Global Apparel Markets: Business Update, 4th Quarter 2012
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; company strategies; corporate social responsibility (CSR); financial results; international trade policy; investments; joint ventures, cooperation, licensing and distribution; manufacturing facilities; markets; new stores; online retailing; and sourcing. Companies, other organisations and brands analysed in the report include: & Other Stories; Abercrombie & Fitch; Arcadia Group; Arrow; Arvind; Asos; Barrie; Chanel; Charlesbank Capital Partners; Clariant; Cluett, Peabody & Co; Crailar Technologies; D'Clase Apparel International; Dawson International; Fast Retailing; Fung Retailing; Gap; Gildan Activewear; Greenpeace; H&M (Hennes & Mauritz); I:Collect; Inditex; Intermix; Invista; J Brand; JC Penney; LAB Concept; Lane Crawford; Leonard Green & Partners; Levi Strauss & Co; Luen Thai Holdings; Marks and Spencer (M&S); Massimo Dutti; Ocean Sky Global; Ocean Sky International; OneStopPlus Group; Oracon Com De Conf; Perry Ellis International; PPR; PVH Corp; Redcats; Sae-A Trading Co; SK Capital; Soci?t? Nationale des Parcs Industriels (SONAPI-National Society of Industrial Parks); Star Avenue Capital; Suhyang Group; Sunny Force; The Warnaco Group; TJX Companies; Tudo Bom Com?rcio; and Webster Capital.
SUMMARY
ACQUISITIONS, DIVESTMENTS AND MERGERS
A joint venture company owned by Fung Retailing has acquired a 70% stake in the children’s wear retailer Suhyang Group
Arcadia Group has sold a 25% stake in Topshop and Topman to Leonard Green & Partners
Chanel has acquired the cashmere specialist Barrie
Clariant has divested its Textile Chemicals, Paper Specialties and Emulsions businesses to SK Capital
Fast retailing has acquired a majority stake in J Brand
Gap has acquired Intermix, a luxury and contemporary women’s apparel retailer
Ocean Sky International has entered into an agreement to sell Ocean Sky Global to Luen Thai Holdings for US$55 mn
PVH Corp has acquired The Warnaco Group
Redcats has sold OneStopPlus Group to Charlesbank Capital Partners and Webster Capital
COMPANY STRATEGIES
Gap has unveiled a new global brand structure
CORPORATE SOCIAL RESPONSIBILITY (CSR)
A Greenpeace investigation has found that clothing sold by major high street clothing brands is being manufactured using hazardous chemicals
H&M has launched a new recycling initiative to encourage its customers to recycle their old or unwanted garments
Marks and Spencer (M&S) has published a new set of commitments relating to the safe use of chemicals in the manufacture of its products
Two Greenpeace investigations have found a wide range of hazardous chemicals in industrial waste water in China and Mexico
FINANCIAL RESULTS
Abercrombie & Fitch: net income increased by 40% as net sales rose by 9% in the third quarter of 2012/13
Asos: group revenues rose by 37% in 2011/12 and by 30% in the first quarter of 2012/13 thanks to strong international sales 2011/12
First quarter 2012/13
Gap: net income increased by 60% as net sales grew by 8% in the third quarter of 2012/13
Gildan Activewear: net sales increased by 12.9% but net earnings fell by 36.6% in 2011/12
Fourth quarter 2011/12
2011/12
Outlook
Inditex: net sales rose by 17% and net income by 27% in the first nine months of 2012/13
JC Penney: a net loss was incurred in the third quarter of 2012/13 as total net sales declined by 26.6%
Levi Strauss & Co: net income and net revenues fell in the third quarter of 2011/12
Marks and Spencer (M&S): total sales rose by only 0.4% in the first half of 2012/13 and 0.6% in the third quarter of 2012/13, and profit before tax fell by 9.7% in the first half of 2012/13
First half 2012/13
Third quarter 2012/13
Perry Ellis International: net income declined by 51% as total revenues fell by 5% in the third quarter of 2012/13
TJX Companies: net income rose by 14% in the third quarter of 2012/13 as net sales increased by 11%
Third quarter 2012/13
First nine months of 2012/13
INTERNATIONAL TRADE POLICY
The European Parliament has finalised changes to the EU’s Generalised System of
Preferences (GSP) scheme
The US government has withdrawn its ban on imports from Myanmar
INVESTMENTS
Invista has started up a new production line to make easy set lycra at its plant in Singapore
JOINT VENTURES, COOPERATION, LICENSING AND DISTRIBUTION
A Subsidiary of PVH Corp has entered into a licensing agreement with Oracon relating to the marketing and distribution of PVH Corp’s Arrow brand in Brazil
Invista has entered into an agreement with Arvind relating to the development and production of stretch denim fabrics for the Indian market
MANUFACTURING FACILITIES
Crailar Technologies has begun manufacturing production-grade Crailar Flax fibre at its facility in the USA
Soci?t? Nationale des Parcs Industriels (Sonapi—National Society of Industrial Parks) has opened a new industrial park in Haiti
MARKETS
