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”.

Indian value fashion retail chain Baazar Style Retail Limited, known as Style Baazar, has announced a strong financial and operational performance for the financial year 2026 (FY26). The results reflect growing demand for affordable fashion alongside the company expansion, brand building and operational focus.

Revenue from operations for FY26 rose 37 percent year-over-year (YoY) to 18,409 million rupees, while EBITDA increased 40 percent to 2,641 million rupees. Profit after tax (PAT) grew 220 percent YoY to 469 million rupees.

The company continued an aggressive expansion strategy during the year, increasing its store network to 263 stores from 214 stores in the financial year 2025.

Private labels drive financial year growth

One of the strongest drivers of growth during FY26 was the rising contribution of private labels. Private label revenue grew 62 percent YoY to 9,770 million rupees, with its contribution to overall revenue increasing to 53 percent from 45 percent in the previous year.

The company also reported strong traction in its focus markets, where revenues increased 57 percent YoY to 3,248 million rupees. Management noted that the differentiated proposition of delivering ‘style for the entire day at 1,000 rupees’ continues to resonate with value-conscious consumers across Tier 2 and Tier 3 cities, while gaining traction among younger consumers in Tier 1 markets.

Strategic investment supports long-term expansion

FY26 marked a strategic milestone for the company with an investment commitment of 3.32 billion rupees from Indian manufacturing firm Cupid Limited through a preferential issue of equity warrants. Of this total, 1.20 billion rupees has already been received. The investment is expected to support future store expansion, strengthen the balance sheet and help the company diversify into the personal care and wellness category.

Looking ahead, the company remains optimistic about growth opportunities in the underpenetrated Indian value retail market. Supported by expansion plans, strengthening brand equity and improving consumer demand, the company is targeting 25 percent revenue growth and same-store sales growth of 7 percent to 8 percent in the financial year 2027, with plans to scale its network to between 450 and 500 stores over the next three years.

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.

US apparel group Kontoor Brands Inc. has started the new 2026 financial year with surprisingly strong results. Alongside the latest figures, the group also announced on Thursday its plan to separate from the Lee brand.

Several parties have already expressed interest in the denim label as part of the sales process already initiated, according to a statement. A binding agreement for the sale of the brand is expected to be concluded within the current year.

CEO and chairman Scott Baxter explained the reasons for the decision. “Our decision to divest Lee allows us to focus more sharply on opportunities with the greatest potential to maximise shareholder returns by aligning Kontoor's brand portfolio towards a higher growth profile,” he explained in a statement.

Wrangler and Helly Hansen brands exceed expectations

In light of these plans, Lee has already been classified as a discontinued operation in the current quarterly report. Revenue from continuing operations amounted to 613.3 million US dollars for the period from January to March. This represented an increase of 45 percent compared to the same period last year. Adjusted for currency fluctuations, revenue grew by 39 percent.

Outdoor specialist Helly Hansen, acquired last year, was a significant contributor to the strong growth, contributing 165.5 million US dollars to group revenue. Revenue for the core brand Wrangler grew by four percent (plus 2 percent on a currency-neutral basis) to 435.8 million US dollars.

Group more than doubles its quarterly profit

The group also made significant progress in its earnings. Adjusted operating profit from continuing operations increased by 60 percent compared to the same period last year, reaching 86.8 million US dollars. Net profit from continuing operations jumped from 10.2 million to 61.0 million US dollars.

The reported net profit, which includes earnings contributions from Lee, amounted to 92.4 million US dollars. This was more than double the figure from the prior-year quarter, when it stood at 42.9 million US dollars.

Management updates its annual forecast

In light of the plans to sell Lee and the unexpectedly strong performance of the remaining brands, management has updated its annual forecast. It now expects revenue from continuing operations to be between 2.66 and 2.70 billion US dollars. Adjusted earnings per share from continuing operations is projected to reach 5.15 to 5.25 US dollars.

The group also announced a new share buyback programme. This programme authorises the purchase of its own shares up to a total value of 750 million US dollars.

Luxury platform Farfetch has introduced a new premium service designed to elevate the customer experience through immersive brand pages and faster delivery. ‘Farfetch First’ is initially launching across Europe, including in the UK, Germany, France, Italy, and Switzerland, with a phased global rollout due to follow.

The service offers users a free upgrade to next-day delivery and an end-to-end customer experience that looks to elevate the proposition for brand partners joining the programme. In a bid to further underline reliability and speed of service, thousands of luxury items are expected to become available under the Farfetch First banner.

Its launch is complemented by a brand campaign, ‘The Wait is Over’, which is deployed across a series of stills and videos. The creative is overseen by Matthew Whitehouse, head of editorial content and creative at Farfetch, who sought to showcase everyday moments in a playful way.

Speaking on the service, Stephen Eggleston, chief commercial officer at Farfetch, said: “Through Farfetch First, we provide luxury brands with an elevated digital presence, enhancing their unique storytelling and meeting the expectations of global customers, who view time as an essential dimension of a truly unique shopping experience. Farfetch First is set to become the benchmark for reliability and impeccable service in luxury.”

The introduction of the new service comes as the e-tailer’s owner, Coupang, continues to explore ways to improve performance. In 2023, Farfetch was facing mounting financial concerns, with its UK business alone reporting 805.5 million pounds in annual losses. This then narrowed into 2024, when the company’s loss after tax sat at 471.4 million pounds.

Turnaround efforts appear to be paying off. In the fourth quarter of 2025, Coupang reported Farfetch’s first quarterly positive year-over-year revenue growth since acquiring the luxury platform. Coupang CEO and chairman, Bom Kim, said at the time that there was a “real opportunity to create value for luxury customers around the world by combining Farfetch’s vast assortment with a white glove shipping and returns experience”.

In a decisive blow to the European “grey market,” the European Anti-Fraud Office (OLAF) confirmed on 6th May 2026 the successful conclusion of a coordinated strike against a sophisticated smuggling network. Working in tandem with Polish and Spanish customs officials, OLAF investigators intercepted a rail corridor originating in China that was being used to funnel illicit goods into the heart of Europe. The operation culminated in the seizure of three massive shipping containers in Poland, containing approximately 70,000 kilograms of textiles that were never intended for legitimate retail shelves.

“Diversion schemes that abuse transit procedures undermine fair competition, deprive public budgets of revenue and put honest businesses at a disadvantage. This operation shows the importance of close cooperation between OLAF and national customs authorities to protect the EU market and ensure that transit procedures and customs rules are respected,” commented OLAF’s director-general Petr Klement in a statement.

