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Lululemon Athletica’s net revenue zooms

Lululemon
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Lululemon Athletica Inc., a yoga-inspired apparel athletic company, has announced financial results for the fourth quarter and fiscal year ended January 31, 2016. During the period under review, its net revenue increased 17 per cent to US $ 704.3 million from US $ 602.5 million in the fourth quarter of fiscal 2014 while total comparable sales, which includes comparable store sales and direct to consumer, increased by 11 per cent for the fourth quarter on a constant dollar basis.

Gross profit for the quarter increased by 14 per cent to US $ 354.5 million, and as a percentage of net revenue gross profit was 50.3 per cent for the quarter compared to 51.5 per cent in the fourth quarter of fiscal 2014. Income from operations for the quarter increased by 6 per cent to US $ 166.3 million, and as a percentage of net revenue was 23.6 per cent compared to 26.1 per cent of net revenue in the fourth quarter of fiscal 2014.

Its net revenue for the fiscal year increased 15 per cent to US $ 2.1 billion from US $ 1.8 billion in fiscal 2014 while total comparable sales increased by 10 per cent for fiscal 2015 on a constant dollar basis.

The retailer’s direct to consumer net revenue increased 25 per cent to US $ 401.5 million, or 19.5 per cent of total company net revenue in fiscal 2015, an increase from 17.9 per cent from fiscal 2014.

Also ReadLululemon Athletica updates its guidance for fourth quarter

Gross profit for fiscal 2015 increased by 9 per cent to US $ 997.2 million from US $ 914.2 million in fiscal 2014, and as a percentage of net revenue was 48.4 per cent compared to 50.9 per cent in fiscal 2014.

“I’m very pleased with our strong finish to the year with positive momentum across all channels. Our Q4 results are a reflection of our ability to deliver a truly unique experience to our guests, led, as always, by our outstanding store educators,” stated Laurent Potdevin, Lululemon’s CEO while commenting on the results.

 

ASBCI to organize ‘sustainability conference’ in April

ASBCI Sustainability
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ASBCI (Association of Suppliers to the British Clothing Industry) has announced to hold a Spring Conference 2017, which will take place on 5th April 2017 at the Marriott Hotel in Peterborough, Canada. Agenda of the conference will be ‘DOING THE RIGHT THING? – Best practices for sustaining our people, planet and profits’ and the event will be chaired by Simon Allitt, ASBCI Event Committee Vice Chairman and Head of Retail, TUV Rheinland.

It may be mentioned here that sustainability is placed on top of the global fashion industry’s agenda and according to ASBCI, ten years ago Marks & Spencer launched its game-changing Plan A. Since then most big brands and retailers have implemented their own robust ethical and environmental sustainability programmes with the collective objective of protecting people and the planet.

Also ReadGlobal Organic Textile Standard announces Version 5.0

The ASBCI sustainability conference has assembled speakers with unparalleled experience of the most effective and commercial, sustainable initiatives and innovations. The speakers will share their experience, insight and vision in a bid to give attendees a sustainable and profitable future.

The conference will have following sessions: Are You Doing the Right Thing (Rakesh Vazirani – Director of Product Traceability & Environmental Information Management TUV Hong Kong), Plan A 10 Years On (Mike Barry, Director Plan A, Marks & Spencer), Striving for sustainability in the clothing industry – an Overview of working with WRAP (Prof. Tim Cooper, Professor of Sustainable Design and Consumption, Nottingham Trent University), Fashioning Fibres for the Future (Robin Anson, Editorial Director, Textiles Intelligence), Cottoning On (Graham Burden, Director, Sustainable Textile).

Post-lunch session will cover topics such as, Water Use in the Textile Supply Chain (Elaine Gardiner, Sustainability Manager, Berghaus), Sustainability Together (Guido Rimini, Head of Marketing, Apparel Europe, Freudenberg Performance Materials Apparel SE & Co. KG Solutions), Closing the Loop (Ross Barry, Lawrence M Barry & Co) and Supply Chain Transparency – What have you got to lose (Tara Luckman, Fabric & Sustainability Manager, ASOS.COM)

 

Gildan Activewear to invest US $ 125 million in FY ’17

Gildan Unit
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Branded apparel manufacturer Gildan Activewear Inc. of Montreal, Canada has announced to invest US $ 125 million in production capacity during the 2017 fiscal year. The investment will support Gildan’s future growth, primarily for textile capacity related to the continued development of the Rio Nance 6 knitting facility in Honduras and capacity expansion along with garment dyeing as well as sewing facility expansion in Bangladesh.

