From the Sector

The ISPO Textrends judges have selected YKK's DynaPel™ water-repellent zipper as the Best Product in the accessories category. The competition, held twice a year in conjunction with the ISPO trade show, recognizes the most innovative performance textiles, components, and apparel.

Designed to be compatible with garment recycling systems, the DynaPel™ zipper uses GTT’s EMPEL® technology instead of the standard PU film to achieve its water repellency. The lack of a PU film helps remove one of the barriers of textile-to-textile recycling of performance apparel by eliminating the urethane material, which presents challenges to garment recycling processes.

Conventional chemical and mechanical garment recycling systems cannot process the polyurethane film commonly used on water-repellent zippers, necessitating the removal of zippers from garments before recycling.  This additional processing step often deters recyclers from accepting garments with PU zippers, resulting in unnecessary waste.

EMPEL® technology uses advanced green chemistry devoid of PFAS and a specialized manufacturing process that allows the chemistry to penetrate the yarn and encapsulate it with a water-repellent layer through molecular cross-linking. The molecular cross-linking creates an extremely durable layer that is highly resistant to abrasion and invisible to the eye.

In a world where water-repellent textiles play an important role in various industries, Pulcra Chemicals has joined forces with its subsidiary, Devan Chemicals, to introduce DEVAN REPEL. The first product, DEVAN REPEL ONE, is a durable water repellent for Polyester and blends. The development of DEVAN REPEL ONE is a joint to Devan and Pulcra's dedication to innovation and sustainability.

The solution offers a range of benefits:

• Superior Performance: The technology offers outstanding water repellency performance, ensuring that textiles remain dry. Whether it's rain and outdoor wear, outdoor furnishing, shower curtains or multiple technical textiles, the new solution can handle it, making it a strong choice for industries where water resistance is paramount.
• Flexibility: The versatility of this technology can be applied to a wide range of materials, with especially good results on polyester and its blends, offering flexibility for various applications across industries.
• Enhanced Sustainability: This technology is free from perfluorinated compounds (PFCs), and free from isocyanates.
• Longevity: Products treated with this water repellency technology are protecting from the elements for a longer lifespan.

Performance, particularly on effect durability, can be boosted to meet different requirements with new DEVAN EXTENDER GEN3. This extender is free of Isocyanate, Butanone-oxime and 2-dimethylpyrazole.

On 23-24 November, Recover™, Evlox and Jeanologia will showcase their new recycled denim capsule collection, REICONICS, at Denim Première Vision in Milan.

The collection is the result of a collaborative project between the three companies, combining expertise from each specialist business to improve circularity in the denim industry, from fiber to finish.

It aims to inspire and bring value to the industry by creating truly circular products through a process that implements eco-design, transparency, process measurement, traceability, and scalability.

Made from Recover™ recycled cotton fiber and Spanish cotton, the REICONICS collection is GRS certified and is a tribute to the classic denim fabrics that have been successful in past decades.

It includes a range of premium denim fabrics developed by Evlox, and a total of 14 final garments that will be exhibited at Premiere Vision Denim. Each piece in the collection displays a variety of finishes generated using technology by Jeanologia, reducing water and energy consumption, and eliminating damaging emissions and discharge.

Just one jacket in the REICONICS collection, using 32% Recover™ recycled fiber and Jeanologia finishing technology, saves up to 240 liters of water; compared to a jacket made with virgin cotton and treated with traditional finishing technique.

The Fashion for Good Museum has opened its doors for the new pop-up exhibition News From The Future. As part of a new Educational Programme and Toolkit - developed by the Fashion for Good Museum team - a selection of up-and-coming talents composed of Dutch fashion students and emerging designers have been asked to respond to the question: “what could the future of fashion look like?” Their answers are revealed in the exhibition in the form of garments, videos, installations and more. This is a future-forward exhibition where you can explore different fashion perspectives beyond the climate crisis, giving hope and, perhaps, a reality check.

Post-consumer waste, overconsumption and the pollution of our waterways are just some of the industry issues we are currently facing. Mirrored against rising temperatures and increasingly unstable weather conditions, the global shift as a result of climate change is inevitable. What does this mean for our future generations? How do we move forward from here? This raises one central question: What does the future of fashion look like?

News From The Future, the new exhibition at the Fashion for Good Museum, invited Dutch students and new creative voices to reflect on these questions. The emphasis on emerging talent is a common thread throughout the exhibition’s and the look and feel is designed by upcoming graphic designer Sara Biatchinyi.