US clothing imports were down in value and volume in the first nine months of 2012
NEW STORES
Arcadia Group will open its first Topshop store in Hong Kong
Gap will open its first stores in Brazil
H&M has opened its first two & Other Stories stores, in the UK and Denmark, and online & Other Stories stores in ten countries in Europe
H&M has opened its first store in Mexico
Inditex has opened its first Massimo Dutti store and launched its online Massimo Dutti store in the USA
ONLINE RETAILING
Marks and Spencer (M&S) has launched new online stores for consumers in four European countries
SOURCING
Arcadia Group plans to increase its sourcing from UK manufacturers
ACQUISITIONS, DIVESTMENTS AND MERGERS
A joint venture company owned by Fung Retailing has acquired a 70% stake in the children’s wear retailer Suhyang Group
Arcadia Group has sold a 25% stake in Topshop and Topman to Leonard Green & Partners
Chanel has acquired the cashmere specialist Barrie
Clariant has divested its Textile Chemicals, Paper Specialties and Emulsions businesses to SK Capital
Fast retailing has acquired a majority stake in J Brand
Gap has acquired Intermix, a luxury and contemporary women’s apparel retailer
Ocean Sky International has entered into an agreement to sell Ocean Sky Global to Luen Thai Holdings for US$55 mn
PVH Corp has acquired The Warnaco Group
Redcats has sold OneStopPlus Group to Charlesbank Capital Partners and Webster Capital
COMPANY STRATEGIES
Gap has unveiled a new global brand structure
CORPORATE SOCIAL RESPONSIBILITY (CSR)
A Greenpeace investigation has found that clothing sold by major high street clothing brands is being manufactured using hazardous chemicals
H&M has launched a new recycling initiative to encourage its customers to recycle their old or unwanted garments
Marks and Spencer (M&S) has published a new set of commitments relating to the safe use of chemicals in the manufacture of its products
Two Greenpeace investigations have found a wide range of hazardous chemicals in industrial waste water in China and Mexico
FINANCIAL RESULTS
Abercrombie & Fitch: net income increased by 40% as net sales rose by 9% in the third quarter of 2012/13
Asos: group revenues rose by 37% in 2011/12 and by 30% in the first quarter of 2012/13 thanks to strong international sales 2011/12
First quarter 2012/13
Gap: net income increased by 60% as net sales grew by 8% in the third quarter of 2012/13
Gildan Activewear: net sales increased by 12.9% but net earnings fell by 36.6% in 2011/12
Fourth quarter 2011/12
2011/12
Outlook
Inditex: net sales rose by 17% and net income by 27% in the first nine months of 2012/13
JC Penney: a net loss was incurred in the third quarter of 2012/13 as total net sales declined by 26.6%
Levi Strauss & Co: net income and net revenues fell in the third quarter of 2011/12
Marks and Spencer (M&S): total sales rose by only 0.4% in the first half of 2012/13 and 0.6% in the third quarter of 2012/13, and profit before tax fell by 9.7% in the first half of 2012/13
First half 2012/13
Third quarter 2012/13
Perry Ellis International: net income declined by 51% as total revenues fell by 5% in the third quarter of 2012/13
TJX Companies: net income rose by 14% in the third quarter of 2012/13 as net sales increased by 11%
Third quarter 2012/13
First nine months of 2012/13
INTERNATIONAL TRADE POLICY
The European Parliament has finalised changes to the EU’s Generalised System of
Preferences (GSP) scheme
The US government has withdrawn its ban on imports from Myanmar
INVESTMENTS
Invista has started up a new production line to make easy set lycra at its plant in Singapore
JOINT VENTURES, COOPERATION, LICENSING AND DISTRIBUTION
A Subsidiary of PVH Corp has entered into a licensing agreement with Oracon relating to the marketing and distribution of PVH Corp’s Arrow brand in Brazil
Invista has entered into an agreement with Arvind relating to the development and production of stretch denim fabrics for the Indian market
MANUFACTURING FACILITIES
Crailar Technologies has begun manufacturing production-grade Crailar Flax fibre at its facility in the USA
Soci?t? Nationale des Parcs Industriels (Sonapi—National Society of Industrial Parks) has opened a new industrial park in Haiti
MARKETS
US clothing imports were down in value and volume in the first nine months of 2012
NEW STORES
Arcadia Group will open its first Topshop store in Hong Kong
Gap will open its first stores in Brazil
H&M has opened its first two & Other Stories stores, in the UK and Denmark, and online & Other Stories stores in ten countries in Europe
H&M has opened its first store in Mexico
Inditex has opened its first Massimo Dutti store and launched its online Massimo Dutti store in the USA
ONLINE RETAILING
Marks and Spencer (M&S) has launched new online stores for consumers in four European countries
SOURCING
Arcadia Group plans to increase its sourcing from UK manufacturers