“Textile Diversion Scheme” exploits “transit procedure”

How did the scheme work? The criminal network utilised a strategic loophole known as the T1 Transit Procedure, which allows non-EU goods to travel across the continent duty-free, provided they are destined for a final market outside the European Union. In this specific scheme, the cargo was officially declared for export to Africa via Spanish ports. However, investigators discovered that while the digital tracking systems falsely confirmed the arrival of the goods in Spain to close the transit record, the physical containers were being illegally diverted and unloaded in Europe. This manoeuvre allowed the smugglers to bypass the high customs duties designed to protect domestic manufacturers.

Broader context: larger crackdown in Poland

The recent seizure is part of an intensifying offensive against trade fraud at the EU’s eastern borders. It follows a landmark OLAF report from late April 2026, which exposed a massive VAT and customs ring operating on the Polish-Belarusian border. That wider investigation, which led to the detention of nine suspects, revealed a systemic abuse of “Customs Procedure 42”—a mechanism for deferring taxes that fraudsters exploited to the tune of 118 million euros in evaded duties and 79 million euros in lost VAT. These combined efforts signal a zero-tolerance approach to the shell companies and falsified documents that have long plagued the sector.

Key takeaway

For the global garment industry, these enforcement actions represent a significant shift toward data-driven policing. OLAF’s ability to identify suspicious trade patterns through real-time analytics means that “transit” shipments are now under unprecedented scrutiny.

While this crackdown levels the playing field for honest businesses by removing low-cost, smuggled competition, it also serves as a warning for legitimate brands: supply chain transparency is no longer just a sustainability goal, but a legal necessity to avoid the delays and disruptions of an increasingly vigilant European customs net.

Lectra, a specialist in technological solutions for the fashion industry, unveiled its financial results for the first quarter of 2026 at the end of April. The company reported a decline in revenue amidst an unstable global macroeconomic climate. This was partially offset by the strength of its software subscriptions.

Revenue impacted by trade tensions

During the first quarter of 2026, Lectra recorded revenue of 113.2 million euros (133.2 million dollars). This marks a 16 percent decrease on a reported basis compared to the same period last year. Recurring EBITDA amounted to 12.1 million euros, representing a margin of 10.6 percent. Net income stood at 0.5 million euros.

This financial contraction is mainly due to a 44 percent decline in non-recurring revenue, directly linked to lower sales of physical equipment. The company highlighted that equipment orders fell by 25 percent on a reported basis compared to the first quarter of 2025. As the company noted in its report, this period served as a particularly high basis for comparison for the fashion sector and the Asia-Pacific region. This was because it preceded the announcement of new customs duties in the US.

Growth supported by recurring revenue

Despite the slowdown in hardware sales, Lectra's business model shows structural stability thanks to the growing strength of its services. Recurring revenue increased by 1 percent, driven in particular by strong 14 percent growth in SaaS software subscriptions. Annual Recurring Revenue (ARR) reached 100.6 million euros on March 31, 2026, representing a 3 percent increase on a like-for-like basis.

Lectra anticipates a significant rebound in the second quarter, supported by an equipment order backlog valued at 24.6 million euros. The company also reiterated the objectives of its 2026-2028 strategic roadmap, aiming for an average annual growth in SaaS ARR of approximately 15 percent. Finally, at the combined general meeting scheduled for the end of April 2026, the board of directors will propose a dividend of 0.35 euros per share.

This article was partially written with the support of an artificial intelligence tool before being completed and edited by a FashionUnited journalist.

OTB Group, the parent company of brands including Diesel, Jil Sander, Maison Margiela, Marni, and Viktor&Rolf, is teaming up with Google Cloud to launch a new AI-enhanced and “hyper-personalised” shopping experience using the technology giant’s virtual try-on API.

The initiative aims to bridge physical and digital shopping experiences by utilising Google Cloud’s generative AI to empower client advisors with digital styling tools to offer customers a hyper-realistic 360-degree visual preview of the product, which they can try on virtually, before encouraging them to book an in-store appointment to “experience the products first hand”.

The technology will launch with Diesel and Jil Sander across the US and European markets, before expanding in the coming months to Marni and Maison Margiela, followed by a rollout to additional markets.

Renzo Rosso, chairman and founder of OTB Group, said in a statement: "I have always believed in technology as a strategic lever to enhance human talent, at the service of people and creativity. In this context, Artificial Intelligence represents an extraordinary opportunity to make the customer experience more advanced, engaging and personalised.

“Together with Google Cloud, we have implemented a Virtual Try-On solution that introduces a new personalised shopping experience and provides our teams with more effective tools to deliver outstanding service and build closer relationships with clients. This project brings to life a vision I have been nurturing for over three years, made possible thanks to Google's best-in-class expertise in AI. I am confident this is the natural direction for the evolution of e-commerce and clienteling, and a key driver of growth for the future of the fashion industry."

The technology leverages Google’s Gemini Enterprise Agent Platform and Gemini models.

In addition, beyond the virtual fitting, the fashion group will also encourage customers to use AI image editing, built with Google's Nano Banana, to place themselves within Diesel's and Jil Sander's latest campaigns or fashion events, and then bring those images to life with video generated by Google's video creation LLM, Veo.

Matt Renner, president and chief revenue officer at Google Cloud, added: "Technology is at its best when it solves real-world challenges for the customer.

"This collaboration demonstrates how Google Cloud's AI can elevate the role of the retail team beyond automating tasks. By integrating Google Cloud's Virtual Try-On, OTB Group is pushing past standard transactions to provide client advisors with the AI tools needed to deliver deeply personal, confident shopping experiences at a global scale."

Austrian fiber producer Lenzing has reported a positive net result for the first quarter of 2026. This marks a financial recovery for the group following three consecutive negative quarters throughout 2025.

The group achieved a net profit of 24 million euros (28.24 million dollars) for the period ending March 31, 2026. While this figure is lower than the 31.70 million euros recorded in the first quarter of 2025, it represents a significant stabilization of operational development.

Revenue and earnings performanceRevenues for the first quarter of 2026 reached 615.70 million euros, a decrease of 10.80% compared to the 690.20 million euros generated in the prior-year period. Management attributed this decline to lower fiber sales volumes and pricing, alongside reduced pulp prices. The reduction in fiber volumes was partly due to deliberate production management.

This included the temporary curtailment of less profitable production lines to align with a strategic focus on value-generating growth.

