Speculation over Shein's reported acquisition of a majority stake in American clothing brand Everlane has seemingly been confirmed. According to an internal email seen by Vogue Business from Everlane to its employees, it appears the deal is going ahead, corroborating reports of the acquisition that began circulating earlier this month.

Shein is buying the stake from LVMH-backed venture capitalist L Catterton for an undisclosed sum. The transaction is still pending regulatory approval.

The sale follows an intensive period of due diligence behind the scenes. American investment firm L Catterton had been searching for an investor since March to clear a debt burden of approximately 90 million dollars that Everlane had accumulated. This debt included a 25 million dollar loan from investment firm Gordon Brothers and a 65 million dollar asset-backed revolving credit facility.

Independent course and operational shifts

Everlane employees were officially informed of the acquisition on Friday morning, according to Vogue Business. In a message to staff, Everlane chief executive officer Alfred Chang addressed the moral conflict that the change in ownership might cause among employees. Chang emphasised that the company will maintain its own identity and values under Shein's ownership.

“I want to be clear: Everlane will remain Everlane. I will continue as CEO, our management team will stay in place, and we will continue to operate independently, maintaining our design standards, brand philosophy, and values,” said Chang.

According to Chang, the partnership with Shein provides necessary stability and resources in a rapidly changing retail landscape. It will enable the American brand to invest in product innovation and reach a larger international audience without compromising on quality.

Vêtir has secured 5.5 million dollars in a first close of its Series A funding round, giving the business a valuation of 150 million dollars as it expands its AI-powered wardrobe and styling platform. The round was backed by investors including Laidlaw & Company, alongside luxury-focused family offices and strategic partners.

Former Mytheresa executive Jemma Plaue has joined as SVP, global styling and strategy as Vêtir expands its luxury clienteling operations. The company also confirmed new advisory appointments including Stephanie Horton, senior director of global commerce at Google, and Nina Garcia, editor-in-chief of Elle and Project Runway judge.

Vêtir describes its platform as an AI-powered “wardrobe operating system” designed for luxury consumers, combining wardrobe management, personalised styling and commerce into one platform. The company said its technology acts as a persistent digital stylist, learning from users’ wardrobes, travel, purchasing habits and preferences.

The business reported 200 percent month-on-month organic user growth, more than 3,500 percent growth in B2B clients and ninefold year-on-year revenue growth, while average order values further exceed 2,500 dollars.

The new funding intends to aid in the accelerated development of Vêtir's personalisation engine, while also contributing to the expansion of its global presence and the further integration of enterprise partners from luxury fashion.

The platform's founder and CEO, Kate Davidson Hudson, said: "As Vêtir grows, we've been very deliberate in how we've built both the product and the company. The focus is on building intelligence around the wardrobe itself—well beyond a traditional shopping interface.

"With our lead investors now in place, we've kept a small portion of the round open for a few strategic partners who can add real value as we continue to scale globally."

Madrid – The market's response to the announcement of the unsuccessful end to negotiations between Puig and The Estée Lauder Companies regarding a potential merger of their businesses has been swift. It has come in the form of a severe penalty for the Spanish company. The group's shares opened Friday's trading session, May 22, 2026, by plummeting as much as -15 percent.

While it remains to be seen how today's trading day will ultimately unfold, it seems clear for now that what fuels the market, it eventually takes back. This is the main takeaway from the stark outcome of the negotiations between Puig and The Estée Lauder. The shares of the Spanish fashion and beauty multinational are on track for what could be their biggest drop to date since its initial public offering on May 3, 2024. On its debut, Puig's shares opened on the stock market at 24.50 euros (28.43 dollars) per share. This initial price has been consistently questioned since then, given the rapid depreciation of its shares.

Until today, one significant date stood out in Puig's trading calendar: September 6, 2024. On that day, following the release of its results for the first half of 2024, the first the company presented after its stock market launch, its shares plummeted. They fell from 24.55 euros at the previous day's close to 21.20 euros by the end of that difficult session. This represented a -13.64 percent drop, which until now was the largest single-day decline recorded for Puig's shares.

This record, clearly a negative one from the perspective of its performance as a listed company, could be surpassed by today's session, Friday, May 22. If the day concludes as it began, Puig's shares will have dropped from Thursday's closing price of 17.64 euros to the 15.25 euros at which they opened this morning. From there, they hit an intraday low of 14.99 euros at around 9:40 am. This value represents a -15 percent plunge from yesterday's closing price. The fall was triggered by the announcement of the unsuccessful end to merger talks with The Estée Lauder. The decline has since “softened” slightly to -13.83 percent, with Puig's shares currently trading at 15.20 euros.

After a two-month stock market climb

From an objective market perspective on the end of negotiations between Puig and Estée Lauder, today's plunge in the Spanish company's shares is seen as a “correction exercise”. This follows a nearly two-month stock market climb for its shares. The revaluation is attributed by markets and investors to the interest shown by the US giant, rather than Puig's latest results. At the end of last April, Puig reported a first quarter of 2026 with sales of 1,215.3 million euros (+0.78 percent).

To quantify this recent stock performance, Puig's shares opened on Monday, March 23, at 14.80 euros per share. Within just 24 hours, following the confirmation of the start of negotiations between Puig and The Estée Lauder at the close of the Spanish stock market that same day, they soared by +18.92 percent. They opened the next day, March 24, at 17.60 euros. The shares climbed further to a peak of 18.89 euros on April 21. While negotiations continued, they stabilised around the 17 euro mark, closing at 17.64 euros this past Thursday, May 21.

In contrast to this climb, today's events represent a sharp market correction for Puig's shares. In any case, based on today's opening price of 15.25 euros, the shares have accumulated a depreciation of -37.75 percent from the 24.50 euro price set for Puig's IPO.

Alphalyr, an AI platform for supply, retail and e-commerce data analysis, is the winner of the ANDAM Innovation Award 2026. The company will receive a grant of 100,000 euros. Pili, which develops bio-based dyes intended to replace petrochemical alternatives, has received the special jury prize.

This 2026 edition shows that fashion innovation is structured around two major themes: artificial intelligence and more sustainable materials and processes.

The Committee of Experts met on May 20, 2026, at IFM Paris to review the applications and select the winners. Created in 2017, the award aims to support technological innovations related to the transformation of the creative and fashion industry.

AI at the heart of ANDAM 2026's innovation

“With Alphalyr, the 2026 edition marks the arrival of an AI applied to retail, the supply chain and sales management. In a complicated context for brands, especially younger ones, the challenge is also to help companies better anticipate demand and adjust their flows,” Nathalie Dufour, founder and general director of ANDAM, told FashionUnited.

The 2026 winner, Alphalyr, chaired and managed by Bertrand Fredenucci and Nicolas Fellous respectively, develops an artificial intelligence platform for fashion brands and distributors to analyse and manage their supply chain, retail and e-commerce data. The company aims to transform commercial and operational data into actionable insights to improve the overall performance of fashion businesses.

Their technology is involved in sales analysis; inventory management; supply chain management; retail performance tracking; e-commerce optimisation; demand forecasting; and AI-assisted decision-making.

By awarding the first prize to Alphalyr, ANDAM is recognising operational AI solutions capable of directly impacting the economic and environmental efficiency of the fashion value chain.

“We have also seen the very concrete and operational improvement brought by AI to the value chain. This applies to both operational efficiency and the co-development of the creative approach,” stated Yann Gozlan in the press release. Gozlan is the founder of Creative Valley, a French incubator and accelerator for innovative start-ups, and a member of the executive committee.

Innovations focused on materials and sustainability

“However, ANDAM maintains its interest in material innovations, as shown by the special prize awarded to Pili and its alternatives to petrochemical dyes,” explained Nathalie Dufour.

Pili, led by Guillaume Boissonnat-Wu and Jérémie Blache, is part of the biotech ecosystem applied to materials and sustainable fashion. This French company offers an alternative to petrochemical dyes.

Pili combines microbial fermentation and green chemistry to produce bio-based dyes and pigments. It notably produces a bio-based indigo from renewable resources.

“We have discovered a real maturity and diversity in the new materials on offer, with an increasingly sophisticated consideration of ecological issues, particularly water and carbon consumption,” added Yann Gozlan.

The two finalists will benefit from mentoring by Yann Gozlan and access to the ANDAM network and ecosystem. In addition, the Committee of Experts has also invited the ten finalists to present their technology at Inno-Tech at Première Vision Paris, from September 1 to 3, 2026.

ANDAM notes that the nine previous winners have raised over 200 million euros and have established partnerships with key players in the luxury and fashion sectors.

H&M's founding family is continuing to purchase shares in the Swedish group. Its holding company, Ramsbury Invest, has acquired almost 39 million euros worth of additional shares. This is part of a series of regular transactions over several months, as the stock has underperformed since the start of the year.

This methodical signal is being closely analysed by the markets. H&M's founding family has once again increased its stake in the group this week. Its family holding company, Ramsbury Invest, acquired over 2.75 million shares for approximately 444 million Swedish kronor (47.46 million dollars), according to a declaration submitted to the Swedish financial regulator and reported by Zonebourse.

The transactions were carried out over three consecutive sessions on the Stockholm Stock Exchange, involving significant volumes relative to the stock's daily liquidity. Given H&M's chronic underperformance against its benchmark index, investors are monitoring these purchases as a key indicator of the controlling shareholder's position.

Purchases spread over three sessions

According to data from the Swedish market authority compiled by Zonebourse, Ramsbury Invest intervened progressively. On May 18, the holding company acquired 650,261 class B shares at an average price of 160.98 Swedish kronor. The following day, 600,000 shares were purchased at 164.82 kronor, followed by a final large tranche of 1.5 million shares at 160.77 kronor.

In total, the transaction represents exactly 2,750,261 shares. It consolidates an already significant majority position. Ramsbury Invest holds approximately 65.7 percent of the capital, according to the latest annual report. While these purchases do not alter the balance of control or the governance structure, they do safeguard the core shareholding.

Stock in decline since the start of the year

This new wave of purchases comes as the stock's market trajectory remains under pressure. Since January, H&M's stock has fallen by more than 13.5 percent, while the OMX Stockholm index has risen over the same period. This divergence partly explains the attractive valuation at which the recent transactions are taking place. It offers the founding family a technical entry point to lower its average cost price.

Industrial and long-term perspective on the matter

Beyond simple market opportunism, these regular interventions reflect an insider's perspective. The majority family has direct insight into the group's industrial strategy, its logistical decisions and its transformation projects. This proximity to internal governance gives these transactions a classic wealth management dimension. It allows for smoothing entry points and closely supporting the group's trajectory.

H&M is continuing the profound transformation of its model, with an emphasis on algorithmic stock management. This is a critical lever for preserving margins in the face of rising ultra-low-cost competition. The Persson family's increased stake thus confirms the stability of the core shareholding in a more volatile market. It substitutes short-term stock market volatility with a pure, long-term industrial conviction.

Brands and retailers that are currently preparing for the EU’s Digital Product Passport (DPP) regulation can start by sourcing verified, compliance-ready textiles directly from a structured, supplier-level data library, which went live on 21st May.

The library is the brainchild of World Collective who connects brands with next-generation materials and suppliers. It is built and maintained by the global sourcing infrastructure in partnership with Kinset, a digital product passport infrastructure company providing the DPP technology for the pilot.

“The regulation is still being defined. The industry has been waiting to find out what the rules will say before acting. What's live today is what stops being optional. Brands sourcing here will not be scrambling when the deadline lands, the compliance work has already been done at the supplier level. That changes what brands can do in the next twelve months,” comments Jeanine Ballone, co-founder and CEO of World Collective, in a statement.

What information is provided?

The starting size of nine verified materials from three suppliers — Climatex Industrial Co., Ltd. (Bangladesh), Maritaş (Turkey) and SKD Fine Décor (India) — is intentional as organic growth is envisioned: “The architecture is built to scale; the library is growing into it: material by material, supplier by supplier,” emphasises the statement. Each material is third-party tested, certified and structured to DPP standards. Additional suppliers are currently being verified, and new materials will be added on a rolling basis.

On each fabric information page, one finds details such as composition and construction, finish and performance, compliance and testing and handling and recommendations, including level of completion for each item. The traceability section has information from Tier 4 (raw material origin) to Tier 2 (production level) via Tier 3 (yarn production). Information about the environmental footprint about each fabric is also provided. Helpful would be more information about each supplier, but that may be added at a later stage.

What is novel about the approach?

Brands and retailers that are in the process of complying with DDP regulations usually move backwards, tracing their way back from the finished product. This is tedious and relies on supplier cooperation. By choosing a fabric from the textile library, brands and retailers are assured that it is pre-verified. In addition, data is structured in the format the DPP is converging on. “The compliance burden moves out of the brand's back office and into the supply chain itself, where the data actually originates,” states World Collective.

Another advantage is that the same supplier-level data that powers the DPP also feeds every other major piece of incoming regulation: Extended Producer Responsibility (EPR), the Corporate Sustainability Reporting Directive (CSRD, the Green Claims Directive. “A textile that is DPP-ready is, by definition, ready for the regulatory architecture that follows it. What the library demonstrates, beyond the catalog itself, is that the compliance future of fashion is being built at the supplier layer. The agents that recognise it now will lead the market shift,” sums up the organisation.

The library has been built to adapt to specific requirements quickly, keeping in mind that the DPP regulation is still being finalised. Thus, data fields can be extended, formats can be aligned, and new attributes can be layered on top of an architecture that already holds the foundational truth about each material.

The DPP-Ready Textile Library is live and open to brands at world-collective.com/collections/dpp-ready.

Vinted's 2025 impact report aims to demonstrate that second-hand fashion has become a lever for consumer purchasing power, a tool for economic circularity and a means of reducing fashion's environmental impact.

According to Vinted, one of Europe's leading second-hand fashion platforms, users saved 21.6 billion euros (25.07 billion dollars) on what they would have theoretically spent if they had bought these clothes new. This means they paid an average of 72 percent less than the original price of the items.

To calculate these savings, Vinted compares the estimated price of an equivalent new item with the amount actually paid on the platform. However, it does not specify the extent to which the actual depreciation of the clothes is taken into account.

“The results of the Impact Report in France show that members use Vinted to regain control of their budget, while contributing to a wider cause,” said Marianne Gybels, senior director of sustainability at Vinted, in the press release.

A portion of savings is reused for essential expenses

75 percent of French members state that Vinted helps them better manage their household expenses. This figure is twelve percentage points higher than the European average of 63 percent.

33 percent use the money saved for groceries or bills. This proportion rises to 42 percent for those in financial difficulty.

53 percent of French members say they feel less pressure to cut back on other expenses since using the platform.

62 percent report having reduced their overall fashion budget thanks to Vinted.

“Second-hand becomes the obvious choice when it represents a simple and more affordable option. Behaviours evolve naturally when they meet concrete, everyday needs,” the director noted.

Vinted users capitalise on their second-hand purchases

The report explains that clothes are no longer seen solely as an expense, but also as products likely to retain a resale value.

Thus, 41 percent of users report considering the resale potential before buying a new item, while 56 percent say they take better care of their belongings because they know they can resell them later.

As proof, in 2025, 10.8 billion euros were returned directly to sellers via the platform.

These earnings influence consumer choices. Approximately half of sellers reinvest the money earned on the platform into new purchases on Vinted, helping to keep products in circulation.

In this context, second-hand is no longer a parallel market but an integrated step in the purchasing journey. 89 percent of French buyers state they check Vinted first before considering a new purchase.

Beyond the benefits, second-hand purchases reportedly reduce environmental impact

The report is based on the idea that when a consumer buys a second-hand product, it prevents a new one from being produced. The central element of this argument is the figure that 76 percent of purchases made on Vinted reportedly replaced the purchase of a new item.

Vinted estimates that 1,607 kilotonnes of CO₂e were avoided in 2025. This is equivalent to approximately 164,000 car trips around the Earth, according to the press release. To support its calculation, Vinted states that it relies on a life cycle analysis compliant with the ISO 14067 standard.

This figure is based on the assumption that the purchase of a second-hand item replaces that of a new one. It does not account for additional or impulse purchases, or for products that would not have been bought otherwise.

Compagnie Financière Richemont, the Swiss luxury goods group, delivered a solid performance for the financial year ended March 31, 2026, navigating fast-evolving geopolitical and macroeconomic conditions.

Group sales reached 22.42 billion euros (26.04 billion dollars), representing an increase of 11 percent at constant exchange rates and 5 percent at actual rates. This performance was underpinned by strong local demand and the benefits of a diversified regional footprint, with momentum continuing into the fourth quarter where sales rose by 13 percent at constant rates.

Operating profit for the year grew by 1 percent to 4.5 billion euros,while the operating margin stood at 20 percent, down by 90 basis points from 20.9 percent in the prior year. Profit for the year increased by 27 percent to 3.5 billion euros, supported by robust operating profit and the non-recurrence of a 1 billion euro Yoox Net-a-Porter (YNAP) write-down in discontinued operations during the prior year.

In his commentary, Richemont chairman Johann Rupert stated that uncertainty is likely to persist in the global market, particularly regarding developments in the Middle East. Rupert noted that the group will continue to rely on its long-term orientation, distinct brand identities, and disciplined operating approach to maintain the desirability of its brands and deliver sustainable value.

Americas and Middle East lead regional performance

All geographical regions contributed to the group's growth during the year. Performance in the Americas was particularly strong, with sales increasing by 8 percent at actual rates and 17 percent at constant exchange rates to 5.7 billion euros, led by sustained domestic demand throughout the year and double-digit growth across its Jewellery Maisons and Specialist Watchmakers.

Sales in the Middle East & Africa region rose by 6 percent at actual rates and 13 percent at constant rates to 2 billion euros. Double-digit growth in the first three quarters in the Middle East & Africa was disrupted in March by regional conflict, causing a 3 percent decline in fourth quarter sales at constant exchange rates.

In Europe, sales increased by 7 percent at actual rates and 9 percent at constant rates to 5.3 billion euros, driven by double-digit local demand and positive tourist spend, notably in Italy, Germany, and the UK. Asia Pacific returned to growth with sales up 1 percent at actual rates and 8 percent at constant rates to 7.2 billion euros, supported by strong performance in South Korea, Australia, and Singapore. Within Asia Pacific, combined sales in China, Hong Kong, and Macau grew by low single digits at constant rates. Japan posted a 2 percent sales increase at actual rates and 9 percent at constant rates to 2.2 billion euros, accelerating to a 28 percent increase in the fourth quarter due to robust local demand.

Retail channel expands direct-to-consumer reach

Sales grew across all distribution channels during the financial year. Retail sales from directly operated stores grew by 5 percent at actual rates and 12 percent at constant rates to 15.8 billion euros. Richemont expanded its retail footprint to 1,393 directly operated boutiques, which now account for 71 percent. Online retail sales grew by 2 percent at actual rates and 8 percent at constant exchange rates to 1.4 billion euros.

In total, direct-to-consumer (D2C) sales accounted for 77 percent of overall group sales, representing a slight increase over the previous year. Wholesale sales, which include franchise partners, multi-brand retail partners, agents, and royalty income, increased by 4 percent at actual rates and 9 percent at constant rates to 5.2 billion euros, representing 23 percent of total sales.

Jewellery Maisons drive profitability while watchmakers stabilize

The group's Jewellery Maisons, which include Buccellati, Cartier, Van Cleef & Arpels, and Vhernier, delivered an 8 percent increase in sales at actual rates and 14 percent at constant rates to 16.5 billion euros, with fourth-quarter sales accelerating by 16 percent at constant exchange rates.

The Specialist Watchmakers segment, comprising brands such as A. Lange & Söhne, IWC Schaffhausen, Jaeger-LeCoultre, Panerai, Piaget, Roger Dubuis, and Vacheron Constantin, recorded a 4 percent decline in sales at actual rates to 3.1 billion euros. At constant exchange rates, watchmaker sales rose by 1 percent, indicating stabilization after a challenging 24-month period for the global watch market. Performance improved in the second half of the year, particularly for A. Lange & Söhne, Jaeger-LeCoultre, and Vacheron Constantin.

Richemont also announced a private transaction on January 22, 2026, to divest full ownership of the specialist watchmaker Baume & Mercier to the Italian luxury group Damiani Group. The transaction is expected to close in the summer of 2026.

The group's Other business area, which includes Fashion & Accessories Maisons and the pre-loved watch platform Watchfinder & Co., reported a 2 percent decline in sales at actual rates to 2.7 billion euros, but an increase of 3 percent at constant rates. Performance was supported by strong momentum at Peter Millar and Alaïa, alongside encouraging sequential improvement at Montblanc.

The board of directors has proposed an ordinary dividend of 3.30 Swiss francs per 'A' share and ten 'B' shares, representing a 10% increase over the prior year. The board has also proposed an additional special dividend of 1.00 Swiss franc per 'A' share and ten 'B' shares, subject to shareholder approval at the annual general meeting scheduled for September 9, 2026.

Madrid – After nearly two months of intense negotiations, there will be no merger, acquisition, absorption, or any similar operation leading to the integration of the Spanish fashion and beauty multinational Puig group and the American company The Estée Lauder Companies into a single entity. Both companies have now announced through separate statements that they have concluded negotiations for their potential integration without reaching an agreement. These talks had been officially ongoing since March 23.

Separate but similar statements in substance and structure were issued simultaneously from Barcelona and New York at 10:05pm CEST on Thursday, May 21. This corresponded to 4:05pm Eastern Time, coinciding with the close of the New York Stock Exchange. Puig, the owner of fashion houses such as Carolina Herrera, Jean Paul Gaultier and Paco Rabanne, confirmed that negotiations with The Estée Lauder for a merger have ended without an agreement. The company recalled that on March 23, when the talks with the American beauty multinational were first announced, it was stated that without a formal agreement, “an operation and its terms cannot be guaranteed”. Following this, in a statement attributed to its chief executive officer, Jose Manuel Albesa, the Spanish company highlighted the “enriching” nature of the process. It defended the strength of its business model and stated that the group will continue to focus on executing its strategies to generate shareholder value. The evaluation of new merger and acquisition (M&A) opportunities is not being ruled out.

“We value the enriching conversations held with The Estée Lauder Companies,” stated Jose Manuel Albesa, CEO of Puig, in the statement sent to the National Securities Market Commission (CNMV) announcing the end of negotiations with the American group. “Puig has a solid track record of growth, outperforming the premium beauty market,” he continued. “We remain fully focused on executing our strategy and driving profitable growth, always looking after the interests of all our stakeholders.” The CEO of Puig added that, from this commitment, “this decision does not change our strategic roadmap.” He explained, “we continue to build on our strengths in premium beauty, with a management focused on brands, creativity, agility and disciplined growth.”

“Throughout the company's 112-year history, and supported by our latest results for the 2025 financial year and the first quarter of 2026, we have demonstrated a distinctive culture that has allowed us to meet all our commitments since our IPO, achieving growth targets, improving margins and strengthening our balance sheet,” Albesa defended. Looking to the future, “our solid capital structure gives us the flexibility to undertake a wide range of strategic alternatives aligned with our long-term priorities.” He added, “we will continue to apply a highly selective and value-creation-oriented approach to M&A to further complement our portfolio.” Therefore, despite this conclusion without an agreement for a potential merger with The Estée Lauder, “today we reaffirm our confidence in our ‘Love Brands’ and our exceptional teams, as well as in our strength as an independent company to generate long-term value.”

The Estée Lauder considers asset sales

The statement issued in parallel by The Estée Lauder Companies mirrored Puig's communication almost to the letter, in structure, substance and even phrasing. The note included statements from Stéphane de La Faverie, president and chief executive officer of the American beauty giant. Similar to Albesa, he addressed his company's shareholders, highlighting the constructive nature of the negotiations. De La Faverie also emphasised the strength and distinctive value of their business model, which operates internally under the ‘One ELC’ operating model. He confirmed they will continue to focus on executing their growth strategies, particularly those within their latest strategic plan, ‘Beauty Reimagined’. Significantly, this includes not ruling out divestments and asset sales.

“We are grateful for the discussions we have had with Puig,” and after concluding them without an agreement, “today we are reiterating our confidence in the power of our incredible brands, our talented teams and our strength as an independent company.” “We are more optimistic than ever about our ability to unlock significant long-term value through ‘Beauty Reimagined’, and we remain focused on accelerating that progress.” He continued, “we have one of the most powerful portfolios of luxury beauty brands in the world, backed by exceptional equity across all categories, geographies and consumer segments.” Stéphane de La Faverie, president and chief executive officer of The Estée Lauder Companies, defended, “we believe we are uniquely positioned to drive sustainable long-term growth globally.”

“Through ‘Beauty Reimagined’ and the implementation of our ‘One ELC’ operating model, we are building a faster, more agile and consumer-focused organisation that is accelerating innovation, strengthening execution, scaling winning ideas globally and investing behind the biggest growth opportunities across our portfolio,” he elaborated. While the company maintains this strategy, “at the same time, we will continue to evaluate and evolve our portfolio to ensure we have the right assets to drive the most attractive growth opportunities, including potential acquisitions and divestitures,” a comment that signals the company is considering selling parts of its portfolio. In any case, La Faverie added, “we remain relentlessly focused on driving sustainable sales growth, expanding profitability and delivering a strong double-digit adjusted operating margin over time, all while creating long-term value for shareholders.”

US footwear group Deckers Brands has announced its financial results for the fourth fiscal quarter and full fiscal year ended March 31, 2026, delivering record revenue driven by the ongoing momentum of Hoka and Ugg.

For the full fiscal year 2026, net sales increased 9.8 percent to 5.47 billion dollars compared to 4.99 billion dollars in the prior year. On a constant currency basis, net sales experienced a 9 percent increase. Net income also rose, with diluted earnings per share increasing to 7.02 dollars compared to 6.33 dollars in fiscal year 2025.

“Fiscal 2026 was another record year for Deckers, with revenue and earnings growth powered by the continued momentum of HOKA and the enduring strength of UGG,” said Stefano Caroti, president and chief executive officer in a statement.

Brand performance led by Hoka and Ugg

Brand division results highlighted a strong year for key labels. Net sales for the Hoka brand increased 15.9 percent to 2.59 billion dollars compared to 2.23 billion dollars in the prior fiscal year. Ugg net sales grew 8.2 percent to 2.74 billion dollars against 2.53 billion dollars previously. Meanwhile, other brands within the portfolio saw net sales decrease 33.9 percent to 146.20 million dollars compared to 221.20 million dollars, primarily driven by the phase-out of Koolaburra standalone operations and the sale of Sanuk.

In terms of distribution channels, wholesale net sales increased 12.3 percent to 3.21 billion dollars compared to 2.86 billion dollars. Direct-to-consumer net sales rose 6.3 percent to 2.26 billion dollars from 2.13 billion dollars, while D2C comparable net sales increased 4.6 percent.

Geographically, domestic net sales in the US remained flat with a 0.2 percent increase to 3.19 billion dollars. Conversely, international net sales grew significantly by 26.8 percent to 2.28 billion dollars compared to 1.80 billion dollars in the previous fiscal year. Gross margin for the full year stood at 57.7 percent compared to 57.9 percent, while operating income reached 1.26 billion dollars, up from 1.18 billion dollars.

"Our financial fortitude and strong operating model continue to fuel our category leading brands, driving high-quality growth and supporting focused investments in our long-term opportunities," US group chief financial officer Steve Fasching stated in a press release.

Fourth quarter net sales rise nearly 10 percent

During the fourth fiscal quarter, net sales increased 9.6 percent to 1.12 billion dollars compared to 1.02 billion dollars for the same period last year. On a constant currency basis, net sales grew 7.7 percent.

Hoka net sales for the quarter increased 14.5 percent to 671.20 million dollars, and Ugg net sales grew 9.2 percent to 408.60 million dollars. Other brands decreased 35.6 percent to 39.50 million dollars. Wholesalers drove revenue up 7.1 percent to 654.90 million dollars, while D2C channels advanced 13.2 percent to 464.40 million dollars, with D2C comparable net sales up 8.2 percent.

International regions remained the growth driver in the fourth quarter, climbing 25.5 percent to 469.50 million dollars, whereas US domestic sales edged up 0.3 percent to 649.80 million dollars. Fourth quarter operating income was 156.70 million dollars compared to 173.90 million dollars, and diluted earnings per share decreased slightly to 0.96 dollars compared to one dollar in the prior year period.

Outlook for fiscal year 2027 and multi-year framework

For the 12 month period ending March 31, 2027, consolidated net sales are projected to be in the range of 5.86 billion dollars to 5.91 billion dollars. Hoka net sales are expected to increase by a low-double-digit percentage, while Ugg is anticipated to grow by a mid-single-digit percentage. Gross margin is forecasted at approximately 56.5 percent, with operating margin expected at around 21.5 percent. Diluted earnings per share is projected between 7.30 dollars and 7.45 dollars.

Looking further ahead, the group outlined a multi-year financial framework for the fiscal years ending March 31, 2028 through March 31, 2030. The company expects consolidated net sales to increase by high-single-digit percentages annually, supported by low-double-digit growth at Hoka and mid-single-digit growth at Ugg. Operating margin is expected to be maintained in the low 20 percent range, with a continued share repurchase program driving low-double-digit diluted earnings per share growth.

As fashion continues to search for lower-impact material alternatives, scaling innovations beyond niche applications remains a significant challenge. For UK startup Ponda, the answer lies not only in developing a new insulation material, but in rethinking the agricultural systems behind them.

Founded around the concept of paludiculture, Ponda uses restored wetlands to grow fibre-rich crops for fashion while exploring how regenerative supply chains can operate at commercial scale. As co-founder Julian Ellis-Brown put it: “We have to face the facts: currently only around 0.1 percent of the global market is made up of next-gen materials. It’s growing, but we’re clearly not yet at massive market adoption.”

Ellis-Brown, whose background is in mechanical engineering, co-founded the company alongside Finlay Duncan, Neloufar Taheri, and Antonia Jara, all graduates of postgraduate design and innovation programmes at Imperial College and the Royal College of Art. The team was driven by the central question of whether a material supply chain could be created that is inherently restorative to the planet.

“That’s the question we posed right at the start of our journey, and it’s remained central to us throughout. It’s what we come back to as our values and our mission,” Ellis-Brown explained to FashionUnited.

Their initial research led them to wetlands, typically seen as ecosystems that are both underutilised and ecologically powerful. The founders began physically examining plants within these environments for fibrous potential before processing them in the lab. “That was the real genesis moment of connecting these environments to potential materials which might come from them as well,” Ellis-Brown said. “Eventually, that brought us to paludiculture and Ponda as it is today.”

So, what is paludiculture?

Paludiculture–a term coined by researchers at Germany’s University of Greifswald in 1998–refers to wet farming, the process of re-wetting land while continuing to cultivate crops on it. Though still niche in the UK, the practice is gaining attention as industries seek more ecologically responsible production systems.

The approach is closely tied to the preservation of peatlands, a type of wetland that “holds more carbon than all of the trees combined within a tenth of the area”, despite covering less than 3 percent of the Earth’s surface. “They’re our best land-based store of carbon,” Ellis-Brown said.

Draining these environments causes subsidence–the sinking of the Earth’s surface–leading to soil degradation and the release of around 1.9 gigatonnes of CO2 annually. According to Ellis-Brown, this is around twice fashion’s total emissions, “turning these amazing carbon sinks and biodiversity hubs into massive carbon emitters”. Rewetting wetlands halts this process while rebuilding soil carbon and improving resilience against flooding and drought by restoring natural water retention.

“The importance of wetland regeneration is about reversing the effects of climate change, reintroducing biodiversity–especially in the UK, which is one of the most biodiversity-damaged environments–but also building resilience into our farming systems,” he added.

“The other thing is resilience against climate change. As the UK faces wetter winters and hotter summers, we need ways to regulate water levels in agricultural environments. At the moment, on drained land, you get a huge amount of flooding because the ground can’t hold more water.”

BioPuff: An innovative insulation material from wetland farming

Ponda harvests bulrush–or Typha–from peatlands, a grass-like plant with brown flowering heads that bloom between April and August. The plant is used to create BioPuff, the company’s insulation material designed as an alternative to fossil-based synthetic fills and conventional down.

The material has undergone six years of testing and development, with industry partners assessing its commercial viability across various applications. One partner, Ellis-Brown said, tested BioPuff against 22 other non-wovens and found it “had the best thermal resistance and insulation”.

“One challenge plant-based insulations have struggled with historically is washability,” Ellis-Brown noted. “That’s something we now feel really confident in. We’ve gotten BioPuff to a level where it can be washed conventionally, which is a really big milestone. Product quality and longevity are critical if we want to build sustainable products for the future.”

