The revenues of Fast Retailing brand Uniqlo International grew 13.7 per cent Y-o-Y to ¥841.2 billion while the operating profit of the brand grew by 35.8 per cent Y-o-Y to ¥132.7 billion during the first nine months of FY23. The depreciation of the Japanese yen boosted sales and operating profit in yen terms. However, growth in local currency terms was boosted by a significant increase in revenues and profits from the South Asia, Southeast Asia and Oceania region and the North America and Europe (excluding Russia) regions. Revenues and profits from the Greater China region declined owing to the restrictions on general movement put in place to address the spread of COVID-19 infections.

Uniqlo’s parent company, Fast Retail Group’s revenues and profit rose to ¥1.7651 trillion and  ¥271.0 billion during the first nine months of the current financial year. The company also recorded finance income net of costs of ¥78.1 billion due to the recording of a ¥77.8 billion foreign-exchange gain on foreign-currency denominated assets and other items. As a result, profit before income taxes rose by 42,2 per cent Y-o-Y to ¥349.2 billion yen.

Fast Retailing is advancing its LifeWear concept in everyday clothing. The entire Fast Retailing Group will accelerate its transition to a new business model based on the LifeWear concept. It will focus on the six principles of creating new value through products and services; respecting human rights in its supply chain; respecting the environment; strengthening communities; supporting employee fulfillment and implementing good corporate governance.

China’s Fosun International plans to expand its portfolio by adding the Lanvin and St John Knits fashion brands, indicating a resilience of the luxury industry to current inflation and recessionary pressures. As per a SCMP report, Fosum will first list Lanvin on the New York Stock Exchange via a blank-check company in October or November. The brand will be acquired later next year, says Joann Cheng, Chairman and CEO, Lanvin Group. 

Lanvin owns the eponymous French fashion brand as well as Italian shoemaker Sergio Rossi, Austrian lingerie brand Wolford, US womenswear St John Knits and Italian menswear brand Caruso.  The company plans to boost US and China sales besides expanding its product range, diversifying beyond European brands and targeting younger consumers. The brand was acquired by Chinese conglomerate Fosun in 2018. 

The acquisition could follow the template established by Lanvin’s acquisition of Sergio Rossi last year, which allowed it to expand its accessories range, says David Chain, COO. The company aims to tap the beauty and skin care sectors. 

In 2021, Lanvin’s  revenue grew 39 per cent, including sales from Sergio Rossi after the brand was acquired in the second half. The brand is poised to achieve profitability before taxes, depreciation and other items by 2024 as planned. It also filed its registration statement to list with the Securities and Exchange Commission.

Global cotton trade is either likely to remain stagnant or will rise marginally in the next global season despite production increasing by 3.3 per cent, says US Department of Agriculture (USDA).  The association attributes this to the decline in consumption by China, Bangladesh, and Vietnam due to negative macroeconomic forces dampening consumer demand for goods. The World Bank and the Organization for Economic Co-operation and Development recently downgraded global economic outlook while the International Monetary Fund also projected a decline, as per USDA’s latest ‘World Markets and Trade’ outlook.  

The decline in projected consumption is attributed to factors including the recent rise in cotton prices, high container rates and limited supply, besides rising inflation and hike in interest rates globally, including the Federal Reserve’s recent actions, the association added.  

Next season’s global output is likely to reach 153.7 million bales (of 170 kg each) against 148.80 million, estimated USDA. India and China will produce 35.2 million bales each, it added. India’s cotton crop this season will increase by 12 per cent to 31.37 million bales, in line with the trade’s revised estimates, while China’s crop is projected at 34.5 million bales. 

The USDA has lowered its global crop estimates for next season from 155.31 million bales a month ago. Subsequently, it lowered consumption for next season from its outlook a month ago. However, it will be marginally higher than the current season.

Consumption or next season is estimated at 153.49 million bales against 153.42 million bales this season. Global imports are estimated at 59.38 million bales against 55.48 million bales. However, they are lower than the June outlook of 60.81 million bales.

Burberry aims to add 65 newly designed stores in FY23 to the 47 it rolled out last year. The brand continues to target high-single digit revenue growth and 20 per cent margins in the medium term. Despite significant disruption from lockdowns in Mainland China, its comparable store sales grew 1 per cent in Q1 FY23. The brand witnessed strongest growth in the EMEIA regions. Its focus categories, leather goods and outerwear, continued to perform well outside Mainland China. During the quarter, the brand continued to invest in brand and product, generating a high level of engagement on social media as well as driving traffic to its website and adding almost half a million new profiles to our global customer database.

In April, Burberry expanded its Lola handbag range and supported it with a series of pop-ups and pop-ins as well as a campaign, starring Bella Hadid, Lourdes Leon, Jourdan Dunn and Ella Richards. Alongside this, it also introduced a virtual collection on online gaming platform Roblox.  In May, the brand launched its seasonal TB Summer Monogram collection with a new campaign starring Gisele Bündchen. It also launched a collection at Neiman Marcus, wrapping the exterior of its store in Atlanta in the TB Monogram and opening a pop-up inside.

Burberry’s new product launches and seasonal collections performed strongly during the quarter. Its Leather goods comparable sales by grew 21 per cent outside of Mainland China, led by the Lola handbag range. Outerwear comparable sales increased 19 per cent outside of Mainland China, driven by rainwear and jackets.

In June, Burberry again collaborated with Mythical Games to launch a new NFT collection in their flagship title, Blankos Block Party. Mostly recently, Burberry roped in the South Korean Premier League footballer Son Heung-min as its new brand ambassador.