From the Sector

• Revenue Increases to HK$8,316 Million with Net Profit After Tax Surging Significantly
• Recording a Turnaround to HK$381 Million
• Re-Establishes ESPRIT’s Market Leadership

ESPRIT HOLDINGS LIMITED has announced its audited financial annual results for the year ended 31 December 2021, highlighted by a significant increase in both revenue and profit attributable to shareholders of the Company to HK$8,316 million and HK$381 million respectively, in which the profit attributable to shareholders of the Company also recorded a turnaround versus the loss attributable to shareholders of the Company of HK$414 million for the six months ended 31 December 2020. Gross profit margin was 48.6%, 7.0% higher than the Corresponding Period. Please refer to the Company’s results announcement for the Current Year for further details.

Such financial improvement was attributable to various reasons, including (i) the new infrastructure and strategies instituted by the current management team; (ii) improvement in sales with higher gross profit margin; (iii) positive results of efficient cost control measures; (iv) improved inventory management; and (v) growth in E-commerce.

Although revenue in the Current Year was affected by lockdowns in the Company’s major European markets during the first quarter of 2021, and due to increased restrictions on entry requirements into stores during the fourth quarter of 2021, the Group generated revenue via three main channels: E-commerce, wholesale, and owned retail stores. As the ESPRIT brand website and third-party E-commerce partners continued to trade during lockdown, a large portion of the Group’s sales were generated online. This business model allowed it to mitigate some of the negative impacts of the Pandemic in the retail segment. Another driver of growth came from selling fewer discounted products from the Company’s retail business compared to 2020.

The Group has not forgotten the ESPRIT mission and long-standing commitment to sustainability. The Company has continued to work tirelessly towards developing cutting-edge materials that set new standards in terms of environmental sustainability. The Company has formulated and further advanced its ESG strategies to establish ESPRIT as an industry pioneer. Such strategies involve the greater use of sustainable fibers, developing new and innovative product options that support a circular economy, and ensuring environmental awareness is a key message that underpins all of the Group’s projects. To achieve these objectives, the Management has identified four key pillars of growth (Sourcing and Procurement; Marketing and Product; IT, Internet, and E-commerce; and The ESPRIT Brand Story) that are paramount in maintaining the loyalty of existing ESPRIT patrons and attracting new customers.

Looking ahead, the global economy is anticipated to be negatively affected by the lingering effects of the coronavirus pandemic and the conflict in Ukraine. The already unstable logistics industry and disrupted supply chain will likely be further impacted, which in turn will result in higher logistic service costs. Despite the unfavorable global economic outlook, the Group believes that under the leadership of its current management and with the support of dedicated staff members, the Company is on track to ongoing profit growth.

The Chief Creative Officer is the lead within the adidas design community and is responsible for shaping, defining, and shepherding the creative direction for the global brand and its three major labels – Performance , Originals, and Sportswear – to deliver a unified adidas brand experience. Willis will begin his contract beginning of April, reporting to Executive Board Member of Global Brands, Brian Grevy.

Willis is a creative visionary with a long-standing connection to adidas that dates back to 2005, most notably through his role in the concept and development of adidas by Stella McCartney in partnership with Stella McCartney He has remained integral to the growth and development of the partnership since its launch.

Beyond adidas by Stella McCartney, Willis has built a strong understanding of the company’s consumers, brand, labels, and categories through his work on a number of breakthrough projects, including a lead role in developing some of adidas’ most iconic material innovations.

Outside of his work with adidas he is revered for his tenure as Creative Director of British fashion heritage brand, Hunter, transforming what was a small single product business into a multi-category global fashion brand, and as co-founder of the trailblazing Wallpaper* Magazine. It is through this diverse experience that Willis brings not just creative expertise, but the ability to deliver across commercial, strategic, and leadership functions.

As Chief Creative Officer at adidas, Willis will provide global creative leadership, develop and nurture the brand’s creative culture, and empower teams across all design functions.

“Stepping into a permanent role at adidas and evolving our partnership is a great privilege and feels like an incredibly exciting and natural next step,” said Willis. “The power and influence of the brand on sport , sports culture, and beyond is immeasurable. I welcome the opportunity to help establish a new era of design and brand leadership at adidas and, together with the team, take adidas to even higher levels.”