Brands including Ahluwalia, Berghaus, Sheep Inc., and Stella McCartney, the latter of which embedded BioPuff in its AW24 Falabella bag, have all incorporated the material in varying ways. The final version of the product is also now being integrated into the systems of an increasing number of factories as Ponda moves from pilot production and early brand engagement towards commercial scalability.

Early interest in the material had initially come from material innovation or sustainability teams, and occasionally those in procurement. This is now shifting towards the general design process as sustainability becomes adopted more generally, instead of as a separate initiative.

Addressing misconceptions and tackling hesitant adoption

Like many material innovations, Ponda has faced challenges in the journey to commercialising a relatively unfamiliar system in the UK. One recurring misconception, Ellis-Brown said, is that the company was harvesting from healthy natural wetlands in a damaging way, which isn’t the case, he reaffirmed.

“What we’re trying to do is take a very damaging extractive supply chain and transform it into one that’s regenerative,” he explained. “We believe in a mosaic approach to farming and supply chains. We’re not campaigning for tens of thousands of hectares of pure wetlands growing one crop. It’s about balance; how wetlands work alongside other farming systems, products, and supply chains to create the best overall benefit for nature and for products.”

Farmers were initially hesitant to adopt a system proposed by founders outside the agriculture sector. Early acceptance ultimately came from those looking for creative solutions to flood-prone or difficult land areas. Word-of-mouth then accelerated the rollout, with farms across the UK, including in Cumbria and Lancashire, now onboarded as partners.

“What we found is that farmer networks are viral in themselves,” Ellis-Brown said. “Farmers talk to farmers and learn from each other. If you can offer something genuinely economically feasible and interesting, the adoption process starts to work on its own.”

Fashion’s fragmented supply chains have created additional barriers for new materials entering the market. In response, Ponda has begun moving further into product development, overseeing not only material production but also garment development in an effort to reduce friction to market. Under this merchandising model, a range of BioPuff hats and gilets are currently in the works, while Ponda is further seeking wholesale partnerships with mission-aligned apparel brands.

Measurable data in an industry increasingly defined by traceability

Despite the hurdles, Ellis-Brown said Ponda “100 percent” sees the potential for long-term scaling and broader adoption across the industry. Alongside biodiversity and carbon benefits, the company continues to invest in technologies designed to strengthen BioPuff’s value proposition.

One recent development is a technology that converts seeds into drone-sewable pellets, enabling wetlands to be restored more efficiently and affordably. “What we’re really trying to build is more of a wetland materials platform, rather than just a BioPuff or insulation company,” Ellis-Brown noted, pointing to a more wide-scoping mission.

As sustainability regulations and transparency requirements heighten across fashion, Ponda has focused heavily on data collection and traceability infrastructure. The company has built benchmarks and tracing infrastructure into its entire process, monitoring variables like water table levels, carbon absorption and emissions across its systems.

Ponda works with organisations including Lancashire Wildlife Trust and Liverpool John Moores University to measure environmental impact using tools such as carbon flux towers, eDNA samples measuring biodiversity impact, and dip wells to understand water table levels.

“We have these really rich data sources from our pilot sites, which feed into our own life cycle analysis,” Ellis-Brown said. “What’s really exciting is that there are so many potential benefits from these ecosystems and supply chains. Different companies may care most about biodiversity, water, or carbon, and there are many different narratives brands can build around products made from these systems.”

Global collaboration: Ponda's expansion in Europe

As Ponda approaches its next stage of growth, the venture capital-backed company is seeking further investment to support scaling and technology development through a newly launched crowdfunding campaign with Republic Europe.

The company has previously received recognition from organisations such as Parley for the Oceans and the H&M Foundation, which awarded Ponda the Global Change Award in 2022. A 2.4 million dollar funding round completed in November brought total funding to 6.6 million dollars.

Now, however, in a mission to move towards broader commercial supply, the new funding campaign will be open to potential participants across the UK and EU. Its initial private launch earlier this week will be followed by a public rollout at a later date, allowing the general public to back the regenerative production method if interested.

Engaging with mainland Europe reflects Ponda’s growing collaboration with industry players in the region. The company operates within two 10 million euro Horizon Europe projects surrounding paludiculture–PaluWise and PaluSDemos–both focused on scaling the method across Europe.

Germany and the Netherlands are emerging as key markets, with peatland preservation practices already more established. In the Netherlands, Ponda has supplied two tonnes of seed pellets and plans to participate in this year’s annual harvest while trialling its own custom-built low-ground-pressure harvester.

“You can’t drive a tractor onto wetlands, so we created a tracked machine with less ground pressure than a human foot,” Ellis-Brown explained. “The Netherlands is becoming really important in this space, there’s a real community forming around wetlands that connects fashion, conservation, research, and science.”

For Ellis-Brown, the long-term objective is creating a wetland-based supply chain that is both scalable and economically viable for farmers. “Success is about making this replicable, scalable, and easy to use, while ensuring the people most affected by it, the stewards of the land, benefit from it,” Ellis-Brown said. “Farming is not an easy or generally profitable job. One key measure of success for us is building systems that help farmers create more reliable and resilient incomes.”

New York - American retail giant Walmart published a higher-than-expected turnover on Thursday for its first quarter, which runs from February to April. Its executives warned that American consumers were being constrained by the return of inflation.

Turnover reached 177.8 billion dollars, an increase of 7 percent compared to the same period last year, according to a statement. This result surpassed the company's forecast, which anticipated a range between 3.5 percent and 4.5 percent.

Walmart has long had an online presence. It made this a strategic priority in 2016 with the acquisition of start-up Jet.com, one of the most dynamic players in the sector.

The Bentonville, Arkansas-based group has capitalised on its network of stores and warehouses to ensure fast and cost-effective deliveries for online orders, helping it to close the gap with Amazon.

In the first quarter, online sales grew by 26 percent year-over-year. They now account for 23 percent of the company's total turnover.

This digital focus has also enabled Walmart to develop a significant online advertising business. The group also created Walmart Marketplace, a platform open to third-party companies, similar to Amazon's model.

Just under a year ago, it also launched an artificial intelligence (AI) assistant named Sparky to help customers with their shopping.

Pressure on consumers

In contrast to the group's growth, its margins have been affected by the rise in fuel prices.

The geopolitical context and accelerating inflation are also affecting customers.

“In the US, consumers are under pressure and they are turning to Walmart for good deals,” said CEO John Furner, during his first quarter at the helm of the global retail leader.

Chief financial officer, John David Rainey, indicated that the average amount of petrol purchased at the group's service stations had fallen to its lowest level since 2022. “This is an indicator of stress” for customers, who are moderating their consumption, Rainey explained.

If the Strait of Hormuz remains closed and oil prices remain high, “this could lead to price increases” at Walmart, warned Rainey, particularly in the food category.

Net profit reached 5.49 billion dollars, an increase of 18 percent. Earnings per share, excluding exceptional items, stood at 66 cents. This key figure for investors was in line with analysts' projections.

Despite the first quarter's growth of 7 percent, Walmart confirmed its annual forecast and its growth range of 3.5 percent to 4.5 percent. This indicates an expected slowdown in the coming quarters.

This outlook disappointed investors. In pre-market trading, the stock dropped by nearly 4 percent.

“Some investors found these forecasts a little disappointing,” commented Neil Saunders, an analyst at GlobalData.

The analyst, however, sees the glass as half full. He praised Walmart's ability to maintain its targets “despite a serious deterioration in consumers' financial situation due to petrol and inflation”.

Achieving the annual growth expected by the group would constitute “a solid expansion” and allow it to gain market share, the analyst argued.

Geographically, the retail giant was driven by its international business, with sales 18 percent higher than in the same period of 2025.

This momentum offsets the slower growth of the Walmart brand in the US (+4.5 percent) and its discount store subsidiary Sam's Club (+6.1 percent).

Nevertheless, revenue growth in the US was the highest in a year and a half, Furner stressed.

Ralph Lauren Corporation, the US-based luxury lifestyle group, has reported its financial results for the fourth quarter and full fiscal year 2026, delivering performance that exceeded market expectations. The company crossed a significant financial milestone as annual revenues surpassed 8 billion dollars for the first time in its history.

For the full fiscal year 2026, net revenues rose 14.6 percent on a reported basis to 8.11 billion dollars. In constant currency, full year revenue increased 11.8 percent. Net income for the fiscal year reached 941.10 million dollars on a reported basis, up from 742.90 million dollars in the prior year. Diluted earnings per share for the full year stood at 15.11 dollars on a reported basis and 16.59 dollars on an adjusted basis.

Fourth quarter performance accelerated by Asian expansion

During the fourth quarter, net revenues increased 16.6 percent on a reported basis to 1.98 billion dollars. Growth stood at 12.1 percent in constant currency, with foreign currency translation providing a positive impact of approximately 450 basis points.

Fourth quarter net income increased to 151.60 million dollars, or 2.45 dollars per diluted share on a reported basis. Adjusted earnings per diluted share rose to 2.80 dollars, compared to 2.27 dollars in the fourth quarter of fiscal 2025.

The fourth quarter performance was led by strong momentum in Asia, where net revenues climbed 30.6 percent on a reported basis to 563.60 million dollars. Constant currency growth in the region was 27.6 percent, driven by exceptional retail sales in China during the Lunar New Year period. Europe also recorded solid results, with fourth quarter revenue up 17.9 percent on a reported basis to 619.60 million dollars, or 6.2 percent in constant currency.

In North America, net revenues increased 8.2 percent to 762.70 million dollars. The expansion was driven by direct-to-consumer (D2C) comparable store sales, which grew 16 percent during the quarter. This performance helped offset flat wholesale revenues in the region, which were impacted by planned distribution reductions in lower-tier wholesale channels.

Direct channels and digital growth

Global D2C comparable store sales increased 17 percent in the fourth quarter and 13 percent for the full year, showing positive retail performance across all geographical channels.

The reported gross profit margin for the fourth quarter reached 69.7 percent, while adjusted gross margin expanded 110 basis points over the prior year to 69.7 percent. Operating income for the quarter came in at 188.60 million dollars on a reported basis, representing an operating margin of 9.5 percent. On an adjusted basis, operating income reached 218.30 million dollars, with the operating margin expanding 70 basis points to 11 percent.

A breakdown of sales channels during the fourth quarter highlights the strength of the group's retail operations, which generated 1.29 billion dollars globally compared to wholesale revenues of 656 million dollars. Licensing operations contributed 32.80 million dollars during the three-month period. E-commerce outpaced physical store networks across all major international markets during the fourth quarter. In North America, digital commerce comparable sales grew 21 percent, while brick and mortar stores grew 14 percent. In Europe, digital commerce increased 14 percent, compared to a 2 percent increase in brick and mortar locations. Asia recorded a 31 percent increase in digital commerce alongside a 25 percent increase in physical retail operations.

At the end of fiscal 2026, the company expanded its global corporate retail footprint to 594 directly operated stores and 644 concessions. The global store network includes 287 Ralph Lauren flagship locations and 307 outlet stores.

Mid-single digit revenue growth projected for fiscal 2027

"Our teams around the world executed with excellence and agility to deliver a strong first year of our Next Great Chapter: Drive strategic plan," stated Patrice Louvet, the president and chief executive officer of Ralph Lauren Corporation. Louvet expressed confidence in the company's multi-engine growth strategy, operational discipline, and adoption of artificial intelligence technologies.

The company introduced its preliminary outlook for fiscal 2027, anticipating constant currency revenues to increase mid-single digits, centered around 4 percent to 5 percent on a 52-week comparable basis. The operating margin is projected to expand by 40 to 60 basis points in constant currency, driven by modest gross margin gains and operating expense leverage.

For the first quarter of fiscal 2027, constant currency revenues are forecast to grow mid to high-single digits, with the operating margin expanding 80 to 120 basis points, aided by a lower prevailing tariff rate of 10 percent. Based on current exchange rates, foreign currency is expected to have a neutral impact on full year results.

US denim specialist Lee Jeans is set to change hands. Parent company Kontoor Brands has confirmed it has signed an agreement with Authentic Brands Group to sell the business for up to one billion dollars.

The definitive deal, which has been approved by Kontoor’s board of directors, includes an initial transaction value of 750 million dollars and a 250 million dollar earnout based on Lee’s future performance under Authentic. The transaction is expected to close in the second half of 2026 and remains subject to regulatory approvals and closing conditions.

In a statement, Kontoor’s president, CEO and chairman, Scott Baxter, described the divestment as a "deliberate step to sharpen our brand portfolio and unlock investment capacity to fuel accelerated growth”.

Kontoor had already confirmed plans to separate from the Lee brand in its financial report for 2026, in which Lee had already been classified as a discontinued operation. At the time, Baxter had said the move looked to align the group’s portfolio “towards a higher growth profile”.

Kontoor repositions towards ‘higher growth profile’

Rumours about potential bidders then began circulating, with Authentic reported as a frontrunner in the takeover race. By adding Lee to its portfolio, the US multibrand giant is extending its long-term streak of snapping up notable labels, placing the brand alongside the likes of Guess, Dockers, and Boardriders.

Authentic itself has seen significant growth, with sales outpacing a prior five-year goal of achieving 100 billion dollars in sales and whispers of an IPO filing beginning to spread.

At Kontoor, meanwhile, the team is pivoting its attention towards Wrangler and Helly Hanson, two brands Baxter said have “significant white space opportunities”. As a result of the deal, the company will now be “better positioned to fuel a higher growth profile” in segments like denim, outdoor and workwear.

Alongside a newly streamlined brand portfolio, Kontoor is also aiming to enhance its profitability profile, strengthen its balance sheet, enable disciplined reinvestment and enhance its commitment to long-term value for shareholders.

Baxter added: “I want to reinforce our commitment to support Lee through the sale process and to personally thank the Lee team for getting us to where we are today. We believe this is a great outcome for Kontoor, the Lee business and Authentic.”

Major fashion retailers including Primark, H&M Group and Zalando are calling on governments to introduce tax reforms aimed at making resale and repair more commercially available.

The move comes as nearly 70 fashion and textile organisations signed a joint statement coordinated by the Ellen MacArthur Foundation, warning that current tax systems continue to favour the production of new clothing over circular business models.

Other signatories include Bestseller, Selfridges, Global Fashion Agenda, Arc’teryx, Decathlon, Vinted, Lacoste, Vestiaire Collective, ThredUp and Etsy.

The group is urging policymakers in the EU, US and Canada to reduce VAT on resale and repair services, lower labour taxes linked to circular business models and expand Extended Producer Responsibility schemes to fund textile collection and sorting infrastructure.

The proposals have particularly drawn backing from retailers expanding resale, repair and re-commerce operations as pressure grows around sustainability targets, textile waste and shifting consumer spending habits.

According to the foundation’s new report, ‘The New Bottom Line: Policy levers to scale resale and repair for fashion’, targeted policy reforms could increase gross profit margins to as much as 55 percent for resale businesses and around 41 percent for repair services. The circular fashion market is projected to reach 393 billion dollars by 2030, growing at twice the rate of the wider fashion industry.

‘Today, [the resale model] is economically penalised…’

In a statement, H&M Group’s chief sustainability officer, Leyla Ertur, said: “Resale keeps products in use while meeting customer demand for more affordable and sustainable choices. But today, this business model is still economically penalised.

“If governments are serious about circularity, they need to act by removing double taxation, reducing labour costs, and removing other barriers that hold resale back.”

The Ellen MacArthur Foundation’s fashion and textiles lead Mark Buckley added: “Fashion’s potential to become more circular is significant, but the economics are stacked against resale and repair. Businesses are incentivised to use new resources rather than invest in keeping clothes in use for longer.”

The initiative forms part of the foundation’s Fashion ReModel project, which supports brands and retailers developing revenue streams through resale, repair, rental and remaking services. Participating businesses reported circular revenues growing four times faster than broader company sales, yet the segment still represents a relatively small share of total turnover.

Resale and repair businesses are still often burdened by high labour costs and typically face taxes on items at every transaction, rather than solely the original point of sale.

Vinted’s senior director of sustainability, Marianne Gybels, said to make circular businesses the first choice, they must deliver on what matters most to consumers, such as reliability and affordability.

“To unlock its full potential, policy should support business models that make circular choices more accessible. This helps second-hand to scale further and provides consumers high-quality, affordable alternatives that are significantly better for climate impact than buying new,” Gybels concluded.

The bankruptcy filing of US boating retailer West Marine, which recently sought Chapter 11 protection, has implicated several apparel companies. Rocky Brands, Kent Water Sports LLC, and Luxottica of America are listed among the retailer's top 30 unsecured creditors. Other brands sold by West Marine, such as Sperry, are reported to be less affected by the proceedings.

West Marine filed its Chapter 11 petition with Delaware's US Bankruptcy Court, listing both estimated assets and estimated liabilities in the range of 500 million dollars to one billion dollars. The company has entered into a restructuring agreement with backing from key financial stakeholders to pursue a transaction that intends to enable the delivery of its capital structure “while maximising value and ensuring continued service to the boating community”.

The total number of creditors listed surpassed 100,000, with Rocky Brands US LLC, which sells its Xtratuf boots through West Marine, emerging in the upper portion of impacted unsecured creditors. According to the filing, the group is owed 1.1 million dollars, while Kent Water Sports, the parent company of footwear brand Ho Sports, is owed nearly 1.17 million dollars and sunglasses brand Luxottica is owed over 900,000 dollars.

Mounting annual lease obligations exceeding 50 million dollars were cited by West Marine CEO Paulee Day as the primary reason for the bankruptcy filing. “Many of the debtors’ stores are burdened by undesirable locations, onerous lease terms negotiated during more favourable economic conditions, and limited flexibility for early termination, leaving the debits with little ability to right-size their portfolio outside of a court-supervised process,” Day said.

She continued: “The fixed costs associated with maintaining this excess retail presence—including rent, utilities, and allocated overhead—have consistently consumed a disproportionate share of the debtors’ operating cash flow, eroding margins and preventing the business from investing in the operational improvements necessary to restore long-term profitability.”

West Marine, which operates 200 retail locations, has appointed Hilco Real Estate to advise on potential lease saving areas, and oversee the wind down of stores that do not align with the company’s go-forward footprint. Day said the actions taken “will allow us to optimise our operations and rationalise our footprint, so that we can focus on continuing to serve our customers and community well into the future”.

French company Losanje, which specialises in textile upcycling, has secured a capital injection of 6.7 million euros (7.79 million dollars). Upcycling involves reusing existing materials to create a new product, such as making a bag from a pair of jeans. This process increases the value of the residual product, turning textile waste into a business.

The Varennes-Vauzelles-based company last raised funds in 2023. That 2.7 million euro round was used to develop an automated cutting system. Losanje then demonstrated the scalability of this method with a successful patchwork clothing line for the fashion brand Faguo.

Existing investors UI Investissement and Crédit Agricole are participating again. New backers include the platform Lita and family office Evolem. Public sector contributors include the French agency for ecological transition (ADEME), state bank Bpifrance, and the Bourgogne-Franche-Comté region.

The goals for the coming years include increasing production capacity, purchasing advanced industrial machinery, and hiring engineers. Additionally, the company will soon relocate to a new 2,500 square metre facility in the nearby city of Nevers.

In his LinkedIn post, co-founder Simon Peyronnaud outlines a new fashion universe where his company plays a revolutionary role on par with Vinted.

Peyronnaud started the company six years ago in 2020 with partner Mathieu Khouri. In the post, he confirms that last year, 50 clients were supplied with 150,000 upcycled textile products. He aims to increase that number to six million items of clothing and accessories by 2030.

The capital injection into Losanje is another significant French push towards circular textiles. For example, last year the company Reju announced the construction of a polyester (PET) recycling factory in Sittard, funded by the Dutch government. Meanwhile, the American poly-cotton recycler Circ is building a 450 million euro facility in the northeastern French city of Saint-Avold.

Luxury e-tailer Net-a-Porter is facing a strike from 100 workers at its distribution centre in London. Deliveries are expected to be “savaged” due to the industrial action. The warehouse currently remains in operation, the company confirmed.

The walk out, which was expected to take place between May 20 and 21, comes in response to the company’s alleged failure to pay the London Living Wage to its lowest-paid staff, GMB Union said. According to the organisation, members claimed to have been made to feel under pressure for participating in the run up.

In a statement, Craig Prickett, GMB regional organiser, said such action is “always a last resort”, adding: “Our members want a fair resolution, and we would welcome the company coming back to the table with an offer we can present to the workforce, one that meets the expectations set by Net-a-Porter’s own previous commitments.”

Prickett continued: “This dispute can still be resolved without any disruption to distribution if the company chooses to act now before the action takes place. Our members were given assurances about the London Living Wage, so all they are asking for is what was promised to them.”

In a statement to FashionUnited, LuxExperience, Net-a-Porter's parent company, said: “LuxExperience acknowledges and fully respects our employees' right to take industrial action.

"Our priority remains that we recognise the vital contribution of our employees and remain open to engaging in constructive dialogue with union representatives as we navigate the next steps in this process, whilst ensuring we protect the long-term sustainability of our business.”

The strike comes as Net-a-Porter’s financial positioning continues to improve under the turnaround strategy of LuxExperience. Earlier this week, the Germany multibrand group reported the stabilisation of revenues during the Q3 of 2026, with the luxury segment, including Net-a-Porter, anticipated to show further improvements.

In a statement, LuxExperience CEO Michael Kliger said: “Net-a-Porter and Mr Porter, as well as Yoox, showed further sequential improvements, which are fully in line with our ongoing transformation plan for both segments. We are fully on track to achieve our forecasted results for the full 2026 financial year.”

This article was updated May 21, 12pm CEST to include a statement from LuxExperience and an update on the status of the warehouse's operations.

Delphine Arnault, chief executive officer of Dior, has announced a reassessment of the house's pricing policy for certain products, reports the Financial Times. The announcement was made at the Business of Luxury conference, organised by the British newspaper and held on Monday in Puglia. The head of the LVMH group's second-largest brand by turnover stressed the desire to win back a clientele put off by the sharp price increases of recent years.

“We are working hard on our leather goods offering and we are being very cautious about pricing,” Arnault said during her speech. She also added: “You cannot increase the price of a product without enhancing the perception of its quality. This is an essential point.” For reference, the management specified that the price of the Lady Dior bag, one of its bestsellers, has not seen any increase since 2023, except for adjustments strictly related to the devaluation of two currencies.

Creative renewal as a recovery lever

This pricing caution is part of a broad period of strategic renewal. Last year, the house appointed Jonathan Anderson (former creative director of Loewe) as artistic director to revitalise the brand's image and curb the decline in sales observed amid a general slowdown in the sector. Last week, the designer also presented his sixth collection for the brand and his first Cruise show in Los Angeles.

Jonathan Anderson's first creations for the house went on sale in boutiques on January 2. According to information reported by the Financial Times, this initial delivery deliberately included several items at more affordable prices, with the aim of concretely illustrating the brand's new aesthetic and evolving commercial strategy.

Hyper-luxury has its limits

Dior's initiative highlights the limits of hyper-luxury and the price increases implemented in recent years by many brands in the sector, such as Louis Vuitton or Chanel. This increase has had the effect of alienating affluent consumers: the aspirational customer; the fashion enthusiast with a good salary; and the occasional visitor to a brand they admired. As a result, several major houses have reported a slowdown in demand. The comments made by Dior's chief executive officer, as well as press reports about a price review within the Kering group's brands, demonstrate that things are about to change.

The ongoing price reduction and the introduction of more accessible pieces show that the industry is considering rebalancing its offering. The market is moving away from ostentatious pricing towards authentic perceived value. Prices, however, remain high but are justified by production realities, with luxury companies increasingly emphasising their artisanal focus.

Marquee Brands has announced a definitive agreement to acquire a majority stake in Roberto Cavalli, through a strategic partnership with the Dubai-based Damac Group.

Closing of the transaction is expected in the second quarter of 2026

The transaction is expected to close in the second quarter of 2026, after which Damac Group will “remain a significant shareholder,” a statement read. Founded in Florence in 1970, Roberto Cavalli joins Marquee Brands' portfolio of global brands, which includes Martha Stewart; Laura Ashley; Sur La Table; Bcbgmaxazria; and Stance. “The addition of Roberto Cavalli further strengthens Marquee Brands' position as a leader in the luxury and lifestyle sectors, bringing total retail sales for the entire portfolio to approximately five billion US dollars,” the statement continued.

“Roberto Cavalli stands as one of Italy's defining luxury fashion houses, with a bold creative identity and an enduring brand identity,” said Heath Golden, CEO of Marquee Brands. “We see extraordinary potential to build on this foundation through careful brand management and strategic expansion. In partnership with Damac, a leader in luxury real estate, we will continue to elevate the Roberto Cavalli experience worldwide.”

Marquee Brands announces The Level group as primary operating partner

“Roberto Cavalli is one of the most distinctive luxury brands in the world. After several years dedicated to consolidating the brand's foundations, we sought a strategic partner with the necessary expertise to take the brand to the next level. We are confident that Marquee Brands is the right partner to do so. Given our love for the brand and our significant ongoing shareholding, we look forward to supporting Marquee Brands' efforts. This includes continuing to expand the Roberto Cavalli lifestyle through branded residences and hospitality projects in key global destinations, an area that remains wholly owned and managed by Damac. This collaboration marks a new and exciting era for the brand. We look forward to its significant future expansion,” added Hussain Sajwani, founder of Damac Group.

Marquee Brands will accelerate Roberto Cavalli's growth by introducing new categories, services and experiential touchpoints. The press release specifies that this expansion will occur in Europe; the UK; the US; the Middle East; Asia-Pacific; and Latin America.

Damac will continue to develop the brand's presence through Roberto Cavalli-branded residences and hospitality projects in key global markets, strengthening the brand's luxury positioning and appeal. “The partnership creates a powerful platform that combines Marquee Brands' expertise in global brand development with Damac's leadership in luxury real estate and hospitality, unlocking significant new opportunities for the future of Roberto Cavalli.”

As part of the transaction, Marquee Brands has announced that Milan-based The Level Group (TLG) will be its primary operating partner. The Level Group will lead the development, production and distribution of the brand's womenswear and menswear collections, ensuring a unified and elevated product vision in key markets. In addition, Tlg will assume responsibility for retail and e-commerce operations and wholesale distribution in Europe and the US, strengthening Roberto Cavalli's direct-to-consumer presence and global retail strategy.

US lifestyle products and services company Urban Outfitters, Inc. has announced that the total company net sales for the period increased 11.4 percent to 1.48 billion dollars. Net income reached a record 115.7 million dollars, with earnings per diluted share standing at 1.30 dollars.

Total retail segment net sales increased 8 percent, with comparable retail segment net sales increasing 5.6 percent. The growth in retail segment comparable net sales was driven by high single-digit positive growth in digital channel sales and mid single-digit positive growth in brick and mortar store sales.

Positive growth across brands and channels

Comparable retail segment net sales increased 9.8 percent at FP Group, 9.3 percent at Urban Outfitters and 1.9 percent at Anthropologie. Subscription segment net sales increased 34.5 percent, driven by a 33.3 percent increase in average active subscribers, while wholesale segment net sales increased 24.8 percent, driven by a 26.2 percent increase in FP Group wholesale sales due to an increase in sales to specialty customers.

“We are pleased to report record first quarter sales and earnings driven by positive retail segment ‘comps’ at all brands and impressive double-digit growth in both our Wholesale and Subscription segments,” said chief executive officer Richard A. Hayne. “Our customers remain engaged and are responding to compelling fashion trends, giving us confidence in URBN's continued success.”

Gross profit dollars increased 10.9 percent to 542.6 million dollars from 489.1 million dollars. However, the gross profit rate decreased by 16 basis points compared to the three months ended April 30, 2025. This decrease was due to a non-recurring gain of 4.8 million dollars, or 36 basis points, recorded in the prior year quarter that was not repeated in the current year quarter.

Off-price apparel and home fashions retailer the TJX Companies (TJX), which is based in the US, has announced financial results for the first quarter of fiscal year 2027 ended May 2, 2026, delivering growth that exceeded internal plans. The corporate group reported a 9 percent increase in net sales to 14.32 billion dollars in the first quarter of fiscal year 2026.

Consolidated like-for-like (LFL) sales, increased 6 percent during the period, driven by growth across all divisions and higher customer transactions. On a constant currency basis, net sales growth for the quarter was 8 percent, with foreign currency exchange rates providing a one percentage point positive impact.

Net income reached 1.33 billion dollars, up from 1.04 billion dollars in the prior year period. Diluted earnings per share (EPS) grew 29 percent to 1.19 dollars, compared to 0.92 dollars in the first quarter of fiscal 2026.

Division performance and sales metrics

The Marmaxx division, which includes TJ Maxx, Marshalls, and Sierra stores alongside their e-commerce platforms in the US, recorded net sales of 8.65 billion dollars, representing a 7 percent reported growth rate. LFL sales for Marmaxx grew by 6 percent during the first quarter.

The US HomeGoods division, which operates HomeGoods and Homesense locations, achieved net sales of 2.51 billion dollars, an 11 percent increase on a reported basis, with LFL sales rising 9 percent.

International operations also expanded during the quarter. TJX Canada, encompassing Winners, HomeSense, and Marshalls stores in Canada, recorded net sales of 1.29 billion dollars, up 12 percent on a reported basis and 9 percent on a constant currency basis, with LFL sales up 7 percent. TJX International, which covers TK Maxx and Homesense stores plus European e-commerce sites across Europe and Australia, reported net sales of 1.88 billion dollars, an increase of 13 percent on a reported basis and 7 percent on a constant currency basis, accompanied by a 4 percent increase in LFL sales.

Capital allocation and updated financial outlook

TJX generated 1.12 billion dollars in operating cash flow and concluded the first quarter with 5.58 billion dollars in cash and cash equivalents. The retailer returned 1.08 billion dollars to shareholders through the repurchase of 3.80 million shares of common stock for 604 million dollars and the distribution of 471 million dollars in shareholder dividends.

The corporate board previously approved a new stock repurchase program authorizing up to an additional 3.00 billion dollars of stock buybacks, leaving approximately 3.50 billion dollars available under all active programs as of May 2, 2026.

TJX ups outlook

Following the first quarter performance, chief executive officer and president Ernie Herrman stated that the spring/summer 2026 season was off to a positive start, prompting an upward revision for full year projections. Herrman remarked, “Availability of quality, branded merchandise is outstanding, and we are well-positioned to take advantage of the plentiful buying opportunities we are seeing in the marketplace”.

For the second quarter of fiscal 2027, TJX plans consolidated LFL sales growth of 2 percent to 3 percent, a pretax profit margin between 11.4 percent and 11.5 percent, and diluted EPS in the range of 1.15 dollars to 1.17 dollars.

For the full year fiscal 2027, the group raised its consolidated LFL sales growth outlook to a range of 3 percent to 4 percent. The expected full year pretax profit margin has been increased to a range of 11.9 percent to 12 percent, and full year diluted EPS expectations have been upgraded to between 5.08 dollars and 5.15 dollars.

Pepco Group N.V., a Dutch-registered, London-based holding company, has reported its unaudited interim results for the six-month period ended March 31, 2026, revealing substantial profit growth and an expansion of its retail footprint.

The pan-European variety discount retailer delivered revenue of 2.47 billion euros (2.87 billion dollars), representing a reported increase of 5 percent. Underlying profit after tax, or PAT, jumped by 52.3 percent to 198 million euros.

Commenting on the results, chief executive officer Stephan Borchert stated: “Beyond the revenue performance, our profitability has stepped up significantly. Strong gross margin expansion of 250 basis points, and the improved operational leverage of our Pepco business, have driven underlying EBITDA growth of 17.5 percent.”

Strategic pivot to core apparel and general merchandise lines

The positive results reflect the ongoing implementation of a transformation plan introduced at the capital markets day in March 2025. A key pillar of this strategy involved simplifying the group structure by exiting the FMCG segment to focus resources on higher-margin clothing and general merchandise categories.

Excluding the impact of the FMCG exit, group like-for-like revenue growth was plus 3.6 percent for the half year. The flagship Pepco brand recorded an apparel-driven LFL revenue growth of 4.6 percent when excluding FMCG, marking six consecutive quarters of positive LFL performance for the banner.

Accelerated expansion plans for brick and mortar network in Western Europe

Improved store economics in Western Europe, particularly across Iberia and Italy, have prompted management to significantly upgrade its regional expansion target. The group now plans to open at least 600 new brick and mortar stores in its existing Western European markets between financial year 2027 and financial year 2030, which will effectively double its regional presence.

