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Skechers has entered into a definitive agreement to be acquired by investment firm 3G Capital in an all-cash transaction valued at approximately $9.4 billion.
According to the terms of this deal, 3G Capital will purchase Skechers for $63 per share, representing a 30 per cent premium over the brand’s recent stock price. The deal has received unanimous approval from the Skechers board of directors and is expected to close in Q3, FY25, pending regulatory approvals and customary closing conditions.
Founded in 1992 as a men’s footwear label, Skechers has grown into the third-largest footwear company in the United States. The brand went public in 1999 and made its debut on the Fortune 500 list in 2023, highlighting its rapid growth and strong market presence over the past three decades.
The acquisition comes at a pivotal time for both Skechers and the broader footwear industry. In April, the company reported record-breaking Q1, FY25 revenue of $2.41 billion, marking a 7.1 per cent Y-o-Y. However, despite the strong performance, Skechers withdrew its 2025 financial guidance, citing ongoing uncertainty in global economic conditions and trade dynamics.
Robert Greenberg, Chairman and CEO, Skechers will remain at the helm following the acquisition. He reaffirmed the company’s commitment to innovation and expressed optimism about the future with 3G Capital as a strategic partner.
Founded in 2004 as a spin-off of Brazil’s GP Investments, 3G Capital is well-known for its investments in major consumer brands such as Anheuser-Busch InBev and Kraft Heinz. Co-founders Alex Behring and Daniel Schwartz describe Skechers as ‘an iconic, founder-led brand with a proven history of creativity and innovation.’
During a cabinet meeting at the White House attended by President Donald Trump on April 30, Lori Chavez-DeRemer, US Labor Secretary announced the cancellation of a project focused on improving transparency and labor practices within Uzbekistan's cotton industry.
Having commenced in August 2022, the now-canceled Uzbek cotton project was originally slated to continue through 2026. It received $2 million in its initial year, with an additional $1 million earmarked for 2025. The project's aim was to enhance labor conditions and prevent forced labor within Uzbekistan’s cotton sector, while also assisting workers and employers in meeting international standards.
Uzbekistan’s cotton industry has faced significant international criticism for its historical systemic use of forced labor. However, in recent years, the Uzbek government has implemented reforms and established stringent monitoring systems to address these concerns, often with the support of international partners.
These efforts have led organizations like the Cotton Campaign to end their call for a global boycott of Uzbek cotton. Furthermore, the industry is undergoing modernization through privatization and investments in technology, with the goals of increasing efficiency and sustainability.
A prominent player in the synthetic fiber market with over three decades of manufacturing expertise, Filatex India is significantly expanding its production capabilities and sustainable practices through strategic investments of Rs 320 crore. These investments position the company to lead the next phase of growth in India's synthetic fiber sector while meeting the evolving demands of the global textile supply chain.
A key component of this expansion includes the significant increase in production capacity at Filatex's Dahej facility. This project involves the addition of 19,800 mtpa of partially oriented yarn (POY), 28,800 mtpa of fully drawn yarn (FDY), and 14,400 mtpa of draw textured yarn (DTY). With a total investment of Rs 235 crore, these new facilities are set to be commissioned by August 2026. This expansion will help strengthen Filatex’s position as a leading integrated polyester yarn producer in India, aligning with increasing domestic and international demand for synthetic fibers.
Demonstrating a strong commitment to sustainability and efficient energy use, Filatex’s board has also approved an Rs 85 crore Steam Power Distribution Project. Fully funded through internal accruals and expected to be commissioned by April 2026, this initiative will utilize approximately 70 tons per hour (TPH) of surplus steam from the company's captive power plant to supply nearby smaller businesses. This project is projected to generate annual savings of around Rs 60 crore and fosters collaboration within the local industrial community.
In the FY25, Filatex registered a robust revenue of Rs 4,252 crore and an EBITDA of Rs 258 crore. The company’s profit after tax increased by 22 per cent Y-o-Y to Rs 135 crore. Its annual manufacturing capacity reached 410,040 mt, supported by strong operational efficiency.
Filatex offers a diverse product portfolio, including POY, FDY, DTY, polypropylene yarns, polyester chips, and narrow woven fabrics, catering to a wide range of applications across apparel, home textiles, healthcare, and industrial uses. The company is also driving innovation and sustainability through its ‘Ecosis’ initiative, India’s first textile-to-textile circular recycling solution.
