From the Sector

In den letzten Wochen kam es im Mode- und Schuhhandel vermehrt zu Rabatt-Aktionen. In diesem Zusammenhang weist der BTE darauf hin, dass vor allem pauschale Reduzierungen auf das gesamte Sortiment die von der Branche mehrheitlich gewünschte Verlängerung der Sommer-Saison konterkariert. Immerhin haben sich laut der BTE-Umfrage von Anfang 2024 nur sieben Prozent der Mode- und Schuhhändler dagegen ausgesprochen.
 
Der BTE appelliert daher an die gesamte Mode- und Schuhbranche, sich aktuell mit breiten Rabattaktionen zurückzuhalten. Preisnachlässe auf schlecht laufende Artikel vor allem aus dem Frühjahr können zwar betriebswirtschaftlich sinnvoll sein, größere Reduzierungen von Sommerware sollten aber möglichst vermieden werden. Schließlich ist die Verlängerung der Sommer-Saison wegen des zuletzt oft warmen Herbstes notwendig, um rückläufige Umsätze im September/Oktober auszugleichen.
 
Bei der aktuellen Rabattplanung sollte unbedingt bedacht werden, dass es - anders als in den Vorjahren - bislang noch keine längere Schönwetter-Phase gab. Vor allem Bedarfskäufer haben sich daher noch kaum mit Sommerware eingedeckt. Zudem stehen rein statistisch die wärmsten Wochen des Jahres noch bevor. Damit besteht höchstwahrscheinlich noch ausreichend Zeit für den Verkauf von sommerlichen Artikeln - vielfach noch zu regulären Preisen.
 
Hinweis: Zum traditionellen Termin des Sommer-Schluss-Verkaufs wird der BTE wegen der hohen Medien-Nachfrage erneut eine Pressemeldung herausgeben. In diesem Jahr fällt der Start auf den 29. Juli 2024. 

The Salvation Army has launched a Take Back Scheme Fashion campaign featuring stylish looks from their generously received clothing donations. As the largest charity owned textile collector in the UK, the Scheme is operated by the trading arm of the charity (SATCoL) who have partnered with some of the largest retailers and brands in the UK including John Lewis and Tesco.
 
The Take Back Scheme is the perfect way for people to support the fashion circular economy while shopping online or instore with their favourite brands.  The campaign invites the public to be part of a drive to reduce waste and extend the useful life of products.

The fashion forward campaign features a collection of garments styled by fashion stylist Karl Willet. Karl is known for his elegantly classic, yet contemporary vision and the images for this campaign nod to his classic styles that stand the test of time.

Karl works with celebrities from across the music/film industry including Paloma Faith, Jermaine Jackson and Geri Halliwell to name a few. Karl shared, “Styling looks with second-hand clothing is a fun and creative way to express your personal style. It’s important to embrace sustainability because not only does it reduce environmental waste, but it also encourages individual style and is affordable. The Take Back Scheme is a way to make a positive difference.”
 
The donated garments featured in the campaign, were specially chosen to reflect The Salvation Army colours of red, white and black, and the charity’s message of hope. SATCoL has made their Take Back Scheme even more accessible with 2 in-store offerings and 12 clothing banks available online, so customers can donate their unwanted items on the go. Each year, The Salvation Army collects around 65,000 tonnes of textiles, diverting them to good uses and raising funds.

The profits raised from the resale of these donations is given to The Salvation Army to continue their work across the UK.

Levi Strauss & Co. announced the appointment of Gianluca Flore as executive vice president and chief commercial officer, effective July 29. Reporting to Michelle Gass, president and chief executive officer, Flore will join the company’s executive leadership team and will be responsible for the commercial operations of the Levi’s® brand across all global channels, including stores, e-commerce and wholesale.

Flore brings more than 20 years of international commercial experience in the luxury apparel and lifestyle sector. He joins LS&Co. from Burberry, where he was appointed chief commercial officer in 2021, overseeing five regions and a network of more than 400 stores. Prior to this, he served as the company’s president for the Americas and Global Retail Excellence, spearheading the expansion and productivity of the brand’s retail footprint, and elevating distribution and positioning across wholesale. Flore has also held leadership roles at the luxury group Kering, including CEO of Brioni, where he established a profitable retail business model for the brand, and at Bottega Veneta, where he led double-digit revenue increases across wholesale and retail channels. Flore holds a BBA and post-graduate certificate from LUISS University in Rome, Italy, as well as a post-graduate certificate from the London School of Economics.