EBITDA amounted to 116.30 million euros. The EBITDA margin stood at 18.90 percent, down from 22.60 percent in the first quarter of 2025. Lenzing chief financial officer (CFO), Mathias Breuer, stated: “During the first quarter of 2026, we further stabilized our operational development and returned to a positive net result after economically challenging previous quarters”.

The group is continuing its holistic performance program, which achieved savings of more than 200 million euros during the 2025 financial year. This transformation aims to structurally strengthen profitability and resilience through operational excellence and energy optimization.

Acquisition of TreeToTextile and outlook

In February 2026, Lenzing acquired a majority stake in Swedish fiber developer TreeToTextile. This move is intended to advance the group's premiumization strategy and its position in the market for next-generation specialty fibers. The initial consolidation of TreeToTextile resulted in a one-time positive effect from negative goodwill, which supported EBITDA for the quarter. Total positive one-off effects for the period reached 25.70 million euros.

Despite the return to profit, the market environment remains characterized by geopolitical tensions and volatile energy prices. Key risks include the Middle East conflict, which is expected to drive increases in raw material prices and inflation. Due to these ongoing uncertainties, Lenzing stated that a reliable forecast for the full 2026 financial year is currently not possible.

British sports fashion powerhouse JD Sports Fashion has reported a resilient performance for the 52 weeks ended January 31, 2026, despite what it described as a tough global industry backdrop. The group achieved total sales of 12.66 billion pounds (17.22 billion dollars), representing an 11.7 percent increase at constant currency and organic sales increase of 2.1 percent.

For the 2026/27 financial year (FY27), the group has provided a wider profit guidance range of 750 million pounds to 850 million pounds to reflect ongoing macroeconomic uncertainty.

North America becomes largest regional market, apparel category drives growth

North America has officially overtaken the UK as the largest region for JD Group, now accounting for 38 percent of total sales. Revenue in the region reached 4.78 billion pounds, supported by the annualization of the Hibbett acquisition. Operating profit in North America reached 353 million pounds, representing 40 percent of the group total. Organic online sales in the region grew by 12.2 percent, a result the group attributed to improved ranging and technology platforms.

Group performance was supported by growth in all regions except the UK. While reported revenue climbed 10.5 percent, profit before tax and adjusting items (PBTAI) decreased by 7.7 percent to 852 million pounds. Statutory profit before tax fell 12 percent to 629 million pounds, impacted by higher operating costs and investment in infrastructure.

Europe also delivered a resilient performance with organic sales growth of 4.2 percent to 4.25 billion pounds, and Asia Pacific, representing 4 percent of Group sales exited the year with positive LFL momentum. Overall, Asia Pacific delivered organic sales growth of 8.5 percent and LFL sales of 0.4 percent. The company ended FY26 with 4,811 stores worldwide in 36 countries.

While like-for-like (LFL) sales declined by 2.1 percent across the group, the apparel category remained a strong performer with organic growth of approximately 5 percent year-over-year (YoY). Yanmei Tang, AVP at Third Bridge noted that the shift into apparel is worth watching. "The category typically has higher margins than footwear, and if executed well, could support profitability even as overall growth remains weak," Tang said.

Footwear sales remained flat on an organic basis as the industry transitioned between product cycles. However, JD Group chief executive officer, Régis Schultz, noted encouraging momentum in the running category.

Strategic focus on omnichannel and artificial intelligence

The group is advancing its Beyond Physical Retail pillar by completing a global e-commerce re-platforming. Following successful roll-outs in North America and Italy, the UK and the rest of Europe are scheduled for upgrades later in 2026.

JD Group is also accelerating the adoption of artificial intelligence (AI). The company is embedding AI into its operating model to improve discoverability through agentic AI platforms and optimize merchandising decisions such as markdown timing.

Indian textile manufacturer RSWM Limited (RSWM) has announced its audited financial results for the fourth quarter and full fiscal year ended March 31, 2026. The flagship company of the LNJ Bhilwara Group reported a transition back to profitability, despite a contraction in total revenue.

For the full fiscal year 2026 (FY26), the company achieved a profit after tax (PAT) of 52 crore rupees, compared to a net loss of 41.30 crore rupees in the previous year. This recovery was supported by a 40.50 percent year-over-year (YoY) increase in EBITDA, which reached 327.10 crore rupees.

Financial performance overview

While the company saw a return to profit, total revenue for FY26 declined to 4,554 crore rupees from 4,825.30 crore rupees in the previous year. Management attributed the 5.60 percent decline to a softer pricing environment, geopolitical uncertainty, and volatility in raw material prices.

Key financial metrics for the period include Q4 revenue of 1,142 crore rupees, reflecting a sequential uptick of 4.50 percent from Q3, annual gross margin improvement to 38.10 percent from 35.60 percent in FY25, strengthening of EBITDA margin to 7.10 percent for the full year, and fourth quarter PAT at 34.60 crore rupees, a significant increase from the 1.60 crore rupees reported in the same quarter last year.

Chairman and managing director and CEO of RSWM Limited, Riju Jhunjhunwala, stated that the performance reflects “focused execution across our core verticals, sharper product positioning, and disciplined cost management”.

Introduction of employee stock ownership plan

In a move to foster a culture of shared ownership, RSWM has announced the issuance of an Employee Stock Ownership Plan (ESOP) for its senior leadership team. The company is among the first in the textile industry to implement such a model for its executives.

The program will designate 2 percent of the company's paid-up share capital for approximately 35 leadership positions. According to the company, the initiative aims to retain essential talent and align individual success with organizational growth.

RSWM operates 11 manufacturing plants equipped with 6.13 lakh spindles and 172 looms. The company also highlighted its sustainability achievements, including the recycling of approximately 18.30 billion PET bottles per annum and the reduction of 8 lakh tonnes of CO2 emissions annually.

Joint managing director of RSWM Limited, Rajeev Gupta, noted that while the global textile industry continues to navigate trade disruptions and tariff uncertainties, the company remains focused on supply chain optimization and market alignment to sustain growth in the coming quarters.

While sustainability is increasingly impacting fashion economics, executive attention is paradoxically dropping. A new report, “Fashion CFO Agenda 2026”, argues that sustainability is no longer just a “high visibility” topic but a core financial discipline essential for long-term company resilience. It has been co-authored by Global Fashion Agenda (GFA) and Boston Consulting Group (BCG) and was presented yesterday as part of the ongoing Global Fashion Summit.