Gildan said that the investment for knitting facility will help the company meet its production capacity needs as well as help achieve its sales growth target for higher-end products, planned for FY 2017 and optimize production efficiencies at its other textile plants.

Also ReadGildan Activewear taps sales surge in fourth quarter

According to Gildan, the expansion is an outcome of achieving a noteworthy 8.1 per cent increase in consolidated sales in the fourth quarter of 2016 compared to the corresponding quarter in 2015. Growth was primarily driven by the impact of the Alstyle and Peds acquisitions (contributed US $ 50 million in sales in Q4) in July 2016 and organic unit sales volume growth in Printwear which were sold in lower net selling prices.

With all the expansion and investment plans by Gildan, net sales in 2017 in the Printwear and Branded Apparel segments are each expected to increase in the high single digit. For Printwear sales, the company is assuming overall unit sales volume growth, including continued penetration in the fashion and performance segments of the North American market, and double digit international Printwear shipment growth which is expected to offset the assumption of unfavourable foreign exchange impacts.

 

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RYU partners with Polygiene for odour-free apparel

RYU Odour Free Apparel
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US-based athletic apparel brand, RYU Apparel Inc., has teamed up with Polygiene on a new line of Vapor tanks for men and women. “We are excited about our partnership with RYU and to expand our partnership roster with a core training brand that shares many of our values,” said Christian von Uthmann, CEO of Polygiene – a Europe-based apparel company which works globally with over 100 renowned apparel brands.

Also ReadHollister debuts performance jeans in collaboration with INVISTA

RYU’s (Respect Your Universe) new Vaporcollection uses Odour Control Technology, powered by Polygiene which prevents the growth of odour-causing bacteria and fungi at the source as technology is bound and permanently integrated in the fabric that would not wash out. The company believes this Vapor Collection will boost the trust and comfort level of the wearer and with the Polygiene functionality, RYU can offer great products that stay fresh and don’t need to be laundered after every use.

Juliet Korver, Product Director of RYU said, “We’re always searching for ingredient partners that will help us elevate our designs. The Polygiene treatment helps our new Vapor collection reach that “no compromise” zone, where the wearer can work out hard and stay fresh.”

 

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Apparel Textile Sourcing Canada to expand its space in 2017

Attendance spotlight
Image Courtesy: appareltextilesourcing.com

Canada’s only apparel and textile sourcing show, Apparel Textile Sourcing Canada (ATSC), announced recently that it has secured 50 per cent increase in exhibit space for its second edition which is scheduled to take place at Toronto’s International Centre from August 21- 23 in 2017.

The trade show and conference that debuted in 2016 is all set to bring hundreds of apparel and textile manufacturers from around the world, including China, India, Bangladesh, Pakistan, the U.S., the U.K., Mexico, Colombia, Peru and many more to the country. Through seminars and sessions, attendees-especially Canadian ones-can make global industry connections, and gain the insights needed to navigate the international sourcing process.

Also ReadCanada’s first-ever apparel & textile sourcing fair from August 22-24

Jason Prescott, CEO of JP Communications, the trade show producers, “Now Canadian companies have the luxury of staying local and avoiding expensive and unnecessary international travel. The event connects Canada to the world of global trade…in Toronto!”

 

Activewear manufacturer Tefron shifts its headquarters to Montreal

Tefron’s MoU with City of Montreal
Image Courtesy: montrealinternational.com

Tefron, an Israel-based manufacturer of seamless activewear and intimate apparel, has signed an MoU with the City of Montreal to move its North American Headquarters from New York City to Montreal, Canada. According to the company, the expansion of the Montreal office and its designation as North American Headquarters will allow the team to continue to grow beyond the ten-fold expansion it has undergone since 2012. Tefron depends on its Montreal-based management team to steer the business to enhanced growth and profitability.

The current team of 30 at Tefron’s Montreal office manages the company’s sales, customer service, design, production, sourcing, IT, invoicing, administration, business analysis, logistics, and accounting functions. Additional roles will soon be added in R&D, HR, and global marketing.