During the first half, the group opened 61 net new stores across its portfolio, bringing the total European network to 4,420 locations. While expansion continues rapidly in southern Central and Eastern Europe, the group is also planning a carefully managed trial of new stores in select areas of Ukraine by the end of the 2026 calendar year, leveraging existing brand awareness among repatriated citizens.

Enhanced capital return framework and structural changes

The group reconfirmed its full year financial year 2026 guidance, expecting revenue growth of 6 percent to 8 percent and net underlying earnings growth of at least 50 percent. Supported by a robust balance sheet and pre-IFRS 16 net debt of 139 million euros, Pepco Group announced a refreshed capital allocation framework to upgrade shareholder distributions.

The retailer intends to complete a special one-time capital return of up to 400 million euros in financial year 2026 via a pro-rata tender buyback. From financial year 2027 onwards, the group will return all excess prior-year levered free cash to shareholders through a mix of buybacks and dividends, with a target to progressively increase the regular dividend payout ratio to 40 percent over time.

Divergent performances across portfolio brands and senior personnel appointments

The group performance was driven entirely by the core Pepco banner, which generated 2.30 billion euros in revenue and an underlying EBITDA of 505 million euros. Trading at the Dealz Poland banner remained challenging, with revenues declining by 6.6 percent to 170 million euros and LFL revenues falling by 8.3 percent. The group remains committed to separating the Dealz business by the end of financial year 2026.

To reinforce this strategic direction, the group completed several appointments during the period. Sabine Zantis-Moeller, who previously held senior marketing leadership positions at Deichmann, joined as chief customer director in March 2026. Additionally, Robert Pernak was appointed as head of pricing and Sławomir Nitek was appointed as country manager for Poland.

Europe is currently experiencing a significant and enduring surge in running, fueled by factors like the post-pandemic focus on health, the emergence of Gen Z, and the increasing popularity of social run clubs. This robust trend offers an opportunity for brands with a heritage rooted in running. However, to harness this resurgence in a sustainable manner, they must first recalibrate their approach.

Saucony is one of those names outpacing the broader market. The business is continuing to transform under the scope of a considered and deliberate strategic rollout. Its turnaround in Europe is being guided by Cameron Black, vice president and general manager of Saucony Europe, Middle East, and Africa (EMEA), who was appointed to the role with the task of leveraging and capitalising on the brand’s heritage and reviving it for a younger, fashion-focused consumer.

Prior to Saucony, Black had been general manager of Hoka under Deckers Brands, and had served as a key player in the footwear label during a period of acceleration. Upon Black’s initial appointment, Hoka had been bringing in around 140 million dollars globally, and by the time he left it was approaching the two and a half billion dollar mark. Black saw a similar opportunity for growth and revival at Saucony, a heritage label founded in 1898 that had been in decline under its parent group, Wolverine Worldwide.

Since Black’s appointment nearly three years ago, however, there has already been a significant change. In the American footwear giant’s most recent financial report for the fiscal year 2025, Saucony was credited with driving group performance, with sales amounting to 533.1 million euros, a 31.14 percent uptick on the year prior.

“The momentum behind Saucony right now, particularly in Europe, is pretty unrivalled,” Black said. “We’ve managed to turn around a brand that a retailer had once called ‘dusty’ into a one it now describes as ‘radical’. That’s really been my journey to now with Saucony, and it’s a really exciting time to be a part of the brand.”

The Move Makers and an activation marketing format

Black’s first steps at Saucony centred around the implementation of a brand-building model, while also shifting focus towards a specific consumer group in the 25 to 35 year old range. Internally dubbed the ‘Move Makers’, the audience is trend-conscious and fashion-leading, marking a departure from an inherently sports-centric positioning and moving Saucony closer to its mission of blending performance and lifestyle.

In targeting this group, a change in perception was needed and ultimately achieved by moving marketing spend away from sales activation, trade marketing and lower-funnel conversion, which had accounted for 97 percent of the budget, primarily towards brand activation, which now makes up 65 percent of the budget.

“That singular focus has allowed us to over-invest in that consumer group, and in doing so, transformed the perception of the brand,” Black said. “Saucony has become younger, cooler, and more trend-driven, and that consumer group is now creating a halo effect across broader demographics as well. Whether the group were buying lifestyle or performance products, we treated them as one unified customer. We see Saucony at the intersection of running culture, lifestyle and performance, so we didn’t want to separate audiences for each category.”

London as the blueprint for wider expansion

This approach extended into European rollout, for which London became the first and primary focus for Saucony in 2024. The challenge, Black said, was growing what was a relatively small brand within a setting dominated by companies boasting enormous budgets and resources. Around 70 percent of the brand’s European marketing spend therefore went towards London alone, with community marketing in particular taking centre stage.

“Our teams are deeply connected to those communities, they’re part of them, and in many ways, they are the target consumer themselves,” Black explained. “We restructured the organisation around that idea.”

Two significant initiatives took shape in London, which eventually formed a blueprint for how the brand is planning and expanding into new markets. The Saucony 10K is a core pillar. The event’s London edition launched in 2024, and this year sold out with over 20,000 runners taking part. Participants were firmly rooted in Saucony’s target group and also participated in smaller activations like the Shoreditch Run Club, creating a community from people in need of a physical space.

Covent Garden was then selected as the site for the brand’s debut UK flagship, chosen for its strong footfall and central location. The two storey space is described as a “cultural hub” for this running community, where the brand’s heritage is emphasised across a multifunctional setting. “The store is doing exactly what we hoped it would do; it has become a genuine community hub for the brand in London,” Black said.

The location built on Saucony’s small presence in the UK, where it already operated an outlet store in Cannock. Akin to the post-pandemic strategies of other retailers, this site responded to the need to deal with excess inventory in a clean, effective way, but is not central to how Saucony is growing in the present day. “We obviously want those outlets to perform well, but from a broader retail perspective our focus is on ensuring that the Paris and London flagship spaces are doing their job in building the brand,” Black said.

Nearly a year on from its regional store debut, Saucony has found a solid base in the UK. “Next year, we’re on track to grow the UK market to five times what it was in 2024,” Black reported. “That acceleration has come from over-investing in year one and then continuing that investment over time, with the store playing a central role in driving awareness and hosting weekly activations.”

The Parisian Pioneer Hub

Saucony has since been translating the London blueprint for Paris, where the company held its first 10K event in December and is currently preparing for the opening of its ‘Pioneer Hub’ flagship. Due to launch in August, the five-floor building combines retail, showrooms, event spaces, and offices, creating a multifaceted hub where teams working on the Parisian market will also be based, “creating a much deeper connection between the brand and the community”, Black noted.

Activations will then extend into Paris Men’s Fashion Week, with the hub to play host to an inaugural event during the January 2027 edition. Involvement in the fashion week is imperative to Saucony’s mission of repositioning as a “true run-lifestyle brand”. ”We’re fortunate because Saucony has such a rich archive of products,” Black added. “We can draw from different eras and trends, from the 70 right through to today. At this point, we genuinely see ourselves as equally a lifestyle and performance running brand.”

Even before the hub’s opening, Saucony’s popularity in France had already soared. To test the market, the brand opened various Parisian pop-ups, introducing its running-focused concept to the local consumer base. As a result, Saucony saw interest in its running category rise 487 percent in France, largely driven by Paris-based consumers, making the city one of Saucony’s key global cities, alongside London, New York and Tokyo.

This has also been reflected in the response to the product. The “running-inspired” Omni 9 shoe, for example, has become the brand’s top selling silhouette, welcoming a 1,400 increase in clicks-to-page in the UK over the past year. The lifestyle category, meanwhile, is also up 4,500 percent in impressions, an ode to the team’s ability to craft products for their consumer base, with attention to colour, aesthetic, and shape, while maintaining a global perspective.

How these products are then rolled out onto the shop floor is integral. In Covent Garden, where the consumer demographic is largely defined by tourism traffic, Saucony has found that shoppers lean towards comfort and cushioning, rather than racier, speed-oriented running styles. Black suspects Paris may differ.

“It’s a far more fashion-oriented district, and other brands in the area also lean heavily into lifestyle positioning. We expect the Paris consumer to align even more closely with our Move Maker profile – a fashion-oriented but still active consumer.”

A market-by-market approach

This thought-out rollout is prevalent in many of Saucony’s decisions, including in which markets it is looking to move into next. “What’s important for us is that when we enter a city, we do it properly. We don’t want to stretch our budgets so thin that we can’t execute at the level we want to,” Black said.

Berlin has been identified as a secondary priority market, as reflected in plans to host the city’s inaugural Saucony 10K, due to take place June 20. The event was described by Black as the “first major step in over-investing into Germany with a sustained long-term strategy”, which can now be made without sacrificing investment elsewhere. “In fact, we’ve continued increasing investment in both London and Paris,” Black noted.

Next year, Saucony will then begin introducing similar activations in Milan. Akin to the UK, Saucony already operates a number of outlets in Italy, yet by applying its staple blueprint for market rollout, further plans for the region are likely underway. “Retail is definitely part of that blueprint, but we’re taking it one step at a time,” Black said.

This mindset is notable in a global market that has been relatively hesitant to fully embrace retail. However, as Black underlines, physical spaces are imperative to Saucony, particularly as it looks to cater to consumers seeking real-life experiences. “A major part of our strategy is becoming part of the communities we serve,” Black said. “To do that effectively, you need a physical location where consumers can gather and engage with the brand. That’s why Paris, London and future stores in key cities are such an integral part of the strategy.”

The scale of this retail footprint isn’t important, Black notes before reaffirming there isn’t a massive rollout plan on the horizon. “What matters is having a presence in the right key cities, and being very intentional about where and how we show up,” he concluded.

The modern fashion industry operates under constant strain, where traditional forecasting models frequently clash with unpredictable market realities. Siloed workflows, fragmented planning systems and a heavy reliance on manual processes mean that crucial information is often trapped in disconnected spreadsheets, tech packs and erratic communication channels.

When supply chain disruptions, factory shutdowns or sudden shifts in consumer demand occur, brands are left reactive, unable to pivot quickly enough to protect their margins. This structural disconnect leads to late deliveries, fractured multi-channel product information and devastating out-of-stock scenarios that erode consumer trust and wipe out full-price sell-through. To adapt better, the industry is well advised to transition from legacy guesswork to a connected, intelligent ecosystem driven by artificial intelligence (AI).

Software provider Aptean recently introduced its new tool, Aptean Fashion & Apparel, which automates decisions and unifies workflows for the fashion and apparel industry, from design to delivery, thus giving teams real‑time visibility across styles, colours and dimensions. Five online sessions by industry insiders on 14th May shed light on how the tool can help the industry across the supply chain and departments. FashionUnited has summed up how industry insiders use AI in the design phase, on the factory floor, when writing content about a product and launching it to balancing demand through smart inventory control.

Protecting revenue with style substitution

In high-volatility sectors like the fashion industry where consumer demand can instantly spike due to modern digital forces like social media influencer campaigns, traditional inventory replenishment cycles—which typically span 60, 90 or 120 days—fail to keep pace.

“If a customer's or a consumer's preferred style is out of stock and no one can quickly identify a comparable alternative, you likely have lost the sale. They have moved on, gone to your competitor, another apparel brand, found something they liked and you have lost that sale,” explains Ken Weygand, solutions architect at Aptean. He has been working with fashion, footwear and accessories brands to help them implement both Enterprise Resource Planning (ERP) and Product Lifecycle Management (PLM) solutions to improve and enhance their business operations.

When a preferred garment or size becomes unavailable, brands and retailers face a high probability of permanently losing the consumer to market competitors unless an identical or highly equivalent alternative can be immediately identified at the point of sale. This is where an autonomous “style substitute agent” comes in. “It is all about finding a substitutable style, comparable alternatives quickly so that we can service our customers. … It can do so rather quickly in real time… and can also validate against live inventory. There is no point in looking at alternative styles where we have no inventory,” states Weygand.

Designed to mitigate the immediate revenue losses associated with product stockouts, the operational integration of this technology addresses the structural limits of managing expansive corporate databases that frequently encompass hundreds of thousands of distinct Stock Keeping Units (SKUs) across multiple fabric types, categories and fits. Fragmented frontend teams—ranging from customer service representatives to e-commerce and showroom account managers—are usually forced to navigate disjointed software systems to manually identify alternative items. This data fragmentation induces critical transactional delays and financial margin exposure, such as accidentally offering a higher-cost alternative at a lower tier price point, underscoring the vital requirement for systemic automation.

Deploying an AI agent directly over core ERP and PLM architectures provides an automated infrastructure governed by strict corporate logic. The system evaluates potential substitutions by systematically parsing product attributes—including fabric composition, garment rank, silhouette and retail value—against current safety stock parameters and historic design data. By abstracting these backend data layers into simplified, low-code interface lookups through centralised navigation systems like Aptean, users can execute smooth context switches on the sales floor to save transactions.

Optimising production flow at Hanesbrands: visibility from factory to floor

Moving from blueprints to physical creation, supply chain variability frequently disrupts the operational rhythm of mid-season manufacturing. Traditional ERP frameworks struggle with the multi-curved, high-dimensional block systems unique to fashion manufacturing, resulting in fragmented metrics and delayed visibility. AI systems actively bridge this gap by establishing real-time shop floor control, connecting raw material procurement directly to machinery outputs. This holistic, interconnected oversight transforms physical data into actionable intelligence, preventing the typical bottlenecks that stall production lines.

Explaining the necessity of this shift during global disruptions, Hemant Ramaswami, VP of digital transformation at Hanesbrands, recalled how the US clothing company moved from “simply identifying supply chain exceptions to really being able to address them in near real time” during the Covid pandemic. “Global supply chains do not fail because of missing data. They fail typically because the right data does not reach the right decision makers at the right time,” he emphasised.

Talking about distribution centres no longer being reflective of what was needed to support the customers, Ramaswami identified three core issues: elongated lead times and lack of visibility, fragmented signals and having no allocation engine. “It took a lot of effort for a customer support individual to be able to actually put together a complete picture and answer questions on when product would be available,” remembers Ramaswami.

Starting with a very large volume and highly profitable business segment - men’s underwear - Hanesbrands piloted operational AI software, expanding into more complex categories once they were able to justify the value and see the potential. Predictive logic enables manufacturers to remain highly responsive rather than merely reactive to sudden factory disruptions. Instead of relying on week-old data logs or intuitive human guesswork, operations teams leverage live data streams to identify structural exceptions instantly. By automatically mapping out alternative processing paths and rebalancing workloads across active factories, AI preserves critical delivery windows and minimises margin erosion. “It changed from being in a reactionary mode to more like a fire prevention mode,” states Ramaswami.

Especially useful was container prioritisation logic: “We typically get anywhere from 30 to 40 containers a day at some of our distribution centres. So it is very important to make sure that the unloading team is focused on the highest value containers. …Unloading the right container could be the difference between making the quarter or missing it.” Assigning a dollar value to each container helped tremendously. “It is not even an abstract AI running somewhere in the background. It is actually a dock supervisor looking at the screen that says what we need to unload first and what is on it,” summed up Ramaswami

Real-time protection: navigating volatility at product launch

The transition from the factory floor to the retail market represents one of the most volatile phases in the retail lifecycle, particularly when consumer demand shifts unexpectedly. A product launch can easily collapse under the pressure of fragmented commercial signals, leading to inventory mismatches where certain distribution centres end up overstocked while others face immediate stockouts. AI algorithms dynamically intercept these retail signals at launch, continuously evaluating regional sales trends against live inventory metrics.

Reflecting on how easily a season can slip away without intervention, Aly Breeman, senior product manager at Aptean, observed: “Every season a brand somewhere does everything right. The collection is strong, the designs are sharp and the marketing is ready and then quietly things begin to slip. A delivery arrives late, a warm October stalls the winter coats.The wholesale partners move at a different pace than the webshop. None of it feels dramatic at first but by the time the numbers tell the story the margin is already gone and the only opportunity left is a markdown. This is not bad luck, it is a pattern and like most patterns, once you see it clearly, you can plan ahead for it.”

“In fashion, timing is everything. Seasons unfold through three predictable forces,” she continued. Those are supply variability, changes in demand and channel fragmentation. Producing margins begins long before collections reach the shop floor, according to Breeman, it begins with planning. “Plan the production sequence correctly and every delay has its direct ripple effect on availability and completeness. Waiting until collections are on the shelf and your only option becomes discounting. And discounting is a margin killer,” she warns.

To enable adaptability, companies first need to be able to spot margin risk as early as possible. “One of the biggest challenges for brands is identifying underperforming quickly enough to do something about it and before it starts to affect profitability,” she adds. That is where AI can add much value: It can help by flagging potential production delays, capability issues and other risks much earlier, giving the brand time to step in and take corrective actions.

Once the collection is on the market, AI can keep track of performance in real time, not just on a high level but down to style, colour, season and location. Brands get a much clearer view of what is working and what is not and where they may need to rebalance stock. It can also support smarter replenishment by recommending the right style in the right store at the right time.

“Ultimately, AI helps brands move from reacting too late to acting sooner with much better visibility control across the whole product lifecycle,” says Breeman. “The power of AI starts with the quality of its input,” she cautions. “Generic ERP solutions do not speak fashion language. Seasons, styles in multiple colours, size curves and delivery dimensions are building blocks of how fashion moves. But in a generic system, they get lost in translation.”

“Laying AI on top of a poorly quality data or fragmented systems only amplify the problem. If different teams work from different versions of the truth, if the product data is not maintained properly, AI will make things only worse and not better,” knows the product expert. “So the answer is not simply to add AI, it is to ensure that businesses are ready to use it well. And that means focusing on data quality, governance and consistency first. The more aligned your systems are to the industry, and the more disciplined your data management is, the more effective the impact.”

Content automation: crafting accurate, targeted and compelling copy

As items hit the digital shelf, the demand for rich, accurate product data becomes paramount for conversion; data from the Salsify Consumer Research 2024/2025 indicates that a staggering 88 percent of shoppers say that product content is extremely or very important to their purchase decision. Despite this, fashion brands regularly leak revenue because of incomplete attributes, with half of consumers admitting to abandoning online shopping carts due to poor product descriptions.

“When content is missing or off-brand, it does not just create extra work. It loses sales,” confirms Alain Tessier, director of product management at Aptean. He explains that there are mainly four steps of how AI can fix this: Step one is reading the source; step two is picking what matters; step three is writing the content and step four is review and publish.

“AI takes in whatever you have, PDFs, spreadsheets, images that are from your system, and reads it all. This alone normally takes a writer 30 to 60 minutes per product before a single word is written. AI does it in seconds,” emphasises Tessier. In terms of content, AI figures out what to highlight based on where the content is going and adapts it for each audience: “The same product data becomes a product description for the website. It becomes a summary for buyers, a listing for a magazine and maybe a caption for social media. Each one the right length and tone for that channel,” states Tessier.

But that does not mean that the team does not stay in the loop. Instead of writing from scratch, team members review, adjust, and approve. “The taking stays with the people; the writing work moves to the AI side. What used to take three to five days now takes probably under 30 minutes,” sums up Tessier.

This automated approach maintains strict global consistency while eliminating the manual errors that frequently plague high-volume item setups. Rather than allowing product data to drift loosely across different retail channels, AI systematically enforces corporate style guides, localised terminology and exact brand definitions. It automatically flags critical construction anomalies—such as a jacket being listed as insulated down when the tech specifications dictate a synthetic build—thereby protecting the brand from costly returns and compliance penalties. By trimming content generation timelines from days to mere seconds, brands accelerate their time-to-market and ensure listings remain perfectly accurate across all digital touchpoints.

Fast-tracking production decisions at NSA

The final pillar of a resilient fashion ecosystem lies in sophisticated, automated production environments and inventory control.

Kelly Deady, senior director of Chicago Operations at US apparel manufacturer National Safety Affair (NSA) talked about how AI helped streamline data at the company’s four manufacturing sites (in California, Illinois, Kansas and Ohio). “Every single site had a different efficiency system, and none of them talked to each other. We finally are all on the same ERP but it does not have the data that we need to really drive down into efficiency and just optimise our online in any way possible,” recalls Deady. “We also send the same reports to the same person but we have to edit things all the time in order … to [get] an apples to apples comparison of the data. So going with Aptean has been a huge game changer for NSA,” adding that predicting late orders or balancing multi-sites by either looking at cost or at efficiency has been the biggest gain.

Making sure to have the data to back up promises in regards to being able to function quickly, function effectively, and assess what type of bottlenecks they could run into is what helps maintain a “Made in USA” brand. “Anything that can predict the unexpected is awesome because manufacturing every day is unexpected,” adds Deady.

Traditional inventory management relies on historic seasonal patterns, which leaves brands highly vulnerable to unpredictable market shifts, late logistics arrivals and sudden regional demand drops. AI breaks this rigid loop by continuously running complex predictive scenarios, calculating precise trade-offs between localised stock levels, shipping overheads and promotional markdowns.

This systemic oversight translates directly into automated, real-time inventory rebalancing across diverse direct-to-consumer and wholesale networks. Instead of forcing regional teams to manually sifting through massive spreadsheets to locate missing size curves, the AI autonomously calculates the exact metrics required for precise, calculated replenishment. It dictates exactly when to move sluggish stock from underperforming brick-and-mortar floors to high-velocity e-commerce hubs, ensuring maximum full-price sell-through. By executing these tiny, continuous operational adjustments across the product lifecycle, fashion enterprises can drastically lower total days unsold and maintain exceptionally lean, highly profitable supply chains

“Having an AI agent is like having another set of eyes that are always looking at it, waiting for whatever it is that you have trained it to come up. So you are going way beyond a report that is pulling data or a tool that is showing dashboards or screens. You actually have something that is looking at it that has more of like a human-type of brain aspect to it in the way it is looking at the information,” concludes Deady.

Conclusion: synthesising the automated fashion enterprise

Embracing AI across the fashion lifecycle is no longer a futuristic experiment; it is a fundamental commercial necessity for brands looking to protect their margins in an unforgiving market. By linking design, production, launch, copy creation and inventory control into a single, cohesive intelligent ecosystem, fashion enterprises eliminate the disconnected data silos that historically stall growth. The results are profound: dramatically shorter development cycles, minimal stockout friction, flawless data integrity and highly optimised stock allocation. Stakeholders who implement these integrated AI solutions effectively future-proof their operations, replacing legacy operational guesswork with a precise, highly responsive architecture built to thrive on market volatility.

Madrid – The pre-arranged steps for the swift acquisition of Pronovias by Cap Capital continue to be strictly followed. The leading global company in the bridal fashion sector has now been placed into administration. This is part of the “pre-pack” administration process that will conclude with its sale to the British investment group.

According to the court order issued this Tuesday, May 19, 2026, which corrects a previous ruling made the day before, Pronovias Group filed for administration on May 13, 2026. This follows reports from FashionUnited late last week. The Commercial Court No. 9 of Barcelona has been overseeing the “pre-pack” administration process requested by Pronovias' current owners, the US private equity firms Bain Capital and Clearlake. The court has now placed the company into administration with a ruling dated May 18, and a subsequent correction issued this Tuesday, May 19.

Key details from the same court order, which FashionUnited has accessed, show that a total of 17 companies linked to the bridal fashion group have been placed into administration. These companies include subsidiaries for its operations in key markets such as the US, UK and Mexico, through companies such as Catiberia Acquisition Holdco; San Patrick; Financiera Pronovias; Estudio San Patrick; Pronovias Portugal Unipessoal; San Patrick Bridal & Cocktail; Ltd Shanghai Branch; San Patrick International Limited; Pronovias UK Limited; Pronovias France; San Patrick Nederland B.V.; Pronovias USA; Pronovias Group Italia; San Patrick Brasil Moda; Pronovias Polska; San Patrick Novias de Mexico; and Pronovias Retail Mexico.

A five-day hearing period

Following its voluntary declaration of administration, the court has suspended the powers of Pronovias' directors. It has appointed professional services firm FTI Consulting as the administrator. FTI Consulting had previously been appointed by the same court as the independent firm to manage the initial phase of Pronovias' insolvency process. The court has now called on all creditors of the insolvent companies to contact FTI to communicate any outstanding claims for inclusion in the list of creditors and the subsequent recognition and classification of the debt. Creditors of Pronovias Group and its subsidiaries will have one month for this procedure, starting from the publication of the order in the Official State Gazette (BOE).

Parallel to this debt information and classification process, the court has opened a five-day hearing period. This period begins from the publication of the resolution in the Public Insolvency Register, allowing any interested party to submit objections regarding Cap Capital's offer to acquire Pronovias. It is specified that no new offers will be accepted during the hearing. The proposal was submitted through the company Nomera Expansión. This company was established in Madrid on September 20, 2024, with its main activity listed in the Mercantile Registry as the manufacture of other general-purpose machinery. With John William Sargent as its sole administrator since May 2025, it is a subsidiary of the industrial holding company Green Industry Machines & Materials, which is owned by the British investment group Cap Capital.

Thus, barring any last-minute setbacks, the British firm will pivot its investment strategies with the upcoming acquisition of Pronovias Group. Only a few details about Cap Capital's offer have been revealed so far, including its commitment to maintain up to 552 of the 600 jobs currently at the Spanish company. The offer succeeded against bids from other contenders during the “pre-pack” administration process. Participants reportedly included Rosa Clará, with Desigual and the US investment fund Enduring Ventures among the best-positioned.

A key step towards Pronovias' new era

Following the information reported this morning by FashionUnited, Pronovias Group has issued a statement. It highlights the administration order as a “key” step for the company as it moves into its new era under the ownership of Cap Capital. Regarding the investment group's offer to acquire the business unit of Pronovias Group, the company emphasised the commitment to employment. It also reiterated that the company will continue to operate as normal until the transaction is completed.

“Pronovias Group continues to advance in the final phase of its business unit sale process,” stated the company, after the court “issued a favourable ruling on the report submitted by FTI Consulting as an independent expert, which recommended awarding the business unit of Pronovias Group to Cap Capital.” The statement continued: “Its offer represents a firm commitment to employability at the company and ensures the necessary support and investment for the future viability of the group. It also has the support of the employees, who voted overwhelmingly in favour of the process of selling to Cap Capital. During this final phase before the transaction is executed, the company will continue to operate completely normally, maintaining its commitment to the quality of its collections and offering the best service to its brides, customers, partners and distributors worldwide.” The statement concluded: “The Board wishes to thank the Court for its speed in issuing a ruling that is key to the stability and future plans of Pronovias Group.”

The US-based apparel company VF Corporation reported financial results for its fourth quarter ended March 28, 2026, marking a return to full-year revenue growth alongside expanded margins and reduced debt. The company's board of directors authorized a quarterly per share dividend of 0.09 dollars, payable on June 18, 2026, to shareholders of record at the close of business on June 10, 2026.

For the twelve months ended March 2026, total revenues reached 9.61 billion dollars under GAAP, up 1 percent compared to the previous year. Excluding the Dickies brand, which was sold during the third quarter of fiscal year 2026 (FY26), full-year revenue grew 4 percent reported to 9.30 billion dollars, or 1 percent in constant currency.

Full-year gross margin stood at 54.8 percent, up 130 basis points, while adjusted gross margin excluding Dickies reached 55.2 percent, up 110 basis points.

Full-year operating income reached 577 million dollars with an operating margin of 6 percent, up 280 basis points. On an adjusted basis excluding Dickies, operating income was 650 million dollars with an adjusted operating margin of 7 percent, reflecting a 110 basis point increase.

Strong fourth quarter performance driven by the Americas

During the fourth quarter of fiscal year 2026 (Q426), total revenues rose 1 percent to 2.17 billion dollars. Excluding Dickies, revenue grew 8 percent reported, or 3 percent in constant currency, outperforming the company's prior guidance of flat to plus 2 percent in constant currency. This represented the strongest quarterly revenue performance for the business in three years on a constant currency basis excluding Dickies.

The revenue acceleration was led by the Americas region, which recorded a 2 percent growth or a 10 percent increase in constant currency excluding Dickies, marking its highest growth rate since the first quarter of fiscal year 2023.

Performance by key brands during the fourth quarter included:

The North Face grew 12 percent reported, or 7 percent in constant currency, supported by a 17 percent revenue increase in the Americas;

Timberland grew 8 percent reported, or 2 percent in constant currency;

Vans declined 1 percent reported, or 5 percent in constant currency, though its Americas direct-to-consumer (D2C) business returned to growth for the first time in over four years.

Fourth quarter operating income was 62 million dollars under GAAP. Adjusted operating income excluding Dickies reached 54 million dollars, exceeding the guided range of 10 million dollars to 30 million dollars.

Strategic transitions and future guidance

The fiscal year was characterized by portfolio optimization, notably the completed sales of the Dickies brand in November 2025 and the Supreme brand in October 2024, the latter being reported under discontinued operations. The group also realigned its reportable segments into Outdoor and Active categories starting in the first quarter of fiscal year 2026.

Bracken Darrell, chief executive officer of VF Corp, noted that the company achieved a full year of growth for the first time in three years, alongside margin expansion and a leverage ratio reduction of a full turn compared to the previous year. Darrell added that Vans is showing momentum through the turnaround of its Americas D2C channel and confirmed the company remains on track to achieve its medium-term targets, which include an exit run rate of a 10 percent operating margin and a leverage ratio of 2.5 times or lower by fiscal year 2028.

Effective fiscal year 2027 (FY27), VF Corp has reinstated annual guidance. The company expects revenue to increase between 1 percent and 2 percent in constant currency compared to the fiscal year 2026 revenue excluding Dickies. It targets an adjusted operating margin of approximately 8 percent.

DSSLR GmbH, the company founded by Christoph Dassler, has filed for insolvency.

Preliminary insolvency proceedings were initiated last week for the Herzogenaurach-based sportswear brand. The responsible Nuremberg District Court announced the proceedings. Jochen Zaremba, a lawyer from the Nuremberg-based restructuring firm Schwartz, has been appointed as the preliminary insolvency administrator.

The insolvency follows the launch of DSSLR's first collection last August. The sports and lifestyle label specialises in tennis. It was launched at the end of 2023 by Christoph Dassler, the grandson of Puma founder Rudolf Dassler.

While the brand's lifestyle collection is made from regenerative organic cotton, the on-court line uses materials with a recycled content of 85 to 95 percent. The price range of the collection extends from 35 euros for headbands and wristbands to 480 euros for a short terry-look blouson jacket.

Global sales of licensed merchandise and services increased by 5.45 percent in 2025 to reach 389.8 billion US dollars, outpacing the broader global retail market, which grew nominally by 4.52 percent, according to a new report from Licensing International, the trade organisation for the global licensing industry.

The ‘2026 Global Licensing Industry Study’ shows that continued growth in licensed merchandise was fuelled by sports, character/entertainment, toys, and video games, as well as “strong regional growth” in North Asia.

The annual study, which takes data from 51 countries across all seven major geographic regions, was conducted by independent research firm Brandar Consulting and found that consumer demand for licensed products was driven by “nostalgia, escapism, and shared brand experiences,” as consumers continue to turn to “brands, characters, and stories they love”.

Maura Regan, president of Licensing International, said in a statement: “This data confirms what licensing professionals around the world already know to be true, which is that licensed merchandise is a powerful business driver.

“This is not an industry anchored to one consumer category or one type of fan engagement. Licensing is a dynamic, global business that continues to move at the pace of changing consumer behaviour. From sports and entertainment to anime, gaming, and location-based experiences, licensing continues to deepen consumer engagement in powerful ways and drive revenue.”

Key highlights from the report reveal that the sports have become the fastest-growing category, increasing 8.5 percent to reach 44.4 billion US dollars. This makes sports now the third-largest property category, representing 11.4 percent of the market.

However, character/entertainment licensing still remains a significant growth engine for the industry, with the segment growing by 8 percent to reach 161.8 billion US dollars in retail sales, driven by “healthy box office performance and strong contributions from the anime and video game sectors”.

Anime, video games, comics, social media, and other properties now make up a combined 34 percent of licensing revenues in the category, slightly ahead of feature films and scripted and unscripted TV at 33 percent.

In terms of regional growth, North Asia was the fastest-growing region globally, up by 14.1 percent, driven by robust increases in global box office sales, video games, and anime streaming content, led by Japan, South Korea, and China. Other high-growth regions included Latin America (LATAM), up 7.6 percent, and South Asia/PAC, up 5.3 percent.

The report also adds that 2025 also saw online retail and social commerce creating “new pathways” for licensed sales, with online retail sales increasing to 32 percent of all global licensed retail sales.

For the first time, the study also tracked social commerce and found that 16 percent of all online sales globally were generated from social media platforms.