The boardroom practice is different, however, and the report highlights a critical disconnect in the industry: As research has shown, sustainability mentions in earnings calls have declined by roughly one-third since 2022, as leaders shift focus toward immediate pressures like AI adoption and geopolitical volatility. The report shows why embedding sustainability into finance should become a CFO imperative.

Sustainability priorities vs. budget pressures

Sustainability is now a material factor reshaping the cost structures of fashion companies through intensifying financial implications. Climate-driven disruptions have already caused price spikes of up to twofold for raw materials like cotton and wool. As Mango CFO Margarita Salvans observes, the focus has moved from “if” to “how”—specifically, “how we balance sustainability priorities within budget pressure”. Integrating these factors into corporate finance is presented as a prerequisite for mastering risk and unlocking new value.

A major looming financial pressure is the implementation of Extended Producer Responsibility (EPR) for textiles, which shifts end-of-life costs to producers. In the EU, member states must establish these systems by April 2028. For a large mass-fashion player, EPR fees could lead to a 1.1 percent increase in cost of goods sold (COGS) and a 4 percent decrease in net profit by 2030, according to the report. To mitigate this, it suggests “eco-modulation,” where fees are adjusted to reward circular or lower-impact designs.

Unlocking value and efficiency

Despite the costs, the report identifies significant economic upsides to sustainable practices. Approximately 70 percent of fashion-sector greenhouse gas (GHG) emissions could be reduced at low cost or even with cost savings, such as switching to renewable power, it argues. Furthermore, circular business models (CBMs) like resale and rental are outperforming the overall market, with second-hand fashion projected to grow at a 10 percent compound annual growth rate (CAGR) through 2030. According to the report, these models provide a pathway to decouple revenue from resource use while diversifying income streams.

The CFO's role is evolving into the strategic custodian of financial resilience, separate from but complementary to the chief sustainability officer (CSO). While the CSO sets the direction, the CFO enables execution by hardwiring sustainability into financial control, planning and strategic capital allocation. “When you start measuring impact, you uncover inefficiencies,” notes Adam Karlsson, CFO of the H&M Group, highlighting how sustainability data reveals hidden operational waste.

Four approaches to prioritisation

Given that short-term budget pressure is the leading barrier to investment, the report outlines four financial approaches to guide prioritisation: risk mitigator, cost optimiser, commercial driver and transformation enabler. Companies should select an approach based on their maturity and ambition, moving from a focus on compliance to embedding sustainability into core strategy. Dorte Rye Olsen of Bestseller emphasises that (double) materiality assessments remain “an essential tool in ensuring we allocate resources and capital where we deliver the greatest impact”.

Effective deployment of capital is essential for scaling innovation, such as next-gen materials and textile-to-textile recycling. The H&M Group, for example, used its “New Growth & Ventures” function to become a majority owner of resale platform Sellpy, which saw its turnover more than double between 2022 and 2025. The report suggests using advanced mechanisms like sustainability-adjusted hurdle rates or internal carbon pricing to better reflect the long-term benefits of these strategic investments.

Ultimately, the CFO cannot succeed in isolation; success requires both internal alignment and external collaboration. Internally, strong CFO-CSO alignment and board buy-in are critical for navigating trade-offs. Externally, initiatives like the Future Supplier Initiative (FSI) demonstrate how brands can collectively de-risk supplier capital expenditure through blended finance structures.

“For most companies, investments in sustainability are still largely driven by economic fundamentals such as cost predictability, supply security and effective risk management. However, as market mechanisms and regulatory frameworks increasingly internalise these factors, a stronger foundation is emerging for sustainability investments to become a natural and integral part of core business strategy,” concludes Engin Mete, chief growth strategy officer and CFO of Re&Up.

Shortcomings

Despite the report’s compelling financial logic, a potential flaw in the argumentation lies in the tension between long-term resilience and the immediate survival of low-margin players. While the report suggests that 70 percent of emissions can be abated at a low cost, the direct savings often accrue to suppliers, leaving brands to rely on “indirect benefits” that may not materialise quickly enough to offset the 4 percent net profit erosion predicted from EPR fees.

Furthermore, the transition from a “risk mitigator” to a “transformation enabler” assumes a level of capital flexibility that the report itself acknowledges is currently restricted by short-term budget pressure—the leading barrier to investment. By framing the decline in executive attention as a “fundamental disconnect,” the authors risk underestimating the very real possibility that for some companies, the immediate cost of sustainability implementation may outpace the speed of value capture in a softening market.

Fashion-Enter Ltd (FEL), a British clothing manufacturer and the organiser of Leicester Made & Regions, has been awarded the King’s Award for Enterprise 2026 in the Sustainable Development category.

The award recognises the organisation’s efforts in sustainability integration within fashion manufacturing and education, specifically in the implementation of technology and the endorsement of ‘Made in the UK’ production.

FEL follows an “ethical” micro-factory model that prioritises low-volume and “environmentally-conscious production”, initiated alongside apprenticeship programmes and garment repair and repurposing initiatives.

The Royal accolade is approved by His Majesty The King following recommendation by the Prime Minister, Keir Starmer, and includes an invite to a Royal reception, where FEL will be presented with the award by a Lord-Lieutenant. The company will also be entitled to use the King’s Awards emblem for the next five years.

In a statement, Jenny Holloway, CEO of FEL, expressed how proud she was of the team for their hard work and passion. “The King’s Award is a testament to our collective effort to push boundaries and build a sustainable, forward-thinking company that is relevant to today’s dynamic fashion environment,” she added.

Much of FEL’s efforts in recent years have been centred around reviving the reputation of manufacturing hubs like Leicester, where “overinflated” allegations of exploitative practices have caused widespread impact on the livelihoods of factories and workers.

Now, FEL has bolstered efforts to motivate and urge British brands to commit to ordering from such factories in a push for localisation and onshoring, which has gained traction due to complications surrounding international supply chains.

Sportswear brand Castore has secured a 90 million pound facility with banking partners as it continues to pursue global expansion and rollout a growth strategy. The company said it would use the funding to facilitate new retail openings across the UK, as well as support growth into the Middle East and Asia.

In a statement, Mark Rowan, global relationship director at HSBC UK, which was joined by BNP Paribas and Lloyds in the funding round, said: “Castore has demonstrated impressive growth since its launch and continues to build a strong presence both in the UK and internationally.

“It’s fantastic to be among the banking partners to support the business with this funding, which will provide the support needed to execute its ambitious expansion plans and long-term growth strategy.”

Founded in 2015, Castore is now targeting a turnover of more than 300 million pounds over the next financial year, a mission it intends to achieve through investments into digital infrastructure and analytics capabilities.