Victoria Beckham's new collection for Mango, which coincides with the brand’s 40th anniversary, will go on sale internationally on April 23th, 2024.
The collaboration is part of Mango’s new 2024-26 Strategic Plan Elevate lever, which aims to reinforce the company’s differential value proposition based on aspirationalism, quality and its unique style.

Mango is teaming up with Victoria Beckham to launch a new capsule collection, which will be available internationally on April 23, 2024. Victoria Beckham x Mango has been designed by Victoria Beckham and reflects the essence of the designer's eponymous label, considered the perfect blend of classic British luxury with a subtle contemporary twist, as well as the shared values of both fashion brands, such as quality and femininity.

The new collection, which coincides with Mango's 40th anniversary, is the latest in a series of collaborations with other brands, artists and talents including SIMONMILLER, Camille Charrière, and Pernille Teisbaek. It follows the latest edition in Mango’s Capsule collection, a collection of eventwear for woman differentiated by the quality of its materials and finishes, which was released in March 2024 after being launched in 2023.

Mango’s collaboration with Victoria Beckham is part of the new Strategic Plan 2024-26, which aims to generate total turnover of more than 4 billion euros by 2026 through a differentiated value proposition, strong expansion drive, and improving sales in existing stores and online channels, as presented by the company last March.

The collaboration supports Elevate, one of the core pillars of the Plan. Elevate focuses on promoting a differential value proposition in all lines through aspirationalism, quality and a unique style designed in Barcelona, with excellent customer service. Since its inception, Mango has a very clear DNA and its own design and style proposal, whose main attribute is a positioning of superior quality to its competitors.

Growth, digitalisation and re-commerce – the forthcoming INNATEX (the international trade fair for sustainable textiles) is devoted to highly topical themes. From 20 to 22 January 2024 at the Messecenter Hofheim Rhein-Main near Frankfurt, over 200 exhibitors will be meeting up with retailers, experts and journalists. The motto for the winter trade fair is GROW, representing the call for sustainable, social and commercial growth that will not be possible without the green fashion movement.

Optimistic expectations despite the challenges
According to Alexander Hitzel, INNATEX Project Manager, and the organisers, MUVEO GmbH, various new trends are opening up that might, if exploited strategically, unlock new business areas. These range from ‘quiet luxury’, travel, internationalism and focused storytelling to services for specific target groups. On the Monday, members of the expert panel will be discussing re-commerce with the Hessen Retail Federation in the Community Lounge.

From storytelling to digital tools – the INNATEX themes
“Second-hand is in fashion,” says Julia Frings of IFH Köln. “Sales of used and recycled products have been on an upward trend for some years now and with the rising importance of sustainability, their relevance will continue to grow. There is great potential in this area for the trade to reach new target groups and expand the range on offer. To be successful, though, it is essential to have a concept tailored to the needs of consumers.”

Alongside Julia Frings of IFH Köln, other Federation panellists will include Steffen Riegel of Hessnatur. The first Lounge Talk at the start of INNATEX will deal with Strategies for Sensible Growth, borrowing from the motto for the fair. This topic will be followed by Fair Wages in the Global South, Storytelling as a Strategy, and Digital Trends.

Brand portfolio and partners of INNATEX
The collaboration with the Hessen Retail Federation, like that with Fashion Changers and Greenstyle Munich, has already proved its worth at previous fairs, as a way of adding variety to a well balanced fair programme. The new collaborative partners include AMD Academy of Fashion and Design (AMD) in Wiesbaden, the Fashion Campus 2030 Initiative and the Enterprise Europe Network (EEN, a network promoting internationalisation among smaller and medium-sized businesses).

The brand portfolio includes fashion for all generations, tastes and occasions. Labels exhibiting for the first time include businesses such as Fuza Wool from Denmark with its high quality traditional knitwear, and the hemp-based accessories of 8000Kicks from Portugal. The DESIGN DISCOVERIES comprise Anfisa Roumelidi, C/OVER and Consci.

