share in the year-ago quarter.


On average, 27 analysts polled by Thomson Reuters expected the
company to report earnings of 2.18 dollars per share for the quarter.
Analysts' estimates typically exclude special items.


Total revenue for the quarter grew 2.7 percent to 25.45 billion from
24.77 billion dollars in the same quarter last year, reflecting total sales
growth of 2.6 percent to 25.02 billion dollars and 10.8 percent increase in
other revenue. Analysts expected revenues of 25.20 billion dollars for the
quarter.


Total comparable sales increased 2.0 percent in the quarter, as
comparable store sales increased 0.7 percent and comparable digital
sales grew 8.7 percent.


Gross margin improved 190 basis points to 28.9 percent, reflecting
the net impact of merchandising activities, including cost
improvements.


"Importantly, our growth was driven entirely by traffic in stores and
our digital channels, with double-digit growth in our same-day
delivery services," said Brian Cornell, chair and CEO of Target


Looking ahead to the third quarter, the company expects earnings and
adjusted earnings in a range of 2.10 to 2.40 dollars per share on
comparable sales growth of 0 to 2 percent. The Street is looking for
earnings of 2.24 dollars per share for the quarter.


For fiscal 2024, the company now projects earnings and adjusted
earnings in a range 9.00 to 9.70 dollars per share on comparable sales
growth of 0 to 2 percent. Analysts expect earnings of 9.28 dollars per share
for the year.


Previously, the company expected earnings and adjusted earnings in a
range of 8.60 to 9.60 dollars per share on comparable sales growth of 0 to
2 percent.


Meanwhile, off-price retailer TJX reported that net income for the
second quarter grew to 1.10 million or 0.96 dollars per share from 989
million dollars or 0.85 per share in the prior-year quarter. Analysts
expected earnings of 0.92 cents per share for the quarter.


Net sales for the quarter increased 6 percent to 13.47 billion from
12.76 billion dollars in the same quarter last year, and topped analysts'
consensus revenue estimate of 13.31 billion dollars. Overall comp store
sales increased 4 percent, driven by an increase in customer
transactions.


Comp store sales at Marmaxx increased 5 percent, and Marmaxx sales
also grew 7 percent to 8.45 billion dollars. Comp store sales at HomeGoods
grew 2 percent and HomeGoods sales also increased 4 percent to 2.10
billion.


TJX Canada sales increased 2 percent to 1.24 billion dollars, while TJX
International (Europe & Australia) sales improved 4 percent to 1.68
billion from last year.


Gross profit margin improved 20 basis points to 30.4 percent from
last year.


Looking ahead to the third quarter, the company expects earnings in a
range of 1.06 to 1.08 dollars per share on consolidated comparable store
sales growth of 2 to 3 percent.


For fiscal 2025, the company now projects earnings in a range of
4.09 to 4.13 dollars per share on consolidated comparable store sales
growth of about 3 percent.


Previously, the company expected earnings in the range of 4.03 to
4.09 dollars per share on consolidated comparable store sales growth of 2 to
3 percent.


On average, analysts polled by Thomson Reuters expect the company to
report earnings of 1.10 dollars per share for the quarter and 4.14 per
share for the year.


The Company also continues to expect to repurchase approximately 2.0
to 2.5 billion dollars of TJX stock during the fiscal year ending February
1, 2025.


Additionally, the company said it has signed a definitive agreement
to make an investment of approximately 360 million dollars, subject to
customary working capital adjustments, for a 35 percent ownership stake in
Dubai-based privately-held off-price retailer Brands for Less (BFL).
The transaction is expected to close later this fiscal year. The
Company's ownership in BFL is expected to be slightly accretive to
earnings per share beginning in Fiscal 2026.


Omni-channel fashion retailer Macy's reported a net income for the
second quarter of 150 million dollars or 0.53 cents per share, compared to a net
loss of 22 million dollars or 0.08 cents per share in the prior-year quarter.


Excluding items, adjusted net income for the quarter was 0.53 per
share, compared to 0.26 per share in the year-ago quarter.


Net sales for the quarter declined 3.8 percent to 5.10 billion from
5.28 billion dollars in the same quarter last year.


On average, analysts polled by Thomson Reuters expected the company
to report earnings of 0.30 cents per share on net sales of 5.12 billion dollars
for the quarter. Analysts' estimates typically exclude special items.