Also ReadUSA sees resurgence of textile & apparel manufacturing: Report

Denis Coderre, Montreal, Mayor commented, “After many difficult years in the textile and fashion industry, Montreal is returning as a major player, notably thanks to the efforts of ‘mmode’, a fashion cluster organisation. The fact that Tefron is shifting its head office to Montreal sends a strong signal of the city’s importance in the clothing industry.”

Tefron offers innovations like seamless sewing, 3D sewing, and wearable technology as white label product to some of the world’s largest and most well-known brands including Victoria’s Secret, Under Armour, Adidas, Pink, and Walmart. Tefron’s Montreal Headquarters will be the main point of contact for managing the entirety of its North American operations.

 

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Gildan Activewear proposes acquisition of American Apparel

American Apparel Store
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Canada-based apparel manufacturer, Gildan Activewear Inc., has entered into an Asset Purchase Agreement (APA) to acquire the worldwide intellectual property rights related to the American Apparel brand and certain assets from American Apparel LLC, a US-based manufacturer of fashion basics, for a cash purchase price of approximately US $ 66 million. The closing of the transaction is however subject to approvals by the American Apparel bankruptcy process and customary conditions, and is expected to occur during the first quarter of 2017.

The move aims to create revenue for the company as American Apparel is a highly recognised brand among consumers within the north American printwear channel. Gildan will also separately purchase inventory from American Apparel to ensure a seamless supply of goods in the printwear channel while the company integrates the brand within its printwear business. However, Gildan will not be purchasing any retail store assets of American Apparel.

Also ReadAmerican Apparel heading towards bankruptcy again!?




 

American Apparel today voluntarily filed for Chapter 11 Bankruptcy Protection. The Bankruptcy Court may require American Apparel to hold an auction for its assets and business under which the proposed acquisition would constitute the initial bid. Consummation of the acquisition would be subject to Gildan being selected as the successful bidder in any such auction and Bankruptcy Court approval.

 

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RYU Apparel reveals Q2 results

RYU Apparel
Image Courtesy: modernmixvancouver.com

RYU Apparel Inc., a tailored technical urban athletic apparel brand engaged in the development, marketing and distribution of apparel, bags and accessories, has noted a 28 per cent surge in revenue in the second quarter of the year at US $ 339,307 compared with US $ 265,757 in the first quarter of the year.

“We have had cumulative revenue of US $ 850,231 since RYU relaunching in November 27, 2015 and we are extremely content with our year to date revenue performance,” gladly states Marcello Leone, CEO of the company.

Also ReadFast Retailing reveals quarterly results

Ryu Apparel, which has a market cap of US $ 11.37 million, offers tops, bottoms, outwear and a range of accessories for both men and women. The company recently opened a new store in Canada as part of its expansion plan.

“The addition of our second and now third stores will allow us to deliver our product to a much broader demographic. Also, with the opening of new stores in Vancouver, stronger revenue is anticipated,” said the CEO of RYU Apparel.

 

Gildan’s 2015 CSR Report out

Gildan CSR
Image Courtesy: mygildan.com

Gildan Activewear, a leading manufacturer and marketer of quality branded basic family apparel, including T-shirts, fleece, sport shirts, underwear, socks, hosiery, and shapewear, has released its Corporate, Social and Environmental Responsibility (CSR) report for the year 2015. In 2015, the company continued to invest in its vertically-integrated business model, enabling it to identify and manage the environmental, social and community impacts of producing its apparel.

In the report, the company states that its five-year (2010-15) environmental goals are focused on uncovering potential opportunities to improve efficiencies and reduce their environmental footprint. Over the five-year period, Gildan achieved 34 per cent reduction in greenhouse gas emissions per kg of production since 2010, largely achieved through the use of biomass, 14 per cent  reduction of energy per kg of production achieved through installation of high efficiency steam absorption chillers running on steam produced by the company’s biomass steam generation expansion, 17 per cent  decrease in water per kg of production, translating into savings of approximately 3.85 million cubic metres of water or the equivalent of over 1,500 Olympic-sized swimming pools, as compared to 2010 primarily achieved through investments in modern jet dyeing machines. 89% recycling or re-purposing of total waste and 19 per cent reduction in waste sent to landfills in 2015.

