In its Q3 FY22 ended December 2021, India's leading compact cotton yarn manufacturer, SVP Global Textiles’ net profit grew by 23.87 per cent to 41.23 crore as against a net profit of Rs 33.29 crore recorded in Q3FY21. The company’s EBITDA for Q3FY22 grew by 11.62 per cent to Rs. 94.66 crore compared to EBITDA of Rs 84.81 crore in Q3FY21. Income from operations grew 9.75 per cent in Q3FY22 to Rs 406.69 crore.

The company is setting up a 4,375 mtpa Greenfield facility for technical textiles at Jhalawar, Rajasthan, with an investment of Rs 100 crore. It recently changed its name to SVP Global Textiles from SVP Global Venture. Foray into technical textiles is also going as planned and it hopes to achieve 25-30 per cent revenue growth post completion of the expansion plans.

Established in 1898 by VallabhPittie, SVP Group manufactures polyester, polyester and cotton blend, and 100 per cent cotton yarn across three state-of-the-art manufacturing facilities in Jhalawar (Rajasthan), Ramnad (Coimbatore) and Sohar (Oman). The company aims to become a world-leading, fully integrated textile company in manufacturing yarn, fabric and garments.

In Q3 FY2022, denim manufacturer, R&B Denims posted a 19.75 per cent growth in net profit to Rs 6.5101 crore against a net profit of Rs 5.4366 posted during the second quarter ended September 30, 2021. The company’s income during the quarter grew by 24.18 per cent to Rs. 81.2630 crore compared to Rs. 65.4417 crore during the period ended September 30, 2021.

For the fiscal ended December 2021, R&B denims posted a 22.99 per cent growth in net profit to Rs 6.5101 crore against profit of Rs 5,2932 crore posted in the during the fiscal ended December 31, 2020. The company’s income grew 32.56 per cent to 81.2630 crore during the fiscal against an income of Rs 61.3019 crore during the fiscal year ended December 31, 2020.

For the fifth consecutive time, Calvert Research & Management has included PVH in its list of Barron’s 100 Most Sustainable Companies. As per a Bakersfield report, analyst ranked the company fifth while it ranked first in the apparel retail category. The company strives to continuously improve through inclusion and diversity, sustainability and strong governance. PVH focuses on sustainability as the core of its multiyear plan and strives to improve in the area, says Stefan Larsson, Chief Executive Officer. However, it needs to step up efforts to achieve Forward Fashion targets, reduce negative impacts to zero, increase positive impacts to 100 per cent and improving lives across our value chain.

Developed by Calvert Research & Management, Barron’s 100 Most Sustainable Companies ranking first rated top 1,000 largest publicly traded companies by market value before analyzing and ranking these companies in 230 ESG (environmental, social, and governance) performance indicators.

LVMH's top fashion brand, Louis Vuitton plans to raise global prices to offset increased manufacturing and transportation costs. Price rise will affect Louis Vuitton stores selling leather goods, fashion accessories and perfumes worldwide. Chinese social media bloggers estimate, prices of few handbag models such as Capucines would rise by 20 per cent or more in China. Website tracking the luxury market, PurseBop speculates, the increase would range between 4 per cent on the lower end and 15-18 per cent on average on the higher end.

Luxury goods companies have been leveraging the benefits offered by the COVID-19 pandemic by increasing the prices of high-end fashion items and accessories. Chanel increased prices on some of its handbags three times last year, with the price of the Classic Flap bag increasing by over 60 per cent since the beginning of the pandemic.

Japanese clothing and footwear brand Asics, has reported 121.8 per cent increase in operating profit to €83.1 million during the year ended December 2021 compared to the same period a year earlier. The brand’s revenues grew by 13.7 per cent across Europe, Middle East and Africa (EMEA) region.

The brand has attributed growth to surge in revenues from wholesale and online channels. Its e-commerce revenue across the EMEA grew by 16 per cent during the year compared to 2020. Asics’ wholesale sales across the EMEA region surged by 13 per cent year-on-year, with 27 per cent increase in Italy, 19 per cent in Germany, 16 per cent in France and 18 per cent in South Africa. Founded in 1949, Asics’ products include footwear, clothing and accessories.

Jennifer Sey, Brand President, Levi Strauss & Co has resigned from her post after being forced to quit her job for voicing her opinion that schools should remain open during the COVID-19 pandemic. Sey spent around 23 years in the company, serving as its global brand president since 2020.

Since the beginning of the pandemic in 2020, Sey has vocally opposed the US public schools’ closure mandate, writing op-eds, appearing on local news shows and organizing rallies in support of keeping schools open. As her views went public, Sey alleges the company’s head of corporate communications, its legal and HR departments and Bergh warned her that she should reflect on her statement.

Her responsibilities would be fulfilled by Seth Ellison, Executive Vice President and Chief Commercial Officer on an interim basis.

Cambodia's garment, footwear and travel goods exports increased by 15.2 per cent in 2021, indicates a report by the General Department of Customs and Excise. As per The Star, the country exported products worth $11.38 billion last year, against $9.88 billion exported in previous year. Garment, footwear and travel goods industry comprises roughly 1,100 factories and branches besides employing approximately 750,000 workers, according to the Labor Ministry.