Comparable sales were down 4.0 percent on an owned basis and down 3.3
percent on an owned-plus-licensed -plus-marketplace basis.


Macy's brand comparable sales were down 4.5 percent on an owned basis
and down 3.6 percent, on an owned-plus-licensed-plus-marketplace
basis.


Bloomingdale's brand comparable sales on an owned basis were down 1.1
percent and on an owned-plus-licensed-plus-marketplace basis were
down 1.4 percent. Bluemercury brand comparable sales were up 2.0
percent on an owned basis.


Gross profit margin improved 240 basis points to 40.5 percent from
last year.


Looking ahead to fiscal 2024, the company continues to project
adjusted earnings in a range of 2.55 to 2.90 dollars per share, but now
expects net sales between 22.1 billion and 22.4 billion dollars, down from
the prior forecast between 22.3 billion and 22.9 billion dollars.


The Street is looking for earnings of 2.78 dollars per share on net sales of
22.84 billion dollars for the year.(DPA)


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Change of leadership at Lenzing: CEO Stephan Sielaff leaves at the end of August

Stephan Sielaff, Lenzing Chief Executive Officer Credits: Lenzing



The Austrian fiber producer Lenzing AG will implement the management change announced in June at the end of the month.


On Wednesday, the group announced that CEO Stephan Sielaff will "leave Lenzing AG by mutual agreement with the Supervisory Board at the end of August 2024." Rohit Aggarwal will then take over the CEO position on September 1.


Almost two months ago, Lenzing announced that Sielaff would resign from his position "at the latest when his contract expires at the end of March 2025" in order to devote himself to "new tasks". At the same time, Aggarwal was introduced as the designated successor.


Chairman of the Supervisory Board Cord Prinzhorn praised the swift change of leadership: "In the summer, we managed a highly professional and smooth transition from Stephan Sielaff to his successor," he explained in a statement. "I would like to thank Stephan Sielaff for his achievements, with which he paved a path of great improvement for the company in a time of many challenges. In Rohit Aggarwal, we have now found the right person to master the demanding tasks that still lie ahead of us."


This article originally appeared on FashionUnited.DE, translated and edited to English.


It was translated using an AI tool called Gemini 1.5. .




FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com


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Danish company develops fully automated sorting system for post-consumer textiles

The fully automatic sorting solution by NewRetex. Credits: NewRetex



A major problem when recycling textile waste is the heterogeneity of the collected materials: different material mixes, fabric qualities and the condition of the used textiles make them a case for sorting by hand, which is time-consuming and labour-intensive.


Danish company NewRetex wants to remedy this situation and has developed a fully automated sorting system for post-consumer textile waste that sorts by material type, material composition, colour and structure using near-infrared (NIR) sensors, cameras and machine learning.


Mountains of used textiles accumulate every day. Credits: NewRetex



“Our sorting technology makes it possible to sort the large quantities of textile waste that all European countries are confronted with and to ensure recycling opportunities.
In this way, clothing can become clothing again,” comments Betina Theilgaard Lauridsen, developer of circular products at NewRetex, in a press release.


The aim is not only to convert waste into valuable resources, but also to track them through integrated systems and record the data for all processed materials.


How does the fully automated sorting system work?




NewRetex receives, sorts and processes discarded textiles from municipalities, fashion brands, workwear companies, spinning mills and others. The automatic sorting system then sorts and documents the items according to material type, composition, colour and structure using a combination of near-infrared sensors and cameras.


Sorting is fully automated. Credits: NewRetex



“Thanks to the use of machine learning, the categorisation of textiles is flexible and can be adjusted individually depending on the recycling purpose,” explains the company.


The existing, expanded plant with a main sorting line has been in operation since October 2023 and has a capacity of 200 tonnes of textile waste per month, which is scalable depending on the input volume.


The company also succeeded in developing recycled fibres and yarns made from the post-consumer textiles sorted in the plant, which are suitable for the production of new garments.


In future, NewRetex plans to use 70 percent of the textile waste for new fibres, while the remaining 30 percent can be integrated into the open recycling loop or the production of synthetic gas.


Old textiles are very heterogeneous. Credits: NewRetex



What’s next?




