Katie Bickerstaffe, co-CEO, Marks & Spencer, a British clothing and food retailer has quit from her position in the company and is set to be succeeded by Stuart Machin

Leaving the company this year, Bickerstaffe will join as a non-executive director of European home improvement retailer Kingfisher. She was appointed as the co-CEO of Marks & Spencer in 2022 alongwith Machin after the stepping down of Steve Rowe. 

Birkerstaffe was responsible for driving the company’s strategy of selling across multiple platforms while Machin looked into the day-to-day leadership of the business and the executive committee.

Bickerstaffe's resignation follows the better-than-expected rise in sales reported by the retailer over the Christmas trading period, as it reaped the rewards of investments to improve the value and quality of its clothing and food as well as the overhaul of its store estate.

A pioneering force in textile technology, Hologenix has collaborated with renowned global sporting goods retailer Decathlon to unveil an activewear collection. The new innovative collection leverages the power of infrared technology to enhance athletic performance and aid in post-workout recovery. This collaboration marks the successful fusion of Hologenix’s Celliant® technology with Repreve® Recycled Polyester innovation.

The Celliant technology operates by converting the body’s heat into infrared energy, thereby promoting local blood circulation and boosting cellular oxygen levels. The fabric used in the training apparel is a unique blend of new polyester and recycled plastic bottles, made possible through the integration of Celliant into Repreve recycled Polyester fibers.

Seth Casden, Founder and CEO, Hologenix, says, the company remains committed to promote a healthier world through strategic collaborations like the one with Decathlon. Such partnerships exemplify the potential of technology and brand synergy in advancing individual well-being, he adds. 

The newly introduced training set offers athletes an advanced activewear solution that empowers them to achieve new performance milestones. Through their combined technological expertise, both companies can not only enhance athletic performance but also reshape the landscape of the sports industry. Known for its inclusive sports philosophy catering to athletes of all levels, Decathlon is now delving into offering high-performance technical gear for expert users, capitalising on the Celliant infrared advantage.

Andy De Laender, Product Manager, Decathlon, highlights the strategic decision to collaborate with Celliant, recognising the growing demand among athletes for apparel that can elevate their training experiences across the United States and Europe.

The American textile industry, once a titan of global manufacturing, has faced numerous challenges in recent decades. After enduring the blows of trade agreements like NAFTA, it appeared to be on the path to revival. However, a new threat has emerged, not in the form of sweeping trade deals, but rather a seemingly minor policy known as the "de minimis" loophole.

The De Minimis loophole

The De minimis policy allows the duty-free import of goods valued below a certain threshold, currently set at $800. This policy was originally intended to streamline the import process for low-value shipments, but the rise of e-commerce has transformed it into a major hurdle for domestic textile manufacturers.

The National Council of Textile Organizations (NCTO) paints a concerning picture. They argue that the De minimis loophole is being exploited by the booming e-commerce industry, allowing a surge of cheap imports to undercut domestic producers. This has resulted in the closure of several textile mills across the United States, impacting not only jobs but also the demand for US-grown cotton.

While acknowledging the influence of other factors like inflation, industry leaders like Andy Warlick, CEO of Parkdale Mills, emphasize the significant role de minimis plays in the current crisis. He reports, his company is operating at a mere 60 per cent capacity due to "devastating demand destruction," partially fuelled by the estimated 1 billion Dde minimis shipments annually. A staggering half of these shipments are comprised of textile and apparel goods, directly competing with American-made products.

Balancing trade and domestic needs

The NCTO urges Congress to take immediate action by closing the De minimis loophole. They fear that without intervention, the already struggling industry will face further decline. This situation exemplifies the complex challenges faced by US manufacturing in the 21st century. The industry is caught in a tug-of-war between the forces of globalization, which promotes free trade and international competition, and the growing domestic pressure for revitalization and job creation.

This issue extends beyond the boundaries of the textile industry, sparking a debate about the delicate balance between promoting economic growth through international trade and protecting domestic industries and jobs. Striking this balance effectively requires careful consideration of all stakeholders: Consumers who benefit from readily available and often cheaper imported goods; domestic manufacturers and their employees whose livelihoods depend on a healthy domestic industry. Also it has implications for the broader economic landscape of the nation as a strong manufacturing sector contributes significantly to the overall economic health.

A reminder of unintended consequences

The De minimis loophole issue serves as a stark reminder of the unintended consequences that seemingly minor policies can have on entire industries. As policymakers navigate the complexities of international trade and domestic economic development, addressing the De minimis loophole requires a nuanced approach. This approach should balance the needs of all stakeholders while ensuring a healthy and competitive future for the American textile industry.

It is important to note that this is a complex issue with no easy solutions. Further research and analysis are needed to fully understand the economic impact of the De minimis loophole and to develop effective policy solutions that consider the needs of all stakeholders.

Building upon its robust fourth-quarter results, American Eagle Outfitters Inc aims to reach $6 billion in revenue by the end of fiscal 2026. Termed ‘Powering Profitable Growth,’ the strategy aims to bolster the company's core brands while expanding its market presence.

