From the Sector

AlphaTauri, Premium-Fashion Brand von Red Bull, launcht die neue Herbst / Winter 2023 Kampagne mit ausgewählten Red Bull Athleten. „Friends of the Brand“ von AlphaTauri erhalten so erstmalig eine Plattform im direkten Markenumfeld.

In der neuen AW23 Kampagne “Driven by” erzählen F1® Fahrer Yuki Tsunoda der Scuderia AlphaTauri, die Handballspielerin Tess Lieder sowie die Feldhockeyspielerin Anne Veenendaal, was sie antreibt.

Die Kampagne unterstützt die strategische Ausrichtung der Premium Fashion Brand, die globale Awareness der Marke sowie die Positionierung im Premium Lifestyle Bereich zu stärken.

Im Zentrum der Kampagne stehen drei Charaktere. Sie geben individuelle Einblicke in das, was sie motiviert, was Mode für sie bedeutet und was es heißt, Teil der AlphaTauri Familie zu sein. Die Protagonisten und deren Persönlichkeiten werden in reduzierter schwarz/weiß-Ästhetik portraitiert. Was die unterschiedlichen Individuen vereint, ist der stetige Anreiz zu bester Performance und Perfektion, sowie die Begeisterung für Innovationen. Die persönliche Einblicke der Talente repräsentieren gleichzeitig den Markenkern von AlphaTauri. Fotografiert wurde die neue Herbst / Winter 2023 Kampagne in London von dem Fotografen Laurent Humbert.

Die Kampagne unterstützt die strategische Ausrichtung der Premium Fashion Brand, die globale Awareness der Marke sowie die Positionierung im Premium Lifestyle Bereich zu stärken.

• 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 KARL MAYER GROUP is intensifying its business activities in Turkey and is setting up a subsidiary in Bursa. The opening of the new site is planned for October 2023.

The company's success on the market to date has been made possible to a large extent by its close and long-standing cooperation with Erko, the KARL MAYER GROUP's regional representative. The two companies have been cooperating for more than 50 years and see further positive market development in Turkey in the medium to long term.

In order to exploit and shape the potential, they will sharpen the focus of their competences in the Warp Knitting and Warp Preparation Business Units: Erko A.S. will focus on sales, taking advantage of its long-standing regional network. The KARL MAYER GROUP will take over the after-sales service and offer customers a link to the Care Solutions world of the group. Customers benefit from next-level support with many innovative solutions, especially digital ones, for meeting the challenges of our time. At the same time, they can continue to build on the tried and trusted.

The headquarters in Bursa covers just under 1,000 m² on three levels. It offers space for service, an academy with textile samples and a training machine, a workshop for minor repairs and a warehouse for the spare parts business. Located in the top-selling region in Turkey, it is also designed as a contact point for customers.

Thanks to its strong position on the Turkish market, the KARL MAYER GROUP intends to support the companies here, most of which are family-run, in the forthcoming generational changes, and to provide the next generation with specialist support and qualifications.

• Revenue of EUR 1.25 bn and EBITDA of EUR 136.5 mn in the first half of 2023
• EBITDA and net result for the period significantly improved compared with the first quarter of 2023
• Cost-cutting program and measures to strengthen sales activities being implemented as planned
• Liquidity position strengthened by successful capital increase and extension of credit terms
• Production of TENCEL™ brand modal fibers successfully launched in China

The business performance of the Lenzing Group, a leading global supplier of specialty fibers for the textile and nonwoven industries, largely reflected the subdued market trends in the first half of 2023. After the market environment deteriorated significantly in the second half of 2022, signs of recovery were evident during the first and second quarters of 2023 in terms of both raw material and energy costs as well as demand. Textile fibers recorded improving demand, and business with nonwoven fibers and with dissolving wood pulp proved to be very stable.

Outlook
The war in Ukraine and the more restrictive monetary policy pursued by many central banks in order to combat inflation are expected to continue to influence global economic activity. The IMF warns that risks remain elevated overall and forecasts growth of 3 percent for both 2023 and 2024. The currency environment is expected to remain volatile in the regions of relevance to Lenzing.

This market environment continues to weigh on the consumer climate and on sentiment in the industries relevant to Lenzing. Recently, however, the outlook brightened somewhat according to a global survey by the ITMF.*

In the trend-setting market for cotton, signs are emerging of a further buildup of stocks in the current 2022/23 crop season. Initial forecasts also see a further buildup of stocks in 2023/24, albeit to a lesser extent.

However, despite signs of recovery in both demand and raw material and energy costs, earnings visibility remains limited overall.

Lenzing is fully on track with the implementation of its reorganization and cost-cutting program. These and further measures are aimed at positioning Lenzing in the best possible way for the expected market recovery.

In structural terms, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the transformation from a linear to a circular economy model.

The successful implementation of the key projects in Thailand and Brazil as well as the investment projects in China and Indonesia will further strengthen Lenzing’s positioning in this respect.