By minimising waste and promoting the circular economy in textile recycling, the company aims to have a positive impact on the environment. In addition, NewRetex opens up new possibilities for textile recycling with its fully automated sorting system, which also fulfils the new regulations for used clothing collection in Europe. The company is now ready for potential partnerships and co-operations to licence and sell the system outside its own operations.


Also read:





* “Sustainable Textiles”: what are next-gen materials, biobased materials and recycled materials? (When is a material truly recycled?)


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Nike unveils book celebrating women's sportswear

‘Look Good, Feel Good, Play Good’ Nike book Credits: Nike book



Sportswear giant Nike is releasing a new book in collaboration with Phaidon Press illustrating the power of women’s sportswear and the role it has played in advancing women’s sports over the last 50 years.


‘Look Good, Feel Good, Play Good: Nike Apparel,’ is described as the first book to chart a visual history of women’s sportswear, examining the relationship between women and the garments they wear through five design archetypes from sporting history: warm-ups, jerseys, leggings, sport bras and shorts.


‘Look Good, Feel Good, Play Good’ Nike book Credits: Nike



The book features 350 pages with more than 575 images, and each chapter features interviews with Nike athletes such as Sha’Carri Richardson, Shelly-Ann Fraser-Pryce, Sue Bird, Megan Rapinoe and Naomi Osaka.


These intimate conversations offer anecdotes about their sportswear, personal items and style approaches alongside newly commissioned texts, which consider Nike's role within the history of sporting apparel for women.


‘Look Good, Feel Good, Play Good’ Nike book Credits: Nike



Amy Montagne, vice president and general manager of Nike Women, said in a statement: “Whether you’ve followed their journeys or are exploring the trends that have defined women’s sports, ‘Look Good, Feel Good, Play Good’ showcases the work Nike designers have done over the past 50 years to revolutionize and move women’s sport forward.”


‘Look Good, Feel Good, Play Good’ will be released in December and retail for 69.95 pounds / 89.95 US dollars.


‘Look Good, Feel Good, Play Good’ Nike book Credits: Nike


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SportsShoes.com launches first mobile app

SportsShoes.com campaign image Credits: SportsShoes.com



SportsShoes.com, the online running shoes, clothing and outdoor gear retailer, has launched its first-ever mobile app to offer the “best-in-class retail experience” for its customers.


The app has been developed by specialist sports retailer solution provider One Iota as a platform to connect, engage, and serve SportsShoes.com customers and support its wider athlete community as part of the retailer’s "ongoing strategic expansion plans".


In the app, customers can access personalised products and content suggestions, based on previous activity and preferences, with a standard shopping feed as a secondary option.


The platform also integrates customer membership options throughout the shopping journey, including the ability for users to sync their England Athletics profile with their SportsShoes.com account. The aim is to help its customers combine their running and fitness data with their shopping habits to provide a more bespoke retail experience.


Development of the app has been supported by the 4.6 million pounds the retailer has invested in the last three years in its technologies, people, processes and facilities.


SportsShoes.com campaign image Credits: SportsShoes.com



Brett Bannister, managing director of SportsShoes.com, said in a statement: "Launching our app marks a major milestone in our mission to help customers lead healthier, happier lives through their fitness and sports journeys.


"Having established a market leading online brand, our new app is a digital reincarnation for us and a key tool for our UK and European growth plans."


Alongside the app launch, SportsShoes.com has also re-platformed its UK and international websites to provide customers with an improved online purchasing experience with "increased levels of personalisation across both product discovery and advice".


Jon Cleaver, chief technology officer at SportsShoes.com, added: “Having built the expertise and invested heavily in our people, processes and technology to become a leading online sports apparel retailer, it was a logical step to expand this into a mobile app environment.


“The app’s capabilities are a perfect complement to our re-platformed website and supports our ability to connect and engage with our growing customer base to deliver a best-in-class retail experience.”


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Unified Commerce acquires Greats and invests in Böhme

Unified Commerce Group logo Credits: Unified Commerce Group



Unified Commerce Group (UCG) has acquired sneaker brand Greats from Steve Madden, which it bought in 2019, and announced a strategic investment in Utah-based womenswear retailer Böhme.


The direct-to-consumer operator didn’t disclose the sale price for Greats, just that the Brooklyn-born sneaker brand would become the third brand in its portfolio alongside LA-based athleisure brand Spiritual Gangster and Canadian fashion brand Frank And Oak.