Italian designer Giambattista Valli is regaining full control of his Parisian fashion house. According to reports from WWD, an agreement has been reached to buy back all shares held by Artémis, the investment holding company of the Pinault family. This transaction marks the end of a multi-year financial collaboration and signals the return to independence for the eponymous label.

In a statement sent to WWD, Valli said that this agreement will allow him "to regain full control of [his] brand and pursue its development with enthusiasm and energy." For his part, François-Henri Pinault, chairman of Artémis, stated that his family office was "delighted to support Mr. Valli and to endorse such a unique and demanding creative vision."

Artémis first invested in the brand in 2017 with a minority stake, before becoming the majority shareholder in 2021. The holding company, which manages the Pinault family's assets, initially aimed to support the house's structuring and international development.

However, the first signs of a structural review appeared at the beginning of the year. In January 2026, Giambattista Valli cancelled his participation in the haute couture week just a few days before the scheduled date. The house stated in a press release: “This decision is part of a thorough review of the organisation and priorities of its activities”.

The association Vox Populi and ultra-fast fashion brand Shein are partnering to create 'Future Fashion Talents', a scholarship designed to help young French people in precarious financial situations fund their studies at fashion schools.

After launching Pop’Skills, a fashion programme for young people from disadvantaged neighbourhoods, the association Vox Populi* and ultra-fast fashion brand Shein are offering 'Future Fashion Talents'. This scholarship is for young people wishing to pursue training at a fashion school for the 2026-2027 academic year. Applications must be submitted before June 18, 2026.

“To build this programme, we wanted to partner with a player capable of supporting us in the scaling up we wanted to achieve,” said Edwige-Laure Mombouli, general director of Vox Populi, in the press release. “Shein's support was a natural choice. It is a major player in accessible fashion, in tune with the expectations of an entire generation.”

Objective: to promote social diversity and bring out new creators, technicians and entrepreneurs

For its first 2026-2027 intake, the scholarship plans to support fifty young talents throughout France. The scheme only covers tuition fees, which can reach up to 9,000 euros per academic year, depending on the beneficiaries' situation and the cost of their training.

Overall, this corresponds to almost full coverage in some private schools or partial coverage in the most expensive institutions.

In addition to a fragile financial situation, candidates must be between sixteen and thirty years old, reside in France and in the DROM-COMs, and be admitted to or enrolled in fashion-related courses (design, technical trades, management or marketing).

Applications will be evaluated according to several criteria: social situation; creative potential; motivation; academic background; and the coherence of the professional project.

Shein's funding of fashion school tuition fees likely to cause a reaction

This initiative is reminiscent of the controversy surrounding a partnership between the Fashion Institute of Design & Merchandising and the ultra-fast fashion giant, as reported by The Guardian in 2023. The programme included twelve scholarships of 40,000 dollars for fashion students. In exchange, beneficiaries could also be asked to create pieces for the platform.

The initiative sparked strong protest within the school. One student denounced the partnership, deeming it contradictory to the institution's stated sustainability commitments. A petition subsequently gathered more than 4,500 signatures. The school defended the exchange, highlighting the high cost of studies and the lack of available funding for students.

It now remains to be seen how French fashion schools will position themselves.

*Vox Populi: Vox Populi is a non-profit organisation founded in 1999. It is committed to supporting young people from modest backgrounds, working-class neighbourhoods and rural areas through mentoring, training and professional integration programmes.

The Lycra Company has announced it will complete its financial restructuring process and emerge from Chapter 11 protection on May 20, supported by a new ownership structure, reduced debt and changes to its leadership team.

The US-based company said the restructuring will reduce its long-term debt by more than 1.2 billion dollars and provide over 75 million dollars in new investment, strengthening its balance sheet and improving financial flexibility for future growth.

The business, which supplies fibre and technology solutions to the apparel and personal care sectors, said operations have continued without disruption throughout the restructuring process.

As part of the changes, Dean Williams has been appointed interim chief executive officer, replacing former CEO Gary Smith. Williams had been serving as chief financial officer and has been with the company since its formation.

The company has also appointed a new board of directors led by executive chairman, Bruce Rubin, who said in a statement: “With a strong foundation in place, The Lycra Company will be well-positioned to enhance operational excellence, accelerate innovation, deepen customer partnerships, and reinvest in our high-quality products.”

Williams added: “Emergence marks a defining moment for The Lycra Company. We will now be a financially stronger, more focused organisation that is positioned for growth.”

The company said the restructuring positions it to continue investing in innovation, customer partnerships and global operations across its portfolio of textile technology brands.

New York - From Gucci in the middle of Times Square to Chanel on a New York subway platform, Europe's most prestigious fashion houses are staging an increasing number of spectacular shows in the United States. The US is a market that is both a priority and a trendsetter.

Dior, which presented a collection with retro accents and American flag colours at the Brooklyn Museum in 2024, chose the Los Angeles County Museum of Art (LACMA) in mid-May for a cruise show paying homage to the golden age of Hollywood cinema.

On Wednesday, Louis Vuitton is taking over another museum, the Frick Collection in New York, for its own cruise show. This comes just a few days after launching a menswear collection inspired by the Big Apple.

The French house and the prestigious cultural institution have also announced a patronage partnership, featuring exhibitions and free evenings sponsored by Louis Vuitton.

Experts agree that all this demonstrates the renewed interest of luxury houses in the American market. “For several years, the Chinese market has seen significantly slower growth. The Middle Eastern market is also suffering,” observes Pierre-François Le Louët, president of the strategy consulting agency NellyRodi.

Despite the recent bankruptcy filing of the group that owns luxury department stores Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, “the American market (...) remains a safe haven” in a context of geopolitical and economic instability, adds Serge Carreira. Carreira is a professor at Sciences Po Paris and one of the directors of the French Fédération de la haute couture et de la mode.

In New York specifically, “turnover is high,” states Pierre-François Le Louët. With its frenetic pace of construction, the city regularly offers new spaces for luxury boutiques.

Embodying modernity

The challenge for major fashion houses, however, remains to reach the widest possible audience, continues Serge Carreira. Since the United States is “a very strong cultural reference point”, showing there allows them to deliver both “a specific local message” and have a resonance “on the global market”.

Images of Chanel models on the New York subway in December went viral, propelling two of them onto the steps of the Met Gala, the annual fashion and celebrity event, in early May. Images of former American football player Tom Brady and reality TV pioneer Paris Hilton walking for Gucci in Times Square on Saturday, watched by Kim Kardashian among others, went around the world.

Major European houses want to continue to “embody modernity”, and this also involves the celebrities present in the front rows of the shows, according to Pierre-François Le Louët.

Losing momentum compared to its European counterparts, New York Fashion Week, held in February and September, is the subject of a reform attempt planned for 2027.

“In the short term, one might get the impression that the Americans are being overtaken,” concedes Valerie Steele, curator of the museum at the Fashion Institute of Technology in New York. “However, competition is generally a good thing.”

These spectacular shows on their home turf “remind American brands of the immense prestige of European haute couture, and therefore, if they want to compete, they must make an extra effort or consider a different approach,” she says. Above all, “more broadly, it revives interest in fashion”.

New York - From Gucci in the middle of Times Square to Chanel on a New York subway platform, Europe's most prestigious fashion houses are increasingly staging spectacular shows in the United States. The US is a market that is both a priority and a trendsetter.

Dior presented a collection with retro accents and American flag colours at the Brooklyn Museum in 2024. In mid-May, the brand chose the Los Angeles County Museum of Art (LACMA) for a cruise show paying homage to the golden age of Hollywood cinema.

On Wednesday, Louis Vuitton will take over another museum, the Frick Collection in New York, for its own cruise show. This comes just days after launching a menswear collection inspired by the Big Apple.

The French house and the prestigious cultural institution have also announced a patronage partnership. This will include exhibitions and free evenings sponsored by Louis Vuitton.

Experts agree that all this demonstrates a renewed interest from luxury houses in the American market. “For several years, the Chinese market has seen significantly slower growth. The Middle Eastern market is also suffering,” observes Pierre-François Le Louët, president of the strategy consulting agency NellyRodi.

Despite the recent bankruptcy filing of the group that owns luxury department stores Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, “the American market (...) remains a safe haven” amid geopolitical and economic instability. This is according to Serge Carreira, a professor at Sciences Po Paris and an executive at the Fédération de la haute couture et de la mode in France.

In New York specifically, “turnover is very high,” states Pierre-François Le Louët. With its frenetic pace of construction, the city regularly offers new spaces for luxury boutiques.

Embodying modernity

The challenge for major fashion houses, however, remains to reach the widest possible audience, continues Serge Carreira. Since the United States is “a very strong cultural reference point,” showing there allows them to deliver both “a specific local message” and resonate “on the global market.”

Images of Chanel models in the New York subway in December went viral, propelling two of them onto the steps of the Met Gala, the annual fashion and celebrity event, in early May. Images of former American football player Tom Brady and reality TV pioneer Paris Hilton walking for Gucci in Times Square on Saturday, watched by Kim Kardashian among others, went around the world.

Major European houses want to continue to “embody modernity,” and according to Pierre-François Le Louët, this also involves the celebrities present in the front rows of the shows.

Losing momentum compared to its European counterparts, New York Fashion Week, held in February and September, is undergoing a reform attempt with a 2027 target.

“In the short term, it may seem like the Americans are being overtaken,” concedes Valerie Steele, curator of the museum at the Fashion Institute of Technology in New York. She adds, “competition is generally a good thing.”

These spectacular shows on their home turf “remind American brands of the immense prestige of European haute couture, and therefore, if they want to compete, they must make an extra effort or consider a different approach,” she says. Above all, “more broadly, it revives interest in fashion.”

Despite a slump in consumer spending, major specialist sports retailers in Germany are hoping for a boom from the Football World Cup. The tournament in the USA, Canada, and Mexico, which begins on June 11, is expected to lift spirits and boost sales of football shirts, fan merchandise, and team sports equipment. This was reported unanimously by the three industry giants Intersport, Sport 2000, and Decathlon.

“Consumer sentiment is at a three-year low. We expect this major tournament to provide a positive stimulus in this regard,” Intersport's chief executive officer, Alexander von Preen, told the German Press Agency. He noted that in times when there is not much to be cheerful about, two phenomena can be observed in retail: “On the one hand, people are buying more colourful clothing. On the other, they are looking for a distraction. They want to escape their daily routine and seek community with others.”

Major sporting events like the Football World Cup offer this distraction to many people. This is why stores are offering more than just the product, such as public screenings. “If the German team plays well, it works. I am firmly convinced of that,” said von Preen.

Retailers expect sales increase

Sport 2000, based in Mainhausen, Germany, also expects additional business. Such tournaments generally have a positive effect on consumer sentiment and sales, said the retailer association's head of team sports, Björn Endter. “Experience shows that a World Cup year contributes to a sales increase of two percent of our total turnover.” In the team sports segment, growth of around ten percent is even possible. According to Endter, the closer the tournament gets, the more footfall and purchasing impulses increase.

Decathlon also expects more customers in its stores and online shop. “A major sporting event of this magnitude acts as a catalyst, based on our experience,” the company announced from its German headquarters in Plochingen. “The enthusiasm for the tournament creates a positive underlying mood, which experience shows translates into a noticeable increase in sales.”

Will hundreds of thousands of shirts be sold again?

Fan merchandise, team sports textiles, and footballs are expected to benefit in particular. The companies are placing a major focus on the sale of football shirts. During the 2024 European Championship in Germany, the approximately 700 Intersport retailers alone sold half a million jerseys. Decathlon and Sport 2000 did not provide figures at the time but also reported very high sales figures.

Sales at the time were driven enormously by the pink away shirt of the German national team. It struck a chord with customers and was temporarily sold out. “The shirt remains the centrepiece of such a tournament,” a Decathlon spokeswoman said. Following the success of 2024, fans continue to look for bold and innovative designs. Football shirts are “no longer just a stadium outfit, but a fashion statement”.

Intersport's chief executive officer, von Preen, expected that, depending on the course of the World Cup, a similar number of shirts would be sold overall as two years ago. For the German national team's shirts, however, he anticipated a different distribution between home and away kits. The white home shirt has sold much better so far than in 2024, said the head of the Heilbronn-based purchasing cooperative. The dark away shirt with its light blue elements has also been very well received.

Sport 2000 reported a successful sales launch for the German national team shirts, which was in line with expectations. “For the current tournament, we therefore expect a stable, high sales level, but without a comparable special effect as seen at the 2024 European Championship,” it was stated. The company hopes, however, for an effect from the fact that these will be the last World Cup shirts for the German national team for the time being. From 2027, Nike will be outfitting the association.

Billion-euro market in Germany

The specialist sports market in Germany is worth billions and is fiercely contested. The industry continues to benefit from a trend towards health and sport. The market leader is Intersport, followed by Sport 2000. Decathlon follows at a distance.

The French company, however, wants to expand its market position in the country and is busily opening new stores. The two associations of independent specialist sports retailers are also expanding. Just as Decathlon is moving into city centres, Intersport, for example, is now focusing on much larger stores. These are intended to appeal to families and more price-sensitive customers. This is made possible by, among other things, gaps in the market, for example, through the disappearance of fashion stores and department stores with sports ranges.

London-based retailer Marks and Spencer Group plc (M&S), has reported its preliminary financial results for the 52 weeks ended March 28, 2026. The group posted a resilient overall performance despite experiencing a significant operational impact from a sophisticated cyber incident during the first half of the financial year.

Including Ocado Retail, group statutory revenue rose 25 percent to 17.3 billion pounds (23.2 billion dollars) and group sales rose by 24.8 percent to 17.4 billion pounds. Excluding the impact of Ocado, group sales saw a modest increase of 1.9 percent to 14.2 billion pounds.

In a statement regarding the group's results, M&S chief executive Stuart Machin commented: “Recovery has taken longer, but there is strong growth potential. To support this, we have accelerated our supply chain improvements... We've now got the momentum to do that at pace.”

Segment performance impacted by systems pause

The fashion, home and beauty segment experienced a demanding year, with sales declining by 7.7 percent to 3.9 billion pounds compared to the prior fiscal period. The decline was primarily driven by the operational disruptions of the cyber incident in the first half. This necessitated a temporary pause in online trading and systems access, which severely restricted product availability and disrupted stock flows across both channels.

Womenswear experienced the most substantial impact from the system disruptions. Despite these challenges, the division recorded an encouraging improvement in customer style perception metrics. The business continued to refine its product appeal by creating a more edited store range, removing 9 percent of options for the spring/summer season.

The segment began to stabilise in the second half of the year, with sales ticking up by 0.2 percent as online trading was fully restored and website traffic grew. Online sales for the full year decreased by 18.4 percent to 1.2 billion pounds due to the gradual recovery over the summer months. Store sales decreased by 2.3 percent to 2.7 billion pounds, though they returned to positive growth in the final quarter.

Profitability compressed by seasonal clearance

The division's adjusted operating profit declined by 55.4 percent to 213.4 million pounds, down from 478 million pounds in the previous year. The segment's adjusted operating margin compressed by 5.8 percentage points to 5.5 percent. This margin erosion was heavily influenced by a 2.7 percentage point drop in gross margin, driven by increased stock management and markdown costs weighted toward the second half to clear excess seasonal stock.

The group enters the 2026/27 financial year with a clear plan to reinvest for growth, prioritising supply chain modernisation, technology transformation and store rotation. A major focus will be placed on rewiring the end-to-end supply chain to expand online capacity and reduce handling costs. To achieve this, M&S has secured a fully automated 437,000 square feet fashion distribution site in Lichfield. The facility is projected to begin fulfilling customer orders in 2027, accelerating online capacity growth at a lower capital cost than initially projected.

Furthermore, digital and technology investments are being accelerated to roll out a new fashion planning platform, upgrade the e-commerce platform and improve the online user experience in search, imagery, check-out and payments. The division aims to double its online sales in the medium term, improve profitability and increase online participation to 50 percent, alongside optimizing a profitable estate of 200 full-line stores by 2027/28.

International wholesale partnerships offset franchise declines

In the international division, reported sales declined by 7.2 percent to 543.3 million pounds, or 5.7 percent at constant currency, following a lagging recovery from the cyber incident and shipment delays to the Middle East. Franchise sales fell by 10 percent to 244.4 million pounds, and owned market sales fell by 9.1 percent to 228.8 million pounds. However, international adjusted operating profit grew by 8.9 percent to 39.1 million pounds due to strict cost management and a reset of franchise terms to invest in trusted value.

Wholesale sales grew by 110.7 percent to 25.5 million pounds, supported by selective new agreements with major retailers, including Nordstrom in the US for fashion and Coles in Australia for food. Online international sales are also expanding through digital marketplaces, notably via an expanded range on Zalando in Europe.

Paris - Chanel returned to growth in 2025 thanks to demand in Europe and the Americas, performing well amidst a slowdown in the global luxury market.

The company reported a turnover of 19.3 billion dollars (up 3 percent, and 1.8 percent on a like-for-like basis), boosted by growth across all its activities, it stated in a press release on Tuesday.

During this period, the house founded by Coco Chanel, famous for its tweed suits and No. 5 perfume, posted a net profit decline of 14.3 percent. The profit fell to 2.9 billion dollars, and the company did not explain the reason for this decrease. Its operating profit, however, rose by 5.2 percent to 4.7 billion dollars.

"Chanel achieved a solid financial performance in 2025, driven by growth across all its activities. This result reflects our constant commitment to investing in our expertise, our global network of boutiques and the customer experience," said Philippe Blondiaux, the chief financial officer, quoted in the press release.

Luxury groups are seeking new growth drivers after a series of boom years, now facing declining demand. Chanel has stood out compared to some of its competitors. Last year, LVMH reported a 5 percent drop in sales to nearly 81 billion euros. For its compatriot Kering, the situation was even more challenging, with an annual sales drop of 13 percent to 14.7 billion euros. Hermès, however, saw its sales climb by 5.5 percent.

Dynamic ready-to-wear

By region, Asia-Pacific, Chanel's main market, saw sales stagnate last year (down 0.6 percent to 9.2 billion dollars). This is a clear improvement compared to 2024, when sales in the region had fallen by more than 9 percent. The decline was due to a sharp slowdown in Chinese demand, which has long been one of the most important growth drivers for the luxury market.

"China returned to growth in the fourth quarter of 2025 and this momentum has continued into 2026," Philippe Blondiaux said in an interview with Bloomberg. Europe performed well with sales increasing by 6.7 percent to 6.1 billion dollars, as did the Americas (up 6.4 percent to four billion dollars).

The house, owned by the Wertheimer brothers, is one of the few in the fashion and luxury sector to remain independent. Chanel does not publicly disclose the financial performance of each of its divisions. However, it indicates that its Fashion collections were supported by the dynamism of ready-to-wear and customer enthusiasm for the new Chanel 25 bag campaign.

Fragrances and skincare were the main drivers of the Fragrance and Beauty division's performance, according to the company. It cited the success of Chance Eau Splendide, a new women's fragrance and the first in eight years.

Growth in the watches and jewellery business was driven by the Coco Crush collection, combined with a solid performance in the US, Chanel said. New boutiques have opened in Sydney, Bangkok and Hong Kong, marking a key stage in the development of Chanel's watches and jewellery business in Australia and Asia.

Finland-based sports equipment and apparel group Amer Sports has reported a 32 percent increase in revenue for the first quarter of 2026, reaching 1.95 billion dollars compared to the same period last year. On a constant currency basis, revenue grew by 26 percent.

The performance was led by its technical apparel segment and outdoor performance brands, prompting management to raise its full-year financial outlook.

Gross margin for the group expanded by 210 basis points to 59.9 percent, while the adjusted gross margin reached 60 percent. Operating profit grew 50 percent to 321 million dollars, resulting in an operating margin of 16.5 percent. Net income attributable to equity holders rose 22 percent to 165 million dollars.

Segment performance driven by technical apparel and outdoor growth

The technical apparel division, which includes the Arc'teryx brand, saw revenue increase 33 percent to 885 million dollars, or 28 percent on a constant currency basis. The segment achieved an omnichannel comparable growth, or omni-comp, of 19 percent. The adjusted operating margin for technical apparel expanded by 250 basis points to 26.4 percent.

Revenue in the outdoor performance segment grew 42 percent to 714 million dollars, representing a 33 percent increase on a constant currency basis. This growth was primarily driven by Salomon softgoods. The adjusted operating margin for this division increased by 480 basis points to 20.4 percent.

The ball and racquet sports division, led by Wilson Tennis 360, recorded a 13 percent revenue increase to 347 million dollars, which translates to 10 percent on a constant currency basis. However, the adjusted operating margin for this segment decreased by 370 basis points to 3.6 percent.

Amer Sports chief executive officer James Zheng stated that the momentum continued across all segments, geographies, and channels during the first quarter of 2026. Zheng noted that the unique portfolio of technical sports and outdoor brands is successfully gaining market share globally.

Upgraded financial outlook for the full year 2026

Following the first quarter results, Amer Sports chief financial officer Andrew Page confirmed that the group has raised its sales, margin, and earnings per share guidance for the full year. Page highlighted exceptional trends across the three largest growth drivers, namely Arc'teryx, Salomon softgoods, and Wilson Tennis 360.

For the full year ending December 31, 2026, Amer Sports now expects reported revenue growth between 20 percent and 22 percent. This projection includes an anticipated benefit of 200 to 250 basis points from favorable foreign exchange impact. The adjusted gross margin is projected to be between 59 percent and 59.5 percent, with an operating margin forecast between 13.4 percent and 13.7 percent.

For the second quarter ending June 30, 2026, the group forecasts reported revenue growth of 22 percent to 24 percent. The adjusted gross margin for the second quarter is expected to be approximately 59.5 percent, with an operating margin between 6 percent and 7 percent. All guidance figures assume that higher International Emergency Economic Powers Act tariffs remain in place.

Munich-based luxury e-commerce retailer Mytheresa remains the growth engine for its parent company, LuxExperience B.V., in the third quarter of 2026. The parent company was newly formed around a year ago following the acquisition of e-commerce specialist Yoox Net-A-Porter (YNAP).

Mytheresa's business continues to grow faster than the market, LuxExperience announced on Tuesday in its financial report for the third quarter, which ended on March 31. Mytheresa achieved revenue of 256 million euros (298 million dollars), representing a growth of 5.6 percent. Adjusted for currency fluctuations, revenue increased by 9.9 percent.

The gross margin increased to 47.1 percent from 44.8 percent in the prior-year quarter. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 50.4 percent compared to the prior-year quarter to 14.1 million euros.

At the group level, LuxExperience, including the results from the acquired YNAP business segments, reported a revenue decline of 5.2 percent to 618.4 million euros. Meanwhile, adjusted revenues remained stable (plus 0.0 percent).

LuxExperience CEO: we are fully on track

The luxury segment, which emerged from YNAP and includes Net-A-Porter and Mr Porter, is expected to show further improvements. This will be driven by a new strategic focus on customer service, full-price sales and cost discipline. The off-price category, which now only includes Yoox following the sale of The Outnet, has also made good progress in implementing a leaner operating model, leading to platform improvements.

“Net-A-Porter and Mr Porter, as well as Yoox, showed further sequential improvements, which are fully in line with our ongoing transformation plan for both segments,” said LuxExperience CEO Michael Kliger. “We are fully on track to achieve our forecasted results for the full 2026 financial year.”

Consequently, the management has confirmed the forecast for the full financial year ending June 30, 2026. A gross merchandise value of between 2.5 billion euros and 2.7 billion euros is expected, along with an adjusted EBITDA margin of between minus one percent and plus one percent.

For several years, Birkenstock seemed to have achieved what few footwear brands had before. It transformed a German orthopaedic sandal into a global object of desire, worn by tourists, fashion houses, celebrities and premium consumers alike.

The narrative presented to investors during its 2023 Initial Public Offering (IPO) is now beginning to crack. This seems to contradict the optimism shown in the company's latest quarterly results. Birkenstock has just announced a 19 percent increase in revenue for the second fiscal quarter of 2026, reaching 618 million euros (718 million dollars).

However, the market is severely punishing the stock.

In an analysis published on May 18, Reuters suggested that investors are “giving up hope” of Birkenstock becoming a true global luxury giant. Three years after its IPO, the company is increasingly seen as a relatively niche premium footwear brand, not as a future equivalent to the major European luxury groups.

The reversal was swift. Following the release of the quarterly results, Birkenstock's stock plummeted by more than 14 percent. According to Reuters, the group's market capitalisation is now approximately 38 percent lower than its valuation at its Wall Street debut, when the company was valued at around 9.3 billion dollars.

Strong growth that is no longer enough to convince

At first glance, the stock's decline seems to contradict the group's actual performance. Few players in the fashion sector are currently reporting growth close to 20 percent amid a global backdrop of slowing consumer spending, geopolitical tensions and economic uncertainty.

The issue is no longer really about Birkenstock's growth. What investors are now questioning is the brand's ability to sustainably support the valuation levels associated with the luxury world.

During its IPO, Birkenstock benefited from an extremely powerful narrative. The German brand embodied the perfect fusion of comfort, fashion, premium lifestyle and aspirational consumption. Its collaborations with Dior, Valentino and Manolo Blahnik, its omnipresence on social media and its global visibility following the success of the Barbie film reinforced the idea that a new casual luxury player could emerge.

This financial narrative was based on an implicit assumption. It suggested that Birkenstock was no longer just a sandal manufacturer, but a global brand platform capable of generating margins comparable to those of major luxury groups.

It is precisely this assumption that is now beginning to falter.

Market rediscovers the limits of the Birkenstock model

According to the analysis published by Reuters, the market now considers Birkenstock to be primarily a company heavily dependent on a single product: the anatomical cork sandal.

This is the key difference between an extremely strong premium brand and a true global luxury house. Major luxury groups typically build their power across several high-margin categories. These include leather goods, accessories, jewellery, fragrances, ready-to-wear and watchmaking. They also possess almost unlimited pricing power, enabling them to withstand economic downturns.

Birkenstock, despite its cultural desirability, remains much more focused.

The brand is certainly continuing to expand its offering, particularly into sneakers, closed-toe shoes and certain accessories. For a large portion of investors, however, the group's economic core remains tied to a relatively simple product that is highly exposed to consumer and fashion cycles. The market thus seems to be reverting to a more traditional assessment of the company. It is viewed as an excellent, profitable and international premium footwear business, but one whose economic potential is more limited than its initial valuation suggested.

Margins become the real issue

The latest quarterly results have also highlighted a significant shift. Investors are now focusing more on margins than on revenue growth.

Birkenstock stated that geopolitical tensions in the Middle East had affected its business in Europe, the Middle East and Africa. According to Reuters and several financial media outlets, the group has also been impacted by US customs duties and rising logistics and industrial costs.

These factors are beginning to weigh on profitability.

For the markets, this is a significant problem. A company considered a luxury player is expected to demonstrate an exceptional ability to protect its margins, even in challenging economic environments. Birkenstock is now starting to show signs of vulnerability in this area.

The group is officially maintaining its annual forecast and still targets growth of between 13 percent and 15 percent for the financial year. Investors, however, now seem to believe that sustaining this growth could become more costly.

Paradox of ‘Made in Germany’

Birkenstock's industrial model perfectly illustrates this tension.

According to Reuters, approximately 95 percent of the group's production remains based in Germany. This choice provides a considerable marketing advantage. The ‘Made in Germany’ label strongly supports the brand's premium image and allows it to stand out in a market saturated with low-cost products made in Asia.

This strategy, however, also comes at a high economic cost.

Mass production in Germany entails higher labour costs, less industrial flexibility and greater exposure to rising energy and logistics costs. The market accepts this cost structure as long as growth is exceptional and margins are increasing strongly. As soon as momentum slows or profitability comes under pressure, perceptions change quickly.

The argument, however, deserves a more nuanced view. In a context of geopolitical tensions, trade wars and the questioning of globalised supply chains, maintaining largely European production can also be a significant strategic advantage. Shorter logistics circuits reduce certain supply risks, limit dependence on international shipping routes and allow for better industrial and quality control.

Birkenstock's European positioning also contributes to its brand value. At a time when many companies are looking to reshore part of their production or secure their supply chains, its industrial concentration in Germany can hardly be seen solely as a financial disadvantage.

The question is therefore probably less about abandoning ‘Made in Germany’ and more about a potential industrial rebalancing. In the medium term, opening regional production or assembly hubs, particularly in North America, could allow Birkenstock to reduce some of its logistics and tariff costs while maintaining its European roots and premium image. This is precisely the equation that investors are now trying to evaluate: how far can Birkenstock preserve its industrial DNA without penalising its future profitability?

A culturally powerful brand

It would, however, be an exaggeration to portray Birkenstock as a company in difficulty.

On the contrary, the latest results show that the brand continues to grow strongly in several regions of the world. According to data reported by Investing.com after the accounts were published, the Asia-Pacific region remains particularly dynamic, with growth exceeding 20 percent.

The brand also retains rare assets, namely an instantly recognisable identity, an iconic product, a strong direct-to-consumer (D2C) presence and a cultural influence that many fashion players envy.

The financial perception, however, has changed.

In 2023, investors bought into the idea that a simple sandal could become the foundation of a future global luxury lifestyle empire. In 2026, Wall Street seems to be returning to a more pragmatic view. Birkenstock is probably an excellent global premium brand, but not necessarily the next LVMH of footwear.

The S.Oliver Group is adding Baldessarini to its "House of Brands".

The Rottendorf-based apparel group is acquiring the brand rights from New Baldessarini GmbH, a subsidiary of the Herford-based R. Brand Group, as announced by the S.Oliver Group on Tuesday. The integration of the menswear brand will strengthen the brand portfolio's position in the contemporary tailoring segment.

"Baldessarini is a strong brand with great potential," says Johannes Rellecke, co-CEO of the S.Oliver Group. "With Baldessarini, we are closing the gap between classic businesswear and modern casual menswear."

Baldessarini instead of Black Label Men

Baldessarini will be established as an independent brand within the "House of Brands". It will have a similar structure to the womenswear label Lala Berlin, which the group acquired at the end of 2023. As a result, Baldessarini will replace the more formal S.Oliver Black Label Men's collection. The relaunch of Baldessarini is already planned for early 2027.

Under the leadership of new co-CEOs Julian and Johannes Rellecke, the S.Oliver Group has been pursuing its realignment towards a "House of Brands" since September. In addition to Baldessarini, this house of brands includes S.Oliver; Comma; QS; Lala Berlin; Liebeskind Berlin and Copenhagen Studios.

The brands will be positioned independently. The focus will be on strengthening brand identity and product quality. In February, a new campus with showrooms and consultation areas was opened at the company's headquarters in Rottendorf. This aims to intensify collaboration with retail partners and enhance brand presentation.

S.Oliver takes over Baldessarini from Röther

In mid-2023, the Röther Group acquired the brands Baldessarini; Otto Kern; Pierre Cardin; Pioneer Jeans and Pionier Workwear. This followed the insolvency of the Herford-based apparel group Ahlers AG. These were subsequently managed as separate limited companies under the newly founded R. Brand Group.

Baldessarini never seemed to really fit into the group's portfolio. Raphael Heinold, CEO of the R. Brand Group, once described the brand as a "fashion pinnacle". He stated it should be more stylish than other brands in the segment, yet remain commercially viable.

It appears there is no longer a place for this within the group: "When we strategically review our brand portfolio, we recognise that Baldessarini is a great brand. However, it does not play a decisive role in our future strategic direction," said Heinold in the statement. "We are therefore delighted to place the brand under the umbrella of a strong corporate group, where Baldessarini can make an important contribution and be strategically developed."

British footwear and accessories brand Dr. Martens reports making “good progress” as it shifts from a channel-led to a consumer-first operating model, as it delivers a return to profit growth for the financial year ending March 29, 2026, with pre-tax profit (PBT) rising 61 percent.

For the FY26, group revenue reached 764.9 million pounds, down 2.9 percent on a reported basis, or 1.4 percent at constant currency (CCY), which Dr. Martens said was reflective of its strategy to prioritise “quality of revenue and profitability growth,” by reducing clearance activity in direct-to-consumer (DTC) and off-price wholesale channels.

Adjusted EBIT increased 30.6 percent on a reported basis to 79.3 million pounds, while Adjusted PBT was up 61.3 percent to 55 million pounds.

In a breakdown of its regions, Europe, the Middle East, and Africa (EMEA), which includes the UK, reported revenues of 377.5 million pounds, a decline of 1.7 percent or 3.7 percent CCY, with the Americas hitting 278.4 million pounds, and the Asia-Pacific (APAC) region reporting 109 million pounds in revenue.

