Industrial thread maker Coats Group expects its adjusted operating profit for 2020 to be above expectations and in the range of $100 million - $110 million. The group’s sales in the four months upto October 31 fell by 9 per cent year-on-year on a constant currency basis, which reflected a 15 per cent fall in apparel and footwear and a 6 per cent contribution from the acquisition of Pharr High Performance Yarns, which Coats acquired in February.
The company’s manufacturing facilities are effectively fully operational and it has seen an encouraging improvement in its brand and manufacturer order confidence into the peak trading season of September-November where production is primarily for the spring/summer 2021 season. The company’s inventory is also being cleared as expected.