Digital fashion outlet Otrium announces the launch of a dedicated garment refurbishment and repair programme for damaged returns following a successful pilot scheme. The initiative is being run in partnership with Bleckmann, experts in supply chain management for fashion and lifestyle brands. Working with Bleckmann’s team of circular fashion experts from The Renewal Workshop, Otrium is taking the next step in its strategic journey to help reduce the number of that might ultimately end up in landfills or destroyed.
 
Most of the returns that Otrium currently receives can be easily restored and put back on sale. However, in rare cases, returned items are damaged. “Preventing waste is an important part of Otrium’s DNA, and thanks to our partnership with Bleckmann and their Renewal Workshop team, we can now repair the majority of damaged returns and put them back into circulation,” said Kevin Carolan, Director of Logistics at Otrium. “We are happy that we can use our position in the fashion supply chain to create lasting change and accelerate towards our mission of reducing the volume of garments that go to landfill.”

Since 2020, Otrium is exploring refurbishment and repairs with their third-party logistics provider Bleckmann. In April 2023, both partners started a three-month pilot at Bleckmann’s facility in Almelo, the Netherlands, to expand the programme with a broader range of repairs and optimised processes through data use. During the pilot, the Renewal Workshop team at Bleckmann refurbished more than 1,000 returned garments, shoes and accessories for Otrium each month.

“With hundreds of high-end labels on the platform, we needed an efficient solution tailored to the needs of a wide range of products – from shoes and coats to bags,” explained Marlot Kiveron, Head of Sustainability at Otrium. “The Renewal Workshop team worked closely with us to develop a streamlined and scalable process that could grow in line with our ambitions, delivering like-new repairs at the speed of e-commerce. Their combination of purpose, professionalism, agility and expertise makes them the ideal partner for this kind of project.”
 
Bleckmann’s integrated data capabilities were also crucial to the success of the partnership. “Data collection and analysis can be vital in demonstrating the commercial viability of sustainability initiatives,” said Tamara Zwart, Director of Renewal at Bleckmann. “Using our advanced stock tracking systems, we determined that 70% of the renewed Otrium stock had been sold within seven weeks. We’re all delighted with the results!”
Furthermore, carbon-tracking software Vaayu calculated that on average, a refurbished return sold on Otrium avoids 2.760kg of carbon emissions and 69g of waste proofing that this programme can have a positive impact on both: the planet and the business.

Having established the business case, the team decided to expand the initiative beyond the pilot phase. “This project is a milestone in our sustainability journey,” concluded Marlot. “It’s a key part of our ongoing commitment to finding more ways to reduce our environmental impact while helping to ensure that more clothes get worn. By the end of 2023, we aim to repair at least 25,000 damaged garments. Together with Bleckmann and their renewal experts, we’re well on our way to proving that this circular business model can be a valuable part of our future growth.”

• Currency-neutral revenues flat versus the prior-year level
• Top-line development reflects improved sell-out trends and conservative sell-in strategy
• Gross margin up 0.6pp to 50.9%; strong improvement compared to Q1 reflecting better sell-through and less discounting
• Operating profit of € 176 million includes extraordinary expenses of around € 160 million related to one-off costs, donations and accruals for future donations
• Inventory position improves substantially versus Q1 level to € 5.5 billion; now up only 1% year-over-year

In the second quarter of 2023, currency-neutral revenues were flat versus the prior-year level. The top-line development continued to be impacted by the company’s conservative sell-in approach in order to reduce high inventory levels, particularly in North America and Greater China. At the same time, adidas second quarter revenues benefited from the first sale of some of its Yeezy inventory. The initial product drop in June generated revenues of around € 400 million in Q2, which is largely in line with the Yeezy sales generated in the prior year’s quarter.

Footwear revenues grew 1% during the quarter, reflecting strong growth in football, basketball, tennis and US sports. Apparel sales declined 3% in the second quarter. As the apparel market continues to be particularly overstocked, the company continued its conservative sell-in strategy to improve sell-through and margins in the medium term. Accessories grew 8% during the quarter driven by growth in football.  