The report reveals that the Americas were the company’s best-performing region during the year, with full-price DTC revenues up 14 percent, and the full-price mix up 9 points. Wholesale was up 1.2 percent CCY, which included the headwind from a large off-price wholesale deal in FY25. The planned reduction in clearance to focus on full-price resulted in revenue up 1.1 percent CCY.

Dr. Martens pivoting to a consumer-first model driving growth

Its EMEA markets reported “good wholesale growth,” up 7.6 percent CCY, reflecting strong partner relationships and healthy order books, while DTC performance was affected by increased consumer participation in clearance activity, which resulted in a 4 points decline in full-price DTC mix, with revenue in that channel down 13 percent.

The British heritage brand said that growing the full-price mix in its largest EMEA markets, which are the UK, Germany, France, Italy and Spain, is a priority for FY27.

APAC revenue was broadly flat, down 0.3 percent CCY, due to planned reductions in clearance activity, through both e-commerce and with select wholesale partners; however, Dr. Martens highlighted a "strong" full-price retail performance in South Korea.

The company adds that FY26 centred on pivoting to a consumer-first model, following the stabilisation of the business in FY25. This included reducing clearance activity across both DTC and wholesale operations, restructuring its leadership team and simplifying the operating model to drive accountability.

It also placed an objective in reinforcing its premium product positioning, including growing its Lowell, Buzz and Zebzag product families, which now account for 9 percent of pairs, triple the FY25 contribution.

Dr. Martens sells 10.2 million pairs of shoes in FY26

Overall shoe revenue increased by 19 percent, supported by styles such as the Lowell and Buzz silhouettes, alongside its signature products, the 1461 Shoe, Adrian Tassel Loafer and Mary Jane. A breakdown of its product range shows that boots are still the most popular styles at 52 percent, followed by shoes at 31 percent, sandals at 11 percent, and bags and other items at 6 percent. For the FY26 financial year, the brand sold more than 10.2 million pairs of shoes.

Ije Nwokorie, chief executive officer at Dr. Martens, said in a statement: “In FY26, shoes were the standout performer, up 19 percent. Our focus on execution is paying off: we are improving the quality of revenues whilst strengthening margins, cash generation, the balance sheet and overall model resilience.”

Looking ahead to FY27, Dr. Martens said there is “more work to do” in pivoting the business, as it will begin the “scale phase” of its strategy, by increasing brand investment and delivering its improved retail strategy, moving from a transactional one-size-fits-all model to a tiered retail estate which repositions retail as a growth engine, with investment in high-potential stores.

Nwokorie added: “There is still work to do in pivoting the business; however, in FY27, we will also enter the scale phase of our strategy. Desire for the Dr. Martens Brand continues to grow, with more collaborators approaching us, increased wholesale partner support, strong consumer response to new product families, and an excited reaction from the market to our first beacon store on Brewer Street, London.

“In FY27, we will lean in with increased investment in the brand and targeted retail store upgrades, as well as continuing to build strong wholesale partner relationships to support demand at scale. With the operating model reset, key capabilities in place, combined with good visibility of our wholesale order books, our business is now well set up to deliver both our FY27 objectives and medium-term targets.”

Chip Wilson, founder of Canadian brand Lululemon Athletica (Lululemon) and one of the largest shareholders of the company, has released a statement regarding ongoing settlement discussions with the board of directors. Wilson expressed optimism about reaching a swift conclusion to the public dispute, highlighting that both parties appeared to be aligned on major terms late last week.

Wilson stated that there is no reason why a resolution cannot be achieved quickly. He noted that while the board has not provided specific details regarding current points of disagreement, full agreement on principal terms seemed evident as of Friday last week. Wilson remains willing to be constructive, expressing confidence in the independent nominees put forward to bring brand and marketing expertise to the company.

Board proposed eight principal terms for settlement

The dispute saw progress on May 13, 2026, when Lululemon chair Chip Bergh proposed eight principal terms on behalf of the board in an email copying director Marti Morfitt. The proposal outlined the appointment of two of Wilson's nominees to the board after the annual general meeting, alongside the addition of one mutually agreed director before October 2026. Furthermore, one incumbent director would step down at the annual general meeting in 2027.

The board also offered to add the two nominees to the corporate governance and sustainability committee, while creating a product and brand advisory council to seat a third nominee. Additional terms included the acceptance of a board declassification proposal and a recommendation for a supportive vote on the proxy. In exchange, the board required a two-year standstill and non-disparagement agreement, alongside a mutually agreed press release.

Shareholder seeks market standard conditions in response

Wilson responded to the proposal on May 14, 2026, accepting the eight key terms in principle while detailing specific preferences regarding the timing of director appointments. He rejected the concept of pocket resignations for his nominees and requested terms aligned with market standards, such as replacement rights and expense reimbursement.

The founder also requested regular dialogue with board members, framing it as customary engagement for a large, active investor. Wilson clarified that his focus remains on ensuring the board possesses the correct skills, prioritizing brand and product expertise to help Lululemon return to form. He dismissed claims that he intends to dictate corporate strategy, stating his hope is simply to maintain regular communication with governance leadership.

CEO Interview

With a turnover of 193 million euros in 2025 and solid growth of 8 percent, Italian swimwear brand Arena is no longer content with just dominating competition pools. Under the leadership of its CEO Peter Graschi, the heritage brand is making a strategic pivot towards 'wellbeing' and a swimwear extension. This is an analysis of a roadmap that places France at the centre of its 2027 ambitions.

Founded in Landersheim, Alsace, in 1973, Arena maintains an organic link with France, which it treats as its domestic market. “We have a special connection with France; this is where Arena was born. That is why we see this country as our home market,” confides Graschi. This historical proximity now translates into financial stability, which the group intends to capitalise on to accelerate its progress.

From 'Water Instinct' to 'Planet Water': a paradigm shift

The most tangible sign of this transformation is the change in the brand's manifesto. After 20 years under the banner of 'Water Instinct', Arena is now adopting 'Planet Water'. This is not just a semantic adjustment, but a desire to broaden its audience. Where the previous tagline was aimed at pool purists and pure performance, 'Planet Water' aims to include everyone who interacts with water. “We want to appeal to everyone who wants to be active in and around water,” explains the CEO. This more inclusive vision allows the brand to move beyond the swimming lane to invest in the more democratic open water and aqua fitness sectors.

France: a sustainable growth engine

The Group makes no secret of its ambitions for the coming years, driven by the region's momentum. Today, France accounts for 16 percent of global turnover and is expected to remain the spearhead of the strategy towards 2027. Arena plans for annual growth of 7 percent there, relying on a subtle balance: maintaining its supremacy in the 'racing' segment and a strong offensive in beachwear. This technical legitimacy remains its best defence. During the recent World Championships in Singapore (2025), 20 of the 21 open water medallists wore Arena competition suits.

Innovation as a barrier to entry

Faced with the inherent pressure for profitability from investors, Graschi is categorical: innovation is non-negotiable. “Our reason for being is innovation. If we stop being innovative, we become replaceable,” he states. In this technological race, however, Arena is banking on collective intelligence: “R&D does not rest solely on our shoulders. We share these efforts with long-term partners and exclusive specialists. It is a permanent collaboration.”

This strategy focuses on five pillars: compression; durability; buoyancy; hydrodynamics; and now, comfort. This advancement is above all a saving of time and energy for athletes. A top-level swimmer once took 30 minutes to put on her suit, whereas new models reduce this time to 5 minutes. “This allows the athlete to be less exhausted during preparation and to focus exclusively on the competition,” the CEO points out.

Sustainability: the 'textile-to-textile' challenge

Alongside performance, Arena must meet the industry's ecological imperatives. The group is investing heavily to transform its high-volume products into models of sustainability. This is realised through the Powerskin St Next suit—made from Econyl, a 100 percent regenerated nylon yarn—and the use of Lycra EcoMade fibre (70 percent bio-based from corn) for the training swimsuits in the arena Vita Life collection. “Consumption is highest in training. This is where we are investing as a priority to push these sustainable solutions,” explains Graschi.

Beyond the pool: the 'Waterfront' venture

While the brand is now venturing beyond the lane lines, Graschi rejects the overused 'lifestyle' label. He prefers to speak of a 'swimwear extension': hybrid products capable of accompanying the user from the beach to the pool. The brand intends to capitalise on the aesthetics of movement to make its products desirable in the city, similar to the parkas worn by athletes between the changing room and the starting block.

This strategy will be implemented through the European Swimming Championships in Paris next August. Following the success of the Olympic Games, the CEO is counting on a prolonged 'halo effect': “Paris is an inspiring city for anyone who wants to swim more. This event is an essential showcase for credibility and brand image.”

Field strategy: the club offensive

Despite the evolution of its positioning, Arena remains true to its model. Wholesale (45 percent of sales) remains the majority, supplemented by retail (35 percent) and e-commerce (20 percent). In France, the group is strengthening its local network by focusing on the 'grassroots' level. “We are increasingly focusing on working directly with clubs. Our goal is to sign more partnerships to support the development of the sport at the grassroots level and to grow locally,” specifies Graschi. This presence among licensed members and coaches is the foundation on which Arena is building its future legitimacy, far beyond advertising campaigns.

Epilogue: swimming, a sport for life

Ultimately, the 'Planet Water' manifesto touches on a public health mission. Graschi readily cites his father's example: “He is 85 years old; a former passionate cyclist, he took up swimming at 75. Today, he swims his lengths every day. It is fantastic for his quality of life.” For Arena, the ultimate goal is this: to inspire an active lifestyle, from the local swimming pool to the open sea.

London - A Polish driver was jailed for smuggling cocaine worth more than £7 million ($9.3 million) hidden in a lorry transporting Kim Kardashian's Skims underwear, UK police said Monday.

He was caught smuggling 90 kg of cocaine in the lining of the doors of the lorry, which was carrying 28 pallets of clothing belonging to Kardashian's shapewear brand Skims, the UK's National Crime Agency (NCA) said.

The driver, 40, was sentenced to 13 years and six months in prison by a UK court on Monday following an NCA investigation. He was stopped by UK border forces as the lorry arrived in eastern England from the Netherlands last September.

"The truck had been specially adapted and a hide constructed in the skin of the rear trailer doors," the NCA said in a statement. "Organised crime groups use corrupt drivers like him to move Class A drugs often hidden on entirely legitimate loads such as this," NCA operations manager Paul Orchard said.

"The detection and investigation have removed a significant amount of cocaine whose profits are lost to the crime group behind the smuggling attempt, and with this driver they've lost an important enabler."

American minimalist footwear brand Xero Shoes, which specialises in barefoot-style shoes, sandals, and boots designed to let feet bend, flex, and move naturally, has doubled its global distribution network, adding five new international partners to target international growth.

Founded in 2009 by Steven Sashen and Lena Phoenix, Xero Shoes has signed distribution agreements with strategic partners in the UK, Canada, Hong Kong and Taiwan, South Korea, and Eastern Europe, as it looks to accelerate its international wholesale growth and strengthen its presence in key global markets.

In the UK, the minimal footwear brand has selected Unify Brand Partnerships, a multi-category distribution and brand management agency that specialises in active, outdoor, and lifestyle fashion. Its brand portfolio includes footwear brands Teva, Reef, and Ipanema, as well as sustainable outdoor gear brand Cotopaxi.

The other international partnerships include Rock Gear Distribution in Canada, Step Hill International in Hong Kong and Taiwan, Brands House in Moldova for Eastern Europe, and fashion platform Musinsa in South Korea.

Chris Melton, global head of business-to-business at Xero Shoes, said in a statement: “We are not adapting to the natural movement trend; we were built for it. These partnerships give us the infrastructure to grow without losing what makes our brand work: speciality relationships, authentic storytelling, and real expertise in their categories.

“We're choosing partners who think about brands the same way we do, speciality first, long-term relationships, and a genuine belief in what natural footwear can do for people.”

US athletic apparel company Lululemon Athletica Inc. has filed definitive proxy materials with the Securities and Exchange Commission in connection with its upcoming annual meeting of shareholders scheduled for June 25, 2026. In an accompanying letter mailed to investors, the board of directors defended its strategic turnaround plan and strongly urged shareholders to vote using the white proxy card for its three recommended director nominees: Chip Bergh, Esi Eggleston Bracey, and Teri List.

The announcement comes during a critical transition period for the company following a deceleration in growth. After generating a ten-year revenue compound annual growth rate of 18 percent and reaching 11.10 billion dollars in revenue for fiscal 2025, the company experienced a slowdown in its North American market, where comparable sales declined slightly. In response to these trends, the board initiated a business diagnostic in fiscal 2025, which led to leadership restructuring, the appointment of interim co-chief executive officers Meghan Frank and André Maestrini, and the subsequent selection of industry veteran Heidi O'Neill as the incoming chief executive officer.

Board addresses opposition from founder Chip Wilson

The proxy filing highlights an escalating governance dispute with company founder Dennis J. ‘Chip’ Wilson, who exited the board in 2015. Wilson has nominated three opposing candidates for the board: Laura Gentile, Eric Hirshberg, and Marc Maurer. The board has formally opposed his slate, characterizing his perspectives as outdated and noting that his nominees lack public company board experience and relevant apparel retail expertise at scale.

According to the board, Wilson’s demands included quarterly strategy reviews with management to inspect upcoming apparel seasons, the formation of a separate innovation and strategy committee, and the right to designate replacement directors. The board stated that granting such influence presents significant conflicts of interest, given Wilson’s substantial investments in direct competitors within the athletic apparel sector.

Strategy centered on product innovation and enterprise enablement

To restore momentum in North America while maintaining international growth, the interim leadership team is executing a strategy structured around three core pillars:

Product creation: Re-energizing the creative engine with accelerated innovation, tight inventory management, and a focus on premium full-price sales through new collections like Unrestricted Power and ThermoZen.

Product activation: Driving brand excitement and consumer discovery through aligned product drops and localized brand experiences.

Enterprise enablement: Simplifying global operations, maintaining disciplined retail footprint expansion beyond the current portfolio of over 850 stores, and supporting corporate culture.

The board emphasized that the incoming CEO, O'Neill, who previously oversaw the global consumer and product engine at Nike, possesses the necessary balance of creative vision and operational discipline to accelerate this action plan. Shareholders of record as of April 30, 2026, are entitled to vote at the upcoming meeting.

One month ahead of the 2026 World Cup, Adidas has unveiled Backyard Legends, an advertising campaign featuring Timothée Chalamet alongside living football icons. The film highlights the German brand's ambition to bolster its lifestyle image.

Titled Backyard Legends, the Adidas campaign is a five-minute short film. It brings together a celebrity cast including Timothée Chalamet, Lionel Messi, Bad Bunny, Ousmane Dembélé, Lamine Yamal, Jude Bellingham and Trinity Rodman. It also features Zinedine Zidane, David Beckham and Alessandro Del Piero, who have been 'youthified' for the storyline.

The story is set in New York. Timothée Chalamet is looking for a team of three players who could beat the Backyard Legends, a fictional trio that has been undefeated for 30 years.

To do this, he recruits two renowned players, Lamine Yamal (FC Barcelona) and Jude Bellingham (Real de Madrid), along with footballer Trinity Rodman (Washington Spirit).

In the car, he tells them how the Backyard Legends made football history by beating a team that included Zidane and Beckham. This story is fictional. However, Timothée Chalamet is persuasive in his role as a football fan because it is authentic. In real life, he has often spoken of his admiration for the AS Saint-Etienne team.

The final scene takes place at Pier 40, a huge sports and recreational complex in Greenwich Village, Manhattan. Arriving at the asphalt pitch, Chalamet finds Lionel Messi and Bad Bunny among the spectators. In a masterful moment, Messi offers to substitute a player “just in case,” to which Timothée replies, “you are my backup plan.”

'You Got This' campaign: Y2K, urban culture, football legends and merchandising

The message conveyed by this film allows the Adidas brand to move beyond sportswear into a lifestyle dimension. This includes football, of course, but also cinema, with the 90s reconstruction reminiscent of the series Stranger Things. It also features music, with Bad Bunny, and New York street culture.

It also allows the brand to position itself among desirable brands in the US ahead of the World Cup, which is being hosted by the US, Canada and Mexico.

The film also functions as a merchandising tool. Several jerseys are visible on screen, including the Argentinian team's kit with its light blue and white stripes, a nod to Lionel Messi. A vintage USA 94 World Cup jersey also appears. Additionally, a fleeting and possibly fictional “Chalamet 26” jersey is shown, which has reportedly been circulating on social media, according to specialised media.

Mexx is returning to the DACH market under a new sales agency.

The Dutch fashion brand is back in the German market. The Brandatory agency in Munich is responsible for distribution in Germany, Austria and Switzerland.

The spring/summer season also marks a reorientation of the brand under the concept of a “Casual Casual Attitude”. The spring/summer 2027 collection features fluid transitions between business and leisure, including unstructured blazers, modern barrel-leg trousers, airy linen fabrics and versatile denim styles. The brand's colour palette will now revolve around black and off-white, as well as indigo blue, reflecting the balance between tailoring and relaxed silhouettes.

“After more than 40 years in the international fashion market, Mexx is opening a new chapter. The brand is realigning itself with a clear identity, a minimalist design language and an attitude that could hardly be more contemporary,” read a statement on Monday.

Following its acquisition by the Dutch company RNF Holding in 2017, the Mexx brand has been in comeback mode for years. Almost two years ago, RNF Group was acquired by the fellow Dutch company HVEG Group.

A new life cycle assessment (LCA) of US cotton fibre production has been released, providing updated data on environmental impacts across the early stages of the cotton supply chain.

The study was commissioned by Cotton Incorporated and independently reviewed in line with ISO standards. It assesses cradle-to-gate impacts based on primary information from 753 growers across 17 US states, making it among the more extensive grower-based assessments of cotton production to date, a press release reported.

The analysis touches on key contributors to environmental impacts across categories. Fertiliser production and associated on-farm emissions, for example, are reported as the main drivers in most impact areas. Irrigation is then highlighted as the primary contributor to water-related impacts. These inputs vary depending on regional conditions and farming practices, but are typically identified as significant factors within the study.

In terms of greenhouse gas emissions, the study reports that producing one kilogram of US cotton fibre results in 1.45 kilograms of fossil CO2 equivalent emissions at cradle-to-gate level. When accounting for biogenic carbon flows, including carbon stored in soil and temporarily within the fibre itself, the study models a net result of -0.264 kilograms of CO2e per kilogram of fibre.

The study further evaluates additional environmental indicators beyond carbon, including water use and scarcity, energy demand, air quality impacts, and nutrient-related effects, intended to provide a broader environmental profile of US cotton production rather than focusing on a single metric.

Methodological sensitivity analysis within the LCA suggests that results can vary by more than 50 percent depending on modelling choices, including allocation methods and background datasets. The report notes that this could have implications for how results are interpreted and compared across studies and materials.

The findings are positioned as a framework to support further work in areas such as precision agriculture, irrigation efficiency, soil health, and fertiliser management. The intention is to enable more consistent tracking of environmental performance over time.

Commenting in the release, Jesse Daystar, vice president and chief sustainability officer at Cotton Incorporated, said: “With 753 growers contributing primary data across 17 states, this is one of the most transparent assessments of any fibre available today.

"As brands face growing pressure to back their sustainability claims with credible science, this LCA gives them exactly that: a clear, independently reviewed baseline for US cotton that can inform sourcing decisions, regulatory compliance and tracking meaningful improvement over time.”

Online fast fashion giant Shein is set to acquire US apparel brand Everlane from majority owner L Catterton in a deal valuing the retailer at approximately 100 million dollars, according to a report by Puck News published on Sunday, citing sources familiar with the transaction. Reuters also reported the development, citing the Puck News article.

The report stated that holders of Everlane’s common stock are unlikely to receive any payout under the deal structure. It remains unclear whether preferred shareholders will receive cash compensation or equity in the China-founded fashion platform as part of the agreement.

Debt pressures pave the way for sale

Puck News had reported in March that L Catterton and Everlane chief executive officer Alfred Chang were seeking fresh investment to help manage nearly 90 million dollars in outstanding debt.

According to the report, the private equity firm was prepared to inject additional capital if a co-investor could be secured, while simultaneously exploring a potential sale of the business. Reuters noted that Everlane, Shein and L Catterton did not immediately respond to requests for comment.

Shein and rival ultra-low-cost marketplace Temu have significantly disrupted the retail market through aggressive pricing strategies, heavy digital marketing and supply-chain efficiencies.

China's economy lost significant momentum in April. Key economic data fell short of analysts' expectations.

According to data released by the National Bureau of Statistics on Monday, retail sales rose by only 0.2 percent in April compared to the same month last year. This follows a 1.7 percent increase in March. Industrial production grew by just 4.1 percent, down from 5.7 percent in March. Investments also disappointed, falling by 1.6 percent in the first four months of the year compared to the same period last year. In the first quarter, they had still grown by 1.7 percent. Experts surveyed by Bloomberg had anticipated significantly better figures for all three indicators.

Fu Linghui, a spokesperson for the National Bureau of Statistics, highlighted the resilience of the Chinese economy when presenting the figures. He pointed to the ongoing geopolitical conflict in the Middle East; increased volatility in the international energy market; and strains on global supply chains. At the same time, Linghui acknowledged that there were many external uncertainties. The cost burden for companies has increased, and some firms remain under pressure.

China's economy had shown robust growth at the beginning of the year. In the first quarter, the gross domestic product grew by 5.0 percent, placing it at the upper end of the official annual target of 4.5 to 5.0 percent. Exports also proved surprisingly resilient despite the war in Iran and higher energy prices.

Economists currently see weak domestic demand as the central problem. Additionally, if the conflict in the Middle East persists and further burdens the global economy, this could also become problematic for China. The People's Republic is heavily reliant on exports. If demand from other countries weakens, a key pillar of the Chinese economy would be undermined.

South Korean global brand portfolio company Misto Holdings, formerly known as Fila Holdings, announced its financial results for the first quarter of 2026 through a regulatory filing on May 15, 2026. Consolidated revenue for the first quarter of 2026 increased 4.2 percent year-over-year to 1.30 trillion South Korean won (864.26 million dollars), while operating profit rose 19 percent to 193.70 billion South Korean won.

The Seoul-based company attributed the results to continued growth in the Acushnet business and improved profitability in the Misto segment. These gains were achieved despite ongoing macroeconomic uncertainties, including slowing global economic conditions and weakened consumer sentiment. Restructuring effects from the US business and portfolio optimization strategies contributed positively to the profitability improvement.

Misto division driven by Greater China expansion

By business segment, the Misto division recorded 185.80 billion South Korean won in revenue during the quarter. Although revenue declined year-over-year due to the restructuring of its US business, revenue excluding the US operations increased 3.8 percent, maintaining stable growth momentum.

The Greater China business maintained double-digit growth and further established itself as a key growth driver for the company. Major Korean fashion brands, including Marithé+François Girbaud, Matin Kim, Rest & Recreation, and Raive, continued to strengthen their presence across Mainland China and Hong Kong. Increased tourism traffic driven by major Korean pop concerts and cultural events in Hong Kong contributed to stronger retail traffic and robust sales growth for these brands.

Fila continued to strengthen its lifestyle footwear category centered around the Echappe franchise, while expanding consumer engagement through its new GLIO line-up. Reflecting current fashion trends, such as low-profile silhouettes and balletcore aesthetics, GLIO received positive market responses shortly after launch. In apparel, Fila further enhanced competitiveness through its Knit Track line, which recorded approximately 74 percent sales growth during the first 12 weeks of the spring/summer 2026 season compared to the same period of the previous autumn/winter 2025 season, emerging as a new signature item within the apparel category.

Acushnet segment gains from golf demand

The Acushnet segment posted 1.10 trillion South Korean won in revenue for the quarter, up 8 percent year-over-year, driven by strong performance across all categories. Sales growth was supported by increased demand for Titleist T-Series irons, the newly launched Vokey Design SM11 wedges, and higher average selling prices of Pro V1 golf balls.

Operating profit for the segment increased 6.9 percent YoY to 171.50 billion South Korean won. This growth was achieved despite higher tariffs and increased marketing expenses related to new product launches, supported by favorable foreign exchange effects and overall sales growth.

Shareholder return policy on track

Meanwhile, Misto Holdings continues to execute its previously announced 500 billion South Korean won shareholder return policy covering 2025 through 2027. In March and May of this year, the company approved additional treasury share buybacks totaling 20 billion South Korean won. Cumulative shareholder returns reached approximately 305.40 billion South Korean won, representing 61.1 percent of the total policy target.

Through its Corporate Value-Up Plan announced in April, the company introduced a mid- to long-term shareholder return framework. This includes maintaining an average total shareholder return ratio above 40 percent for 2026 to 2027 and regular treasury share cancellations.

Misto Holdings chief financial officer, Ho Yeon Lee, said, “Despite continued macroeconomic uncertainties, we maintained stable growth momentum based on strengthened brand competitiveness and operational efficiency improvements. Moving forward, we will continue to solidify our sustainable growth foundation through expansion in Greater China, enhancement of our brand portfolio, and profitability-focused management.”

The Israeli fashion technology firm MySize has announced its financial results for the first quarter ended March 31, 2026, revealing a significant increase in turnover and gross margin expansion. The company, which focuses on artificial intelligence (AI) sizing solutions and e-commerce operations, reported that revenue for the first quarter (Q1) of 2026 rose 62 percent to approximately 2.39 million dollars.

Management attributed the year-over-year (YoY) growth primarily to the performance of its fashion e-commerce operations and the inclusion of revenue from the Spanish second-hand fashion platform Percentil in the consolidated results.

Net loss expands despite revenue growth

Gross profit for the period increased 124 percent to 940,000 dollars, compared to the prior-year quarter. This resulted in a gross margin of 39.3 percent, a notable improvement from the 28.4 percent reported in Q1 2025.

Despite the growth in turnover, MySize reported a net loss of 1.48 million dollars for the quarter, compared to a loss of 1.06 million dollars in Q1 2025.

MySize chief executive officer, Ronen Luzon, stated that the company is pleased with the start to 2026. Luzon noted that the firm is evolving into a next-generation fashion technology platform by leveraging data across several segments, including the Spanish AI firm Naiz Fit and the Israeli distributor Orgad.

The group continues to execute a strategy centered on an integrated platform that combines direct-to-consumer (D2C) e-commerce, international distribution through Ten Peacks and resale operations. MySize believes this combination addresses evolving retailer demands for personalization and sustainability.

Canadian luxury brand Canada Goose has announced its financial results for the fourth quarter and fiscal year ended March 29, 2026, revealing a total annual revenue increase of 13.3 percent to 1.53 billion Canadian dollars (1.11 billion dollars). The performance was bolstered by a strong direct-to-consumer (DTC) showing and an expansion of its product categories.

Looking ahead to fiscal 2027, Canada Goose expects revenue to increase by approximately low-single digits year-over-year (YoY). The company is targeting an adjusted EBIT (adjusted EBIT) margin in the range of 11 percent to 12 percent. Canada Goose chairman and chief executive officer, Dani Reiss stated that the priorities for the upcoming year include deepening brand desire and scaling a repeatable product engine across seasons to ensure sustainable margin expansion.

Fourth quarter performance and retail adjustments

In the fourth quarter, total revenue rose 17.9 percent to 453.3 million Canadian dollars, or 18.2 percent on a constant currency basis. The DTC segment was a primary driver, increasing 15.2 percent to 361.7 million Canadian dollars. This growth was supported by DTC comparable sales (DTC comparable sales) of 10 percent, marking five consecutive quarters of positive growth for the brand.

Wholesale revenue during the final quarter saw a significant uptick of 54.4 percent to 49.1 million Canadian dollars. This increase was attributed to earlier shipments of the spring/summer 2026 (SS26) collection and higher in-season orders. Despite the revenue growth, the company recorded an 8.4 million dollar store impairment charge following a review of underperforming locations. Reiss, noted that the focus remains on improving channel productivity and making digital platforms and brick and mortar stores work harder together.

Full year financial overview

For the full fiscal year 2026, the group reported DTC revenue increase of 15.9 percent to 1.16 billion Canadian dollars, with DTC comparable sales (DTC comparable sales) growth of 8.4 percent.

Gross profit reached 1.07 billion dollars, though gross margin slightly tightened to 69.7 percent from 69.9 percent in the prior year. Operating income fell to 88.8 million dollars from 164.1 million dollars, impacted by strategic investments and non-recurring items.

The company ended the year with 88 permanent stores globally, having opened nine net new locations during the period.

LVMH has entered into a definitive agreement to sell the Marc Jacobs label to New York-based brand management firm WHP Global. Announced on May 14, 2026, the transaction brings to a close nearly three decades of partnership between the luxury giant and the American designer. As part of the deal, G-III Apparel Group will join WHP Global in co-owning the brand through a newly established 50/50 joint venture. The two companies are also raising up to 850 million dollars to finance the acquisition.

Industry experts say the decision to offload select brands reflects LVMH’s strategy of concentrating resources on its larger, high-priority labels. The move follows last year’s sale of Off-White to Bluestar Alliance and the divestment of its stake in Stella McCartney in January. Reports also indicate that the group is exploring a potential sale of Fenty Beauty.

At the same time, ongoing conflict in the Middle East has continued to disrupt travel and dampen consumer spending across the region. LVMH recently said the war in Iran reduced group sales by at least 1 percent in the latest quarter, with weaker spending in the Gulf further compounded by a decline in tourism across Europe.

Strategic expansion for WHP Global and G-III

The joint venture will retain the intellectual property of Marc Jacobs, while G-III is set to acquire and manage the brand’s global operating business, including direct-to-consumer (D2C) and wholesale sectors.

The acquisition positions Marc Jacobs as a central component of WHP Global’s premium fashion vertical, which currently includes labels such as Vera Wang, Rag & Bone, and G-Star. Upon completion of the deal, WHP Global expects its global retail sales to surpass 9.50 billion dollars.

G-III will invest approximately 500 million dollars to fund its portion of the transaction using cash on hand and revolving credit facilities. G-III chairman and chief executive officer, Morris Goldfarb, noted that the move underscores a commitment to diversifying a portfolio that already includes DKNY and Donna Karan.

Continuity in creative leadership

Despite the change in ownership, founder Marc Jacobs will remain in his role as creative director. Jacobs expressed gratitude toward LVMH chairman and CEO, Bernard Arnault, for three decades of support and stated he looks forward to the next chapter of the brand.

Arnault described Jacobs as a designer of rare creativity and thanked him for his contribution to the group. LVMH first acquired a majority stake in the label in 1997, overseeing its expansion into a global business spanning ready-to-wear, handbags, and fragrance.

The partnership aims to accelerate growth by leveraging the licensing platform of WHP Global and the operating capabilities of G-III. WHP Global currently manages more than 15 brands that generate over 8.50 billion dollars in annual retail sales.

Salvatore Ferragamo spa reported total revenues of 209 million euros (243 million dollars) for the first three months of 2026. This represents a decrease of 1.2 percent at constant exchange rates and 5.5 percent at current exchange rates compared to 221 million euros in the first quarter of 2025.

Consolidated net sales from the direct-to-consumer channel amounted to 161 million euros. This is a 5.5 percent increase at constant exchange rates and a 1.9 percent decrease at current exchange rates compared to 164 million euros in the first quarter of 2025. Positive trends at constant exchange rates were observed in all geographical areas, except Japan, with double-digit increases in North America and Latin America.

Group to leverage its heritage and strengths to increase brand desirability

Net sales from the wholesale channel were 42 million euros, a decrease of 19.0 percent at constant exchange rates and 21.8 percent at current exchange rates compared to 54 million euros in the first quarter of 2025. The management explained in a statement that this is also a consequence of the decision to focus on the direct-to-consumer channel and strategic partners, consistent with the brand's positioning.

Despite global instability, heightened by the conflict in the Middle East and its potential short and medium-term repercussions, Ferragamo, as stated in the note, “will continue to focus on the execution of its strategic plan. The group will leverage its heritage and strengths to increase brand desirability, optimise the product mix and ensure narrative consistency across all channels. The quality of sales and distribution channels, operational discipline and attention to financial performance will remain central”.

UK luxury brand Burberry has reached a meaningful inflection point in its financial recovery, reporting a return to profitable comparable store sales growth for the 52 weeks ended March 28, 2026. The results coincide with the announcement that Gerry Murphy will retire as chair in November 2026, to be succeeded by Bridgepoint Group founder William Jackson.

The London-based company saw revenue reach 2.4 billion pounds (3.25 billion dollars), remaining flat at constant exchange rates (CER) compared to the previous year. While reported revenue declined 2 percent, the group achieved a significant turnaround in profitability, with adjusted operating profit rising to 160 million pounds from 26 million pounds in the prior period. This performance was supported by 80 million pounds in operating expense (opex) savings delivered through the ‘Burberry Forward’ transformation programme.