“Alasdhair is a true icon of the industry and together we have produced some of adidas’ most innovative work, so to now have him lead our design community and set the future of our brand expression is a wonderful thing,” said Executive Board Member of Global Brands, Brian Grevy. “We are looking forward to seeing the influence of his unique creative vision, experience and expertise from developing and establishing some of the world’s most recognised brands.”

• C.L.A.S.S. ICON 2021 winner DUARTE returns to Milan Fashion Week launching its SEASON 2 “Eco-Street Dance” collection as a special feature at White Sustainable Milano inside the “Unveiling the fashion backstage” event

By mixing C.L.A.S.S. responsible materials, colorful prints, urban feels and artistic inspiration, the Portuguese streetwear brand creates a new style and a clear yet cool message for conscious fashion consumers
The rewarded 2021 C.L.A.S.S. Icon Award Portuguese brand Duarte is ready to presents its Fall/Winter 2022/23 collection developed in collaboration with C.L.A.S.S. Eco Hub during Milan Fashion Week. With the support of WHITE, Duarte’s creations will be featured as a special project at WSM (WHITE Sustainable Milano) platform space inside “Unveiling the fashion Backstage”, a docu-event focusing on an immersive journey into the amazing world of premium and smart supply chains that make innovative and responsible fashion wardrobes a reality.

For its second collection Duarte still counts on C.L.A.S.S. support in sourcing materials and communication activities as part of the Icon Award yearly program. The streetwear designer Ana Duarte, with the help of the Milanese hub, is back with a renewed collection that counts 40 pieces continuing the concept and the story behind the previous World Keeper: the irresistible superhero Tadao - Ana Duarte’s dog – fighting against the environmental issues created by mankind and personified as Smog Man (air pollution), Fire Man (climate change), Deforestation Man (forests destruction) and Wave Man (water overconsumption).

This time the inspiration is also Street Dance drawn directly from the city streets, with majorly unisex pieces (apart from some small specific details linked to sizes or ergonomics) and materials that both respect the planet and keep you warm. The prints drawn from ripped posters giving birth to a sort of new style that we can name “Eco-Street Dance”. The color palette explores the dark shades of grey, cream, blue and black, with artistic pops of color of a hopeful urban culture that tears apart posters from the past and turns them into a new brighter story. 

The linings complete the full sustainable picture, thanks to Bemberg™ by Asahi Kasei fabrics by Gianni Crespi Foderami. Bemberg™ is a new generation material made from the smart-tech transformation of cotton linter pre-consumer material, converted through a traceable and transparent closed loop process. Entirely made in Japan, it comes with Compostability and Ecotoxicity Certifications verified by Innovhub-SSI, RCS, OEKO-TEX® Standard 100 and the Eco Mark certifications. The factory is ISO 14001 certified, too.

The collection will mark the return of Duarte’s cool and responsible style to Milan Fashion week and White Sustainable Milano. “We are proud to support Duarte as her style, her creations, visual communication and message are so beautiful, innovative and responsible. On top of that, her message to the consumer is so clear and easy for everybody to understand. With Duarte it is very easy to make a “conscious choice” without any sacrifice, and completely in line with the C.L.A.S.S. manifesto” says Giusy Bettoni, C.L.A.S.S. CEO & founder.

The 2021 C.L.A.S.S. Icon Award Portuguese brand Duarte is ready to presents its Fall/Winter 2022/23 collection developed in collaboration with C.L.A.S.S. Eco Hub during Milan Fashion Week. With the support of WHITE, Duarte’s creations will be featured as a special project at WSM (WHITE Sustainable Milano) platform space inside “Unveiling the fashion Backstage”, a docu-event focusing on an immersive journey into the amazing world of premium and smart supply chains that make innovative and responsible fashion wardrobes a reality.

For its second collection Duarte still counts on C.L.A.S.S. support in sourcing materials and communication activities as part of the Icon Award yearly program. The streetwear designer Ana Duarte, with the help of the Milanese hub, is back with a renewed collection that counts 40 pieces continuing the concept and the story behind the previous World Keeper: the irresistible superhero Tadao - Ana Duarte’s dog – fighting against the environmental issues created by mankind and personified as Smog Man (air pollution), Fire Man (climate change), Deforestation Man (forests destruction) and Wave Man (water overconsumption).

This time the inspiration is also Street Dance drawn directly from the city streets, with majorly unisex pieces (apart from some small specific details linked to sizes or ergonomics) and materials that both respect the planet and keep you warm. The prints drawn from ripped posters giving birth to a sort of new style named “Eco-Street Dance”.