Beyond retail expansion, Castore has also been growing its presence through M&A, having specifically snapped up British premium brand Belstaff in a deal last year. At the time, Castore said it was planning to drive future growth through both companies, while steering Belstaff specifically back to profitability.

Speaking on the latest funding, Castore’s co-founder, Tom Beahon, said: “Our ambition for Castore is to continue to offer our growing customer base sportswear that is committed to performance, innovation and premium quality.

“This new funding provides us with the flexibility and ability to accelerate our retail rollout, expand into new international markets and continue to grow the brand in the UK and overseas. We are excited about the next chapter of growth and the opportunity to strengthen our position as a leading global sportswear brand.”

Steve Madden has reported an 18 percent increase in revenue for the first quarter of 2026, reaching 653.1 million dollars, supported by growth in direct-to-consumer and contributions from Kurt Geiger.

Net income rose to 71.8 million dollars, compared to 40.4 million dollars in the same period last year. However, adjusted net income declined to 32.1 million dollars, reflecting higher operating costs during the quarter.

Gross profit margin increased to 54.7 percent, while operating expenses rose to 39.5 percent of revenue. Adjusted operating income fell to 46.3 million dollars, compared to 56.1 million dollars a year earlier.

In wholesale, revenue increased slightly by 1 percent to 443.6 million dollars. Excluding Kurt Geiger, wholesale sales declined by 8.2 percent, with footwear down 12 percent. Accessories and apparel showed growth of 15.1 percent, though this was flat when excluding the acquired brand.

Direct-to-consumer was the strongest channel, with revenue rising 83.8 percent to 206 million dollars. Excluding Kurt Geiger, DTC grew 8 percent. The company also reported higher margins in the segment, supported by pricing and channel mix.

The group ended the quarter with 387 stores, alongside e-commerce operations and international concessions.

Chairman and CEO Edward Rosenfeld said demand remained healthy across brands, driven by product and marketing. He added: “While earnings declined in the first quarter, we expect to return to earnings growth in the second quarter and deliver strong top- and bottom-line growth for the full year.

“Looking out further, we are confident that our powerful brands, proven business model and talented team position us to deliver sustainable growth for years to come.”

For the full year, the company raised its revenue outlook and now expects sales to increase between 10 and 12 percent, with projected earnings per share in the range of 2.55 to 2.65 dollars.

Madrid – Following its initial investment in the Valencia-based company in early 2019, US investment firm Carlyle has reportedly decided to fully divest from Jeanologia. Carlyle also holds investments in other prominent Spanish and fashion sector companies, such as Codorniu and the Italian brand Golden Goose. Jeanologia specialises in eco-efficient technological solutions for the textile industry, and Carlyle currently controls approximately 40 percent of its share capital.

The Financial Times reported the terms of Carlyle's entry into Jeanologia's capital in early March 2019. The respected British financial publication stated that the US private equity firm had acquired 40 percent of the Valencia-based company. This transaction, according to sources close to the acquisition, valued the company at approximately 150 million euros. Based on these figures, Carlyle's purchase of the 40 percent stake in Jeanologia would be valued at around 60 million euros.

Just three days after the financial media broke the story, Carlyle confirmed the transaction without specifying the exact terms or the percentage of Jeanologia's capital it had acquired. The firm did clarify, however, that the purchase was limited to a significant minority stake. This stake was not acquired from the company or its founding family, the Silla Vidal family, but from the Spanish private equity firm MCH Private Equity.

MCH had entered the Valencia-based company in December 2015, acquiring a 35 percent stake for approximately 20 million euros. It was reported at the time that MCH would retain a minority share in Jeanologia. The firm later decided to sell this remaining stake, leaving the Silla Vidal family as the majority shareholder and Carlyle as the key minority shareholder.

At the time, Enrique Silla, chief executive officer of Jeanologia, stated: “Carlyle's entry into Jeanologia's capital will help us advance towards our aspirational goal of eliminating wastewater in the textile industry by 2023, making the manufacturing of traditional blue jeans an industrial and technological standard.”

Alex Wagenberg, managing director of The Carlyle Group, added: “We look forward to supporting Jeanologia's explosive growth by developing its innovative product range and future business opportunities.” The company closed the 2019 financial year—the last to be completed before the effects of the Covid-19 pandemic—with sales of approximately 104.48 million euros (a 3.38 percent year-over-year decrease) and a net profit of around 28.7 million euros (a 13.29 percent decrease).

Seeking a buyer for 40 percent of Jeanologia

Since then, with Carlyle remaining a key minority investor, the Valencia-based company has not fully realised the potential the investment firm saw in 2019. Compared to the declining figures at the end of that year, the Valencian textile company closed its 2024 financial year with a turnover of approximately 45 million euros (a 17.2 percent year-over-year increase) and a net profit of around 4.3 million euros (a 43.33 percent increase). While these results show positive growth compared to 2023, the company's revenue remains 56.93 percent below 2019 levels, and its profits are 85 percent lower.

In this context, Carlyle has reportedly decided to fully divest from the Valencia-based company, which specialises in eco-efficient technologies for the textile industry, specifically for manufacturing denim garments and fabrics. Since its founding in Valencia in 1994, its technologies have been implemented into the value chains of major fashion brands and houses, including Levi’s; Uniqlo; Gap; Inditex; American Eagle; Abercrombie & Fitch; Mango; Chanel; Prada; Balenciaga and Guess.

The Spanish company estimates that its technologies are currently used to produce more than 40 percent of all jeans manufactured worldwide. This operational scale, however, does not appear to be reflected in the company's financial statements. Coinciding with its 30th anniversary in 2025, Jeanologia announced it was preparing to open a new chapter of development by “integrating artificial intelligence, robotics and advanced automation to create smarter, more precise and efficient processes”.

For this new chapter, which began to take shape in 2026 with the launch of “Billy”—presented as “the first artificial intelligence developed specifically for denim design”—the company's founders aim to continue leading Jeanologia with their 60 percent stake. This was reported by sources close to the company to the financial publication Expansión. The publication also reported that Carlyle has hired Banco Santander to act as a financial advisor and prepare the sale process for the 40 percent stake still held by the US investment firm.

Danish fashion conglomerate Bestseller has announced it is investing 3 million US dollars in the Regenerative Fund for Nature to support regenerative agriculture projects in South Africa’s Eastern Cape.