Regional performance and product momentum

The fourth quarter (Q4) proved particularly strong for the group, with comparable store sales increasing 5 percent. Growth was spearheaded by the Americas and Greater China, which both saw double digit increases of 10 percent in the final quarter. For the full financial year (FY26), the Americas grew by 4 percent, supported by local spending, while Greater China also rose 4 percent as a strong second half (H2) offset earlier declines.

In terms of product categories, Burberry asserted its authority in outerwear and scarves, both of which saw double digit growth during H2. The group also focused on enhancing the brick and mortar experience, launching 200 scarf bars throughout the year.

E-commerce sales performed well, increasing by high teens percentages, aided by improvements to the digital customer experience.

Leadership transition at the board

Burberry confirmed that Murphy, who joined the board in May 2018, will step down following the release of the interim results in November 2026. Jackson will join the company as a non-executive director on July 1, 2026, before standing for election at the annual general meeting (AGM) on July 15, 2026. He will formally succeed Murphy as chair following a handover period.

Jackson brings extensive experience from his tenure at Bridgepoint Group, where he oversaw investments in consumer-facing businesses such as Pret a Manger.

Senior independent director Orna NiChionna stated that Jackson’s track record in scaling international businesses will add "considerable strength and expertise" to the board as the group continues its current strategy under chief executive officer (CEO) Joshua Schulman.

Financial outlook and strategic targets

The group reported a gross margin of 67.9 percent, an increase of 530 basis points at CER, driven by a higher quality of sales and recovery following an inventory reset in the previous year.

Looking ahead to the next financial year (FY27), Burberry expects to make further progress on revenue growth and margin expansion. Wholesale revenue is projected to grow by mid-single digit percentages in the first half (H1), while annualised cost savings are expected to reach 100 million pounds.

The Fédération de la Haute Couture et de la Mode (FHCM) and the Camera Nazionale della Moda Italiana (CNMI) have announced a joint Environmental, Social and Governance (ESG) harmonisation framework for fashion and luxury suppliers.

The objective of this French-Italian initiative between the FHCM and the CNMI, launched in 2024, is to reduce the administrative burden on suppliers. The idea is to establish a common language and a harmonised documentary basis to limit the proliferation of different requirements from one house to another.

The text emphasises small artisanal workshops, which are considered the most vulnerable structures facing this administrative complexity. They often have fewer human resources dedicated to ESG compliance.

This harmonisation framework was published online at the end of April 2026. It includes common principles of business conduct and documents intended to certify good environmental, social and governance (ESG) practices.

Environmental requirements include:

• Air pollution

• Noise

• Wastewater treatment

• Soil contamination

• Waste management

• Energy efficiency

• Resource conservation

• Reduction of environmental and human impacts related to raw materials.

The environmental documents requested during audits include energy and water consumption records; waste management and treatment registers; permits related to atmospheric emissions or wastewater discharges; and environmental risk assessments.

The framework also mentions environmental impact reduction plans, asbestos inventories, documents relating to soil contamination and proof of origin for natural and mineral raw materials.

Social commitments concern:

• Strict prohibition of child labour and forced labour

• Discrimination, violence and physical or psychological harassment

• Respect for freedom of association

• Mandatory written contracts for all workers and legal rest periods

• Payment of at least the legal minimum wage

• Obligation to provide detailed payslips

• Precise tracking of working hours.

Among the social documents requested during audits are policies against forced labour and child labour, as well as proof of associated training and internal communication. Suppliers may be asked to provide payslips for the last 12 months, proof of salary payments, time sheets or employment contracts.

The framework also includes identity documents and work permits, applicable collective bargaining agreements, and a detailed list of employees including their nationality, gender, age, seniority, contract type and remuneration level.

In terms of occupational health and safety, the main obligations are:

• Management of health and safety risks in facilities

• Training workers in the safe use of equipment

• Mandatory maintenance of machinery and equipment

• Adequate use of protective equipment

• Compliance of buildings and workplaces, fire protection systems and evacuation procedures

• Monitoring of occupational impacts on employee health

• Controlled management of chemical products.

Among the required documents are operating licences, production site plans, ethical and anti-corruption policies, and lists of subcontractors and service providers. The framework also mentions ESG assessments, authorisations related to video surveillance systems and several certifications where available.

FHCM and CNMI have announced their intention to create a consortium of universities and schools to support the development of ESG skills and best practices throughout the fashion and luxury value chain.

The framework also includes a common glossary to harmonise certain concepts used in ESG audits. The term “Business Partner” thus refers to all suppliers, manufacturers, service providers and subcontractors in the value chain.

The concepts of “Child Labour” and “Forced Labour” adopt the definitions of the International Labour Organization (ILO). The document also defines “Vulnerable Workers” as workers particularly exposed to risks of discrimination or precariousness, including migrants, women, ethnic or religious minorities, disabled people or indigenous populations.

Madrid – Only a few procedural formalities remain before the bridal fashion group Pronovias officially files for insolvency. Following this, and barring any last-minute surprises, the Commercial Court No. 9 of Barcelona will approve its sale to the British investment group Cap Capital.

Confirming information previously reported by FashionUnited in early April, the latest updates reveal progress in the pre-pack insolvency proceedings requested by Pronovias' current owners, private equity firms Bain Capital and Clearlake. FTI Consulting, the professional services firm appointed by Barcelona's Commercial Court No. 9 as the independent expert for this initial phase, has submitted its resolution report to the court. This follows an evaluation of the various offers received in recent months for the purchase of Pronovias. Initially, the prominent bids were from the US fund Enduring Ventures and the Barcelona-based fashion group Desigual, owned by entrepreneur Thomas Meyer. However, FTI Consulting ultimately selected the offer submitted by the British investment group Cap Capital for the acquisition of Pronovias.

Several factors influenced FTI Consulting's decision to favour Cap Capital's last-minute offer. Cap Capital had initially hoped to secure a traditional acquisition outside the pre-pack process. Among the three main proposals, its bid assumed the most company debt and pledged to retain the highest number of jobs. Specifically, according to figures reported by the generalist publication La Vanguardia, Desigual's offer proposed preserving up to 200 of Pronovias Group's current 600 employees. Enduring's offer aimed to keep around 400 employees, while Cap Capital committed to retaining 552 workers. Given this commitment to job preservation, it is not surprising that the British investment group's offer was the most favoured by Pronovias' employees. They expressed their support for the sale to Cap Capital in staff assemblies, the minutes of which FTI Consulting will also forward to the court.

Insolvency and award to Cap Capital

Following FTI's selection of Cap Capital's offer, a choice now confirmed by Pronovias' management, the professional services firm submitted its resolution report to Barcelona's Commercial Court No. 9 last Wednesday, as reported by business publication El Economista. The report recommends the sale of Pronovias to the British investment group. Following this recommendation, Pronovias and FTI are finalising the necessary documentation for the bridal fashion company to officially file for insolvency, which is expected to happen this week.

As part of this required procedural step, following the report's submission and alongside the insolvency filing, the court will be asked to validate FTI's proposal and approve the sale of Pronovias and its production unit to Cap Capital. The court is expected to authorise this request within one to four weeks. After authorisation, the British investment group will finalise the acquisition of Pronovias. This will add the bridal fashion group to a portfolio of industrial companies previously separate from the fashion and textile sectors. Cap Capital's active investments are focused on robotics; artificial intelligence; aeronautics; energy; and telecommunications, through companies such as Neux, Valtenor, TS Mart, and Kivnon, a Spanish industrial robotics company specialising in logistics automation solutions.

Restructuring process

Founded in Barcelona by Alberto Palatchi, Pronovias was sold in 2017 to the British private equity fund BC Partners. This transaction is widely cited as the origin of the financial pressures the company later experienced, which were exacerbated by the disruption from the coronavirus pandemic. This ultimately led to the company being taken over in 2022 by private equity firms Bain Capital and MV Credit—the latter was acquired in September 2024 by the US firm Clearlake—.

Following that transaction, which was completed through a debt recapitalisation process that gave Bain Capital and MV Credit control and ownership of Pronovias, the private equity firms have injected over 135 million euros into the company. This was an attempt to relaunch it and recover business lost after the pandemic. These efforts have not fully materialised on a business level. Pronovias closed its last financial year in 2025 with annual sales of approximately 88 million euros (a 15.38 percent year-over-year decrease) and a negative EBITDA of -9 million euros. These figures are a far cry from the 160.6 million euros in sales and the positive EBITDA of 43.3 million euros the company reported in 2019. For 2026, Pronovias forecasts sales of around 79 million euros (a 10.22 percent decrease) but expects a positive EBITDA of approximately 8 million euros.

To support and accelerate this recovery, Cap Capital, as the new owner of Pronovias, plans to implement a carefully considered relaunch plan. This plan will be based on a strategic restructuring of its operational framework and business model. Cap Capital has an operational headquarters and its own team in Spain, and its advisory board includes figures such as Rafael Catalá, Spain's minister of justice from 2014 to 2018, and Miguel Garrido de la Cierva, president of the Madrid employers' association CEIM. The roadmap requires an initial capital injection of around 20 million euros from Cap Capital. The first step in this process would be to completely adjust Pronovias' own retail network, which currently consists of 53 stores. These points-of-sale generate a significant portion of the operating expenses that could be trimmed from the fashion group's balance sheets. The British investment group considers the current number of stores to be far greater than what the company needs to operate.

To address this perceived "oversizing" of its store network, Cap Capital's intentions, as reported by market sources to La Vanguardia, are for the "new Pronovias" to retain only its operational stores in Europe out of the 53 total. This includes the approximately 26 stores the company has in Spain. For stores in other markets and regions, the investment group's preference is for them to cease operating under Pronovias' direct management. However, it has not been ruled out that some may remain as part of its own store network, or that agreements could be reached for them to stay open under the Pronovias brand but managed by a business partner. These issues are not expected to interfere with the employment commitment made by Cap Capital, which has pledged to preserve the jobs of 552 of the bridal fashion group's current 600 employees.

US accessories company Fossil Group has reported its financial results for the first quarter ended April 10, 2026, revealing an improved operating performance despite a slight contraction in net sales. The group achieved an operating income of 12 million dollars, a significant recovery from the 6.70 million dollar loss recorded during the same period in 2025.

Net sales for the quarter totaled 224.80 million dollars, representing a 3.6 percent decrease on a reported basis and a 6.5 percent decline in constant currency. The results were impacted by a shorter fiscal calendar, as the first quarter of 2026 included 13 weeks compared to 14 weeks in the prior year.

Fossil Group chief executive officer, Franco Fogliato, stated that the company outperformed top and bottom line expectations due to the execution of its turnaround strategy. Fogliato noted that strong consumer response to product innovation drove performance across core brands and key geographies. He expressed confidence in the full year outlook, anticipating a return to top line growth in the fourth quarter.

Regional and brand performance

On a constant currency basis, net sales declined 14 percent in Europe, 3 percent in the Americas, and 1 percent in Asia. Performance varied significantly by channel, as wholesale sales increased 5 percent while direct-to-consumer (D2C) sales decreased 29 percent. Within D2C channels, comparable retail sales fell 15 percent.

The traditional watch category remained approximately flat in constant currency, while leathers decreased 41 percent and jewelry declined 14 percent. From a brand perspective, Fossil Group reported growth for Armani Exchange, Michael Kors, and Diesel. However, sales for the Fossil brand decreased 17 percent in constant currency during the quarter.

The company indicated that store rationalization initiatives and declining smartwatch sales contributed approximately 280 basis points to the overall sales decline. Gross profit reached 134.70 million dollars, with gross margin narrowing by 140 basis points to 59.9 percent. This compression was primarily attributed to increased tariffs and the timing of licensed brand royalty recognition. These costs were partially offset by 4 million dollars in tariff refund claims.

Financial outlook

The group reported a net loss of 0.80 million dollars, an improvement over the 17.60 million dollar loss seen in the first quarter of 2025. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 14.50 million dollars, or 6.5 percent of net sales.

For the full year 2026, the company reiterated its guidance. It expects worldwide net sales to decline between 4 percent and 6 percent, with an adjusted operating margin in the range of 3 percent to 5 percent.

The Denmark-based childrenswear company Brands4kids (B4K) has reported record turnover in the 2025 financial year. Despite a challenging market climate and global economic turbulence, the organisation managed to increase its turnover to 520 million Danish krone. This result marks a 15 percent increase compared to the previous year.

Following a period of expansion through international acquisitions, the focus in 2025 shifted to internal consolidation. The organisation focused on integrating recent acquisitions and reducing operational complexity. According to Brands4kids chief executive officer, Erik Andreæ, significant resources have been deployed to streamline the organisational structure.

According to the company, the strategic focus on the Benelux and DACH regions has positively contributed to the growth figures. Brands4kids sales director, Michael Nederby, states that the expansion of its global presence is essential for a broad sales base. Today, the group is represented in more than 45 countries and works with approximately 4,000 retailers worldwide.

Approximately 85 percent of the total turnover is now generated outside the Danish home market. In recent years, key growth markets have included Canada and China, in addition to the Netherlands and Germany. According to Nederby, the company's strength lies in its multi-brand structure with categories in basic, fashion, outdoor and accessories.

Although turnover growth was substantial, the pre-tax result of 16 million Danish krone fell short of initial expectations. Andreæ attributes this to market conditions, external pressures and the costs of internal adjustments. The company has financed all recent acquisitions from its operational activities, despite rising interest rates and declining birth rates.

The strategy for the near future is focused on improving profitability. The goal is to create a solid financial foundation for any future acquisitions. The company continues to operate from its locations in Aalborg, Ikast, Fuzhou, Lelystad and Rosmalen, supported by more than 15 showrooms in Europe.

For the current year, 2026, Brands4kids expects a positive pre-tax result of between 20 million and 25 million Danish krone. The focus remains on the current brand portfolio and ensuring long-term collaborations with both suppliers and retail partners in a volatile market.

This article was created with the help of an AI writing tool.

Beijing - Chinese e-commerce giant Alibaba Group Holding Limited (Alibaba) announced on Wednesday an 18 percent drop in its annual net profit. The results were weighed down by a price war in China and ambitious investments in artificial intelligence (AI).

The Hangzhou-based group (eastern China) operates some of China's largest online shopping applications, such as Taobao (widely used in China) and AliExpress (used abroad).

E-commerce is Alibaba's core business. It is, however, being hampered by a price war and sluggish consumption in China, forcing the company to offer discounts on its platforms.

To diversify, the company is investing tens of billions of euros in AI. Its shareholders are waiting to see how it plans to turn these huge sums into tangible profits.

Alibaba's net profit for the 2025-2026 financial year amounted to 105.9 billion yuan (15.59 billion dollars), down from 129.5 billion yuan the previous year. This represents a drop of 18 percent, the group announced in a statement to the Hong Kong Stock Exchange.

Annual revenue, meanwhile, reached 243.4 billion yuan, up 3 percent year-over-year.

“Alibaba's investments in AI at all levels of its technology chain have moved from the incubation stage to large-scale commercialisation,” said Eddie Wu, the group's chief executive officer.

From B2B to A2A commerce

Alibaba's open-source AI models, named “Qwen”, are popular with programmers worldwide. The company announced this week that it has integrated Qwen's “agentic” functions—tools capable of performing complex tasks for users—into its star application, Taobao.

In the statement on Wednesday, Wu said he sees “enormous potential” in these AI agents, which are capable of acting without human intervention. In early May, the company also stated in a press release that global commerce is now shifting from traditional business-to-business (B2B) to agent-to-agent (A2A) commerce.

Bloomberg Intelligence analysts said before the results were released that Alibaba “will likely further strengthen the integration of AI into its ecosystem during the 2027 financial year”. The group will maintain “high spending to stimulate user adoption (of AI tools),” they predict.

Japanese sportswear company Asics has achieved record financial results for the first quarter and the three months ended March 31, 2026. Net sales increased by 29.7 percent year-over-year (YoY) to reach 270.20 billion yen (1.71 billion dollars).

The growth was observed across all categories and regions, with operating profit rising 36.5 percent to 60.70 billion yen. This performance was driven by strong sales momentum, which successfully offset a decline in gross margin to 54.6 percent. The company noted that the margin was impacted by US tariffs.

Performance across categories and regions

The SportStyle category delivered a significant increase in net sales, rising 69.6 percent to 59.60 billion yen. This growth was particularly pronounced in the US and Europe, where sales increased by over 80 percent. Category profit grew by 75.8 percent to 19.50 billion yen.

Onitsuka Tiger also recorded strong results, with net sales increasing 33.8 percent to 37.80 billion yen. In Japan, the brand benefited from robust demand from inbound tourists, with sales to this group reaching 13.10 billion yen compared to 9.10 billion yen in the same period last year.

The Performance Running category saw net sales grow 19.1 percent to 116.70 billion yen. Growth in this segment was supported by the launch of the 'superblast 3' in February and the continued performance of 'novablast 5'. Category profit reached 29.60 billion yen, up 13.2 percent.

Digital expansion and membership growth

Asics continues to expand its digital footprint through the OneASICS membership program. E-commerce sales for the first quarter rose 12.7 percent to 40.10 billion yen. When excluding the US, where the company implemented a strategic consolidation of its business, e-commerce growth was 24.9 percent.

The company reported a 21.2 percent increase in revenues for its Europe, Middle East, and Africa (EMEA) region during the first quarter of 2026. This performance, which excludes the Onitsuka Tiger brand, highlights a period of profitable growth across all product categories for the group.

The company announced plans to open the 'Asics Technical Lab' in Kobe, Japan, in December 2027. This new production facility will focus on manufacturing shoes for elite athletes and developing footwear technology.

In terms of governance, Asics has appointed its first foreign-born director, Jenifer Rogers. The board of directors currently consists of nine members, including six independent outside directors.

Asics remains cautious due to uncertain global affairs but expects net sales to reach 950 billion yen for the year.

British lifestyle retailer FatFace has expanded its partnership with Zalando, launching across 20 additional European markets as part of its international growth strategy.

The rollout includes key Western European markets such as France, Spain, Italy and the Netherlands, alongside Central and Eastern European countries including Poland, Romania and Hungary.

The expansion follows FatFace’s 2025 launch on Zalando in Germany, where the company said sales have doubled year-on-year. The brand, which was acquired by the British retailer Next in 2023, currently operates in the region through both Zalando and the Next Label platform.

Online growth has been a core driver for FatFace, with digital now accounting for 36 percent of total revenue. Sales through the Next Label specifically have increased 86 percent year-on-year.

FatFace said this latest move is supported by the introduction of a single European digital stock pool, designed to improve operational efficiency and support growth across both retail partners.

Customers in the new markets will have access to womenswear, menswear, footwear and accessories collections, including the brand’s Copper & Black line. Categories including denim, dresses and outerwear have reportedly performed strongly ahead of a wider rollout anticipated for the coming months.

In a statement, head of partners at FatFace, Alexandra Dalwood, commented: “Being part of the Next family has been key to FatFace expanding its brand presence in Europe. Having one digital stock pool will drive growth across both Next and Zalando, while also allowing the brand to explore further digital opportunities across Europe.”

German footwear provider Birkenstock achieved solid sales growth in the second quarter of the 2025/26 financial year, despite adverse conditions and negative currency effects. However, profit declined significantly. This was revealed in a recent interim report published by its parent company, Birkenstock Holding plc, which is listed on the New York Stock Exchange.

From January to March, group revenue reached 618.3 million euros (723.8 million dollars). This represented an 8 percent increase compared to the same quarter last year. Adjusted for currency fluctuations, revenue rose by 14 percent.

In the wholesale business, sales increased by nine percent (15 percent on a currency-neutral basis) to 471.7 million euros. The company's own retail business achieved a four percent increase (12 percent on a currency-neutral basis), reaching 146.4 million euros.

Middle East conflict slows growth

Birkenstock also achieved growth in all market regions during the past quarter. In the Americas, revenue increased by four percent (14 percent on a currency-neutral basis) to 324.4 million euros. In the EMEA region, which includes Europe, the Middle East and Africa, sales grew by ten percent (11 percent on a currency-neutral basis) to 235.1 million euros. However, the conflict in the Middle East slowed growth by preventing deliveries to the region and dampening consumer sentiment in Europe. The company estimated the resulting loss in sales at approximately six million euros.

The Asia-Pacific region continued to show above-average dynamic growth, with a sales increase of 22 percent (30 percent on a currency-neutral basis) to 58.6 million euros.

Net profit shrinks by 22 percent

Negative currency effects, higher customs duties, a less favourable sales channel mix and the impact of acquiring its Australian distribution partner caused the gross margin to fall. The margin dropped to 53.9 percent, down from 57.7 percent in the same quarter last year. This led to a one percent decrease in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), which fell to 198.3 million euros.

Reported net profit fell by 22 percent to 81.9 million euros. Adjusted for special items, it was 10 percent below the level of the same quarter last year.

Management confirms annual forecasts

Birkenstock CEO Oliver Reichert emphasised that the company had proven to be “very resilient” in the face of numerous challenges during the second quarter. He noted that the currency-neutral sales growth of 14 percent was within the short and long-term target range, despite the difficult conditions.

Thus, management maintained its forecasts despite the current uncertainties. For the current 2025/26 financial year, a currency-neutral sales increase of 13 to 15 percent and an adjusted EBITDA margin in the range of 30.0 to 30.5 percent are still expected.

US apparel and e-commerce company Digital Brands Group (DBG) has announced its financial guidance for 2026, projecting revenue between 55 million dollars and 65 million dollars. The group also expects to generate free cash flow in the range of 2.50 million dollars to 3.50 million dollars for the calendar year.

The company provided a further outlook for the period spanning July 1, 2026 through June 30, 2027. During this 12 month timeframe, DBG forecasts revenue to reach between 100 million dollars and 115 million dollars, with free cash flow expected to rise to between 10 million dollars and 12 million dollars.

Management attributes this projected growth to the expansion of its collegiate licensing program and a strategic apparel licensing agreement with Global Combat Collective (GCC). The company anticipates a significant increase in monthly revenues aligned with the academic calendar, beginning with the ‘TikTok rush’ period in August 2026.

Strategic expansion of university partnerships

The collegiate licensing program has seen rapid scaling, growing from two partnerships in December 2025 to 16 by the end of April 2026. DBG intends to limit the total number of partner universities to 30.

This cap is designed to ensure the group can maintain deep integration with name, image, and likeness (NIL) initiatives and high-quality product execution. The strategy involves partnering with major influencers, such as Katie Feeney, to facilitate monthly product drops centered around major home football games and athletic events.

These collections are intended to support university NIL programs, with a particular focus on female student athletes. DBG chief executive officer Hil Davis stated that the business model has evolved to focus on areas where the company can offer a significant quality-to-value proposition.

Licensing agreements and institutional programs

In addition to collegiate efforts, DBG is leveraging its partnership with GCC, which acts as a licensed commercial channel partner. This collaboration supports existing US program frameworks with a potential aggregate contract value of up to 125 million dollars.

The partnership focuses on scalable supply and brand expansion rather than direct government contracts. DBG expects to receive the first purchase orders under this framework no later than June 2026.

According to GCC president and co-founder Joshua Chasse, the model is built to support growth while delivering quality products through an innovative commercial framework. Davis noted that this partnership represents the beginning of broader distribution opportunities for the group this year.

Paris (France) - Shoe brand Minelli, which employs 86 people, announced on Wednesday its permanent closure after May 30. The company was placed into administration in March for the second time in three years. Its stores will remain open until the closing date.

“It is with a heavy heart that we announce Minelli is permanently closing its doors,” stated the leather goods and footwear brand, founded in 1973, in a post on the social network Instagram.

“Our stores will remain open until May 30 with a 60 percent discount on all products, but orders on the website are unfortunately suspended,” it added.

Very partial takeover bids

Candidates for the brand's acquisition had until May 11 to submit their bids. The half-dozen offers made public on Tuesday by the court clerk are mostly very partial. They only provide for the takeover of one or two of Minelli's 21 points-of-sale or the brand without its employees.

Fashion brands Maje (SMCP group) and Father and Sons, optician Jimmy Fairly and the bakery chain Mie Câline have all expressed interest in one or two stores.

More surprisingly, the transport and logistics group Baghaira has proposed to take over the Minelli brand, its stock (valued at 2.7 million euros) and 'nine employees' from the Gémenos headquarters (Bouches-du-Rhône). The offer does not include its 21 stores and their '77 employees'. The bid is for 300,000 euros and focuses on e-commerce.

Finally, a former figure in the fashion and watchmaking industry, Philippe Sayada, is proposing a full takeover for just two euros, under conditions yet to be specified. The Minelli brand had already been placed into administration in 2023 in Marseille.

It was then saved by three buyers – investors and the clothing brand 'Mes Demoiselles Paris' – and integrated into a new entity, 'Maison Minelli'. This new entity has been in administration since March following a safeguard procedure.

This rescue came at the expense of many employees, with the workforce reduced from 600 to less than 200. The brand lost 3.7 million euros in its last published financial year, 2024-2025.

Claire's, Jennyfer, Okaïdi, and IKKS are among the many accessory or ready-to-wear brands that have been placed into administration or liquidated in France over the past two years. The sector has been disrupted by new consumer habits; inflation in energy costs, raw materials, and commercial rents; and competition from second-hand fashion and fast fashion, particularly from low-priced Asian websites.

Off-price premium e-tailer BrandAlley has reportedly appointed advisors from Interpath to explore strategic options for the business, including a potential sale.

According to Retail Week, the company is seeking a new investment partner to support its next phase of growth. Management had initially been eyeing a debt raise, but is now said to be expanding options to include a partial or full sale of the business.

FashionUnited has contacted Interpath with a request to comment.

BrandAlley was founded as part of a partnership between BrandAlley France and Rupert Murdoch’s News International in 2008. It currently operates as a members-only premium off-price retailer specialising in fashion, beauty, and homeware.

The company was bought out by management in 2013 before rapidly expanding through the acquisition of competitors like Achica, Internet Fusion Group, and The Edit LDN, for which it holds a majority stake.

For the year ended December 31, 2024, the company’s most recently reported financial period, BrandAlley’s GMV fell 2.7 percent while its net sales dropped 4.9 percent, largely due to the restructuring of its French business into a marketplace-only model.

Despite this, gross margin rose to 36.3 percent, while its EBITDA increased 51 percent. The French arm further moved from a 1.5 million pound loss to a 200,000 pound profit.

At the time of the report, the group said it was investing 5.4 million pounds into a new IT system to support its marketplace and dropship model, which was highlighted as a key growth driver.

Yesterday, Safilo Group announced in a statement that it has signed a share and asset purchase agreement (SAPA) with Bollé Brands for the acquisition of Spy+ and Serengeti.

The transaction follows the exclusivity agreement announced on April 21. It represents a further step in Safilo's strategy, which is focused on the selective acquisition of brands capable of strengthening the Group's position in attractive, high-growth segments.

“The binding agreement provides for the joint acquisition of selected Spy+ and Serengeti assets in Europe, as well as 100 percent of the shares of two dedicated companies operating in the US and Canada,” the management explained in the statement.

In 2025, Spy+ and Serengeti recorded combined sales of approximately 39 million dollars. The agreed consideration for the transaction is 26 million dollars, subject to customary adjustments.

Safilo will finance the acquisition using available financial resources.

The closing of the transaction is expected within two months of the signing of the share and asset purchase agreement, subject to the satisfaction of customary closing conditions.

Authentic Brands Group has announced a strategic partnership with Mercado Libre to expand its fashion and lifestyle brands across Mexico through the Latin American retailer’s online marketplace platform.

The agreement will grow the presence of brands including Reebok, Champion, Aéropostale, Nine West, Nautica and Dockers in the Mexican market. The companies said the collaboration could expand further across Latin America in the future.

The partnership forms part of Authentic’s wider marketplace strategy focused on growing its global portfolio through regional digital platforms. The company said Mercado Libre’s logistics, marketplace and advertising infrastructure would support localised growth and improve consumer access to its brands.

In a statement, Authentic's global head of marketplaces, Tim Derner, said: “Our marketplace strategy is focused on partnering with the best platforms that have the scale and infrastructure to unlock growth for our brands. Mercado Libre’s regional expertise gives us the ability to expand our portfolio in a way that’s digitally led, locally relevant, and built for scale.”

José Gurmendez, Mercado Libre's senior director, added: “We’re proud to partner with Authentic to introduce and grow a portfolio of globally recognised brands on our platform, starting in Mexico. Together, we’re enhancing the shopping experience while building a strong foundation for future regional expansion.”

Paris (France) - The administration of footwear brand Minelli has resulted in half a dozen mostly partial takeover bids. These offers often include a few stores or just the brand name without its employees. This was confirmed by the Paris Commercial Court's website, following a report from French digital media outlet l'Informé.

Potential buyers for the brand, which was placed in administration in March two and a half years after a similar procedure, had until May 11 to submit their bids.

Of the six offers published online on Tuesday by the court registry and reviewed by AFP, four involve the takeover of only one or two of Minelli's 21 points-of-sale.

Maje and Jimmy Fairly: potential acquirers

The ready-to-wear brand Maje (SMCP group) has offered to acquire the leasehold rights for premises on Avenue Mac-Mahon and Avenue des Ternes in Paris for 550,000 euros.

Fashion brand Father and Sons has offered 450,000 euros for the store on Avenue des Ternes.

The latter is also of interest to optician Jimmy Fairly, which has put 751,000 euros on the table for it. This is in addition to 251,000 euros for another boutique in Bordeaux. Meanwhile, the bakery chain Mie Câline is targeting a store in Avignon for 150,000 euros.

More surprisingly, transport and logistics group Baghaira has offered to take over the Minelli brand, its stock (valued at 2.7 million euros) and nine employees from the Gémenos head office (Bouches-du-Rhône) for 300,000 euros. The offer does not include its 21 boutiques or their 77 employees.

Baghaira explained that it wants to diversify its business by relaunching the brand, founded in 1973, through e-commerce and eventually in department stores.

Finally, a former figure in the fashion and watchmaking industry, Philippe Sayada, has proposed a full takeover for just two euros, with conditions yet to be specified.

The Minelli brand had already been placed in administration in Marseille in 2023. It was saved by three buyers – investors and the clothing brand “Mes Demoiselles Paris” – and integrated into a new entity, “Maison Minelli”. This new entity has been in administration since March, following a safeguard procedure.

The brand lost 3.7 million euros (4.33 million dollars) in its last published financial year 2024-2025. Its rescue in 2024 came at the expense of many employees, with the workforce reduced from 600 to fewer than 200.

Claire's, Jennyfer, Okaïdi, IKKS... Many accessory or ready-to-wear brands have been placed in administration in France over the past two years. Some are suffering particularly from competition from low-cost Asian websites.

Update May 13, 11:55 am CEST: Minelli has issued an update on proceedings, confirming its permanent closure on Instagram. Stores will remain open until May 30 with a 60 percent discount on all products, but orders on the website are suspended.

The Finnish textile group Marimekko Corporation achieved a sales increase and significantly boosted its profit in the first quarter of the 2026 financial year, despite challenging conditions. This was primarily due to strong growth in its international business.

According to an interim report published on Wednesday, sales in the period from January to March amounted to 41.4 million euros (48.47 million dollars). This represents a 5 percent increase compared to the same quarter last year.

International business remains growth driver

In its Finnish home market, revenues remained constant at 18.8 million euros. However, international business saw an upward trend, achieving a 9 percent increase to 22.6 million euros. In Scandinavia, sales rose by 19 percent to 5.0 million euros; in the rest of Europe by 11 percent to 4.4 million euros; and in America by 20 percent to 3.3 million euros. In the Asia-Pacific region, which is the focus of current expansion plans, revenues were 10.0 million euros, slightly above the previous year's level.

All product categories contributed to the growth. Global sales of clothing increased by 3 percent to 15.2 million euros, home textiles by 3 percent to 17.2 million euros, and bags and accessories by 11 percent to 9.0 million euros.

Thanks to sales growth and higher margins, the operating result grew by 20 percent to 5.1 million euros compared to the same quarter of the previous year. The net profit reached 4.1 million euros, which corresponded to an increase of 25 percent.

After “strong start”: company confirms its annual forecasts

CEO and president Tiina Alahuhta-Kasko was pleased with the development in the most recent quarter. “Our strong start to 2026 underscores our international competitiveness and puts us in a good position to continue investing in areas such as increasing brand awareness; digitalisation; expanding our omnichannel sales network; and sustainability, even in a constantly changing and challenging business environment,” she explained in a statement.

Specifically, the company plans to open ten to 15 new stores and shop-in-shop spaces during the year. The focus will be on the Asian markets.