The collection presents a selection of urban pieces for everyday superheroes, fighting against environmental issues - with a holistic approach to sustainability values thanks to the synergy with C.L.A.S.S. and its Back in the Loop area: a section dedicated to alternative and sustainable sourcing against the massive amount of materials and textiles produced that are not used and discarded by the fashion system. This is mostly powered by MAEBA International - and its ReLiveTex® fabrics - leader in selecting and repurposing premium Italian fabrics with exceptional 60 years of expertise in collecting high-quality materials from leading brands and textile manufacturers, and one of the first companies at an international level to be accredited for the UNI EN ISO 14021 certification which grants the traceability of the collected materials.

The linings complete the full sustainable picture, thanks to Bemberg™ by Asahi Kasei fabrics by Gianni Crespi Foderami. Bemberg™ is a new generation material made from the smart-tech transformation of cotton linter pre-consumer material, converted through a traceable and transparent closed loop process.

For over 80 years Riri Group has established itself as a leading point of reference for the creation of details of style providing high-end fashion brands with top quality accessories – which now include zippers, buttons, metal components and fashion jewels.

All things style and sustainability: This year Première Vision Paris (08 – 10 February) will be once more the stage to show off the results. The new Spring/Summer 2023 line is inspired by three distinct eras and paths, but at the same time it conveys a total synergy and integration between the various divisions of the Group, coordinated and harmonised as well as united by their common interest in nature and sustainability.

SOUL COMFORT
Off-the-grid essentials between relaxation and style
Sparked from the contemporary need to balance happiness and security, while enriched by an aesthetic and provocative approach, this line embodies all the value and potential of a sustainabilityoriented communication for each and every product, as pieces feature the relevant information on the zip tape and on the button application support. This line presents softer colours that encompass a wide range of styles, including floral, summer satin and semi-transparency, accompanied by innovative yarns and sustainable materials, such as hemp, linen, silk, certified organic cotton, recycled nylon and bio-based polyester. The line also features stainless steel products, including mono-material buttons and zipper chains or the use of aluminium chains that stand out for their particular lightness.

OUTDOOR EXPRESSION
To always stand out
Inspired by nature and outdoor activities, in this section the focus is on attire codes that become the means through which everyone can express and enhance their look in every context, even when immersed in the surrounding environment. Coloured stripes and rubberized soft touch materials are the two essential concepts, combined with bright and flashy colours. The Storm Evo zip, reversed coated nylon zips (among which the one with the reflector catches the eye), and the recycled nylon buttons are back.

WISE EXCLUSIVITY
Smart and sustainable luxury
Each creation in this line is studied down to the smallest detail, to achieve luxury products that increase their value over time thanks to their sustainable process and long life cycle, achieved through multiple possibilities for use in different ways and areas. We find here the use of diamond, recreated in the laboratory with more sustainable techniques, but also zips with elegant and refined lines, the use of stainless steel and PVD and finally, the use of precious galvanic finishes on buttons, but also on chains and pullers. This path shows the important role collaboration plays between the divisions of the Riri Group, making it possible to create something unique and valuable.

The Lenzing Group will present the Young Scientist Award for outstanding research in the field of fibers and textiles for the first time in 2022. The Dornbirn Global Fiber Congress (GFC Dornbirn) is an ideal platform for the recently launched research competition. Bachelor’s and master’s degree students will have the opportunity to submit their scientific work in the categories of fashion and the circular economy, textile recycling and the innovative use of biobased fibers to a jury of well-known industry experts.

The jury consists of Karla Magruder (Founder of Acceleration Circularity), Friedericke von Wedel-Parlow (Beneficial Design Institute Berlin) and Dieter Eichinger (Head of Standardization and Innovation, Secretary-General of BISFA). The winning project will receive a prize of EUR 5,000. The aim is to promote the students’ work and create a platform for networking with the textile and fiber industry.

The Austrian Fibers Institute is the organizer of the 61st Dornbirn Global Fiber Congress on a not-for-profit basis. The event, due to take place from September 14 to 16, 2022, will offer an ideal setting for the presentation of the Young Scientist Award prize.

You can read more about the Young Scientist Award and the submission in the attached document.