As part of the deal, Steven Madden, Ltd., through one of its subsidiaries, will become a shareholder of UCG.


Dustin Jones, chief executive and founder of Unified Commerce Group, said in a statement: “Greats pioneered the direct-to-consumer model in footwear and continues to delight its customers with high-quality, beautiful fashion sneakers.


"We have admired the brand for a long time, and the clear synergies with our existing apparel brands, along with its valuable customer base presents an excellent opportunity to leverage our operational expertise to drive further scale."


Edward Rosenfeld, chairman and chief executive of Steven Madden, Ltd., added: "We have known Dustin and his team for a number of years, and are very confident that Greats will find a strong strategic fit with the fast-growing portfolio of brands at UCG."


UCG also made a strategic investment in Utah-based womenswear retailer Böhme, founded by Vivien and Fernanda Böhme, which has 14 stores across Utah, Idaho, Montana and Arizona, as well as an online presence.


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Global investors show surprising optimism amid economic headwinds

Kearney report shows investor optimism Credits: Pexels



The latest Foreign Direct Investment (FDI) Confidence Index by Kearney reveals a striking rise in investor optimism, despite ongoing global economic challenges and geopolitical tensions. The United States maintains its top ranking for the 12th consecutive year, buoyed by robust economic growth and rebounding consumer sentiment.


Fashion industry leaders, however, continue to navigate a tough climate with inflation, higher production and labour costs as well as a changing retail landscape that has seen subdued sales in China.


In Kearney’s report, investor confidence appears resilient in the face of anaemic global growth, which declined from 3.1 percent in 2022 to 2.7 percent in 2023, with forecasts suggesting a further dip to 2.4 percent this year. Despite these headwinds, 88 percent of respondents plan to increase their FDI over the next three years, up 6 percentage points from the previous year.


The survey highlights a notable shift in global rankings. China ascended to third place from seventh, potentially due to the easing of capital controls for foreign investors in key cities. Conversely, Japan slipped from third to seventh, reflecting its recent entry into recession. The United Arab Emirates and Saudi Arabia made significant leaps, rising to 8th and 14th respectively, underscoring the growing appeal of emerging markets.


Investors' outlook on the global economy has markedly improved, with net pessimism decreasing from 35 percent to 29 percent year-on-year. However, geopolitical tensions and increasingly restrictive regulatory environments remain significant concerns, with 85 percent of investors anticipating that geopolitical issues will impact investment decisions.


The survey also sheds light on the rapid proliferation of artificial intelligence (AI) in business operations. A substantial 72 percent of investors report significant or moderate use of AI, with applications ranging from customer service to supply chain enhancement. Looking ahead, 64 percent anticipate expanding their use of AI in investment decision-making over the next three years.


As the global economy navigates uncertain waters, this year's FDI Confidence Index paints a picture of cautious optimism. Investors appear poised to capitalise on emerging opportunities, particularly in AI and emerging markets, while remaining vigilant to geopolitical and regulatory risks.


For more information or to read the report visit Kearney.com.


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Abercrombie Kids expands into wholesale with Haddad Brands deal

Abercrombie Kids campaign imagery. Credits: Abercrombie & Fitch Co.



Abercrombie Kids, the childrenswear brand of Abercrombie & Fitch Co., is set to enter the wholesale market via a new deal with privately-held licensing firm Haddad Brands. The aim of the partnership is to expand the global reach of the Abercrombie Kids brand through a long-term growth plan that will be driven by Haddad Brands itself.


As such, the company has been tasked with creating new distribution channels for the label and growing the product line by adding infant and toddler categories to the existing assortment for 5 to 14 year olds, which will continue to be designed, produced and sold by A&F Co. via owned-and-operated channels.


The group’s chief executive officer, Fran Horowitz, doubled down on this plan in a press release, where she was quoted as saying: “With our Abercrombie Kids brand, we have created comfortable, high-quality apparel for children that allows them to feel exceptional every day.


“As we work to diversify A&F Co.’s channel mix and drive sustainable, profitable growth, we are thrilled to partner with Haddad Brands to build on our success and create an opportunity to grow the brand in the years ahead by engaging with new customers globally.”