Led by Jay Schottenstein, Executive Chairman and CEO, this strategic vision of the company focuses on amplifying American Eagle and Aerie's positions in the casual apparel market. It involves significant investments to augment the namesake banner and accelerate the growth of Aerie and its activewear brand, Offline. The company also intends to optimise operations and exercise financial discipline to sustain growth and profitability.

In the latest quarter, American Eagle reported earnings that surpassed analyst forecasts, buoyed by strong consumer demand and reduced markdowns. While net income dipped to $6.32 million compared to $54.6 million in the previous year, adjusted earnings exceeded estimates to reach $0.61 per share. The company attributed $131 million impairment and restructuring charge to realign its Quiet Platform logistics business with its long-term strategy.

Outpacing estimates, the company sales surged by 12 per cent to $1.68 billion, with store revenue increasing by 10 per cent and digital revenue surging by 19 per cent. Aerie experienced a 16 per cent growth in revenue to $538 million, while American Eagle’s revenue grew by 11 per cent to $1.1 billion. The company’s comparable sales also showed healthy growth for both brands.

Further, the company anticipates sales in the current quarter to surge by mid-single digit percentage while it expects them to rise by 4 per cent during the full year.

As of the fiscal year's end, American Eagle operated 1,182 stores, comprising 851 American Eagle outlets, 310 Aerie locations (including Offline), along with Todd Snyder and Unsubscribed stores.

Citing a lackluster beginning to 2024 as consumers in North America seek more affordable options, Victoria's Secret & Co anticipates a subdued performance for the year ahead.

Known for its popular Pink brand of intimate wear, the company predicts fiscal 2024 net sales to fall to $6 billion, marking the third consecutive year of declining sales and falling short of LSEG estimates of $6.14 billion.

The company expressed a cautious outlook for the first half of the year, citing continued pressure on the broader intimates market in North America. However, it expects sales trends to improve in the latter part of 2024.

First-quarter net sales are forecasted to decline in the mid-single-digit range, contrasting with analysts' expectations of a 2.5 per cent decrease. To support its stock in the short term, the company announced a share repurchase program worth up to $250 million. However, analysts remain skeptical about the company's ability to drive operational improvements.

Despite a 240 basis point increase in fourth-quarter margins, attributed to factors such as lower freight costs and merchandising strategies, the company faced challenges due to shifting consumer preferences. Demand shifted towards value and online platforms like Amazon, while sportswear brands like Lululemon gained traction in the sports bra category with lower-priced options.

Victoria's Secret, with sports bras priced between $45 and $88, faces competition from Lululemon, whose offerings range from $29 to $78.

In 2024, Victoria's Secret plans to open approximately 15 new stores in North America, primarily in off-mall locations, despite sluggish demand. However, it also plans to close 35 stores, mainly consolidating co-located Victoria's Secret and Pink stores.

Emphasising on the government’s commitment to safeguard India’s handmade products, Piyush Goyal, Textiles Minister Piyush Goyal warned of stringent action against businesses falsely labeling machine-made goods as ‘Handmade in India.’ 

Launched by the Government of India, this initiative aims to preserve and promote the country's rich tradition of handicrafts and handlooms. Goyal also assured jute and cotton farmers, if the market prices of their fibers fall below the Minimum Selling Price (MSP), the government would to procure their entire harvest.

Additionally, the government is boosting jute and cotton production by providing farmers with quality seeds and fertilisers, thereby enhancing the prospects of exporting farm produce internationally.

Encouraging artisans to leverage digital platforms, Goyal urged them to register on the Government e-Marketplace (GeM) without any registration fees. This initiative aims to enhance the visibility of artisans and weavers, ultimately augmenting their income opportunities. 

Moreover, the government plans to facilitate the integration of GeM-registered businesses onto major domestic and international e-commerce platforms, prioritising the promotion of handicrafts and handlooms.

The Ministry of Textiles affirmed its commitment to empowering artisans and ensuring the integrity of India's handmade sector, signaling a concerted effort to foster growth and sustainability in the industry.

All Pakistan Textile Mills Association (APTMA) has warned the Special Investment Facilitation Council (SIFC), of potential further declines in exports due to the lack of a financially sustainable energy source. 

In a presentation to the SIFC, textile millers emphasised the urgency of addressing this issue and proposed measures to enhance the competitiveness of textile exports globally.

One major concern highlighted by the association was the absence of a financially viable energy source, which hampers manufacturing sustainability and global competitiveness. 

To address this challenge, APTMA suggested several measures including operationalisation of the Competitive Trading Bilateral Contracts Market (CTBCM) and facilitating business-to-business (B2B) power contracts with competitive end-use prices. 

APTMA also proposed leveraging green energy sources such as geothermal plants and hybrid solar/wind plants to procure energy and advocated for an increase in the cap on solar net-metering for industrial consumers.