Sistema Moda Italia confirms its Innovation Area for the 34th edition of Milano Unica, an area which responds to the growing demand for innovation in products, processes and services able to give specific performances or made with innovative and sustainable systems. And right here we find Sitip’s technical fabrics for clothing, with the COSMOPOLITAN Fashion-tech fabrics collection, modern and comfortable, dedicated to contemporary urbanwear/sportswear style and which perfectly meets the new needs required by the market and by the final consumer: performance and design.

COSMOPOLITAN Fashion-tech is declined into urbanwear through the sartorial technical fabrics that the company has defined Techno Sartorial: a tailoring that combines flawless cuts with exceptional fabric performance.

For the production of contemporary urbanwear, thought for the city, Sitip showcases the man’s suit made of jacket+trousers in warp-knit Cosmopolitan Citylife fabric: bi-stretch nylon with UV protection (UPF 50+), quick drying, easy care and skin comfort. Highly performing, breathable, comfortable, insulating and with an exceptional fit: incredible elegance and comfort that enhance the contemporary urbanwear style.

For women, Sitip presents COSMOPOLITAN Fashiontech fabrics dedicated to athleisure, with leggings made - for the summer version - in Cosmopolitan London, a bi-stretch circular knitted fabric, no seethrough, breathable, comfortable on the skin with UV protection (UPF 50+), with easy care and perfect shape retention, and - for the winter version - in Cosmopolitan Paris GZ, a circular knitted fabric raised on the reverse side, with the same properties as the previous one and thermoregulation characteristics.

The Instinct fabric is available in the recycled and raised version NATIVE INSTINCT GZ: a GRS certified thermal fabric made with pre-consumer recycled yarns, bi-stretch, breathable, resistant to pilling, easy care and high comfort, ideal for sporty knitwear and urbanwear part of the NATIVE SUSTAINABLE TEXTILES family, the Sitip fabric collection produced with GRS certified recycled yarns and low environmental impact chemicals with a lower consumption of natural resources , able to respect the environmental and social criteria extended to all the stages of the production chain, including the traceability of raw materials. Sitip also operates in line with international certifications such as OEKO-TEX®, BLUESIGN®, GRS and adheres to the ZDHC gateway, adding to these an ISO 14001 environmental management system, which certifies the company’s commitment to reducing pollution risks.

ISKO’s 2023 Collection Vol. 1 is designed to meet the varied needs of today’s consumer by providing fashion, comfort, versatility and responsibility in each of its innovative fabrics. The entire collection is “engineered for nature” using ISKO’s recently launched R-TWO™50+ technology – a process which creates high-quality denim that is less harmful to the natural world.

R-TWO™50+ is the driving force behind ISKO’s efforts to reduce the industry’s impact on the planet. The fabrics are made with a minimum of 50% pre- and post-consumer recycled blend that is entirely Global Recycled Standard (GRS) certified. This results in less use of natural resources and a reduced carbon and water footprint of up to 45% and 65% respectively.

ISKO has also incorporated hemp into the collection as a sustainably viable alternative to cotton. Hemp requires much less water, no pesticides and grows quickly in almost any type of soil. New spinning techniques give the fiber a softer hand feel and make hemp a genuinely enticing option to cotton.

2023 Collection Vol. 1 includes ISKO Blue Skin™, Jeggings™, ISKO™ Rigid, ISKO Rigidflex™, ISKO EFD™, Summer Colors, Catwalk, ISKO Reform™, ISKO™ Black, ISKO™ Comfort, ISKO Pop™ – and five macro trends (Denim Nation, New Origin, Isko Reborn, Isko Motion, Chill Zone). These trends incorporate some of ISKO’s key denim technologies to create a versatile collection that complements any style, vibe and mood.

ISKO Reform™, ISKO Blue Skin™ and Jeggings™ are the groups used to create fabrics that are trans-seasonal and one-size-fits-all – subscribing to a philosophy of inclusivity that is valued by Gen Z.

The collection also gives prominence to color groups. ISKO™ Black delivers various shades of black with different elasticity and aspect options. This part of the collection fulfils the perennial need for this timeless color. ISKO EFD™, or ‘Eco For Dye’, is a sustainable approach to producing ecru fabric. This technology shortens the production process and saves on water usage. The result is an ecru-colored base that can be used as is for a natural look or can also be dyed to any color.

New this season are the Summer Colors and Catwalk groups. Summer Colors is inspired by an eclectic mix of influences including natural earth tones, workwear looks or bright colors with authentic, open-end denim constructions. Catwalk is a bold and bright addition to the collection that offers on-trend styles in ISKO finishes including ISKO Urban Jeather™, Pearl Coat and Flashy Finish.