Taking into consideration the aforementioned factors and assuming a further market recovery in the current financial year, the Lenzing Group continues to expect EBITDA in a range between EUR 320 mn and EUR 420 mn for 2023.

*Source: ITMF, 21st Global Textile Industry Survey, July 2023

Freudenberg Performance Materials (Freudenberg) will be presenting new applications for its European environmentally-friendly Evolon® microfiber technology for Fall/Winter 24/25 fashion and leather goods collections at Lineapelle, from September 19-21. These include solutions for artificial leather applications suitable for the shoe, furniture and automotive industries.

Evolon® sustainable microfiber coating substrates
Evolon® microfiber fabrics are ideal coating substrates for artificial leather applications in the shoe, furniture and car industries. They are particularly suitable as a carrier material for PU and PVC coatings. Evolon® microfiber materials have non-fraying edges, which makes converting easier and quicker. They contain 80% recycled PET from Freudenberg’s in-house bottle recycling plant. Furthermore, they are manufactured with no solvent and no chemical binder in the company’s Evolon® plant located in Colmar, France. The plant is accredited according to OEKO-TEX STeP sustainability manufacturing certification and the DETOX TO ZERO criteria. European manufacturing offers logistic benefits to European customers through shorter supply chain and transport routes.

Reinforcement material for leather goods
Manufacturers of leather goods also benefit from Evolon® microfiber when they use it as a reinforcement material for original leather. It is drapable and soft and provides optimal shaping support for leather. In addition, Evolon® materials offer important sustainability advantages for the manufacturing of luxury leather bags, such as being 100% made in Europe, eco-friendly and socially-responsible production, and the use of recycled raw materials.

International technology group ANDRITZ has installed a new spunlace pilot line at its center of competence in Montbonnot, France. It allows customers and partners to conduct trials for producing nonwovens from recycled and/or natural fibers such as hemp, flax, and cotton.

The new pilot line features optimized web forming and entanglement for smooth processing of sensitive and irregular fibers. The innovative card set-up is designed to protect and maintain the quality of the fibers while achieving outstanding productivity rates.

Another special feature of this pilot line is the integrated ANDRITZ Metris digitalization system. It allows the operators to collect and analyze all useful data about the line’s capacity and performance. This is a perfect tool for optimizing costs, saving time and predicting maintenance.

With the new line, the ANDRITZ Nonwoven team now operates two spunlace pilot lines at the Montbonnot technical center. The first line has optimized processes, for instance WetlaceTM, for processing various synthetic and man-made fibers. ANDRITZ process experts ensure that advanced technology and know-how are available under one roof at Montbonnot.

From June 8 to 14, 2023, the leading international trade fair for textile machinery manufacturing ITMA took place in Milan, Italy. In total, over 111,000 guests visited the trade fair. Groz-Beckert was able to present its innovations to more than 7,000 customers and business partners, as well as welcoming many other visitors to its booth – including over 280 students.

An international audience gathered at the Groz-Beckert booth: guests came from 84 different countries. The majority of visitors came from Italy with just under 15 percent, followed by Germany with 14 percent, Turkey with 11 percent, India with 9 percent and the USA with 3 percent. For the first time, HR specialists were on hand at the Groz-Beckert booth to look after the student groups, offering the young people comprehensive insights together with experts from the Technology and Development Center (TEZ).

Groz-Beckert presented numerous innovations from its six product divisions Knitting, Weaving, Felting, Tufting, Carding and Sewing at the ITMA. One focus of the innovations was on the topics of efficiency, process stability and sustainability. While the topic of sustainability was reflected in the products on the one hand, a separate area in the Groz-Beckert Gallery was dedicated to the topic on the other. Here it was shown what contribution Groz-Beckert is making to making its own productions and its sites sustainable.

RadiciGroup took part in the Phygital Sustainability Expo, this year in its fourth edition, which was held in Rome on 5 and 6 July. This event is entirely dedicated to the ecological transition of fashion and design brands through technological innovation. The show is an important platform for discussion on sustainable transition issues, involving Italian and international brands, fashion tech start-ups, representatives from the institutional, business and educational fields, and consumers.

RadiciGroup's participation in the event was further evidence of the Group's commitment to making a contribution to sustainability and circularity in the fashion and textile industry, in collaboration with all the other players in the supply chain. During the narrated fashion show, held on the evening of Wednesday, 5 July, in the evocative archaeological complex of the Imperial Forum Museum, RadiciGroup presented a maxi dress made of Biofeel® eleven, a yarn of completely natural origin featuring high technical, aesthetic and environmental performance. This yarn is produced starting from a small bean cultivated in India on semi-arid land and thus does not compete with human food production. These beans yield a special oil ideal for obtaining biopolymers, such as the one produced by Arkema and spun into yarn at RadiciGroup in Italy.

The dress is not only made from a low environmental impact raw material, but is also an example of ecodesign: the garment was realized on a Shima Seiki WholeGarment knitting machine, where the entire item was knit directly from spools of Biofeel® eleven yarn, bypassing the traditional stages of weaving and tailoring. It is a zero-waste process, as only the quantity of yarn strictly needed for the garment is used.