The partnership will begin for the autumn and back-to-school 2025 season, a collection for which will be available in Haddad Brands’ showrooms globally from September.


The president of the licensee, Jack Haddad, added: “We look forward to extending the Abercrombie Kids brand, making the product available to more consumers in the US and worldwide.”


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2024 Olympics: Decathlon transforms its Olympic partnership into commercial success

Decathlon Playground in Paris in summer 2024. Credits: Decathlon



Decathlon has associated its name with the most important sporting event of the year by designing the volunteers' kit for the Paris Olympic Games and the outfit worn by the torchbearers at the opening ceremony. The company's partnership with the 2024 Olympics has also boosted its sales figures.


According to Bastien Grandgeorge, managing director of Decathlon France, the partnership was “a fantastic opportunity to show the whole world that we also make cool, stylish products, and not just high-performance, affordable ones”.


As reported by La Voix du Nord, particularly the hat used by Olympic volunteers has been an undeniable hit with the public, and has been snapped up on second-hand sales platforms. A quick search on the second-hand app Vinted revealed that sports shirts designed by Decathlon for the Olympics are now selling for between 50 and 100 euros.


Decathlon Playground in Paris. In the foreground: a volunteer in clothing developed by Decathlon. Credits: Decathlon



“For our very first collaboration with the Olympic Games, this is a winning partnership for the Decathlon brand,” summed up Virginie Sainte-Rose, director of the Decathlon x Paris 2024 partnership, in a press release.


Increasing numbers




The sports equipment maker reported a 40 percent increase in sales of Decathlon x Paris 2024 licensed products, which included Paris 2024 accessories and sportswear.


But it is above all in stores that Decathlon could feel the success, with increased footfall in several shops: For example the Madeleine store in Paris saw a 28 percent increase in footfall, similarly stores near host cities such as Nantes, Marseille and Lille, as well as the Campus shop in Villeneuve d'Ascq, which has seen a 22 percent increase in footfall.


Decathlon is also seeing a 10 percent increase in omnichannel footfall (in-store and online), and points out that this is “usually a peak period”.


However, the company has not indicated the conversion rate -- the proportion of visitors to a store, whether physical or online, who make a purchase.


Finally, 200,000 people visited the Decathlon Playground for the first time, a facility located at the Parc de la Villette in Paris, which offered free experiences combining sports, art and culture from 27th July to 11th August. The venue appears to have been a success, with an average of 9,500 visitors a day, with peaks of 15,000.


In 2023, Decathlon recorded sales of 15.6 billion euros (about 13,3 British pounds; excluding tax), compared with 15.4 billion euros (excluding tax) in 2022, and a net income of 931 million euros. Of those, 15.6 percent were generated outside of stores (through e-commerce, B2B, external marketplaces, etc.), while 12.4 percent were digital sales.


This article was originally published on FashionUnited.fr. Edited and translated by Simone Preuss.


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Ted Baker to close all UK stores this week as Frasers talks halt

Ted Baker store. Credits: Ted Baker



After a period of reported back-and-forth, it is now believed that talks between Mike Ashley’s Frasers Group and Ted Baker parent company Authentic Brands Group have stalled. The news comes ahead of the imminent closure of Ted Baker’s remaining 31 stores in the UK, which are set to shutter this week.


Frasers’ name first came into circulation regarding the possibility of a Ted Baker takeover three months ago, when it emerged that the British retail giant was among the leading contenders to secure a licensing partnership. Now, however, despite suggestions that an agreement had been made, such talks are now believed to have come to a halt, according to Sky News.


Citing sources, the media outlet said that no ongoing talks between the duo were being held, contrasting reports from a few weeks ago that stated potential reopenings of certain Ted Baker stores were on the cards. Earlier this month, such speculation was only further fuelled by a report by Drapers which suggested that Frasers and Authentic had been mulling an even wider partnership that could have seen the former become the UK and European operating partner for both Ted Baker and Reebok, also Authentic-owned.


In the way of store closures, one store source for Sky News told the publication that they had been told this Tuesday (August 20) was to be the final day of trading. The remaining closures are being handled by administrators to Ted Baker’s existing partner, No Ordinary Designer Labels, which collapsed into administration earlier this year. The move has already resulted in the shuttering of 15 of the British brand’s stores throughout the region.


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