• RadiciGroup and DKB introduce the first “circular” ski suit
• A garment made of yarn obtained from recycled materials and designed with end-of-life recyclability in mind, without compromising style, design and technical performance.
• RadiciGroup Ski Club athletes will be the first ambassadors of this sustainability project

The first truly sustainable ski suit, featuring Italian style and design and a zero-kilometre supply chain, is finally here. Two Bergamo companies of excellence played the leading roles in the conception and realization of this highly innovative fashion-sport garment: RadiciGroup, a world leading producer of chemical intermediates, polyamide polymers, high-performance engineering polymers and advanced textile solutions, and DKB, a company specializing in technical sportswear with the same brand name.

The ski suit, consisting of jacket and trousers, is fashioned with a fabric made of RENYCLE, a RadiciGroup yarn obtained from mechanically recycled polyamide (nylon), which affords notable savings in energy and water consumption, as well as lower CO2 emissions. In addition, the suit’s padding and numerous accessories, such as zippers, Velcro, buttons and thread, are also made of polyamide.

This achievement was made possible by the great teamwork of RadiciGroup and DKB on the research and development of chemically compatible materials that can be used in special applications requiring high technical performance. The end result is an almost mono-material garment that significantly facilitates end-of-life recycling. It can be more easily converted into polymers for use in the manufacture of ski boot components and bindings, in addition to applications in the automotive and furnishing industries, or in any other sector requiring the characteristics of high performance polyamides.

The ski suit by RadiciGroup is thus an all-round application of ecodesign and circular economy principles to fashion and garment making, which justifies the claim “Una sostenibilità all’altezza delle nostre montagne” [Sustainability worthy of our mountains] written in a logo patch on the inside of the jacket.

“I am particularly proud of this achievement, a synthesis of my passion and effort,” said Angelo Radici, president of RadiciGroup. “I’ve always loved mountaineering and skiing, and, together with my collaborators, I work hard at our company day in and day out to find innovative solutions that improve the sustainability of our industry. This ski suit is concrete proof of the fact that textiles and apparel can be made sustainable without compromising on comfort, design, looks or performance. I will never get tired of repeating that collaboration among the firms along the production chain is crucial to manufacturing goods with an ecodesign approach, considering their end-of-life recyclability and, thus, potentially giving them unlimited durability. Upstream producers, like us, gladly share our know-how in materials chemistry and experience in recycling with our downstream partners, so that, together, we can find sustainable and viable solutions in the various sectors where we operate.”

Huntsman Textile Effects has released the latest addition to the third generation of its revolutionary AVITERA® SE polyreactive dye range with the introduction of AVITERA® ROSE SE for brilliant bluish-red shades. The innovative new dye significantly outperforms the available dyeing technologies for cellulosic fibers and blends, delivering substantial water and energy savings, exceptional overall fastness, and reduced costs.

AVITERA® ROSE SE slashes the water and energy required for production by up to 50% thanks to its unique low-temperature and high-speed wash-off technology. It further delivers excellent right-first-time performance, with outstanding compatibility, levelling properties, and on-tone build-up. The cost-effective formulation reduces recipe costs for medium-dark shades while both minimizing processing costs and eliminating reprocessing. It also increases mill output by up to 25% or more.

Using AVITERA® ROSE SE, brands can stand out with brilliant bluish-red textile products in a broader shade gamut. The dyes offer very good light fastness levels for classic bluish trichromatic element, with exceptional overall fastness performance. Products dyed with AVITERA® ROSE SE have the highest chlorine resistance, tailormade for stringent Japanese and US laundering requirements, and are suitable for use with Huntsman’s HIGH IQ® Lasting Color Eco color-retention program. With minimal chance of cross-staining, they are ideal for red-white striped cotton knit fabric.

AVITERA® ROSE SE is fully compliant with the most stringent industry and brand-specific restricted substance lists. It is bluesign® approved and is suitable for STANDARD 100 by OEKO-TEX® certified textile products.

Launched by Huntsman Textile Effects in 2010, the first-generation AVITERA® SE dyes set the benchmark for sustainability in the textile industry. The second generation expanded the range’s color palette from the palest to the deepest and darkest shades. The third generation further enhances the economic sustainability of the AVITERA® range while delivering unrivalled environmental benefits, outstanding operational performance, and attractive textiles with exceptional overall fastness.