The funds will be used to support local sheep farmers and shepherds, aiding them with land regeneration and enhancing overall living conditions in South Africa. The Regenerative Fund for Nature was established by Conservation International and Kering in 2021, with Spanish fast-fashion conglomerate Inditex joining in 2023. Bestseller is the latest company to be joining the initiative as a partner.

“The contribution reflects our aim to support the raw material landscapes that are important both for nature, for the people who live off them and for our industry,” said Dorte Rye Olsen, Head of Sustainability at Bestseller, in a statement. “Through the Regenerative Fund for Nature, we participate in a long-term collaboration, where initiatives are developed over time and in close interaction with local actors.”

Conservation International has been working with local partners for several years now in the Eastern Cape to bring back and protect traditional grazing methods that protect the environment while improving living conditions for locals.

“Over the past five years, our work in the Eastern Cape has shown measurable benefits for the shepherds and their land,” said Virginia Keesee, who leads Conservation International's global fashion and nature initiatives. “Bestseller's support will help us spread the impact across the region.”

An Ireland-based watchdog has launched an investigation into Infinite Styles Services Co. Ltd., the Irish arm of Shein, over concerns of its handling of EU customer data.

The Data Protection Commission (DPC) has opened the investigation under the Data Protection Act 2018, and has said it will examine how Shein Ireland transfers personal data of EU and EEA users to China. The DPC will assess whether the company complies with key requirements under the General Data Protection Regulation (GDPR).

The inquiry will focus on three main areas: how personal data is processed under GDPR principles, whether Shein Ireland meets transparency requirements when collecting user data, and whether its international data transfers comply with rules governing transfers to third countries.

The move builds on increasing regulatory attention towards cross-border data flows, particularly in relation to China, which have become a growing focus for European authorities.

Deputy commissioner, Graham Doyle, said: “When an individual’s personal data is transferred to a country outside the EU, the GDPR requires that this personal data is afforded essentially the same protections as it would within the EU.”

Update May 6 2:45pm CEST: Shein has issued a statement to FashionUnited in response to the DPC investigation. ""We take our data protection obligations extremely seriously and are fully committed to complying with the GDPR and all applicable data protection laws. Ensuring the security of our customers' personal data is a top priority for our business.

"We have been actively engaging with the DPC in recent months on our data protection approach, including a number of important ongoing initiatives that reflect our commitment to maintaining the highest standards in data handling. We look forward to presenting that work as part of this process."

The Union Cabinet of India, chaired by prime minister Narendra Modi, has sanctioned 5,659.22 crore rupees, approximately 598.8 million dollars, for the Mission for Cotton Productivity (MCP). Running from the financial year 2026–27 to 2030–31, the initiative aims to revitalise the national cotton sector by addressing stagnant growth, quality issues, and supply chain bottlenecks.

The mission aligns with the ‘5F’ strategic vision of the government of India, which encompasses Farm to Fibre to Factory to Fashion to Foreign. This framework is designed to integrate the entire textile value chain, ensuring that raw material production directly supports high-value exports and the global fashion industry.

Enhancing yields and seed technology

A primary objective of the mission is to elevate lint productivity from the current 440 kilograms per hectare to 755 kilograms per hectare by 2031. To achieve this, the government is prioritising the development of high-yielding variety (HYV) seeds that are climate-resilient and resistant to pests.

The MCP will promote advanced cultivation methods, including High Density Planting System (HDPS) and Closer Spacing (CS). Furthermore, there is a specific focus on increasing the output of Extra Long Staple (ELS) cotton to reduce reliance on imports for high-end garment manufacturing.

Modernisation and branding initiatives

To ensure the industry receives contaminant-free raw materials, the mission will fund the modernisation of 2,000 ginning and processing factories. This includes upgrading infrastructure and adopting best practices to reduce trash content to less than two percent, a critical requirement for premium textile production.

The government intends to strengthen the global positioning of Indian cotton through the Kasturi Cotton Bharat (KCB) brand. By implementing robust traceability and certification protocols, the KCB initiative seeks to establish Indian cotton as a sustainable and trusted product in international markets.

Digital integration and circular economy

Market transparency: The mission includes the digital integration of market yards, or mandis, to facilitate transparent price discovery and direct market access for farmers.

Infrastructure: Testing facilities across the country will be standardised and accredited to meet global benchmarking requirements.

Sustainability: The MCP promotes cotton waste recycling and circular economy practices to improve resource efficiency and reduce the environmental footprint of the textile sector.

Diversification of fibre base

The mission also explores the diversification of the national fibre base by promoting alternative natural fibres. These include flax, ramie, sisal, milkweed, bamboo, and banana. These materials are intended to complement cotton production and align the Indian textile industry with evolving global demand for sustainable and innovative fabrics.

The Ministry of Agriculture and Farmers Welfare and the Ministry of Textiles will jointly implement the mission. The project will involve 10 institutes of the Indian Council of Agricultural Research (ICAR), one institute of the Council for Scientific and Industrial Research (CSIR), and 10 centres of the All India Coordinated Research Project (AICRP).

Initially, the mission will focus on 140 districts across 14 states. The government estimates that approximately 3.20 million farmers will benefit from the scheme, supporting the national goal of self-reliance while targeting a total production of 49.80 million bales of cotton by 2031.

Madrid – As part of its sustained commitment to the Spanish and Portuguese markets, Primark's management for Iberia has just announced an investment of over 85 million euros (100 million dollars) in its businesses in both countries. These funds will be used for the refurbishment of part of its current store portfolio and for the opening of new establishments. For Spain, this move also commemorates the 20th anniversary of the chain's operations in the country.

Primark plans new stores in Spain

This is the first new investment in its Spanish operations announced by Primark since completing its last investment programme. That initiative was announced in late 2022 for an estimated two-year period to be completed by the end of 2024. During that time, the fashion chain committed to investments of around 100 million euros for both the renovation and expansion of its stores and the opening of eight new establishments.

Its parent company, Associated British Foods (ABF), has currently initiated a demerger plan that is expected to conclude in 2027. The chain ultimately surpassed these objectives, adding more openings than planned and postponing some initially announced as part of that investment programme. As a result, it grew from 56 stores in Spain at the end of 2022 to 67 after the opening of its store in the Jaén Plaza shopping centre in Jaén last September. It currently operates this number of stores across the country, following the inauguration of a total of 11 new stores between 2022 and 2025.

Expansion in Portugal on the agenda

Meanwhile, regarding Portugal, the chain announced a 40 million euro investment programme in 2024. These funds were also designated for the expansion and updating of its retail network, including one expansion project and four new openings. This is all part of an equally firm commitment to the Portuguese market, where Primark currently operates 13 establishments. This network of stores, like the one in Spain, will be renovated and expanded as a result of this new investment programme. Primark estimates this will help generate more than 300 new direct jobs across the Iberian Peninsula.