Buoyed by the expected rise of global demand and foreign investors' confidence, Cambodia’s economy is projected to grow at a higher rate of around 5.6 per cent in 2022. The economy is projected to have grown by 3 per cent in 2021 after a contraction in 2020. Cambodia has so far administered at least one dose of COVID-19 vaccines to 14.37 million people, or 89.8 per cent of its 16 million population, according to its Health Ministry. Nearly 13.8 million people, or 86.2 per cent of the population, have been fully vaccinated with two required shots, and 5.97 million, or 37.3 percent, have taken a third dose or booster shot, said the ministry.

Adidas has launched the first product made in collaboration with Finnish textile fiber manufacturer Spinnova. As per a Spin Off report, the Adidas Terrex hoodie comprises 25 per cent wood-based Spinnova fibers and 75 per cent organic cotton. Spinnova fibers used in the hoodie are mechanically ground and processed into yarn without the use of harmful chemicals. It also does not any additional dyes. The product will be available in limited quantity on Adidas.com and at other select retailers from July this year.

About a year ago, Spinnova announced plans to build its first commercial factory in Finland. The factory is expected to meet the growing demand for sustainable materials from global textile brands. It will begin production at the end of 2022, along with Spinnova’s strategic partner, cellulose producer Suzano.

Pandemic-related restrictions restricted retail sales in India to just 91 per cent of pre-pandemic levels of January 2019 and 2020, indicates a survey by the Retailers Association of India (RAI). Sales in the East declined 13 per cent year-on-year in January 2022 compared to January 2019. This was followed by the Western region where sales declined 11 per cent and North where sales dropped 8 per cent. Least impact was in the Southern zone which registered a mere 2 per cent decline in sales as compared to January 2019, says RAI.

Beauty, wellness and personal care categories witnessed the biggest 24 per cent drop in sales compared to January 2019. These were followed by furniture and furnishing where sales dropped 12 per cent; apparel and clothing registered 7 per cent decline in sales. On the other hand, sales in the jewelry segment grew 11 per cent in January, as compared to the same month in 2019 and quick-service restaurants also witnessed a growth of 9 per cent. Kumar Rajagopalan, CEO, RAI, says, sales growth can be attributed to opening of retail businesses across the country till late hours in the evening.

However, Delhi and Haryana are still not allowing stores to be open till late, which is creating a big impact on businesses, Rajagopalan adds.

Supply chain bottlenecks and COVID disruptions failed to dent apparel demand from US brands and retailers in 2021 as the country’s garment imports rose 27.42 per cent during the year. This came as a huge relief for exporters whose shipments had declined 16.37 per cent in 2020 following store lockdowns and factory closures, reveals the Commerce Department’s Office of Textiles & Apparel (OTEXA) stats.

China’s imports share rises

In December 2021, US’ apparel imports rose by 33.7 per cent to 2.51 billion square meter equivalent (SME) compared to December 2020. As per Sourcing Journal, apparel imports from China increased 31.45 per cent to 11.13 billion, (SME) increasing the nation’s imports share to 37.8 per cent from 36.6 per cent in 2020. The second largest exporter was Vietnam whose shipments rose 15.52 per cent year over year to 4.38 million SME in 2021. In December 2021, Vietnam’s shipments increased by 7.8 per cent to 340.73 million SME.

US imports from Bangladesh surged 37.85 per cent to 2.8 million SME during the year and by 76.7 per cent to 273.98 million (SME) in December 2021. Imports from the country were impacted by labor strife and production inefficiencies. Excessive inventory and waste in textile and apparel factories also hampered exports from the country, shows a study by the Bangladesh University of Textiles.

Exports from Asian countries dominate

Asian countries like Pakistan and India emerged the largest apparel suppliers to the US in 2021. India’s exports increased 41.69 per cent to 1.28 billion SME while Pakistan’s shipments surged by 41.89 per cent to 895 million SME during the year. In December 2021, India’s exports rose 62.7 per cent to 115.14 million SME while Pakistan’s surged 31.1 per cent to 86.41 million SME.

Exports from Indonesia and Cambodia witnessed a modest increase of 20.14 percent to 1.11 billion SME and 10.34 per cent to 1.24 billion SME, respectively. Indonesia’s imports in December increased 52.7 per cent to 91.25 million SME while Cambodia’s declined 5.9 per cent to 87.52 million SME.

Other countries that emerged amongst top 10 apparel exporters to the US included Western Hemisphere producers Honduras, Mexico and El Salvador. US imports from Honduras increased 28.13 per cent to 872 million SME during the year. Similarly, shipments from Mexico increased 21.52 per cent to 826 million SME and from El Salvador it rose 33.23 per cent to 656 million SME.

More companies take to nearshoring

As per a survey of 38 apparel companies by McKinsey & Co, 71 per cent revealed plans to increase nearshoring while 13 per cent plan to increase over 10 per cent. Around 24 per cent companies said they plan to focus on reshoring as a part of their sourcing strategy.

Central America emerged the most favored destination for these companies. Around 80 per cent of North American apparel firms said they plan to increase sourcing from the region in future.