Kontoor Brands’ revenues are expected to increase at single digit percentage to reach approximately $2.7 billion in 2022. The company expects first half revenues to increase in the low teens range compared to the prior year. Kontoor Brands’ gross margin is expected to be consistent with adjusted gross margin of 44.6 percent achieved in 2021. Expected increases from continued structural mix shifts to accretive channels such as Digital and International, as well as benefits of strategic pricing, are anticipated to be offset by higher transitory expenses, including freight, in support of strong demand.

The company’s EPS is expected to be in the range of $4.65 to $4.75. Its capital expenditures are expected to be in the range of $35 million to $40 million, primarily to support manufacturing, distribution and information technology projects.

The company expects an effective tax rate of approximately 21 per cent. Its interest expense is expected to be approximately $35 million and average shares outstanding of approximately 59 million, excluding the impact of potential additional share repurchases.

Authentic Brands Group (ABG) has finally completed the acquisition of the Reebok brand from Adidas. The €2.1 billion deal was first announced in August and marks the brand marketing company’s largest acquisition to date, as per a report by Women’s Wear Daily.

As per the deal, Sparc Group will be the operating partner for Reebok in the US and oversee its Boston-based global brand hub, the Reebok Design Group — to New Guards Group, the buzzy Milan-based division of Farfetch that will be Reebok’s core operator in Europe and will collaborate with the brand to create luxury collaborations that will be sold in more than 50 countries. Jamie Salter, Founder, Chairman and CEO, ABG says, the company will target $10 billion in revenues from Reebok over the next five years. To achieve this, the brand plans to explore its heritage at the intersection of sports and style.

Under ABG, Reebok will represent the company’s sole premium sports brand and the focus will be solely on growing the business. It will focus on the three segments of Classic, Training and Running that represent 80 percent of the overall athletic footwear market.

The Tirupur garment industry is caught in a strange predicament. On one hand, the multi-billion dollar industry has survived another COVID wave without lockdowns or large-scale migration of workers. On the other, it is facing raw material and infrastructural issues. In 2020-21, Tirupur exported garments worth Rs 24,700 crore. This year, it plans to step up exports to Rs 33,000 crore, says Raja Shanmugam, President, Tirupur Exporters Association (TEA).

In 2021, increased vaccinations, lifting of lockdowns and an anti-China outlook, helped India boost apparel exports. Rise in demand for casualwear due to the shift to ‘work from home’ mode also gave a boost to garment exports during the year. The third pandemic wave also offered certain advantages to garment exporters from India. They received several inquiries from overseas buyers that are likely to soon turn into orders.

Apparel makers’ profits to drop to single digits

Yet, domestic players and small and medium units are likely to face challenges as yarn prices and inputs costs may rise. T R Sivaram, Managing Director, Classic Polo says, apparel prices may spike around 40 per cent. This may result in a decline in profit margins of certain companies to single digits from double-digits. This may prove highly unsustainable for the industry, adds Sivaram. He adds, consumption in the domestic market has stagnated as buyers are scaling down purchases. They are no longer buying lounge wear, he adds. Rise in Omicron cases has also impacted store walk-ins while increased marked retail prices have affected sales.

Apparel volume fails to match value growth

The volume of Tirupur’s garment exports has not grown in proportion to their value, says MP Muthurathinam, President, Tirupur Exporters and Manufacturers Association (TEAMA). Export turnover has increased due to a rise in product prices, especially for medium and players, he adds. The Union government has failed to support the industry, adds Muthurathinam. He urges the government to study the China market that has captured 40 per cent of the overseas market with the support of its government.

Despite abundant supply of cotton, manpower and manmade fibers, India lags in global apparel market share. The country holds only 4 per cent share in the global apparel market as against 13 per cent held by Bangladesh and 12 per cent held by Vietnam. This is attributed to lack of government support to the industry, Mutharathinam affirms.

Rising prices threaten to derail growth

In China and Bangladesh, a single industrialist owns all verticals such as yarn making, knitting, dyeing and tailoring units. However, in Tirupur, profit margin of each player is fixed during sale to the next vertical. This increases the final price of the product, adds Muthurathinam. Raw material price hike is the single most dangerous threat facing the Indian garment industry, says Sivaram. Exporters are battling this fourth wave of the pandemic without any remedy in sight, he adds.

At a recent press meet of the association, Ravi Sam, Chairman, The Southern India Mills’ Association (SIMA) appealed to Prime Minister Narender Modi to allow duty-free import of 40 lakh bales of cotton to avoid stoppage of production and job losses due to cotton shortage during the end of the season.

Cotton yield to decline in current season

From April 2021 to January 2022, India’s exports of cotton yarn, fabrics and made ups increased 63 per cent from $7775 million to $12,681 million, Sam informed. India also witnessed 1.15 per cent acceleration in domestic cotton consumption during the current cotton season with the industry requiring 360 lakhs, surpassing the available crop size for the first time in the history. In 2021-22, India’s cotton yield is expected to decline by 7.2 per cent to 350 lakh bales against the requirement of 360 lakh bales due to a reduction in cotton acreage and crop damage in certain cotton growing states, Sam said.

India’s cotton supplies may reach 437 lakhs bales during the current season he estimated. Domestic cotton consumption estimates may reach 360 lakhs bales while exports may be 50 lakh bales, he added. India would have only 27 lakhs bales of closing stock, resulting in a shortage of 40 lakhs bales of good quality cotton to meet the industry demand and sustain its growth rate, he added.

TMC 2.0 to ensure clean cotton

To overcome shortage, Sam urged the government to implement the Technology Mission on Cotton 2.0 (TMC 2.0) to boost cotton production. As recommended by the Ministry of Textiles, TMC 2.0 will ensure technology development, technology transfer, clean cotton and branding Indian cotton and its textile products. The TMC 1.0 and Bt technology, has already boosted India’s cotton productivity from 275 kg per hectare to 585 ks per hectare, he added.