Trutzschler India has inaugurated its cutting-edge manufacturing facility in Sanand, near Ahmedabad, Gujarat, marking a significant milestone in its growth journey. The new plant replaces its earlier site in Ahmedabad and aims to boost operational efficiency, sustainability, and innovation for both domestic and international markets.
The inauguration ceremony was attended by Chief Minister of Gujarat Bhupendra Bhai Patel, Germany’s Consul General Achim Fabig, and Member of Parliament Parshottam Ji Rupala, alongside the Trutzschler and Schurenkramer families, the Trutzschler Group management, and CEO of Trutzschler India, Joseph Thomson. A large gathering of customers, partners, and employees joined the event, which featured inspiring speeches, networking, and a cultural program.
Spanning 164,000 square meters with a built-up area of 72,000 square meters, the new plant employs over 1,000 people. It is equipped to manufacture spinning preparation machines, card clothing, and nonwoven equipment, supporting both Indian and global demand. The facility has been designed with strong sustainability credentials and is targeting a gold rating from the Indian Green Building Council. It is also certified under ISO 9001:2008, ISO 14001:2015, and ISO 50001:2018 standards.
Sustainability features include solar panels, rainwater harvesting, electric vehicle charging points, and AI-driven process optimization. Additionally, the plant houses a new Customer Training Center and an expanded Trutzschler Training Academy, supporting the Skill India Mission.
CEO Joseph Thomson emphasized the plant's role in meeting rising market demands with advanced, eco-conscious technology, expressing gratitude to all stakeholders involved in bringing the project to life.
To determine the fiber content in linen fibers, especially in blended yarns or fabrics, the ASTM provides several standard test methods that focus on quantitative chemical analysis and microscopic identification. These are particularly useful when flax (linen) is blended with fibers like cotton, polyester, viscose, or synthetics.
Key ASTM standards to determine fiber content in linen fibers
1. ASTM D629 – 15 (Reapproved 2020)
- Title: Standard Test Methods for Quantitative Analysis of Textiles
- Purpose: This is the primary ASTM method for determining the percentage composition of fibers in textile products.
- Applies to: Blended fibers including linen (flax) with cotton, wool, polyester, rayon, etc.
Test methods included: The test methods included in this standard include chemical dissolution using selective solvents, mechanical separation techniques and calculation of fiber percentages by weight. For example: If linen is blended with cotton, a specific reagent dissolves cotton while leaving linen intact, allowing for separation and quantification.
2. ASTM D276 – 20
- Title: Standard Test Methods for Identification of Fibers in Textiles
- Purpose: For qualitative identification of fibers (e.g., confirming linen is present).
- Methodologies: The test methods used for this standard include:
- Microscopy: This is used for flax fibers which have distinctive nodes and irregular cross-sections.
- Burn tests, solubility tests and staining techniques
This test method used for verifying linen vs cotton vs viscose, especially when visually similar.
3. ASTM D1577 – 07 (Reapproved 2020)
- Title: Standard Test Methods for Linear Density of Textile Fibers
- Relevance: While this standard focuses on fiber fineness, it helps in differentiating fiber types during analysis.
4. ASTM D1909 – 13 (Reapproved 2020)
- Title: Standard Table of Commercial Cotton Yarn Numbers
- Relevance: This test method supports classification when linen is blended with cotton, by referencing standard count systems.
Common use-cases for ASTM D629 (Quantitative Analysis):
|
Blend Type |
Separation Method (per D629) |
|
Linen + Cotton |
Acid/base digestion of cotton |
|
Linen + Polyester |
Solvent for polyester (e.g., phenol) |
|
Linen + Viscose |
Cuprammonium or zinc chloride solution |
|
Linen + Acrylic |
Acetone or dimethylformamide (DMF) |
|
|
|
Additional tools:
- FTIR (Fourier Transform Infrared Spectroscopy): Sometimes used for blended fiber analysis.
NIR (Near-Infrared): Rapid analysis of fiber blends, though not standardized under ASTM yet.
Building on a successful April initiative in Alangulam, Tenkasi, three women’s self‑help groups in Vannikonenthal, Tirunelveli district, Tamil Nadu, have launched a new ready‑to‑wear garment facility.
Supported by the Department of Micro, Small and Medium Enterprises, this project was development with an investment of Rs 1.15 crore and brought together 20 SHG members to partner with a major exporter in the SIDCO Industrial Estate, Valliyoor. It now employs 80 women directly and supports over 200 indirectly, producing not only ready‑to‑wear garments but also embroidery, pattern‑making, cutting, stitching, ironing and packaging for international markets.