“This is a historic moment for Primark on the Iberian Peninsula,” remarked Carlos Inácio, director general of Primark for Iberia. “This investment reflects our confidence in these markets and our long-term commitment to Spain and Portugal. In Spain, as we celebrate 20 years since our first store, we are proud of the connection we have forged with our customers and communities. We are now focused on investing in our existing stores to ensure we continue to offer an exceptional shopping experience for many years to come.” He added, “In Portugal, where the company continues to grow in popularity, we are building on recent momentum to expand our presence and reach new locations.”

Details of the Spain and Portugal retail expansion plans

Breaking down this investment programme, the chain's management specifies that of the 85 million euros committed, 40 million will be invested in Primark's business in Spain. The company first entered the country 20 years ago with the opening of a store in Madrid's Plenilunio shopping centre. It currently operates 67 points of sale and plans to end the year with 68 active establishments following the opening of a new store in the Los Alfares shopping centre in Talavera de la Reina. This will be Primark's second establishment in the province of Toledo. The store will launch as part of this investment programme, which will also see a total of 11 update and refurbishment projects. These will specifically target Primark stores in the Abacenter (Albacete); Puerta Europa (Algeciras); Espacio Mediterráneo (Cartagena); Splau (Cornellà de Llobregat); Miramar (Fuengirola); La Morea (Pamplona); Gran Plaza (Roquetas de Mar); Valle Real (Santander); As Cancelas (Santiago de Compostela); El Boulevard de Vitoria-Gasteiz (Vitoria); and Puerto Venecia (Zaragoza) shopping centres.

In turn, the remaining 45 million euros committed as part of this Iberian investment programme will be allocated by Primark to its business in Portugal. The company is celebrating 17 years of activity in the country. The British-Irish chain plans to expand its store in the Forum Coimbra shopping centre and undertake four new openings. These stores will open in Oporto, Vila Nova de Gaia, Castelo Branco and Setúbal. Notably, this includes the first high street store Primark will open in Portugal, located in the historic Palladium building on Rua de Santa Catarina in Oporto.

“In 2026, it will be 20 years since Primark opened its first store in Spain,” Primark detailed. “To celebrate this milestone, the chain will invest 40 million euros in new and existing stores to ensure its customers continue to enjoy an exceptional shopping experience.” The 11 renovation projects are particularly noteworthy. They “reflect Primark's strategy of reinvesting in its stores to offer the best customer experience” and “will include an optimised spatial layout, refreshed decor and a modern design in line with the latest store concept, as well as the introduction of self-service checkouts.” These same key elements will characterise the investments in Portugal. In this country, Primark will focus on continued growth with the four previously announced opening projects for a market “where the company has been consolidating its presence and building a strong customer base for 17 years.”

Amazon announced Tuesday it would invest more than 15 billion euros (18 billion dollars) in France over the next three years, creating more than 7,000 jobs, according to a statement sent to AFP.

The investment would support the construction of new logistics sites, the development of cloud and artificial intelligence capabilities, and consolidation of existing networks, Amazon stated.

It marks the online retail giant's largest investment in France to date, the company said, adding to the more than 30 billion euros already invested in the country since 2010.

It will result "in faster deliveries, a wider selection and low prices accessible throughout France, and a reduced environmental footprint thanks to a local logistics network," said Jean-Baptiste Thomas, managing director of Amazon in France, in the statement.

France is the third international market that Amazon entered outside the US, after Germany and the UK.

A long-running trademark dispute between Adidas and Thom Browne has moved closer to a conclusion, after a US appeals court upheld an earlier ruling in favour of the luxury label.

In a decision issued on April 29, the US Court of Appeals for the Second Circuit confirmed that the case would not be reopened, backing a 2023 jury verdict which found Thom Browne not liable for trademark infringement.

The case began in 2021, when Adidas accused Thom Browne of infringing its signature stripe trademarks through similar designs used on activewear. A jury later ruled in favour of Thom Browne, and the decision was upheld by a district court.

Adidas sought to revisit the case after obtaining internal emails from separate UK litigation, which it argued showed concerns within Thom Browne about similarities to Adidas’ designs. The company claimed this amounted to new evidence and requested the judgment be set aside.

However, the appeals court has now ruled that the emails were not sufficient to change the outcome of the case. It found that the materials reflected internal opinions rather than evidence of consumer confusion, which is central to trademark disputes.

The court also stated that the emails were not directly related to the products examined during the trial and would not have altered the jury’s decision.

In addition, the court rejected claims of misconduct in the handling of evidence, concluding that any issues were the result of negligence rather than intentional wrongdoing.

Danish jewellery brand Pandora has reported organic growth of 2 percent for the first quarter of 2026, a result comprised of flat like-for-like (LFL) growth and a 2 percent contribution from network expansion.

Despite significant external headwinds, the group maintained solid profitability. Performance varied across geographical regions, with LFL growth in North America ending at -2 percent as consumer sentiment weakened.

The EMEA region also recorded a 2 percent decline in LFL sales. Conversely, Asia-Pacific and Latin America demonstrated resilience, delivering growth of 12 percent and 6 percent respectively.

Margin compression reflects commodity and currency pressures

The gross margin for the first quarter ended at 79.5 percent, representing a decrease of 90 percentage points year-over-year (YoY). Efficiencies and other internal measures partially offset the impact of tariffs, commodity price fluctuations, and foreign exchange movements.

Operating profit (EBIT) margin landed at 20.9 percent for the period, compared to 22.3 percent in the first quarter of 2025. This result was achieved despite facing 440 percentage points of external headwinds.

Within product segments, LFL growth in the Core collection was -1 percent, though this was mitigated by strong performance in the Talisman range. The Fuel with More segment delivered 1 percent LFL growth, supported by the Timeless collection.

Guidance maintained for full year 2026

The group has confirmed its financial guidance for the full year 2026, forecasting organic growth between -1 percent and 2 percent with an EBIT margin of 21 percent to 22 percent. Management remains mindful of the current geopolitical environment and elevated economic uncertainty.

Current trading in the second quarter of 2026 indicates LFL growth is remaining approximately flat. Pandora president and chief executive officer, Berta de Pablos-Barbier, noted that the quarterly results aligned with internal expectations.