The management maintained its annual forecasts despite ongoing economic and geopolitical uncertainties. It is therefore still expected that sales will exceed the previous year's level of 189.6 million euros. The adjusted operating margin is expected to reach 16 to 19 percent.

Brazil's president, Luiz Inácio Lula da Silva, repealed a tax on Tuesday on purchases under 50 dollars made through e-commerce platforms such as China's Shein or Temu, a move aimed at consumers just months before seeking re-election.

In 2024, Lula had decreed a 20 percent surcharge, known as the "taxa das blusinhas" (blouse tax), on these transactions.

The right-wing opposition used this as ammunition and accused the government of raising revenue at the expense of lower-income groups.

Accompanied by several ministers, Lula repealed the tax in an official ceremony.

"What you are doing is removing federal taxes from popular consumption, from the consumption of the poorest people," said the minister of planning and budget, Bruno Moretti, during the event.

The tax was initially created as a temporary measure and was made permanent by a Senate vote a couple of months later.

Unpopular with consumers, the tax was supported by Brazilian industry, particularly the apparel sector, which claimed unfair competition from cheap products imported via international platforms.

According to the government, the surcharge was effective in combating smuggling. "We have practically eliminated it, we have managed to combat smuggling (...), so we can take a step forward" and repeal the tax, stated the treasury secretary, Rogério Ceron.

The announcement comes less than five months before the elections in which Lula, 80, will seek a fourth term. He is set to face senator Flávio Bolsonaro, 45, son of former president Jair Bolsonaro, who is under house arrest for attempting a coup.

Both are tied in the latest voting intention polls.

The board of directors of US e-commerce leader eBay has formally rejected a non-binding acquisition proposal from US retailer GameStop. Following a comprehensive review conducted with financial and legal advisors, the board determined that the offer did not align with the long-term interests of the company or its shareholders.

In a formal response addressed to GameStop chief executive officer, Ryan Cohen, the board characterized the proposal as neither credible nor attractive. The decision followed an analysis of several critical factors; including the standalone prospects of the US marketplace and the significant uncertainty surrounding the financing of the proposed deal.

The board also cited concerns regarding operational risks and the leadership structure of a potential combined entity. There were further notes on the implications these factors would have on the overall valuation of the business and the executive incentives currently in place at GameStop.

Strategic focus on sustainable growth

Ebay chairman of the board of directors, Paul S. Pressler, emphasized the resilience of the current business model. He noted that the company has consistently delivered results by sharpening its strategic focus and enhancing the marketplace experience for its global network of sellers and buyers.

Founded in 1995 and based in San Jose, California, eBay remains one of the largest global marketplaces, operating in more than 190 markets. In 2025, the company enabled nearly 80 billion dollars of gross merchandise volume (GMV).

US sportswear group Under Armour has announced its financial results for the fourth quarter and full fiscal year 2026, ending March 31, 2026. The Baltimore-based company reported a total annual revenue of 5 billion dollars, representing a 4 percent decline compared to the previous year, or a 5 percent decrease on a constant currency basis.

The fiscal year was defined by significant structural shifts as the group worked to streamline its operating model. President and chief executive officer, Kevin Plank, stated that the performance reflects "intentional steps" to restore brand discipline. Plank noted that while the group has faced macro challenges, the focus is now shifting toward modern marketing excellence to accelerate consumer demand.

International growth offsets North American decline

During the fourth quarter, revenue reached 1.20 billion dollars, a slight decrease of 1 percent from the prior year. Performance varied significantly by region, as North America revenue fell 7 percent to 641 million dollars. In contrast, international revenue rose 10 percent to 539 million dollars, bolstered by a 22 percent increase in Latin America and 13 percent growth in Asia-Pacific.

The group’s direct-to-consumer (DTC) channel showed resilience in the final quarter, growing 5 percent to 406 million dollars. This growth was primarily driven by owned and operated stores, which saw an 8 percent increase in revenue. E-commerce performance remained flat, accounting for 35 percent of the total DTC business for the period.

Segment performance and restructuring impacts

The group’s core product categories saw varied results throughout the year, with apparel remaining the largest contributor despite a 2 percent decline to 3.40 billion dollars. The footwear division experienced a sharper contraction, falling 11 percent to 1.10 billion dollars. Accessories was the only category to report growth, increasing 1 percent to 414 million dollars.

For the full year, Under Armour reported an operating loss of 163 million dollars, while adjusted operating income stood at 107 million dollars. The net loss for the year was 496 million dollars, which included a 247 million dollar valuation allowance on US federal deferred tax assets.

Gross margin for the year decreased 240 basis points to 45.5 percent. This decline was attributed to higher tariffs, increased product costs, and unfavorable regional mix. However, the group expects a significant recovery in the coming year, forecasting a gross margin increase of 220 to 270 basis points for fiscal 2027.

Outlook for fiscal 2027

Looking ahead, Under Armour expects revenue to decline slightly in the next fiscal year. While North America is projected to see a low single-digit decrease, the group anticipates growth in Europe, Middle East and Africa (EMEA) and Asia-Pacific.

Management intends to increase marketing investments to strengthen the brand as the business stabilizes. Adjusted operating income for fiscal 2027 is anticipated to be between 140 million dollars and 160 million dollars. The Fiscal 2025 Restructuring Plan, which has incurred 261 million dollars in costs to date, is expected to be substantially complete by December 31, 2026.

The Armani Group announced on Monday the launch of Armani Residences Marbella, its first residential project in Spain. The venture is a partnership with Sierra Blanca Estates and Palya Invest, the firm led by athlete Rafael Nadal and Abel Matutes, a Spanish entrepreneur and former politician with long-standing ties to the tourism and hotel sectors in Ibiza and the Costa del Sol.

The complex will be built on Marbella's Golden Mile, one of the last available private plots on the strip connecting the city centre with Puerto Banús. Construction will begin in June 2026, with completion scheduled for 2028. With only 33 residences spread over 50,000 square metres, the project targets the international ultra-luxury segment as branded residences continue to expand in high-end tourist destinations.

Armani's entry into Marbella reflects how luxury houses continue to use the real estate sector to extend their brand universe beyond fashion and hospitality. While firms like Dolce & Gabbana, Fendi and Bulgari have strengthened their residential presence in Dubai, Miami and Riyadh, Armani is now betting on the Costa del Sol. This market has benefited in recent years from the arrival of international buyers attracted by tax advantages, security and the Mediterranean climate.

The project also consolidates Marbella's role as a European enclave for branded residential luxury. Sierra Blanca Estates, a developer with over four decades of activity in the region, has made this model a central part of its strategy. This comes as branded residences have become one of the most profitable categories in premium real estate. The marketing will be carried out in phases, and the first phase will include only 12 units. This is a formula designed to maintain exclusivity and control demand.

In terms of design, Armani Residences Marbella will follow the sober and minimalist aesthetic of Armani Casa. The interiors will focus on natural materials, neutral tones and a strong integration with the landscape. The complex will include a spa, gym, private club and a permanent concierge service. These elements respond to a growing demand for developments focused on well-being and privacy rather than visible ostentation.

Rafael Nadal had already collaborated with Armani on campaigns for Emporio Armani Underwear and Armani Jeans more than a decade ago. He now returns as an investment partner in a deal that combines real estate capital, branding and lifestyle. For Armani, the move reinforces a diversification strategy that has for years been translating the language of fashion into the domestic space and residential experience.

Lingerie giant Victoria’s Secret & Co. has upped efforts to defend its board and leadership strategy against activist investor Brett Blundy, who is continuing a campaign for greater influence over the business.

The company filed a supplement to its proxy statement and issued a public letter to shareholders ahead of its June 11 annual meeting, urging investors to support all current board nominees and reject what it described as a “distracting and self-interested proxy contest” launched by Blundy’s firm, BBRC International.

The dispute follows months of tension between the retailer and Blundy, whose investment vehicle owns a 12.9 percent stake in Victoria’s Secret. Since 2023, Blundy has repeatedly pushed for board representation and previously criticised the company’s governance, operational performance and capital allocation decisions.

In its latest shareholder letter, Victoria’s Secret said it had engaged extensively with BBRC over the past four years and had reviewed Blundy’s candidacy twice through its nominating and governance committee. However, the board said it ultimately rejected his appointment due to “serious reputational, legal, conflict of interest and governance risks”.

The company also sought to reinstate confidence in its current turnaround strategy under chief executive officer Hillary Super, stating in the letter: “The board, working closely with VS&Co’s management team, has acted decisively to put the company on a new trajectory for accelerated growth and has the skills necessary to oversee the continued execution of its ‘Path to Potential’ strategy.”

Victoria’s Secret highlighted a reported 152 percent total shareholder return since Super’s appointment in August 2024, alongside accelerating comparable sales growth and gains in market share.

The company also used the filing to address recent board developments, namely that director Mariam Naficy will not seek re-election, with the company stating her decision was influenced by the “time and attention required to engage with BBRC’s proxy contest”.

Despite the ongoing dispute, Victoria’s Secret said it remains focused on long-term growth and board refreshment. The retailer confirmed it is now searching for a new director with expertise in technology and artificial intelligence and said it would welcome shareholder input, including from BBRC.

In its closing remarks, the board said: “Our strategy is working, and the company is well positioned to continue delivering significant shareholder value. Do not let BBRC’s self-interested campaign disrupt the company’s momentum.”

Fashion for Good is publishing the initial results of Project Rewear, which was launched in 2024 to analyse second-hand clothing streams, with a view to viable recycling and resale.

The non-profit was founded in 2017 with support from the Laudes Foundation (formerly the C&A Foundation). It now collaborates with fashion partners such as Adidas and Inditex to plan and fund research for circular fashion. For Project Rewear, the organisation had 8,280 garments analysed at sorting facilities in countries including the Netherlands, Spain, Lithuania and Poland. These were mainly items from brands such as H&M (277 pieces), Zara (225 pieces) and Adidas (183 pieces). In-depth interviews were also conducted with stakeholders in the second-hand sector.

Perfectly good clothing still discarded

A notable conclusion from the study is that the value of second-hand clothing is subjective. It is shaped by trends, clothing style and popularity more than physical quality. Brand recognition proved to be a determining factor in resale value. The report suggests that clothing is not primarily discarded because the product is no longer good. The fashion economy does not assign it the value it has on paper. As with new clothing, hype counts for more than quality.

This would also explain why clothing with minor, easily fixable damage is often not repaired. 37 percent of the clothing in the sample was in perfect condition and 41 percent had only one minor defect.

Decline in quality

The authors do state that only 5 to 10 percent of what comes into sorters is of the best quality. They call this fraction ‘cream’. The companies attribute this to the decline in the quality of new items over the past 15 years. This does not mean that the clothing is immediately unwearable, but that defects appear more quickly.

At the Kantamanto market in Ghana, Fashion for Good collected and examined some 2,500 garments. Colour loss was the biggest problem, followed by stains and a stretched-out construction, which ruins the fit. This clothing arrived under the code for worn clothing (HS 6309) instead of waste (HS 6310) – which is what it actually is. The authors state this is often done deliberately to circumvent stricter regulations on waste transport.

Clothing is perfectly functional

According to the Repair Monitor Dashboard (2023), only 2.6 percent of garments that end up in Dutch Repair Cafés are irreparable. Most repairs are easy (57.5 percent) or of medium difficulty (11.3 percent). This means that textiles can easily remain in circulation after a minor refurbishment. The problem is that even small repairs often cost more than the resale price. These costs include cleaning; repair and return logistics; taking a new photograph; and possibly re-authenticating the item, which is necessary to offer it again. The authors state that AI cannot replace this extensive manual work.

Repairs are therefore carried out sparingly. Sorting facilities prefer to focus on efficient classification. Sorters sometimes perform targeted repairs, but usually only for high-end luxury items – the crème de la crème. At one sorter studied, only 50 of the 47 million kilograms of clothing were repaired in 2023.

The researchers conclude that as long as consumers only accept the artificially low price of new clothing, the resale market has little chance of success, particularly in the lower segment.

Waste colonialism

Fashion for Good also conducted analyses on resale in Ghana and Pakistan, two key points for the flow of second-hand goods. An important side note is that in such countries, a healthy textile market existed before the rise of the current fashion system, around 1960. The efficient industry has shifted local trade from clothing production to waste processing – which the authors state is not fair, but is the reality.

More than 86 percent of the garments from the sample at the Kantamanto market in Accra arrived in poor condition, even though they were labelled ‘reusable’. The report states that traders must bear the financial and ecological consequences of this unsaleable stock. The Ghanaian second-hand clothing market receives 15 million garments weekly, which often do find a final destination; traders, upcyclers and repairers work together to ensure that huge quantities of textiles do not end up in landfill.

While Kantamanto is primarily a trading hub, Pakistan takes on more of a sorting role. It imports more than 800,000 tonnes annually, a large part of which is exported to East Africa. The Rewear project shows that sorting significantly increases value, from 411 to 527 dollars per tonne on import to 878 to 931 dollars per tonne when it leaves the country. The Karachi Export Processing Zone alone employs more than 10,000 people. Outside the regulated zones, this work is often poorly regulated and wages are below the minimum wage.

With these case studies, Fashion for Good also addresses the issue of waste colonialism. Second-hand textiles are shipped abroad under the guise of reuse, but with no guarantee that the destination has the infrastructure to process it as waste if necessary. This reflects a familiar pattern of inequality rooted in colonial fashion history.

Rewear not an option for fast fashion

For fast fashion, the costs consistently outweigh the resale value. Nevertheless, the authors see added value in the second-hand market, if only for the 'cream' fraction.

For example, AI-powered sorting can generate a profit turnaround from zero to 6.5 million euros per year for a medium-sized facility. Consumer behaviour is also moving in the right direction: in 2024, 58 percent of respondents had bought second-hand clothing, and among younger shoppers, almost half said “vintage” was their first choice (an increase of 7 percent since 2022).

According to second-hand platform ThredUp, the value of the global second-hand clothing market is growing almost three times as fast as that of new fashion, reaching 367 billion dollars in 2029. This business interest could further motivate the industry to address the problems in its infrastructure.

There is also support from Brussels: the Extended Producer Responsibility (EPR). The revised Waste Framework Directive will come into force on October 16, 2025, making EPR mandatory for textiles and footwear. EPR fees will be modulated, which can help to alleviate market failures.

For Project Rewear, Fashion for Good organised three pilots to steer the sorting system in the right direction. Save Your Wardrobe created a tool that helps brands identify strategic opportunities in refurbishment and repair. United Repair Centre investigated how these repairs can lead to a higher value for the European second-hand market. Reverse.fashion developed AI-driven solutions for more efficient sorting.

The authors state that ultimately, all such efforts must come together as a single intervention to reshape clothing waste management. If this does not happen, “rewear” will remain a separate market instead of the intended circular counterbalance.

State of the second-hand circuit

According to Circle Economy, only 0.3 percent of worn clothing will be kept in circulation in 2024, while more than 92 million tonnes of textiles are thrown away annually. Meanwhile, the European Environmental Agency (EEA) reports that the EU's export of used textiles has tripled since 2000, from 550,000 tonnes to almost 1.7 million tonnes in 2023.

Separate collection is a challenge in itself. The Netherlands performs with a percentage between 37 and 50, compared to 10 to 12 in Spain, 18 in Poland and 11 in Lithuania.

The second-hand circuit also creates a lot of employment. Scientific research from 2024 shows that 1.28 million people are employed in the second-hand clothing sectors of Angola, Guinea-Bissau, Malawi, Mozambique and Zambia alone, with each tonne of imported clothing being associated with an average of 6.5 jobs.

London-based independent fashion brand Kitri, founded by Haeni Kim in 2017, has announced on social media that she is closing the womenswear brand that became known for its limited-run, vintage-inspired fashion, often with bold colours and playful details.

On Instagram, the brand said that it would be closing its doors in the coming weeks, and had started the process of winding down operations, and its current spring collection would be its final offering.

Kim said: “This decision has not come easily. We explored every possible avenue, but ultimately this felt like the only responsible path forward.

“Building Kitri has been one of the greatest privileges of my life. What started as a small independent brand grew into something far bigger than I could have ever imagined, worn and loved by women around the world, supported by an incredible community, and brought to life by an immensely talented team.

“Thank you for the last nine years, and I hope these pieces continue to bring you joy for years to come.”

Swiss sportswear provider On Holding AG (On) has continued its growth trajectory in the first quarter of the 2026 financial year. On Tuesday, the company announced record sales and raised its profit forecast.

In the period from January to March, sales amounted to 831.9 million Swiss francs (1,065.3 million dollars). This represents an increase of 14.5 percent compared to the same quarter last year. Adjusted for currency fluctuations, revenue grew by 26.4 percent.

In its direct-to-consumer business, sales rose by 16.4 percent (currency-adjusted +28.7 percent) to 322.3 million Swiss francs. In the wholesale business, On achieved an increase of 13.3 percent (currency-adjusted +25.1 percent) to 509.6 million Swiss francs.

Revenue from clothing and accessories continues to see above-average growth

Revenue in the traditional core business of footwear grew by 12.2 percent (currency-adjusted +24.0 percent) to 763.7 million Swiss francs.

Other categories, a strategic priority for the company's expansion, developed even more dynamically. Sales of apparel increased by 45.1 percent (currency-adjusted +57.5 percent) to 55.3 million Swiss francs. Revenue from accessories rose by 70.7 percent (currency-adjusted +86.6 percent) to 12.9 million Swiss francs.

Currency effects slow sales growth

The strongest growth driver was the Asia-Pacific region, with a sales increase of 44.4 percent (currency-adjusted +61.4 percent) to 174 million Swiss francs. According to the company, the significant increase was primarily due to strong growth in China and South Korea.

In the Americas, revenue increased by 3.1 percent (currency-adjusted +17.1 percent) to 450.7 million Swiss francs. In the EMEA region, which includes Europe, the Middle East and Africa, sales increased by 22.8 percent (currency-adjusted +25.6 percent) to 207.1 million Swiss francs.

The company was able to increase its gross margin to 64.2 percent from 59.9 percent in the same quarter last year, despite higher import duties in the US. As a result, earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for special items, grew by 45.4 percent to 174.3 million Swiss francs. Reported net profit increased by 82.2 percent to 103.3 million Swiss francs.

Management raises earnings forecast after “outstanding start”

Co-founder and co-CEO Caspar Coppetti was pleased with the current results. “The first quarter was an outstanding start to the year and further impressive proof of the success of our premium strategy,” he explained in a statement. “On is becoming more global, more diverse and more deeply rooted in different communities around the world.”

Following the successful first quarter, management updated its forecast for 2026. Sales for the current year are still expected to increase by at least 23 percent on a currency-adjusted basis. Based on current exchange rates, this would amount to at least 3.51 billion Swiss francs.

The annual forecast for the adjusted EBITDA margin, which was previously between 18.5 and 19.0 percent, has been raised to between 19.5 and 20.0 percent in light of recent performance.

The global textile and garment industry is currently undergoing its most significant structural transformation in decades, driven by a combination of geopolitical friction and logistical instability. As the US continues its rigorous review of Section 301 tariffs on Chinese imports, the traditional “Made in China” model is being systematically dismantled. In its place, a new trade geography has emerged, with Mexico and Vietnam positioning themselves as the primary beneficiaries of a world that now values supply chain resilience and proximity over the singular pursuit of the lowest possible unit cost.

Mexico: agile and vertically integrated hub

Mexico has rapidly ascended as the ‘agile’ hub for the North American market, fuelled by an aggressive trend of nearshoring. By moving production closer to the US, brands are effectively insulating themselves from the volatility of trans-Pacific shipping, where reroutings around the Cape of Good Hope have added weeks to transit times. For a fashion industry driven by the lightning speed of social media trends, the ability to move goods from a factory in Monterrey to a distribution center in Dallas in mere days—rather than 40 days on a container ship—has become a competitive necessity.

“Mexico's nearshoring story in 2026 looks nothing like it did two years ago... the structural economics haven't just survived the tariff volatility—for companies that did the compliance work, the math has actually improved,” confirms manufacturing support provider Tetakawi (formerly The Offshore Group) in its Manufacturer's Decision Guide for 2026.

This geographical advantage is backed by record-breaking financial commitment. According to the Mexican Ministry of Economy, the country attracted over 40 billion US dollars in Foreign Direct Investment in 2025, with billions more flowing into industrial mega-hubs and the Interoceanic Corridor, which will cut five days off the Panama Canal routing and reducing logistics costs by about 15 percent. Investment announcements in the first months of 2026 mentioned a figure of 5.8 billion US dollars.

These investments are transforming Mexico from a simple assembly point into a vertically integrated powerhouse. Major mills like Grupo Kaltex and Avante Textil are now spinning yarn, weaving fabric and sewing garments in one location, allowing brands to minimise inventory risk by adopting a ‘pull’ model—ordering smaller batches and restocking in real-time based on actual consumer demand. So instead of ordering 10,000 shirts from China and waiting 40 days, they can order 2,000 from Mexico, see how they sell, and restock in 72 hours.

Vietnam: high-tech apparel powerhouse

Across the Pacific, Vietnam is capturing the “China Plus One” surge by evolving into a high-tech apparel powerhouse with an 8 percent GDP growth in 2025. While Mexico wins on speed, Vietnam scores on technical scale and sophisticated manufacturing. The Vietnamese government has responded to the logistics crisis with a massive public investment push, targeting high-speed rail and international transshipment ports.

This infrastructure blitz is designed to ensure that even as global shipping lanes face disruption, Vietnam remains the most efficient exit point for high-value garments in Southeast Asia. The EU acknowledged the country’s promising position and entered into a comprehensive strategic partnership at the end of January this year, aimed at deepening cooperation in trade, green transition and security.

Vu Duc Giang, chairman of Vietnam’s textile and apparel association (VITAS), emphasises a timely and effective progress toward circularity as “essential to enhancing the sector’s competitiveness, adaptability and long-term position in global supply chains,” in the association’s LinkedIn post.

Thus, Vietnam’s success is also rooted in its climb up the value chain. No longer just a destination for cheap labor, Vietnamese factories are investing heavily in automated sewing systems and advanced fabric finishing technologies as they are weaving eco-friendly materials like organic cotton, recycled polyester and Tencel into their production processes. As of early 2026, Vietnamese factories are in a massive cycle of equipment renewal with new automated sewing systems (like the Hikari 9VIII industrial sewing machine) increasing productivity by 20 to 30 percent, thus allowing Vietnam to handle smaller, more technical orders that China used to dominate.

This shift is critical for compliance; by developing domestic fabric-production capabilities, Vietnam is helping brands meet strict rules of origin requirements. This allows garments to qualify for duty-free entry into major markets under various trade agreements, effectively bypassing the tariff walls that continue to rise around Chinese goods.

Challenges and chances

However, this logistics pivot is not without its complications, as both nations now face a compliance trap born of increased regulatory scrutiny. As of May 2026, the US Trade Representative has intensified investigations into transshipment, seeking to ensure that Chinese products are not simply being funneled through Mexico or Vietnam to evade taxes. That means if a garment is 90 percent made in China and only has the buttons sewn on in Vietnam, it may still be hit with a 25 percent Section 301 tariff. This has forced textile firms to adopt ‘DNA-level’ traceability, using blockchain-based Digital Product Passports to prove that every fibre of a garment was ethically sourced and legally produced within the new hubs.

Furthermore, the environmental footprint of the industry is being recalculated through this new lens. Shifting sourcing to Mexico significantly lowers Scope 3 carbon emissions by replacing long-haul maritime freight with shorter trucking routes. In Vietnam, the push for sustainability is seen in the adoption of regenerative cotton and water-saving dyeing technologies. Both nations realise that to remain the preferred alternatives to China, they must offer not just a logistical escape, but a ‘green’ one that aligns with the European Union’s increasingly strict circular economy directives.

Ultimately, the beneficiaries of the current logistics crisis are those who can provide certainty in an uncertain world. While Mexico offers the certainty of speed and proximity, Vietnam provides the certainty of technical scale and trade-agreement protection. As the industry moves toward 2027, the textile landscape will likely be defined by this two-speed model. While the transition involves higher initial setup costs and rigorous auditing, the result is a more resilient, transparent and responsive global supply chain that is no longer tied to a single point of failure.

Authentic Brands Group, the intellectual property company that owns brands from Reebok and Champion, to Guess, Forever 21, and Herve Leger, is reportedly in discussions with Kontoor Brands Inc. to purchase Lee Jeans.

Sources at WWD reported that Authentic Brands Group has been in exclusive talks to purchase Lee Jeans, but noted that a deal still had to be made, with Morgan Stanley investment banker Carmen Molinos overseeing the sale. 

Reports of the potential sale come less than a week after Kontoor Brands Inc. CEO and chairman Scott Baxter announced that the company was looking to divest Lee in order to focus on "opportunities with the greatest potential to maximise shareholder returns by aligning Kontoor's brand portfolio towards a higher growth profile.” 

Several companies have already shown interest in acquiring the denim label, according to a company statement from Kontoor, as it started a competitive process to divest Lee during the first quarter of the year. 

“We are confident in our ability to successfully complete a transaction this year, resulting in significantly more capital allocation optionality and accelerated growth as we drive enhanced shareholder returns into 2027 and beyond,” said Joe Alkire, Kontoor Brands’ executive vice president, chief financial officer, and global head of operations, in a statement last week.

Authentic Brands Group is believed to have been in exclusive talks with Kontoor and is thought to be in the midst of negotiating a deal, which may be finalized within the next few weeks or months. 

Sportswear giant Under Armour has entered a research and development collaboration with Persona AI to explore how advanced performance materials can support humanoid robots operating in industrial environments.

The partnership will focus on robots designed for physically demanding and high-risk settings, including welding, heavy manufacturing, hazardous material handling and extreme heat exposure. Persona AI said the goal is to improve safety and reduce strain for human workers through automation.

As part of the collaboration, the companies will test how different textiles perform under conditions such as heat, friction and repetitive movement. The research will examine whether external material layers can improve durability, thermal regulation and flexibility for humanoid systems working in real-world industrial conditions.

Persona AI, which is headquartered in Houston, develops humanoid robots for industrial applications and draws on expertise from robotics systems used in space and deep-ocean exploration.

In a statement, Nicolaus Radford, CEO of the company said the decision to work with Under Armour was due to "their track record of innovation with these types of performance materials", with the duo striving towards the goal of understanding "how advanced materials can enhance long-term reliability, thereby informing solutions to better protect workers in the field".

For Under Armour, the partnership allows for the opportunity to apply innovation in a new context, Kyle Blakely, the brand's SVP of innovation, design studio, development, and testing, said.

He continued: “Robotics presents a fascinating new design challenge, and we aim to play a leading role in shaping performance solutions for these environments. As humanoid systems take on more physically demanding roles, we see real potential to create new market opportunities, and we’re exploring how concepts like thermal management, abrasion resistance, and flexibility translate beyond sport."

Tapestry has been awarded a US patent for Mira, an internal AI platform designed to connect data across the business and support faster decision-making across its brands, including Coach and Kate Spade New York.

The patent covers the core architecture of the platform and marks Tapestry’s first AI-related patent and second technology patent overall.

Mira works alongside the US company’s Global Data Fabric system and is designed to analyse company-wide data "in seconds", with the goal of helping teams respond more quickly to consumer trends, assortment planning and inventory management needs.

In a statement, chief data and analytics officer at Tapestry, Fabio Luzzi, said: “Our teams bring deep expertise, human judgement and creativity; Mira provides business intelligence to help our teams move with speed and agility. Together, that combination becomes a structural competitive advantage.”

According to the company, the platform was developed internally by its data and analytics team and built specifically for fashion and retail operations. The company said Mira incorporates institutional knowledge and operates within a secure system with role-based access controls.

Tapestry's CEO added Joanne Crevoiserat added: “We’re an 85-year-old fashion company harnessing cutting-edge innovation and technology. Mira is a powerful tool that puts business insights into the hands of decision makers across the company. This is one more way we are moving with agility to deliver for our consumers and drive durable growth.”

Israeli apparel manufacturer Delta Galil Industries has announced strong financial results for the first quarter ended March 31, 2026. The group, which produces intimate apparel, activewear, loungewear, and denim, saw sales growth across all business segments and geographic regions.

Record revenue driven by US market expansion

First quarter sales rose 15 percent to 573 million dollars, compared to 498.70 million dollars in the same period of 2025. In constant currency, revenue increased by 10 percent year-over-year (YoY). The growth was primarily attributed to higher sales in the US market and the expansion of owned brands, supported by strategic investments in global sourcing and distribution.

Gross profit for the period reached 238.80 million dollars, representing an 18 percent increase compared to 202.60 million dollars in the first quarter of last year. This resulted in a gross margin of 41.7 percent, a rise of 110 basis points from 40.6 percent. Management cited improved factory efficiency and favourable exchange rates as the primary drivers for the margin expansion.

Operating profit and net income performance Earnings before interest and taxes (EBIT), excluding non-core items, reached 36.60 million dollars, up from 32.70 million dollars in the prior year.

Net income excluding non-core items remained stable at 17.60 million dollars. However, net income including non-core items was 16.40 million dollars, a slight decrease from 17.60 million dollars in the first quarter of 2025. Diluted earnings per share, excluding non-core items, arrived at 0.63 dollars, compared to 0.62 dollars in the previous year.

Strategic outlook and 2026 guidance

Delta Galil chief executive officer, Isaac Dabah, expressed confidence in the current trajectory of the group. “2026 is off to a strong start, reflecting the strength of Delta Galil’s global platform, the value of our brands, and our team’s ability to execute at a high level in a dynamic environment,” Dabah stated. He noted that investments in manufacturing flexibility and innovation are translating into measurable financial results.

The group maintains a robust balance sheet with 123.90 million dollars in cash and record shareholders’ equity of 906.80 million dollars. Consequently, the board has declared a dividend of 8 million dollars for the first quarter of 2026, matching the distribution from the previous year.

Based on the strong start to the year, the company reaffirmed its full year 2026 guidance and expects annual sales to range between 2.29 billion dollars and 2.33 billion dollars, compared to 2.12 billion dollars in 2025. Full year EBIT is projected to reach between 204 million dollars and 212 million dollars.

The two-week copyright trial between Shein and Temu kicked off in the UK’s High Court today, unveiling rising tensions over business rights between the online Chinese retail competitors.

According to Reuters, Shein accused Temu of copyright infringement on an “industrial scale”, while Temu countered that Shein’s legal pursuit was merely an attempt to stifle competition rather than protect intellectual property.

Shein first filed the case against Temu in 2023 alleging that its competitor had used thousands of its images to market clothing items that either bore resemblance or were direct copies of Shein’s own products.

In court, Shein’s lawyer Benet Brandreth said Temu sought to “piggy-back” on an established competitor, adding: “This was an attempt to steal a march on an existing participant in the market”.

Temu has denied the allegations, with its lawyer, Charlotte May, stating that the company’s merchants had obtained the required consent to use the images.

In response, Temu is seeking damages in a counter-claim after it said it was forced to remove thousands of product listings following an injunction by Shein.

A separate portion of the case is due to go to trial next year, and will explore if Shein had broken consumer law by securing exclusive agreements with fast fashion suppliers.

Fairly Made, a French traceability platform, is venturing into the US with plans to open an office in New York and the appointment of a director for the North American region.

Sydney Ellis confirmed her new position at Fairly Made on LinkedIn, where she said: “Over the past decade, I’ve worked at the intersection of sustainability and business within the fashion industry, and this role feels like a natural next step in my commitment to supporting responsible growth and meaningful, industry-wide progress.”

Ellis joins the company from Cerofy, where she was serving as head of sustainability and product strategy. She has also held similar roles in the realm of sustainability consultancy for the likes of Wright Track Strategy, a consulting firm she was the owner of; Net Impact; Columbia University; and Tomorrow.

Her role has become more clear in a report by WWD, to which Fairly Made confirmed the opening of its New York office. The media outlet also noted that partnerships with US clients like Another Tomorrow and G-III Apparel Group have further contributed to the regional build out of the business.

In approaching the US market, Fairly Made has taken into account an increasingly complex environment that differs greatly from Europe. According to the firm, North America is more focused on working conditions and social compliance, a traceability in relation to sourcing integrity, and a fragmented regulation landscape differing by state.

It is also suggested that for US brands the adoption of digital product passports may differ from Europe, taking on a more flexible and decentralised approach instead of the EU’s set framework. Fairly Made’s co-founder Laure Betsch said the company has a technology infrastructure that can shift depending on contrasting systems.

Betsch added that Fairly Made’s focus for now is on strategic partnerships that are intentional. The goal is to double the North American client base over the next year, yet prioritising quality over scale.