The Vannikonenthal unit follows the same model. The Department of Backward Class and Denotified Community Welfare awarded Rs 3 lakh to each of three SHGs (ten women apiece) to set up the cluster. These groups have already signed supply agreements with established exporters in Rajapalayam and Srivilliputtur.
Under this arrangement, SHG members receive fabric and trims from the export houses, stitch the garments at the new facility, and return finished pieces for global distribution. Payments for each garment are credited directly to the women’s bank accounts, based on output and style.
The National Union of Textile, Garment, and Tailoring Workers of Nigeria (NUTGTWN) recently praised the government's approval to establish a Textile and Garment Development Board. The union called this decision a significant move to revitalize the country’s long-ignored textile industry.
Issa Aremu Godonu Ali Baba, General Secretary, NUTGTWN, says, it’s commendable that the current administration is taking concrete steps to re-industrialize the country and bring back the labor-intensive textile and garment industry.
The union is optimistic that the board will support the modernization of the textile value chain, improve worker productivity, and reposition the industry for global competition.
The Union states, the board will be privately run, with input from public sector stakeholders. Its funding will come from taxes on textile imports collected by the Nigeria Customs Service.
The board will include governors from Nigeria’s six geopolitical zones, along with the ministers of agriculture and food security, budget and economic planning, and industry, trade, and investment.
The union pledged to intensify its efforts and expand its activities in areas such as skills development, conflict resolution, and national and international cooperation.
Once a staple in American fast fashion, Forever 21 has officially shuttered all 354 of its US stores, with closures completed by May 1. The move follows the retailer's Chapter 11 bankruptcy filing in March with the US Bankruptcy Court for the District of Delaware.
The retailer started closing many of its locations from April 1 onwards. As per court documents obtained by USA Today, it plans to shut down the remaining stores by the beginning of May. However, the brand’s international locations will continue to operate, as per its website.
The company’s financial struggles reflect broader shifts in the retail landscape. According to The Street, approximately 57 per cent of global online shoppers purchase at least some of their clothing online, and more than 20 per cent of all fashion sales now occur via e-commerce. As a result, traditional brick-and-mortar retailers are seeing fewer in-store shoppers, making it harder to stay afloat.
Brad Sell, CFO, Forever 21, cities multiple reasons including growing competition from foreign fast fashion brands, rising operational costs, and changing consumer preferences for the bankruptcy. Forever 21 has also been hit hard by economic pressures and an increasingly competitive market.
One major challenge faced by the company is the de minimis import exemption, which allows goods valued under $800 to enter the U.S. duty-free. This gives overseas e-commerce giants like Shein and Temu a pricing advantage, allowing them to offer cheaper products without paying import taxes—something US retailers can’t easily match.
Parent company, F21 OpCo had hoped a buyer would step in to rescue the brand and halt store closures, but as of April 30, no serious offers had materialized.
Despite the shutdown of its physical locations, some industry leaders remain optimistic about the brand's future. Jarrod Weber, Global President, Lifestyle, Authentic Brands, one of the most recognizable names in fast fashion, Forever 21 is adapting to strike the right balance across physical stores, e-commerce, and wholesale.
While the brand’s expansion in US has ended, it is expected to focus on its global footprint and digital presence moving forward.
India’s cotton yarn industry is poised to clock 7-9 per cent revenue growth in fiscal 2026, up from 2-4 per cent in the previous year, backed by a rebound in exports especially to China and steady domestic demand. This growth will be volume-led, supported by a modest rise in yarn prices.
Operating margins are projected to improve by 50-100 basis points this fiscal, following a recovery last year, thanks to stable cotton yarn spreads and enhanced domestic cotton availability from the Cotton Corporation of India (CCI).
An analysis of 70 major spinners, contributing 35-40 per cent of the industry’s revenue, indicates that export recovery will be the key driver. Cotton yarn exports, which make up around 30 per cent of revenue, are expected to grow 9-11 per cent, reversing last year’s 5-7 per cent decline. China, which accounts for 14 per cent of yarn exports, is resuming imports as its domestic cotton production normalises.
According to Crisil Ratings, spinners will benefit from India's stable cotton production and regain market share in China. Additionally, India’s textile exports to the US remain competitive due to higher tariffs on Chinese goods, supporting 6-8 per cent growth in downstream sectors like home textiles and garments.