Lifestyle revenues were down during the quarter despite extraordinary demand for the company’s Samba, Gazelle and Campus franchises. While adidas slowly started to scale its offering for these product families during the second quarter, the total volume still only represents a small portion of the company’s overall business. Sales in the adidas Performance categories continued to show positive momentum. This reflects strong demand for new product introductions such as the latest iterations of its Predator, X and Copa football boots, as well as jerseys for both the FIFA Women’s World Cup 2023 and the company’s unique portfolio of football teams ahead of the start of the European club season. In addition, the Adizero product family in running continued to gain a lot of attention around marathon races across the world, translating into higher demand. At the same time, the brand’s Barricade tennis franchise grew strongly, leveraging the excitement around major tournaments.

In euro terms, the company’s revenues declined 5% to € 5.343 billion in the second quarter (2022: € 5.596 billion).

Stronger sell-out trends and conservative sell-in
As a result of the company’s initiatives to reduce high inventory levels, currency-neutral sales in wholesale declined 10% despite double-digit growth in Greater China and Latin America. At the same time, direct-to-consumer (DTC) revenues grew 16% versus the prior year. This development was driven by strong growth in both the company’s e-commerce business (+14%) as well as own retail stores (+19%), reflecting continued strong sell-out trends across most regions. The outperformance of the company’s DTC channel versus the wholesale business was also related to the first sale of the Yeezy inventory, which was done exclusively through adidas’ own e-commerce channel.

Double-digit growth in Greater China and Latin America
Currency-neutral sales in North America declined 16% during the quarter. The region is particularly affected by elevated inventory levels in the market and – in response to this – the company’s significantly reduced sell-in. Revenues in Greater China grew 16% in Q2, reflecting double-digit sell-out growth in both wholesale and own retail. Sales in EMEA were down slightly (-1%) despite double-digit DTC growth. While the company’s initiatives to reduce inventory levels and discounting weighed on the overall top-line development in the region, adidas recorded significantly improving full-price trends during the quarter. Revenues in Asia-Pacific increased 7% during the quarter, driven by strong double-digit growth in DTC. Latin America continued to increase at a double-digit rate (+30%), reflecting strong growth in both wholesale and DTC.

Gross margin improves to 50.9%
The company’s second quarter gross margin increased 0.6 percentage points to 50.9% (2022: 50.3%). This improvement was mainly driven by price increases the company has implemented as well as by an improved channel mix. At the same time, higher supply chain costs and unfavorable currency movements continued to strongly weigh on the gross margin development. While still adversely impacting the company’s gross margin in the quarter, discounting levels significantly improved compared to the first quarter of the year.  

Operating profit of € 176 million, resulting in an operating margin of 3.3%
Other operating expenses were up 3% to € 2.582 billion (2022: € 2.501 billion). As a percentage of sales, other operating expenses increased 3.6 percentage points to 48.3% (2022: 44.7%). Marketing and point-of-sale expenses decreased 7% to € 617 million (2022: € 663 million). As a percentage of sales, marketing and point-of-sale expenses slightly decreased by 0.3 percentage points to 11.5% (2022: 11.8%). Operating overhead expenses were up 7% to € 1.965 billion (2022: € 1.838 billion), reflecting higher logistics expenses. In addition, the company recorded one-off costs of around € 50 million related to the strategic review the company is currently conducting as well as donations and accruals for further donations in an amount of around € 110 million. As a percentage of sales, operating overhead expenses increased 3.9 percentage points to 36.8% (2022: 32.8%). The company’s operating profit amounted to € 176 million (2022: € 392 million) in the quarter. This amount includes the extraordinary expenses of in total around € 160 million reflecting the one-off costs related to the strategic review as well as the donations and accruals for further donations. The sale of the Yeezy product positively impacted adidas’ operating profit by an incremental amount of around € 150 million in Q2. The operating margin reached 3.3% in the quarter (2022: 7.0%).

Net income from continuing operations of € 96 million
After taxes, the company’s net income from continuing operations amounted to € 96 million (2022: € 360 million), while basic EPS from continuing operations decreased to € 0.48 (2022: € 1.88).