“We are tremendously proud of the progress we have made in the last five years to improve our efficiency in using natural resources and reducing our emissions,” said Benito Masi, Executive Vice-President, Manufacturing – Gildan.

Also ReadGildan bags Distintivo ESR 2016 Award

Furthermore, to provide employees with a safe and healthy work environment, Gildan provided 142,700 medical consultations to employees in 2015 through its free on-site medical clinics, including basic medications, prenatal care and health education programmes. They also provided subsidized meals and free transportation to employees, and fostered an environment of continuous learning through the delivery of almost 1,000,000 man-hours of training.

 

‘TPP to benefit Canadian retailers & manufacturers’

TPP Canada
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Post various reports on how Trans-Pacific Partnership (TPP) will prove fruitful to countries like Vietnam, US and others…, a latest report by a law firm Dentons states that the TPP has lot of opportunities in store for Canada-based retailers as well.

The 12-nation (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam) TPP will provide an opportunity to the retailers and manufacturers of Canada to capitalize on the reductions in the rates of duty, which will help them increase their overall exports as well as imports into the country.

Also ReadTPP to have ‘positive impact’ on retailers & consumers: NRF

According to Global Affairs Canada, the TPP’s textile and apparel Rules of Origin will make Canadian manufacturers more flexible in terms of sourcing options by enabling Canada’s access to trade with the other member countries as it will reduce and eliminate tariffs associated with textiles and apparel trading.

The report further states that the Short Supply List, in the TPP, gives exemption in the Yarn Forward Rule in situations where manufacturers are not able to source certain fibres and fabrics from within the TPP regions. There are 194 fibres and fabrics on the Short Supply List, however, some fibres and fabrics are listed as temporary and will be removed from the list five years after the TPP has taken effect.

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Gildan Activewear sees rise in net earnings

Gildan
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Canada-based branded apparel supplier, Gildan Activewear has witnessed an increase of 12.9 per cent in its net earnings to US $ 63.2 million in the first quarter of the current fiscal, ended April 3, 2016, as against US $ 56 million in the same period last year. The company attributes surge in earnings to cost savings in production because of its continuous investments in vertical manufacturing, including its yarn spinning initiative, and lower input and raw material costs.

However, Gildan noted a drop of 6.7 per cent in net sales in the reporting quarter to US $ 593.3 million versus US $ 636.2 million in the corresponding period last fiscal. Its adjusted net earnings zoomed 20 per cent to US $ 69 million as against US $ 57.5 million in the prior quarter. Diluted earnings per share stood at US $ 0.26 in the period under review as compared to US $ 0.23 in the previous quarter.

Also ReadGildan bags Distintivo ESR 2016 Award

For the full-year, the company expects net sales in excess of US $ 2.6 billion. It also predicts that printwear sales will be around US $ 1.6 billion, while branded apparel sales are likely to go beyond US $ 1 billion.

 

Gildan bags Distintivo ESR 2016 Award

Corporate Social Responsibility
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Being socially responsible not only adds to the company’s portfolio but also shows that other than focusing completely on business operations, it also lays importance on its people and surrounding. Recognizing the same, Mexican Center for Philanthropy (Cemefi) and Alliance for Corporate Social Responsibility (Aliarse) have presented ‘Distintivo ESR 2016 Award’ to Gildan Activewear – a Canadian manufacturer of branded clothing, including undecorated blank activewear such as t-shirts, sport shirts and fleeces – for its Corporate Social Responsibility (CSR) efforts.

Also ReadGildan Activewear included in Dow Jones Sustainability World Index for third consecutive time

Content on winning the award, Benito Masi, Executive Vice-President, Manufacturing, Gildan averred, “It is an honour to be recognized by progressive organizations in Latin America for the efforts that we are making to provide good working conditions for our employees, minimize our environmental footprint and nurture the communities in which we operate. At Gildan we have a strong commitment to operating responsibly and sustainably, as a core element of our business model and key driver of our future growth and success.”

The company said in a press release that it is committed to ensure safe, ethical and fair working environment for its employees, with other facilities, like free medical care and subsidized transportation and meals.

Also ReadOrient Craft focusing more on CSR initiatives

Gildan also undertakes projects to improve schools’ infrastructure, implement health programmes and offer educational programmes, to improve the quality of life of our employees and their communities. Moreover, it works in a spirit of collaboration with NGOs to address issues within the apparel industry.