CCI’s extensive procurement in the current cotton season will ensure supply stability, reduce inventory losses, and further support profitability. Capital expenditure will stay moderate, containing debt levels. With better margins and efficient working capital use, interest coverage is set to rise to 4.5-5 times, while gearing remains stable at around 0.55-0.6 times.
However, changes in global tariffs, inflation, or a demand slowdown in the US could impact this positive outlook.
The rarefied world of luxury goods is facing a numerous challenge that strikes at the very heart of its allure: exclusivity. Social media platforms like TikTok have become a stage for Chinese factories to assert their role in producing handbags for iconic brands such as Gucci, Louis Vuitton, Hermes, Dior, Coach, and Prada, offering to sell these goods directly to consumers. This revelation, regardless of its veracity, casts a shadow of doubt over the industry and forces a critical examination of authenticity, origin, and the very nature of luxury in a globalized world.
Genuine or fake, impact on brand image
The immediate question is whether these claims point to the production of genuine goods or mere knock-offs. Either scenario presents a significant threat to luxury brands. If the claims are true and a substantial portion of the manufacturing process occurs in China, with only finishing touches applied in Europe, the ‘Made-in-Italy’ or ‘Made-in-France’ label loses its prestige and the premium pricing it commands. This exposes a vulnerability in existing system, particularly given the EU's lax country-of-origin rules.
Conversely, if these factories are producing counterfeit goods that are virtually indistinguishable from the originals, the brand's value is diluted. The core appeal of luxury items lies in their exclusivity and the status they confer upon the owner. As the document highlights, "The woman who spends $25,000 for a Louis Vuitton handbag does so for the status, knowing that very few belong to her class". The proliferation of indistinguishable, lower-priced alternatives erodes this exclusivity, undermining the brand's carefully cultivated image.
Is it misfired backlash
It's noteworthy that many of the luxury brands in question are European. While the claims originate in China, it's debatable whether this constitutes a "misfired" hit due to the ongoing trade tensions between the US and China. The issue at hand transcends geopolitics; it's fundamentally about brand integrity and supply chain transparency. Regardless of the broader political context, the potential for reputational damage to European luxury brands is undeniable. The focus is shifting towards the actual production of goods, and this is where China's role is being questioned.
Impact on genuine luxury buyers
The impact of this perceived dent in brand image on genuine luxury buyers, particularly in the US, is complex. It's likely to affect different segments in varying degrees.
Core luxury buyers: These high-net-worth individuals often seek out rare and exclusive items, valuing heritage and craftsmanship. While concerns about authenticity might give them pause, their purchasing habits may be less affected in the long run, especially if brands can reinforce their commitment to quality and exclusivity (e.g., through bespoke services, limited editions, and private sales).
Aspirational luxury buyers: This segment, which includes those who purchase luxury goods as a symbol of upward mobility, is more vulnerable. Their purchase decisions are heavily influenced by the perceived status associated with the brand. If that status is compromised, they may be discouraged from investing in luxury goods.
For example, Hermes a brand built on heritage and meticulous craftsmanship faces a crisis of confidence if doubts arise about its production processes. The strategic response must involve radical transparency, reinforcing the "made-in-Europe" narrative with detailed supply chain information, and potentially investing in even more exclusive, limited-edition offerings to reaffirm exclusivity.
However, a brand like Louis Vuitton with a broader appeal might see a more significant impact on its aspirational buyer base. Their strategy could involve diversifying into experiential luxury (e.g., exclusive travel, events) and focusing on brand storytelling that emphasizes heritage and artistry, rather than just the status associated with owning the product.
Even though precise figures on genuine vs. aspirational luxury buyers across the US, EU, and other regions are difficult to pinpoint, as these categories are fluid and depend on various factors like income, lifestyle, and purchase motivation market research firms like Statista and Bain & Company provide valuable insights into the luxury goods market. Reports consistently suggest the significant growth of the luxury market in Asia, with China being a key driver. This highlights the importance of addressing the current challenges to maintain brand value in this crucial market. Studies also indicate a growing demand for authenticity, sustainability, and ethical sourcing among luxury consumers, particularly younger generations. Brands that fail to address these concerns risk alienating a significant portion of their target audience.
Therefore, the claims on the production of luxury goods in China have started a crucial conversation about authenticity, origin, and the evolving nature of status. While the immediate impact on sales may vary, the long-term implications for luxury brands are profound. They must prioritize transparency, reinforce their commitment to quality and exclusivity, and adapt their brand narratives to resonate with a more discerning and informed consumer base. Failure to do so could lead to a significant erosion of brand value and a fundamental shift in the luxury landscape.