Participating artists and designers include students from art and fashion schools across the Netherlands from the University of the Arts Utrecht, Zadkine MBO, MBO Rijnland and Saxion College. The students’ work was chosen after they participated in the educational programme “Classroom of the Future: the Stories Behind Cotton”. This programme was developed by the Fashion for Good Museum’s Curator and Education Coordinator Alyxandra Westwood and Education and Fashion consultant in sustainability Yophi Ignacia founder of The Future Mode, in collaboration with the aforementioned schools.

To further enhance these narratives, and to facilitate and promote a space for connection between emerging talent, the Museum invited Current Obsession Magazine - an interdisciplinary jewellery platform and magazine - to co-curate an installation and reflect on the future of jewellery. Over the course of the exhibition the Fashion for Good Museum will come to life hosting an art auction, panel discussion and a weekly updated installation, showcasing emerging talent. All of these elements together will collectively address the sustainable and regenerative design practices in both the Fashion and Jewellery industries.

Designer Kevin Paraiso (Paris/Benin) showcases a creative workshop in the museum, featuring looks from his Cosmic Summer .Dolkrey collection, which was presented during Spring/Summer ‘23 of Paris Fashion Week. “Cosmic Summer reflects on our desire to bring vibrant colours and a sense of uplift to the fashion of today and tomorrow. A cosmic news from the future.” A hopeful collection, with future-forward elements seamlessly integrated from the use of deadstock, circular materials and an on-demand tailoring business model with inhouse printing - presents a positive outlook.

Launching “Classroom of the Future: The Stories Behind Cotton”
The educational programme “Classroom of the Future: the Stories Behind Cotton'' has been developed into an open source toolkit for MBO and HBO education. The toolkit is live and available to download from the Fashion for Good Museum website as of the 30th of November 2023.

It consists of a set of six lessons all exploring the various aspects of cotton with specific emphasis on people and planet. The toolkit brings together different forms of interactive tools for the classroom: videos, podcasts,  lesson plans and workshops. The content shows the perspective of local and international makers and innovators working to create a better and fairer fashion system.
The programme was part of and based on the previous museum exhibition Knowing Cotton Otherwise (2022-’23) and invited students to reflect on the  exhibition themes - water, transparency, agriculture, climate, processing, origin, labour/forced labour and end-of-use - through their own perspective. The educational methodology and goals within the programme were developed to level the field between MBO and HBO students, reflecting a more realistic image of what it's like working in the professional field. During the programme students worked together equally, challenging the segregated Dutch education system and aiming for new results.

News From The Future is open to the public at the Fashion for Good Museum at Rokin 102 in Amsterdam.

Hosted in Boston, Massachusetts on 27 September, Global Fashion Summit convened hundreds of esteemed representatives from brands, retailers, NGOs, policy, manufacturers, and innovators to transform ambition into action. The Summit was presented by Global Fashion Agenda (GFA), the non-profit organisation that is accelerating the transition to a net positive fashion industry, and marked the first edition of Global Fashion Summit in North America since the forum’s launch in 2009 as a side-event to COP15 in Copenhagen.
 
The Boston edition further explored Global Fashion Agenda’s 2023 editorial theme, ‘Ambition to Action’, while reflecting on and responding to what happened at Global Fashion Summit: Copenhagen Edition in June. By bringing Global Fashion Summit to Boston – a renowned hub for technology, innovation, and education - the Summit presented a deeper exploration of the global challenges, differences, and opportunities towards a more sustainable value chain. The Innovation Forum is a key pillar of GFA’s work, making Boston an apt location to showcase pioneering industry solution providers.
 
Attendees heard from over 40 speakers from a range of companies and organisations such as Levi Strauss & Co., Tapestry, Neiman Marcus Group, Thunder Voice Hat, H&M Group, Alice and Olivia, BBC StoryWorks, New Standard Institute, Conservation International, Worldly, Trove, Ceres, Aditya Birla Fashion and Retail Ltd, and many more. This Summit also featured esteemed Indigenous speakers on the programme. View all speakers.
 
The Summit’s second international edition facilitated inspiring thought leadership and exchanges around key themes including: Policy, Finance, and Retail, while also complementing the core priorities of the Fashion CEO Agenda: Respectful and Secure Work Environments, Better Wage Systems, Resource Stewardship, Smart Material Choices, and Circular Systems. The programme featured bold panels, case studies, and leadership roundtables reflecting on topics including: ‘Indigenous Leadership Perspectives’, ‘Exploring Fashion’s ESG Concept’, ‘On The Ground: Adaptation or Mitigation?’, ‘The Global Approach to Circularity’, and ‘Innovation for Value Chain Challenges’.