Biofeel® eleven yarn endows the dress with unique characteristics, including low moisture absorption, greater lightness and high resistance and durability. Besides being 100% biobased, the yarn is also 100% recyclable because it is made of a mono-material polymer, which facilitates its end-of-life recycling and processing into new materials suitable for any application requiring high performance.

• Neues Webtool des VDI ZRE unterstützt KMU bei der Realisierung von Digitalsierungsmaßnahmen

Die Umsetzung von Industrie 4.0 wird für Unternehmen des verarbeitenden Gewerbes zunehmend zum wettbewerbsentscheidenden Faktor. Mit digitalisierten Prozessen lassen sich unter anderem Material und Energie sparen. Für jeden Schritt der Digitalisierung braucht es eine klare Bestimmung der aktuellen Ausgangslage, um nicht nur mögliche, sondern auch sinnvolle Maßnahmen zu identifizieren. Für diese Analyse hat das VDI Zentrum Ressourceneffizienz (VDI ZRE) das Webtool „ReSET 4.0“ entwickelt.

Digitalisierungsmaßnahmen können für KMU maßgeblich sein, um langfristig am Markt zu bestehen. Hierfür braucht es jedoch einen klaren Gesamtüberblick zum Status quo des Unternehmens und Perspektiven.

Immer mehr Unternehmen setzen sich zum Ziel, ihren Verbrauch an Material und Energie zu senken. Denn mithilfe von Industrie 4.0 lassen sich in Produktionsprozessen maßgebliche Einsparungen von Ressourcen erreichen. Voraussetzung hierfür ist eine klare Bestimmung der Ausgangslage des Unternehmens und eine klare strategische Zielsetzung.

Das neue Webtool „ReSET 4.0“ des VDI ZRE unterstützt eine zielführende Strategieentwicklung und gibt passende Empfehlungen für Maßnahmen zum Einstieg ins Thema. Der Fokus dieser Starthilfe für Ressourceneffizienz durch Digitalisierung liegt auf kleinen und mittleren Unternehmen aus dem verarbeitenden Gewerbe.

Mittels Reifegradmodell zur Selbstevaluation und Lösungsfindung
Mithilfe eines Online-Fragebogens können sich Unternehmen zunächst mit Blick auf ihren eigenen Digitalisierungsstand eigenständig einordnen und damit ihre Ausgangslage bestimmen. Das hierfür zugrundeliegende Reifegradmodell basiert auf dem Modell des Mittelstandszentrums 4.0.

Die Einordnung hilft KMU dabei festzustellen, ob das Thema Digitalisierung unternehmensseitig zunächst noch erkundet wird, die Auseinandersetzung damit schon fortgeschritten ist oder es als Vorreiter bereits die Ressourceneffizienz durch Digitalisierung gesteigert hat. Auf Basis der Einstufung werden über einen grafisch dargestellten Skill-Tree sinnvoll erschließbare Ressourceneffizienzpotenziale aufgezeigt sowie Maßnahmen und Technologien vorgeschlagen.

Das Tool bietet aber auch die Möglichkeit frei zu erkunden, welche Voraussetzungen beispielsweise für die nächste Digitalisierungsstufe nötig sind und welche Nutzen sich für das Unternehmen ergeben. Gute-Praxis-Beispiele zeigen je nach Vorauswahl, wie Maßnahmen in der Praxis bereits erfolgreich umgesetzt werden.

Weiterfrührende Online-Werkzeuge
Das ReSET 4.0-Tool ist Teil des Online-Baukastens „Ressourceneffizienz 4.0“. Dieser fasst alle Arbeitsmittel des VDI ZRE zum Thema Ressourceneffizienz durch Digitalisierung zusammen. Auch das aktuelle Tool wurde im Auftrag des Bundesumweltministeriums entwickelt und steht kostenfrei zur Verfügung unter: www.ressource-deutschland.de/reset-40/

Kornit Digital LTD. announced Amaze Software, Inc. – parent company of the Amaze, Spring, and Outfts platforms – has selected KornitX Workflow Solutions and Kornit MAX digital on- demand fabric and textile decoration technologies as the platform to deliver their vision. Combined with the Amaze Creator Commerce Platform, the companies will jointly bring the power of on- demand production and fulfillment to new and existing social media creators, enabling them to better monetize branded products.

Kornit’s Global Fulfillment Network helps companies like Amaze Software connect creators with high-quality garment and textile production fulfillers across the globe. The platform is backed by the KornitX workflow engine, seamlessly integrating across industry-proven Kornit MAX technology- based fabric and textile decoration systems for end-to-end production, visibility, and control.

The  Spring platform offers an opportunity for fans to make purchases directly from where they consume the creator’s content (social platforms including Instagram, TikTok Shops, Twitch, and more). This allows creators to significantly enhance engagement and cultivate a more profound brand presence.