Outlook

adidas expects revenues to decline at a mid-single-digit rate
On July 24, adidas had adjusted its full year financial guidance to reflect the positive impact of the first sale of some of its Yeezy inventory and a slightly better-than-expected development of the adidas business in the first half of the year. At the same time, macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in North America and Europe as well as uncertainty around the recovery in Greater China continue to exist. In addition, the company’s revenue development will continue to be impacted by the initiatives to significantly reduce high inventory levels. As a result, adidas now expects currency-neutral revenues to decline at a mid-single-digit rate in 2023 (previously: decline at a high-single-digit rate).

Underlying operating profit anticipated to be around the break-even level
The company’s underlying operating profit – excluding any one-offs related to Yeezy and the ongoing strategic review – is still anticipated to be around the break-even level. Including the positive impact from the first Yeezy drop of around € 150 million, the potential write-off of the remaining Yeezy inventory of now € 400 million (previously: € 500 million) and one-off costs related to the strategic review of up to € 200 million (unchanged), the company now expects to report an operating loss of € 450 million in 2023 (previously: loss of € 700 million).

On August 2, the company launched a second drop of Yeezy inventory. Throughout the month of August, adidas is making a range of existing products available through both its own e-commerce channel as well as the digital platforms of selected wholesale partners. If successful, this second drop would further improve the company’s results. However, as the results of this drop are yet unknown, it is not accounted for in the company’s current top- and bottom-line outlook for 2023.

The PREMIUM and SEEK teams around Anita Tillmann and Jörg Arntz prove their skills with the success of the new Trend and Event Platform. The format, newly shortened to just two days, showed a total of 450 curated, international brands of the new generation, with 250 brands at PREMIUM and 200 brands at SEEK. The motto was quality over quantity. In addition to the brands, the focus was clearly on the know-how of experts from sustainability, tech, and business. If you didn't discover or learn anything new in the last two days you missed out. Visitors from all over the world came to Station Berlin to see what the Premium Group had come up with for this edition - and it did not disappoint.

PREMIUM reinvents itself
The newly curated brand portfolio with many international and unexposed brands were very well received by the community and invited buyers and visitors to explore a diverse, exciting, and coherent brand landscape. The atmosphere was characterised by lightness, lots of sunshine, and good conversations.

For the first time, PREMIUM and the Fashion Council Germany joined forces to present the showroom "CURATED by Fashion Council Germany" with avant-garde designers from Germany and Ukraine. The tech format Yonnaverse addressed the most important innovations for profitability and sustainable growth through digital progress. The event took place physically, digitally, and in the Metaverse.

Iranian artist and milliner Maryam Keyhani showed what surrealism marketing and tangible art can look like with her oversized hat, which floated happily over the grounds and caused surprised faces. The installation by the Italian designer Innerrraum from Berlin was dedicated to Anita Tillmann in gratitude for her international success. Artists such as Sophie Douala from France, Claudia Gillies from New Zealand, and Grycja Erde from Ukraine were a welcome addition in making the PREMIUM visit an experience.

The diverse portfolio also included a range of beauty brands and the beauty lounge offered much-loved make-up, hair and nail touch ups. There were also many new things to discover in the retail sphere. Vintage & Rags presented a new retail concept for second-hand fashion and SPSR showed how to take retail entertainment to the next level through unique live consumer engagement. On the Content Cube stage, Daniel Steindorf, the former owner of Überfahrt, spoke with Inga Klaassen from J'N'C about hospitality fusion, community, and retail, next to other speakers.

SEEK put a stronger focus on sustainability
As in previous editions, a relaxed and positive mood prevailed at SEEK. The community was happy to finally fall into each other's arms again. SEEK convinced with high-quality and original brands and an even stronger focus on sustainability. For the first time, SEEK's brand portfolio consisted of 50% sustainable brands, further strengthening the Conscious Club and allowing it to flourish. The Conscious Club was supported by the sustainability experts from studio MM04, whose 202030 - The Berlin Fashion Summit Denim Pop-up ensured a full Content Cube.

Decision-makers and fashion professionals discussed the learnings of the denim transformation, the new green claims of the EU textile strategy as well as pragmatic solutions on how to remain and act more sustainable and competitive as an industry and individual brand. As a counterpart to Black Friday, Cold Friday, initiated by Dojo Cares, was presented as the "biggest awareness campaign since sales days have existed". Fair fashion and fair working conditions were the focus of the final conference of the "Good Clothes Fair Pay" press conference by Fashion Revolution, which was also part of the Conscious Club. On top of a lot of sustainability inspiration, for the first time there was a space for D2C brands such as VGB and ADR Atelier Roupa, who were involved both as brands and as speakers in the content programme. For two days, two stages were filled with talks and panels with the most relevant themes from fashion, lifestyle, culture and business. Gen Z, Gen Y and Gen Alpha met for espresso martinis and club culture vibes at "Platte raves the Ground" to discover and stage the coolest styles of the scene.