Claras Materials LLC has launched in the US as a specialist supply chain business focused on post-consumer textile raw materials for the region’s growing fibre-to-fibre and chemical recycling markets.

The North Carolina-based company said it aims to address ongoing supply challenges facing textile recyclers, particularly around securing consistent, sorted and processing-ready feedstock at commercial scale.

Claras Materials will source post-consumer textiles from global used clothing markets and sort materials based on fibre composition before processing. The company will use near-infrared sorting technology to create single-fibre bales, including polyester, cotton and wool categories, alongside mixed-fibre materials for mechanical recycling.

The business said hardware such as buttons and zips will be removed before bailing to ensure materials arrive ready for recycling facilities.

Patrick Mullen, who leads the company as general manager, has more than 35 years of experience in textile recycling and fibre sourcing.

In a statement, Mullen said: “The technology to recycle post-consumer textiles at scale exists. What’s missing is a reliable supply.”

The company said processing operations will be announced later, with commercial operations expected to begin in 2027. Claras Materials is currently in discussions with recycling partners as the textile industry continues to invest in circularity and fibre recovery infrastructure.

Sportswear giant Nike is at the centre of a consumer-fronted class action lawsuit over allegations that it was withholding refunds on tariffs and raising prices.

In the lawsuit, filed with the US district court in Oregon, consumers claimed that Nike could "recover the same tariff payments twice – once from consumers through higher prices and again from the federal government through tariff refunds”.

The filing comes after a ruling from the Supreme Court determined that global tariffs imposed by President Trump last year were illegal, and that impacted companies were entitled to refunds as a result.

According to the suit, Nike had responded to the tariff increase by raising prices on a selection of products, including footwear and accessories, by two to ten dollars.

Those involved in the proceedings argued that Nike could pocket “significant” refunds as it had “no legally binding commitment” to return any tariff-related surcharges to customers.

The complaint stated: “Unless restrained by this court, Nike stands to recover the same tariff payments twice – once from consumers through higher prices and again from the federal government through tariff refunds.”

Nike is among a growing number of companies, such as EssilorLuxottica, the owner of Ray-Ban, facing similar lawsuits over claims regarding tariff refunds.

Nike is yet to comment publicly on its own lawsuit. The company’s fiscal quarter ended August 2026 is believed to be the last period that tariffs are expected to serve as a year-on-year headwind, management said in an investor call earlier this year.

Swiss haute horlogerie manufacturer Audemars Piguet is strengthening its commitment to premium sport by entering the professional padel circuit through a dual strategic alliance. The brand becomes the official timekeeper of the Qatar Airways Premier Padel Tour and, at the same time, has signed a collaboration with Spain's Agustín Tapia, the current world number one.

As part of the agreement, Audemars Piguet will have a presence throughout the international circuit season with on-court clocks, branding at tournaments and visibility in global broadcasts. With this move, the brand aims to strengthen its positioning in what they consider “one of the fastest-growing sports with the greatest international potential”.

The move aligns with the company's strategy to consolidate its presence in areas linked to luxury, performance and exclusivity.

Through sport, Audemars Piguet seeks to expand its connection with new global audiences and strengthen its visibility in key markets through high-impact media platforms, according to a press release shared by the company.

Madrid – Late last week, new information emerged about the legal battle initiated by the US-based The Estée Lauder Companies against British perfumer Jo Malone and Spanish fashion giant, the Inditex Group. The company accuses the perfumer and the fashion group of infringing the rights of the Jo Malone London brand, which has been owned by Estée Lauder since 1999. This is in the context of the long-term collaboration between Zara, the group's main chain, and British perfumer Jo Malone and her new perfume house, Jo Loves.

To provide some context, and following details previously reported by FashionUnited at the time of the lawsuit's filing in early March, Malone founded her eponymous perfume house around 1990. After achieving considerable name recognition, fame and reputation, she reached an agreement with the US beauty multinational The Estée Lauder Companies to sell it in 1999. The deal was closed for an undisclosed amount, estimated to be around 100 million dollars. Its terms included the founder remaining with the company as creative director. However, Malone left this role in 2006 under a non-compete clause that restricted her from returning to the perfume and beauty sector for a period of five years.

Once that period had passed, Malone decided to return to her passion for the world of scents by founding her new fragrance house, Jo Loves, in 2011. With this new label, she quickly regained popularity, as was natural given the name she had built in the industry. She began to compete directly with her former fragrance brand. Her new olfactory creations are sold for between 120 and 150 pounds for 100 ml bottles, compared to the 150 to 200 euros price range for Jo Malone London's offerings. This price difference is minor. It becomes even more favourable for Jo Loves when considering that its creations are sold as perfumes, while Jo Malone London's are sold as cologne and intense cologne. This implies a lower proportion of the essences that provide longevity to the fragrances.

The Inditex Group (Inditex) played a decisive role in this particular and then-incipient war in the perfume world. In 2019, it established a long-term collaboration agreement between Zara, its main fashion chain, and the British perfumer's new fragrance house, Jo Loves. The collaboration focuses on the development and commercialisation of various scented products, including scented candles, room diffusers and, of course, fragrances and perfumes. All these products feature original scents. The fragrances, with collections for both men and women, are sold at prices ranging from 29.95 to 35.95 euros.

With these, Zara and Inditex have not only enriched their beauty universe but also helped to give visibility to Malone's new business venture, separate from the Jo Malone London house, which, as a brand, remains in the hands of Estée Lauder. Inditex has tried to safeguard this action by consistently presenting it as a collaborative initiative between Zara, Malone and her brand Jo Loves. Each product, both physically and online, is labelled as “created by Jo Malone CBE, founder of Jo Loves”.

Inditex rejects allegations

Despite this clarification, The Estée Lauder Companies maintains that the long-term collaboration has infringed upon the rights of the Jo Malone London brand, which the US beauty multinational acquired in 1999. For this reason, as was revealed in early March, the company decided to file a lawsuit in the UK against Malone for breach of contract, registered trademark infringement, passing off and consumer deception. The lawsuit was extended to include Jo Loves, her new commercial brand, and the British subsidiary of Inditex. Both parties have now responded, denying the alleged illicit behaviour attributed to them by the US company.

The Spanish company has modified the note on some items from the Jo Loves collaboration, which is the main argument in The Estée Lauder Companies' lawsuit. The text has been changed from “created by Jo Malone CBE, founder of Jo Loves” to “in collaboration with the perfumer Ms. Jo Malone CBE, founder of Jo Loves”. In its defence filed with the UK High Court and reported by Reuters, Inditex alleges that it has never infringed upon the rights of Estée Lauder or its Jo Malone London brand. This was an expected argument. Inditex also maintains that the company has always adhered to the exact terms recommended by the US group for mentioning the perfumer in their collaboration. On this matter, the Spanish company states that in August 2020, they received a complaint from Estée Lauder regarding the use of Jo Malone's name in a post on Zara's official account on the Chinese social network Weibo.

The Spanish company's defence states that Estée Lauder's own legal team later acknowledged that this claim was within legally permissible limits. They recommended that Zara should in any case be careful to specify that its collaboration was not with the Jo Malone London brand, but with the perfumer Jo Malone. She could be identified under the terms “Jo Malone CBE”, “Ms Jo Malone”, “Ms Malone” or “Jo”, but never as the founder of the Jo Malone brand. Inditex maintains that these terms have been complied with at all times, both in the marketing of the collaboration's products in brick and mortar stores and online. They therefore deny the accusations of brand rights infringement and unfair competition. As an additional note, they also reject the "cheap" label that Estée Lauder used to describe their perfumes in its lawsuit.

Perfumer Jo Malone hits back at The Estée Lauder

Meanwhile, the British perfumer responded a month ago via her Instagram account, where she regularly promotes the olfactory creations she develops for Zara, regarding the lawsuit filed against her and Inditex by Estée Lauder. She rejected the legal implications of the complaint at the time, stressing that both parties had done everything possible to ensure it was understood that the collaboration had nothing to do with the Jo Malone London company. She continues to maintain this defence. Now, as she has pointed out through the same channel, she also accuses Estée Lauder of trying to prevent her from using her own name, thereby violating the terms of the 1999 sale of Jo Malone London.

“Estée Lauder cannot stop me from being Jo Malone, the renowned perfumer and personality with my own prestige and reputation,” Malone stated in a statement released on her social media channels. “While I sold the company called Jo Malone London Limited and the Jo Malone trademark to Estée Lauder 27 years ago, I obviously did not sell my name.” In this regard, she details, “the contract with Estée Lauder allows me to use my own name in a personal capacity, which I have been doing for Jo Loves for 15 years.”

Following the same dynamic, “the collaboration with Zara has been ongoing for seven years” under the same terms, “and its packaging does nothing more than identify me, Jo Malone CBE and founder of Jo Loves, as the perfumer.” With this lawsuit, the British perfumer adds, “Estée Lauder is trying to prevent me from identifying myself as Jo Malone even in circumstances where I am clearly doing so in a personal capacity,” and “for that reason, I am defending myself in the High Court.”

British retailer Marks & Spencer (M&S) has announced a conditional agreement to acquire a 437,000 square foot fully automated fashion distribution centre located in Lichfield. The facility, previously operated by British online fashion retailer Asos, is scheduled to become operational within the M&S network in 2027.

The acquisition is expected to create 600 jobs and serves as a primary driver for the strategic acceleration of the retailer’s fashion, home, and beauty divisions. By increasing logistical capacity, the hub will facilitate faster order processing to support the long-term objective of doubling the size of the company’s online fashion business.

Strategic investment in supply chain transformation

M&S managing director for fashion, home and beauty, John Lyttle, stated that the acquisition is a critical component of the digital growth strategy. “As we transform M&S fashion, home and beauty, our ambition is to double online sales,” Lyttle said.

Lyttle noted that the 24/7 distribution network requires additional capacity to serve customers more efficiently. The managing director emphasised that the acquisition represents a disciplined use of capital, providing necessary infrastructure at a significantly lower cost than a new build project.

Supply chain transformation remains a strategic priority for M&S as it seeks to shorten lead times from suppliers to distribution centres and ultimately to the end consumer. The retailer views the optimisation of these processes as a key lever for driving online growth and improving long-term profit margins.

Currently, M&S operates a diverse portfolio including food and stylish fashion, home, and beauty products. These are distributed through its UK brick and mortar stores, international franchise partners, and its e-commerce platform.

After successful editions covering the EU and Americas, non-profit Global Fashion Agenda (GFA) has released its GFA Policy Matrix: Asia. The resource is designed to map sustainability and social matters related legislation in the fashion industry across the region and focuses on eight major manufacturing countries: Bangladesh, Cambodia, China, India, Indonesia, Pakistan, Turkey and Vietnam.

In view of policy and legislation information that can be dispersed, the new GFA PolicyMatrix: Asia aims to provide an accessible overview of policy developments in the area, with plans to expand its scope in the future to more countries.

“The launch of the GFA Policy Matrix Asia marks an important step in strengthening our strategic work across the region. As we continue implementing the Circular Fashion Partnerships on the ground, we gain critical insights into what enables circular systems to succeed. This resource complements that experience by mapping textile-related sustainability policies in key manufacturing regions of Asia, where legislation is evolving rapidly,” commented GFA CEO Federica Marchionni in a statement.

Structure of the GFA Policy Matrix Asia

The Policy Matrix is structured around the five key priorities outlined in the Fashion CEO Agenda: respectful and secure work environments, better wage systems, resource stewardship, smart material choices and circular systems. Under each priority, it is based on the status of the policy initiatives, with those enacted and in force mentioned first, followed by ongoing initiatives, those undergoing revisions, non-policy and upcoming initiatives.

Each entry for a specific policy effort is supported by a summary of its main objectives and main provisions. It also lists key policymakers and stakeholders (if available) to highlight the actors involved in its development as well as insights into the key players shaping the regulatory landscape. A clearly visible status box provides information on completion, updates and amendments at a glance.

A section with additional information lists relevant resources such as links to handbooks and other useful information, including stakeholder positions, media coverage and reports.

What do the five key priorities cover?

Respectful and secure work environments

Knowing where to look when handling a particular issue is half the work done. Thus, an overview of the main themes for each priority is helpful; some may overlap. The section on respectful and secure work environments, for example, touches on themes like due diligence, occupational hazards, working conditions, worker health and safety, sick pay, hazardous chemicals, discrimination, human rights violations, forced labour and slavery, human trafficking, grievance mechanisms, female workforces, gender equality, gender-based violence, financial inclusion, financial empowerment, job retention, job security, social protection, Covid-19 implications on workers, supply chain visibility, transparency and purchasing practices.

In this area, the matrix highlights a transition toward modernised labour codes and mandatory due diligence. Notable updates include India’s New Labour Code (2025), which consolidates 29 fragmented laws to improve worker protections, and Indonesia’s upcoming Mandatory Human Rights Due Diligence bill.

Better wage systems

The section on better wage systems includes themes like due diligence, fair wage systems, payment systems, minimum wage, living wage, transparent wage data, purchasing practices, wage setting, collective bargaining, unions, wage theft, grievance mechanisms, wage protection schemes, labour protection, social protection schemes, enforceable brand agreements, informal economy, sub-contractors, slavery and human trafficking.

Wage protections are being reinforced through statutory frameworks like Cambodia's 2018 Law on Minimum Wage, which set new rates for the garment sector effective January 2025, and India’s Code on Wages (2019).

Resource stewardship

The resource stewardship section covers themes like water, water availability, water stress, water scarcity, energy, fossil fuel consumption, carbon taxation, energy transition, renewable energy, science-based targets, chemical use, chemical pollution, hazardous chemicals – textile leather processing/ dying processes, biodiversity, natural resource use, virgin material extraction, land restoration, sustainable land management, regenerative agriculture, deforestation, land use, transparency, recapturing waste streams and traceability tools.

The section focuses on decoupling value creation from environmental degradation through stricter pollution controls and climate commitments. The report documents significant legislative actions such as Indonesia’s Regulation No. 12 (2025) on wastewater standards and Turkey’s first comprehensive Climate Law (2025), which establishes a national Emissions Trading System. Furthermore, several countries, including Bangladesh, Pakistan, and China, have submitted updated Nationally Determined Contributions (NDC 3.0) for 2025 to accelerate economy-wide decarbonisation.

Smart material choices

Smart material choices is also an important priority, covering themes like fibre growing and harvesting, mono-cropping, regenerative agriculture, natural fibres, biodegradable, organic productions, land use, soil health, chemical use, synthetic fibres, fossil fuel-based fibres, microfibres, microplastics, recycled materials, biomaterials, animal welfare and fur trade.

Thus, this priority emphasises responsible sourcing and consumer safety through technical standards and labelling. Recent developments include Turkey’s 2025 Labeling Requirements for animal-origin components and India’s upcoming mandatory labelling rules for apparel, which will require full fibre composition disclosure. These initiatives aim to prevent misleading claims and align regional production with global sustainability and transparency standards, such as digital product passports.

Circular systems

Last but not least, the section on circular systems touches on textile recycling, textile reuse, linear system, product lifecycle, durability, recyclability, mono materiality, circular systems, circular business models, product disassembly, post-consumer textiles, material streams, upcycling, overstock, deadstock, textile sorting, extended producer responsibility (epr), movement of waste, scaling technologies.

Regarding this section, the report tracks the shift from linear to closed-loop models where waste is eliminated and materials are continuously circulated. Key policy efforts include China’s Implementation Opinions on Accelerating the Recycling of Waste Textiles (2022) and Vietnam’s National Action Plan for Circular Economy (2025). These frameworks prioritise the integration of informal waste sectors into the formal economy and promote the “4Rs” (reduce, reuse, recycle, recover) to manage industrial textile scraps.

Finally, the matrix identifies several upcoming initiatives set to shape the industry through 2027 and beyond. These include India’s Tex-Eco Initiative and National Fibre Scheme (2026-2031), which focus on green markets and raw material self-reliance, as well as Cambodia’s first dedicated Occupational Safety and Health Law. By consolidating these disparate policy developments, the GFA provides a roadmap for stakeholders to navigate the rapid regulatory shifts occurring within Asia's influential textile and garment production hubs.

Conclusion

In view of a rise of textile-specific strategies in the region and targeted sustainability regulations as well as circular economy initiatives, the GFA Policy Matrix Asia is a useful tool that should help industry stakeholders navigate a rapidly evolving policy landscape, especially considering increasing recognition of textiles as a strategic sector for social and environmental transitions.

Net sales for Safilo reached 272.9 million euros (320.5 million dollars) in the first quarter of 2026, an increase of 0.4 percent at constant exchange rates.

“The first quarter of 2026 confirmed the continuity and strength of our operational and financial performance. Our resilient business model is supported by a solid brand portfolio and effective commercial action. This has continued to drive positive sales trends in North America and major European markets,” commented Angelo Trocchia, chief executive officer of Safilo, in a statement.

European Q1 sales reach 130 million euros, up 1.4 percent

As previously mentioned, in the first three months, Safilo recorded net sales of 272.9 million euros, an increase of 0.4 percent at constant exchange rates. At current exchange rates, sales saw a decline of 4.5 percent, primarily due to the depreciation of the US dollar against the euro during the period.

First-quarter sales showed a trend broadly in line with the performance recorded in the fourth quarter of 2025. This confirms a significant continuity of business dynamics by geographical area. The performance was driven by the continued recovery in North America and the resilience of major European markets. Sales in Asia-Pacific and the Middle East, however, continued to be the main factors slowing overall growth.

In Europe, sales in the first quarter of 2026 reached 129.9 million euros, up 1.4 percent at constant exchange rates and 0.8 percent at current exchange rates. "The performance continued to benefit from positive demand in the group's main markets, with France, Italy, and Germany recording solid trends in both the independent opticians' channel and with key accounts," the management specified in the note.

The start of the year also saw "the encouraging launch of the new Victoria Beckham eyewear collection, which largely offset the impact of the deconsolidation of the lens business," the note continued.

In North America, sales in the first quarter of 2026 amounted to 109.7 million euros, an increase of 2.3 percent at constant exchange rates. At current exchange rates, revenues recorded a decline of 7.7 percent, due to the average depreciation of the dollar against the euro of approximately 11 percent.

In Asia-Pacific, sales in the first quarter of 2026 stood at 11.8 million euros, down 13.6 percent at constant exchange rates and 18.0 percent at current exchange rates. The performance was affected by a particularly challenging comparison base with the first quarter of the previous year. It was also impacted by the continuation of more cautious demand, as already observed in the fourth quarter of 2025. In China, the sales trend was influenced by the timing of the Chinese New Year. January was positive before the holidays, followed by a weak February and a partial recovery in March.

In the rest of the world, sales in the first quarter of 2026 stood at 21.5 million euros, down 6.3 percent at constant exchange rates and 9.1 percent at current exchange rates, in a complex market context. The performance was mainly penalised by weak trends in the Middle East. This followed the rapid escalation of geopolitical tensions in the area, which affected business activity from March onwards.

The US luxury resale platform The RealReal has reported a strong financial performance for the first quarter ended March 31, 2026. The company experienced double-digit growth across its primary metrics, driven by an expanding active buyer base and increased demand for authenticated second-hand fashion.

Gross merchandise value (GMV) for the first quarter reached 606 million dollars, representing an increase of 24 percent compared to the same period in 2025. Total revenue rose by 19 percent to 190 million dollars, supported by an 18 percent growth in consignment revenue and a 26 percent increase in direct revenue year-over-year.

Profitability and operational efficiency

The US-based marketplace saw its adjusted EBITDA improve by 9 million dollars compared to the first quarter of 2025, reaching 13.10 million dollars. This figure represents 6.90 percent of total revenue, a significant margin expansion from the 2.60 percent recorded in the prior year period.

Gross profit for the period was 141 million dollars, an increase of 21 million dollars over the previous year. However, gross margin saw a slight contraction of 50 percentage points to 74.50 percent. Net income for the quarter stood at 39 million dollars, compared to 62 million dollars in the same period in 2025.

The RealReal president and chief executive officer, Rati Levesque, noted that the results were a product of disciplined execution across three strategic pillars: unlocking supply, service obsession, and operational excellence. “The strength of our platform — our customer relationships, our data, our brand, and our scale — was on display in the first quarter,” Levesque stated.

Shifting buyer demographics and outlook for 2026

The platform reported that its trailing 12 months active buyer count rose 10 percent compared to the first quarter of 2025. Average order value (AOV) also saw a notable rise, climbing 15 percent to 646 dollars. Non-GAAP basic and diluted net loss attributable to common shareholders was 0.01 dollars per share, an improvement from the 0.08 dollars loss reported in the prior year.

Following the performance in the first quarter, the company has increased its full year guidance based on market conditions as of May 7, 2026. For the second quarter (Q2) of 2026, the company expects GMV to fall between 590 million dollars and 600 million dollars, with total revenue projected between 186 million dollars and 189 million dollars.

For the full year 2026, the group now forecasts GMV in the range of 2.42 billion dollars to 2.47 billion dollars. Total revenue for the year is anticipated to reach between 770 million dollars and 784 million dollars, while adjusted EBITDA is expected to land between 59 million dollars and 67 million dollars.

Canadian fashion house Aritzia has reported that its real estate expansion strategy served as a primary catalyst for its record-breaking financial performance in the fourth quarter and full fiscal year ended March 1, 2026. The company reached net revenue of 1.19 billion Canadian dollars (0.87 billion dollars) in the final quarter, up 36.2 percent, driven by a significant increase in retail square footage and high-performing new boutiques.

The group reported that comparable sales grew 27.7 percent, bolstered by a 37.8 percent revenue surge in the US, which now accounts for 63.7 percent of total net revenue. In Canada, net revenue increased 24.3 percent to 431.2 million Canadian dollars. Over the past 12 months, the Vancouver-based company grew its retail square footage in the mid-teens, opening 14 new boutiques and repositioning four existing locations. In the fourth quarter (Q4) alone, Aritzia launched five new boutiques in the US and completed one repositioning in Quebec.

Real estate yields rapid returns

The company’s investment in brick and mortar locations has demonstrated efficiency in capital recovery. In fiscal 2026, new boutiques opened in the US were tracking to achieve a payback period of less than one year. This performance surpasses the internal target of 12 to 18 months previously set by the group. During the fourth quarter, retail net revenue rose 35 percent to 698.2 million Canadian dollars, while digital net revenue increased 29.2 percent to 488.3 million Canadian dollars.

For the full year 2026, net revenue increased 35.2 percent to 3.70 billion Canadian dollars. Net income reached 381.8 million Canadian dollars, an 83.8 percent increase and adjusted EBITDA rose 59 percent to 646.2 million Canadian dollars.

“Our real estate strategy continues to yield exceptional results,” stated Jennifer Wong, chief executive officer. “Our boutiques enhance brand recognition, drive new client acquisition, and support digital growth, particularly in new markets.”

The synergy between physical and digital channels remains evident. Digital net revenue increased 29 percent during the quarter, following a 48 percent growth rate in the same period last year. Management maintains that physical boutiques act as a driver for the company’s digital presence, reinforcing its omnichannel approach.

Focus on United States market

Looking ahead to fiscal 2027, Aritzia has confirmed a robust pipeline of 12 to 13 new boutiques and four to five repositions. The expansion remains heavily weighted toward the US, with only one new boutique planned for Canada, located in Vancouver.

The company will enter four new markets this year, including Birmingham, Fort Worth, New Orleans and St. Louis. Additional openings are scheduled across the US in locations such as Atlanta, Dallas, Cleveland, Las Vegas, Carlsbad, and various sites in Florida and Texas.

Strategic growth levers and outlook

Aritzia has achieved its Fiscal 2027 revenue target of 3.5 to 3.8 billion Canadian dollars one year early, finishing fiscal 2026 with 3.70 billion dollars in net revenue. Wong identified geographic expansion as the most consistent and predictable driver of this growth. Aritzia expects continued momentum into the first quarter of fiscal 2027, following a positive response to its spring/summer 2026 (SS26) assortment. For the upcoming fiscal year, the company projects net revenue between 4.4 billion Canadian dollars and 4.6 billion Canadian dollars, representing anticipated growth of 19 percent to 24 percent.

The company continues to advance its three strategic growth levers: geographic expansion, digital growth and increased brand awareness. To support this trajectory, Aritzia is investing in infrastructure, including the construction of a new distribution centre in British Columbia.

“Our proven real estate expansion strategy continues to be our most consistent, predictable driver of growth,” Wong concluded. The company plans to unveil its next long term strategic roadmap in the autumn.

Brazilian footwear giant Alpargatas recorded its highest nominal quarterly EBITDA in history during the first quarter of 2026, supported by strong volume growth in its flagship Havaianas brand. The company achieved an adjusted EBITDA of 299.50 million reais (60.55 million dollars), representing an expansion of 5.50 percentage points compared to the same period in 2025.

In the quarter, Havaianas net revenue totaled 1.2 billion reais, representing an increase of 12.5 percent, driven by growth across all operations. Havaianas Brazil, net revenue for the quarter reached 909.1 million reais, with growth of 13.2 percent, while international net revenue for the quarter reached 307.5 million reais, up 10.2 percent.

Havaianas Brazil expands market share

In its domestic market, Havaianas Brazil sold 54.90 million pairs, an increase of 7.60 percent compared to the first quarter of 2025. Net revenue for the Brazilian operation rose 13.20 percent to reach 909.10 million reais.

Gross margins in Brazil reached a record 49.50 percent for a first quarter, benefiting from manufacturing productivity and a more favourable product mix.

The Havaianas international operation showed signs of scale recovery, with sales volumes increasing by 14.80 percent to 6.60 million pairs. Performance was particularly strong in Europe, where volumes grew by 18 percent to 3.50 million pairs, marking the sixth consecutive quarter of positive trends for the region.

In the US, the company is transitioning to a new business model involving distributor intermediation. While this change resulted in a 3 percentage point decline in international gross margin to 61.80 percent, it significantly reduced operating expenses. US volumes rose 161.40 percent to 1.20 million pairs as the new partner built up inventory for the upcoming season.

Distributor markets in Asia Pacific, the Middle East, and Africa saw a 17.40 percent decline in volume, primarily due to geopolitical conflicts impacting sales in Israel. Despite these challenges, international EBITDA grew 88.60 percent to 62.20 million reais.

Rothy’s faces margin pressure from import tariffs

The US-based sustainable footwear brand Rothy’s, in which Alpargatas holds a 48.80 percent stake, reported a 7.80 percent increase in net sales to 46.80 million dollars. Growth was supported by the expansion of its retail network to 36 stores and higher penetration in business-to-business (B2B) channels.

However, Rothy’s recorded an EBITDA loss of 2.20 million dollars for the quarter. Profitability was hindered by a 5.40 percentage point decline in gross margin, largely due to the 4.80 percentage point impact of US import tariffs on products brought from China during 2025. Adverse weather conditions also forced temporary store closures, which limited the brand’s ability to dilute fixed costs.

Looking ahead, management intends to focus on sustainable expansion in Brazil and the gradual recovery of international volumes as the new US business model matures.

LVMH has generated 500 million euros in revenue from recycling and repairs. This represents ten million products repaired, refilled, or taken back in 2025 across all of the group's houses. It is the first quantified assessment of the gains achieved under its Corporate Social Responsibility (CSR) policy and Life 360 programme.

These figures were unveiled during a conference at the Cheval Blanc hotel, attended by Hélène Valade, environment development director at LVMH, and Christelle Capdupuy, sustainable development director at Louis Vuitton.

The 500 million euros from repairs and refills remain modest on a group-wide scale, accounting for 0.6 percent of turnover. However, the figure is symbolically significant. It materialises the transition to a circular model in monetary terms and aims to demonstrate that creative circularity and profitability are not mutually exclusive.

Additional revenue generated by repair, refill, and product take-back services

LVMH now precisely quantifies what it gains from repairing items rather than selling new ones. In 2025, repair, refill, and take-back services alone generated 500 million euros in additional revenue from ten million repaired products.

Specifically, the ten million products involved were either repaired in workshops, equipped with a refill system, or taken back by the houses. At Louis Vuitton, client advisors are trained to discuss repairs, and information on the origin of raw materials is available on the website or in-store.

Among the drivers of this profitable circularity, refills hold a unique position. The example of a cream with a patented design, shown during the conference, illustrates the strategy: the refillable object can become as aesthetically pleasing as a new product, if not more so.

“‘New’ does not mean ‘brand new’,” summarises Hélène Valade, environment development director at LVMH. “It could be a magnificent bag that has been completely reworked to give it a new look. I think there is a real need among some consumers for this new service.”

Finance's role in creative circularity: a gradual business model shift

Valade explains that finance has become a major ally. LVMH's 75 chief financial officers now work with sustainable development managers. At Céline, the cost of carbon is integrated into investment decisions, while at Dior, the transition plan is subject to financial planning. This convergence allows for the reporting of environmental data covering 99.9 percent of the group's financial scope.

LVMH is also learning to quantify the cost of inaction. Consuming less water and using less energy immediately results in savings. Furthermore, the group reports that 41 percent of the materials used in its products and packaging are now sourced from recycling.

Items made from deadstock or recycled materials do not sell for less, but sometimes sell faster. A cotton bag made from 3,000 linear metres of unused stock sold out as a limited edition, becoming 'highly desirable' due to its rarity. Similarly, the fashion show that recycled unsold items, realised by Kevin Germanier, proved that circularity could be a source of profitable creativity.

Creative circularity: a tool for loyalty and securing brand value

One benefit that LVMH has not yet converted into euros remains: consolidating trust in its brands. “This is the bet I have been making for 20 years,” states Valade. “Behind all of this, there are very strong societal shifts. If a company does not embrace them, it is not able to embody this responsibility at the product level.”

“Circularity thus becomes an ingredient for loyalty. A customer who has trust will return for another purchase. Repair is therefore not a cost centre, but a driver of brand preference,” concludes Christelle Capdupuy, sustainable development director at Louis Vuitton.

US luxury group Tapestry, the parent company of Coach and Kate Spade New York, reported a significant increase in revenue and earnings for the fiscal third quarter ended March 28, 2026. The group achieved double-digit growth across its core brands, bolstered by a 21 percent increase in net sales to 1.92 billion dollars.

The performance has led the group to revise its annual guidance upwards, now expecting revenue in the area of 7.95 billion dollars. This trajectory reflects the impact of the Amplify strategy, which focuses on digital acceleration and consumer engagement.

Global demand fuels leathergoods performance

The fiscal third quarter saw Tapestry acquire over 2.4 million new customers globally. Notably, Gen Z consumers represented over 35 percent of this new cohort. This demographic shift was accompanied by a robust performance in the leathergoods category, particularly at Coach. Handbag units for the brand rose more than 20 percent, while average unit retail (AUR) increased at a low-double-digit rate.

Geographic expansion remained a key driver of the quarter’s results. On a pro forma constant currency basis, North America saw gains of 20 percent, while Europe increased by 21 percent. The Asia-Pacific (APAC) region recorded a 30 percent rise, with Greater China specifically growing by 55 percent.

Direct-to-consumer and digital acceleration

Total direct-to-consumer (D2C) revenue increased by 23 percent on a pro forma constant currency basis. This growth was spearheaded by a 25 percent rise in digital sales and a 20 percent increase in global brick and mortar sales.

Tapestry chief executive officer, Joanne Crevoiserat, attributed the results to disciplined execution. “Our third quarter outperformance reflects the compounding benefits of our Amplify strategy, as we bring creativity, craftsmanship, and value to more consumers around the world,” Crevoiserat stated.

Financial results and margin expansion

Gross profit reached 1.48 billion dollars with a gross margin of 76.9 percent, an 80 basis point increase compared to the previous year. Operating income on a non-GAAP basis was 430 million dollars, resulting in an operating margin of 22.4 percent. This represents a significant expansion from the 17.5 percent margin reported in the prior year.

Net income for the period was 344 million dollars, with earnings per diluted share (EPS) of 1.65 dollars on a GAAP basis. On a year-over-year (YoY) basis, this is a substantial increase from the 203 million dollars in net income recorded in the same period last year.

Shareholder returns and updated guidance

Based on current momentum, Tapestry expects to return 1.6 billion dollars to shareholders in fiscal 2026 through dividends and share repurchases. The board of directors declared a quarterly cash dividend of 0.40 dollars per common share, payable on June 22, 2026. The group also expects to buy back approximately 1.3 billion dollars in common stock over the fiscal year.

For the full fiscal year 2026, Tapestry anticipates an operating margin of approximately 23 percent, which is an expansion of roughly 300 basis points YoY. The group projects EPS to be in the area of 6.95 dollars, representing growth of over 35 percent compared to the previous fiscal year.