Anticipating weakening sales, clothing brands are reducing orders, as reported by Bloomberg News. Factory owners have witnessed notable declines in holiday orders from retailers, and there is an expectation of a significant plunge in demand from at least one company that collaborates with major brands.
“Anxiety in the apparel market is clearly evident,” commented Sheng Lu, an associate professor of apparel studies at the University of Delaware, in an interview with Bloomberg.
According to the report, the decline in imports and orders highlights the concerns of merchants regarding a potential dip in spending, even though some of the decline can be attributed to retailers’ efforts to minimise excess inventory.
This anxiety among merchants comes after a period of strong growth in the past few years.
Wei Wang, owner of a California knitwear factory producing sweaters for brands like Ralph Lauren, observes the apparel industry’s challenging state through the sound of his knitting machines.
Wei Wang noted that typically the knitting machines are much louder, indicating higher production levels. However, he mentioned that orders have decreased by 30 per cent to 40 per cent compared to the previous year, despite the expectation of increased production for the fall and holiday sweater season.
Macy’s faces revenue challenges with declines in brick-and-mortar and digital sales. This led to Macy’s revising its yearly sales and profit forecasts downward, pointing to a deceleration in demand caused by inflation as the primary factor.