A total of 20 European fashion and design schools took part in the 2nd “Fashioning Sustainability” competition organized by Freudenberg Performance Materials together with Macpi and Bemberg™ by Asahi Kasei, two co-branding partners in the textile industry.

Freudenberg invited talented young designers to create and submit their ideas for sustainable clothing. The initiative aims to show that sustainability is a key factor in the fashion industry.

Two of the most innovative outfits from each school were selected for the final round and presented to an international jury at the “Bagni Misteriosi” event location in Milan in May. Fashion design experts and opinion leaders as well as journalists were invited to select the most sustainable designs in the categories of “Technology” and “Design”.

The winners
First place in the “Technology” category went to Judith Marquant while the second to Jagoda Sokolowska, both students of the fashion school Esmod in Paris. Ilaria De Martino, from the fashion institute Modartech, Italy, and Xiaodan Liao from Polimoda, Italy, were awarded first and second place in the “Design” category. The first-place winners received €2,000, while the second places won €1,000.

All participants benefited from the platform to network with leading players in the garment industry and learn more about concrete steps for embracing sustainability. Creating true sustainability in the fashion industry means reducing the material flow of clothing, addressing both sustainable production and consumption.

Members of the Jury:
Cristiano Zanetti, Sales Director Italy, Freudenberg Performance Materials
Maurizio Cazzin, Male Modeller, Maison Giorgio Armani
Riccardo Bullio, Apparel Industrial Division Director, Dolce & Gabbana
Caterina Cuoghi, Industrial Director, Area NYC
Simone Bigi, Style and Product Office Manager FAY line, Gruppo TOD’S
Roberto Cibin, Model and Pattern Development Manager, Caruso
Bruno Landi, Sales Director, Vitale Barberis Canonico
Luisella Allegretti, Pattern Designer Boss MW Business Specialist, Hugo Boss
Eugenio Balordi, Product Manager, Maison Margiela
Ettore Pellegrini, Sales and Marketing Manager, Asahi Kasei Fibers Italia

The international fashion sourcing platform Source Fashion, taking place from 12th – 14th February at Olympia London, has announced a compelling line-up of country pavilions and over 150 audited, quality manufacturers from around the world including Peru, India, China, Pakistan, Italy, Spain, Greece, North Macedonia,  the UAE, Madagascar, Jordan, Uzbekistan, Turkey, the UK and many more who will join the inaugural show, which runs parallel to Pure London.

Bringing a textile pavilion to the UK for the first time, the Peru Pavilion will showcase six manufacturers specialising in high-quality alpaca wool from the raw material right through to garment production, as well as cotton and other natural mixtures.

The main Indian Pavilion at this year’s Source Fashion, in collaboration with the Wool and Woollens Export Promotion Council, will showcase 20 established garment and textile exporters specialising in wool, woollen and acrylic fibres. The exhibitors will be showing full garments including men’s, women’s and kidswear as well as a selection of fabrics and raw materials. These exhibitors are regular export partners to the UK retail industry and already work with some big retailers in white label production.

The China Pavilion will present a selection of high-quality Chinese manufacturers ranging from full garment manufacturing through to raw materials, fabrics, cashmere and components.

Other producers and manufacturers attending Source Fashion from across Europe and the UK include:

• Mivania - an Italian knitwear manufacturer producing garments in 100% cashmere and cashmere blends.
• SATCoL (Salvation Army Trading Company) - a charity-owned textiles collector in the UK, actively working with retailers to reduce their carbon footprints.
• Kusilas - a Spanish company monitoring all the stages of the production process.
• Prime Casual - based in Leicester, UK, they specialise in the design and manufacture of ladies clothing from fast fashion, wholesale to bespoke tailoring.
• Athos Pallas - a fashion and textile agency located in Thessaloniki, Greece.