TMC 2.0 will benefit not just the existing 6.5 million cotton farmers but also several lakhs of new farmers in India. It will also create over 20 million new jobs in the country by increasing the total area under cotton cultivation, he added.

The Telangana state government and Texport Industries have teamed up to set up an apparel manufacturing factory on plug-and-play mode in the Sircilla Apparel Park. The factory will be set up with an investment of Rs60 crore

The company will initially install 800 machines and employ 1,600, and later expand to 1,000 machines to create more jobs over three years.

TIPL manufactures woven as well as knitted garments. It produces 1.6 million garments a month from 19 directly-owned facilities across the country. It employs more than 15,000 now and has an annual revenue of around Rs620 crore.

Two years on from France's first pandemic lockdown, Paris Fashion Week is returning to live shows.

The women's autumn-winter week commenced with Off-White, presenting the final collection by its founder Virgil Abloh.

Off-White retuned to the catwalk for the first time since the Covid-19 pandemic struck along with 45 other brands including Dior, Chanel and Hermes holding live catwalk shows.

Saint Laurent, which had dropped out of the official calendar during the pandemic, vowing to set its own schedule, returned to the regular line-up.

Others are presenting a mix of online films and in-house collections for buyers and press -- a concept that was devised during the pandemic and has remained popular with several houses such as Japan's Issey Miyake.

Before these shows, students from the French Fashion Institute will make a digital presentation focused on fashion for the metaverse.

Entrepreneurs have warned that Bangladesh may lose one of the most promising apparel export destinations if various Russian lenders are excluded from the SWIFT messaging system in response to the country's invasion of Ukraine

Western nations announced a harsh set of sanctions to punish Russia for its invasion of Ukraine, including blocking some banks from the SWIFT international payments system.

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the global financial artery that allows the smooth and rapid transfer of money across borders.

If the ban becomes effective, local exporters will face difficulties in receiving payments from Russian importers.

Russia is a growing export destination for Bangladesh's apparel items. In the July-January period of the current fiscal year, the country sent garment items worth $415.47 million, registering a 36.47 per cent year-on-year growth, data from the Export Promotion Bureau (EPB) showed.

Bangladesh shipped apparel items worth $593.66 million to Russia in the last fiscal year, comprising $373.25 million worth of knitwear items and $220.41 million worth of woven items.

The BGMEA has instructed its members not to accept any new work orders from Russia to avoid any hassles in payments.

Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association, said they are worried about the payment problem due to the uncertainty over the use of SWIFT in Russia.

German sportswear brand Adidas and Italian luxury fashion house Gucci have collaborated to launch the Adidas x Gucci collection that combines the tradition and design language of both brands. They have also shared a co-branded logo for the upcoming collection.

Some of the pieces from the upcoming range were unveiled at Gucci’s Autumn/Winter 2022 runway show at the Milan Fashion Week.

Adidas AG is a German multinational corporation, founded and headquartered in Herzogenaurach, Bavaria, that designs and manufactures shoes, clothing and accessories. It is the largest sportswear manufacturer in Europe, and the second largest in the world, after Nike.

Gucci is an Italian fashion house started in 1906 by Guccio Gucci. In 1938, Gucci grew bigger, and opened a small shop in Rome. Guccio Gucci designed many of the company's famous clothes. In 1947, Gucci made the bamboo -handle handbag. In the 1950s, it also made the striped webbing and the suede and metal moccasin shoes.

Lucy Rouse has been promoted the new vice president and general manager of Nike’s new innovative sneaker app SNKRS. She currently leads the brand’s women’s business in Europe, the Middle East and Africa along with its sportswear business. Rouse replaces Ron Faris who has been promoted as the Vice President and General Manager of the Nike Virtual Studios –Archivo. Rouse will assume the role of Vice President and General Manager of Nike’s prestige neighborhood sneaker boutique partners, SNKRS Launch, and S23NYC.

Employed with Nike for the last 16 years, Rouse has started her journey with the brand as an account executive in Australia in 2005. She went on to helm Nike's sportswear business in Europe, the Middle East and Africa, before leading its women’s business in the same region, according to her LinkedIn profile.

The appointment reshuffle comes after the Portland, Oregon-based company acquired RTFKT, a virtual sneaker design company and a studio for (NFTs, in December last year.

ShahidullahAzim, Vice President, BGMEA said, world-class workplace safety along with remarkable achievements of the RMG industry in the area of sustainability has made Bangladesh a preferred choice of global buyers for sourcing garments.

Azim was speaking as a special guest at the launching ceremony of the 8th International Fire and Safety and Security Expo 2022 organized by the Electronic Safety and Security Association of Bangladesh (ESSAB) in Dhaka on August 27.

Brigadier General Md Main Uddin, Director General of Fire Service and Civil Defence, attended the program as chief guest, reads a press release.

Azim said the apparel industry in the country has overcome extraordinary challenges that came its way and bounced back even stronger every time.Alongside workplace safety, Bangladesh has the highest number of green garment factories with 167 factories LEED certified by the US Green Building Council (USGBC), he added. Azimemphasized on the production of safety equipment in Bangladesh maintaining international standards.

He said,ESSAB has consistently organized the international Fire Safety and Security Expo as it brings safety equipment suppliers, professionals and users under one roof for fruitful interactions.It plays a significant role in showcasing the latest fire safety equipment and knowledge to the industries, thus raising awareness among the industries, he further said.

The 8th Fire Safety and Security Expo will be held from November 24 to 26 at Bangabandhu International Convention Center (BICC) where world-famous safety equipment brands will participate.