Pakistan’s textiles and apparel exports rose by 54 per cent to $19.3 billion in FY22, thanks to regionally competitive energy tariffs (RCET) of 9 cents/kWh in 2021-22. However, a subsequent increase in power tariffs to over 14 cents/kWh led to a decline in exports to $16.5 billion in FY23.

Power tariffs for industrial consumers have risen to approximately 17.5 cents/kWh, making production financially unfeasible. This rise is attributed to factors such as quarterly tariff adjustments, fuel price adjustments, and declining power consumption. Compared to regional economies like Bangladesh, India, and Vietnam, Pakistan's power tariffs are more than double, exacerbating the industry's challenges.

Moreover, gas prices for industrial consumers have surged by 223 per cent since January 2023, rendering captive generation financially unviable. Consequently, Pakistan’s textiles and apparel exports have stagnated at $1.4 billion per month, significantly below the industry's installed capacity of $2 billion/month. This situation has led to idle investments of approximately $5 billion, adversely affecting investor sentiment and confidence in the economy.

The United States International Trade Commission (USITC) is set to investigate whether the recent surge in prices of garment items sourced from Bangladesh indicates unfair competition. 

This move comes after the USITC observed that the prices paid by the US for Bangladeshi garments per unit have surpassed the average prices paid for garments sourced from various countries. Prompted by this discrepancy, the agency has initiated an inquiry to ascertain if any anti-competitive practices are at play.

An independent and nonpartisan federal agency with quasi-judicial functions, USITC is tasked with fulfilling various trade-related mandates, as outlined on its website. Faruque Hassan, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), is slated to participate virtually in the hearing scheduled for March 11.

According to Hassan, the rise in prices is primarily attributed to adjustments made by American clothing retailers and brands to offset increased raw material and shipping costs incurred during and after the pandemic. He noted that the unit price for Bangladeshi garments has been gradually increasing since 2017, while China's prices have declined. Presently, Bangladesh offers garments at $3.23 per unit, compared to $1.86 for China and $2.95 for Pakistan.

Hassan highlighted that Bangladesh's garment industry primarily focuses on manufacturing basic items, resulting in an average price level that exceeds the global average import price per unit paid by the US. He also pointed out that recent geopolitical tensions and fluctuations in diesel prices have further strained global supplies and demand dynamics.

Hassan emphasised, the cost of production has surged significantly in recent years due to rise in electricity costs by 25 per cent, gas by 286.5 per cent, and diesel by 68 per cent. Inflation has further elevated the cost of finance, contributing to increased production and goods costs. Additionally, bank charges, municipality fees, and certification fees have risen considerably.

Over the past decade, the garment industry has invested millions of dollars in factory remediation and green manufacturing initiatives to meet evolving due diligence requirements. Hassan hoped that the USITC would consider the broader context rather than solely focusing on cost and efficiency-based competitiveness. He also underscored the challenges stemming from the lack of local raw materials and foreign direct investment in the industry.

Further, Hassan urged for a comprehensive assessment of the multifaceted factors impacting Bangladesh's garment sector.

Euratex proudly launches the EU co-funded project Aequalis-4-TCLF, bolstering the textile, clothing, leather, and footwear (TCLF) sectors' upskilling and reskilling efforts under the EU Pact for Skills. With 19 partners primarily from Eastern and Northern Europe, the four-year initiative aims to enhance the skills of workers in the TCLF industry.

Building upon the blueprint of the Smart4TCLF project and complementing the Metaskills4TCLF initiative, Aequalis-4-TCLF emphasizes forging strong ties with regional and local entities to amplify skills initiatives. 

It also seeks to establish a pan-European Network of TCLF vocational education and training (VET) and higher education (HE) providers. By conducting a skills gap analysis, the project will formulate new national skills strategies in seven countries, tailoring them to address regional needs while promoting diversity and combating discrimination in the TCLF industries.

Euratex's Director General, Dirt Vantyghem, lauds the initiative as a tangible realization of the TCLF Pact for Skills signed with the European Commission two years ago. Vantyghem emphasizes the crucial role of addressing the skills dimension in fostering a competitive TCLF industry in Europe.

Kraig Biocraft Laboratories, Inc. has announced its preparation of a second business investment application in Vietnam, marking a significant step in the expansion of its operations. 

This forthcoming license application aligns with the company's recent memorandum of understanding with the Lam Dong Agro-Forestry Research and Experiment Center ("LAREC") and the Vietnam Sericulture Association ("VSA"). Through this collaboration, Kraig Labs aims to propel sericulture in Vietnam by leveraging its proprietary silk technology alongside the expertise of LAREC and VSA.

The investment license will facilitate the establishment of Prodigy Silk, a new wholly-owned subsidiary headquartered in Kraig Labs' recently disclosed facility in Lam Dong Province. This facility will serve as the operational hub for spring production trials, with renovations already underway for its full functionality in time for the trials.

Founder and CEO Kim Thompson expressed the significance of this strategic move, highlighting the company's consistent adherence to its business plan over the past two quarters. The management remains resolute in its commitment to executing its 2024 production plan for recombinant spider silk, underlining a proactive approach towards achieving its goals.