“We are advancing our initiatives to re-energise Pandora’s growth engine,” de Pablos-Barbier stated. “At the same time, we are expanding into new materials, positioning Pandora as a multi-material jewellery brand over time. We remain focused on executing our strategic plans despite the uncertain economic and geopolitical backdrop.”

Jamie Salter, the chief executive of Authentic Brands Group, has said the company is planning to go public soon as it outpaces its five-year goal of achieving 100 billion dollars in sales.

Speaking at the Reuters Momentum AI event, Salter said the target will be reached quicker if “we pull off the deals that we’re currently working on”, which could ultimately result in over 50 billion dollars in sales by the end of the year.

Salter didn’t elaborate on specific details of the IPO plan other than stating he would serve in a different position if the filing went through.

Authentic, the parent company of Dockers and Guess, has previously attempted to go public twice, but had been “bought out for way more than we were going public for”, Salter said.

The company is currently focused on its M&S strategy centred around kids entertainment brands and hospitality, while AI implementation is improving the efficiency of business development efforts.

Rising prices and a strengthening in the performance segment delivered “modest” growth across the US footwear industry in the first quarter of 2026.

Circana’s Retail Tracking Service data show that total US footwear sales increased by 1 percent in Q1 versus the same period last year, while overall units sold declined, and higher average selling prices (ASP) continued to support topline revenue.

The data adds that styles rooted in activity, comfort, and daily wear emerged as the strongest performers, with the performance category outperforming the broader market in Q1, with US dollar sales up 5 percent, supported by both unit demand growth and ASP increases.

Within the performance category, running shoes were the standout in Q1, reporting double-digit US dollar and unit growth, as consumers continue to invest in shoes that support regular movement and wellness routines. Cross-training styles, along with sport-oriented shoes for golf and tennis, also delivered “solid gains” as participation-based activities and hybrid fitness habits continue to influence purchasing behaviour, adds Circana.

In the lifestyle space, running-inspired silhouettes continued to gain share while other sport-inspired segments slowed.

Circana adds that some of this softness was absorbed by casual fashion categories that reflected the emphasis on wearability and comfort. Overall, the fashion segment delivered 2 percent US dollar growth in Q1, supported by higher prices despite declining units. Sandals posted growth in both US dollars and units, led by slides and flip–flops.

Other styles that showed demand included mules, clogs, and ballerinas, while fashion boots continued to decline despite growth in the high-shaft segment, as soft unit demand across ankle and mid-shaft styles outweighed meaningful ASP increases.

Beth Goldstein, footwear and accessories industry advisor at Circana, said in a statement: “Price increases remain a challenge for the footwear industry in 2026, pressuring unit sales, but certain segments are bucking the trend. Categories tied to daily use, activity, and casual comfort proved best positioned to capture consumer spending in Q1.

“As the year progresses and consumers remain selective in their spending, brands and retailers must connect their merchandising and messaging to their customers’ key lifestyle priorities – those that do this well will be the share winners in this slow growth environment.”

The plan, which was already announced in July 2025, now seems to be taking shape. American label Marc Jacobs could soon no longer be part of the LVMH group's portfolio. According to a report by the Financial Times, LVMH is considering the sale of the fashion brand, as well as cosmetics and alcoholic beverage brands, as part of a major restructuring.

In addition to the Marc Jacobs label, LVMH is considering selling its 50 percent stake in Fenty Beauty, the company launched by singer Rihanna. These transactions could bring LVMH billions of euros to reinvest in its business.

The sale of these businesses is part of a cost management policy and comes amid a slowdown in the luxury sector.

“LVMH is clearly reviewing its portfolio to see what is not working, what is weighing on margins, as it is in a period where pressures on the business are greater,” Luca Solca, an analyst at Bernstein, told the Financial Times.

The publication also stated that executives at Moët Hennessy, LVMH's beverage division, are sounding out potential buyers for brands like Eminente rum and the Joseph Phelps vineyards in California, according to sources close to the company.

Last April, the global luxury leader announced a turnover of 19.1 billion euros for the first quarter of 2026, an organic growth of 1 percent. Its Fashion & Leather Goods division, however, recorded an organic decline of 2 percent to 9.2 billion euros.

Marc Jacobs negotiations already broken down

The American brand had already been the subject of negotiations between LVMH and Authentic Brands Group (Reebok, Guess, Forever 21, etc.), but according to several media outlets, the talks fell through. The deal could have brought in around one billion dollars for the luxury conglomerate.

Launched in 1984, the eponymous Marc Jacobs label now boasts 280 stores worldwide and employs 1,300 people. It recently made headlines with a SS26 runway show punctuated with nods to its archives. Furthermore, director and founder's muse, Sofia Coppola, unveiled a documentary at the Venice Film Festival in September 2025, focusing on the creative process of her friend Marc Jacobs.

US resale platform ThredUp has announced its financial results for the first quarter ended March 31, 2026, reporting revenue of 81.70 million dollars. This represents a 15 percent increase year-over-year (YoY) as the company achieved a record month for new buyer acquisition.

Gross profit for the period totaled 64.70 million dollars, also reflecting a 15 percent increase compared to the same quarter in the previous year. The company maintained a stable gross margin of 79.2 percent, a slight improvement from 79.1 percent in the first quarter of 2025.

ThredUp CEO and co-founder James Reinhart stated: “We are proud to deliver Q1 out-performance, including a record month for new buyer acquisition. As we look ahead, we remain focused on executing our growth plan amidst an ever-changing consumer environment, and building a marketplace that delivers clear value to buyers and convenience for sellers.”

Net loss and updated outlook

The platform reported a net loss of 6.50 million dollars, or negative 7.9 percent of revenue. This compares to a loss of 5.20 million dollars, or negative 7.3 percent of revenue, for the first quarter last year. Adjusted EBITDA reached 2.70 million dollars, representing 3.4 percent of revenue, down from 3.80 million dollars and a 5.3 percent margin in the prior year.

For the second quarter 2026, the company expects revenue in the range of 89 million dollars to 91 million dollars, representing a 16 percent YoY increase at the midpoint. Gross margin is projected to remain between 78.5 percent and 79.5 percent, with an adjusted EBITDA margin of approximately 5.2 percent.

Looking at the full fiscal year 2026, ThredUp forecasts total revenue between 351.20 million dollars and 356.20 million dollars. This would result in a 14 percent increase YoY at the midpoint of the range. Reinhart and the executive team anticipate full year gross margins to hold steady between 78.5 percent and 79.5 percent, while the adjusted EBITDA margin is expected to reach approximately 6.1 percent.