Global Fashion Summit: Boston Edition also presented an Innovation Forum, enabling small and large companies to meet with 14 sustainable solution providers from across the value chain– equipping them with the concrete tools to expedite meaningful actions. GFS Connect facilitated over 90 connections between fashion companies and exhibitors during the Summit.

ISKO provided their latest innovation in material science to British designers, Priya Ahluwalia, Masha Popova, Chet Lo and Aaron Esh, for the London Fashion Week SS24 season.

Alongside supplying their latest denim fabrics, ISKO opened its doors to its London-based product development centre, Creative Room London, for finishing and washing of their final designs as well providing expertise and knowledge in denim design and construction.

Priya Ahluwalia
For Ahluwalia’s Spring Summer 24 collection, entitled Acknowledgements, Creative Director and founder Priya Ahluwalia’s research led her on a journey of creative rediscovery.
ISKO’s Ctrl+Z fabric, which is made entirely from recycled and regenerated fibres, was used to create the flower motif denim showcase within 3 looks across jeans and jackets. This development contains no virgin cotton and uses a minimum of 60% recycled materials and the remainder is regenerated cellulose fibres while still giving a look and feel identical to traditional denim and speaks to Ahluwalia’s ongoing commitment to sustainable design and business practices.

Chet Lo
This season, Chet Lo took an active stand in reclaiming the power lost during his youth, healing the childhood wounds inflicted by a society that sidelined differences instead of celebrating them.
ISKO’s Ctrl+Z fabric and specialist lasering techniques from ISKO’s Creative Room was used across three looks featuring signature Chet Lo erotic laser prints across denim bottoms.

Aaron Esh
The SS24 season marked the brand’s debut at London Fashion Week, a homecoming of sorts for Esh, who was born and raised in the heart of the British capital, studied at Central Saint Martins and became a finalist at the LVMH Prize earlier this year. The early impulses of Aaron Esh remain steadfast: clothes that combine establishment rigour with the rebellious spirit of youth culture, devotedly crafted for a generation who feels somewhere in-between.
Aaron created bootleg denim ripped jeans made entirely from ISKO Denim using R-TWO50 fabric, which comprises a minimum of 50% pre and post-consumer recycled content. The designer noted the addition of denim accompanied by leathers add a new level of depth to their latest collection.

Masha Popova
Masha Popova’s sophomore catwalk outing, MONSTER was a “seasonless” offering that combines Autumn Winter 2023 and Spring Summer 2024.
Masha continued her obsession with denim manipulation, using various finishings including over-dyeing, flocking, patchwork, scratching and fraying in a variety of colours from vibrant green to silver across jeans, tops and jackets, all developed with the help of ISKO’s Creative Room, London.

Global Fashion Agenda (GFA) presented a new online film series: Fashion Redressed. Produced by BBC StoryWorks Commercial Productions, the captivating series intends to inspire the industry to take action to transform the way we produce and consume fashion.

Every day we express ourselves through our clothes. Encompassing cultures, personalities, traditions and beliefs, fashion is core to how we present ourselves to the outside world. But our consumption of fashion and clothing is pushing our planet and societies to its limits. Fashion trendsetters and pioneers are working to meet this challenge head-on with game-changing ideas. At the heart of this is the question: how can we keep expressing all we do through fashion, but without hurting the planet?
 
Focused on finding the answers, Fashion Redressed, comprises multiple films that showcase organisations from across the fashion and textile industries. Launched on a BBC.com microsite, the series spotlights the innovations across the world that are influencing the new seasons of fashion, featuring a collection of stories that depict tailor-made solutions to fit us and our planet.
 
The 11 self-contained branded films showcase a range of participants including: eBay, Elk, The Ellen MacArthur Foundation, Vestiaire Collective, Spinnova, Lenzing, Faherty, FarFetch, Waste2Wear, Colorifix and Forest Stewardship Council. Each film focuses on a bespoke solution that can benefit us and the planet. From the scientist taking inspiration from silk-spinning spiders in Helsinki and the duo taking a deep dive into the genetic makeup of colour in Cambridge, to the pre-loved clothes being brought to life on a global platform from Paris and the importance of cultural appreciation in Arizona, fashion gathers the most creative and innovative minds. This series expresses the dynamism and creativity of the fashion world, spotlighting the people weaving change into the fibres of fashion and those who are working to find the stylish side of a more sustainable sector.
 
The series was unveiled ahead of GFA’s landmark event – Global Fashion Summit: Boston Edition – on 27 September. The forum will bring together fashion stakeholders for agenda-setting discussions and productive meetings on critical environmental and social issues.

With its flagship formats PREMIUM and SEEK, the Premium Group kicks off into a new season. And the team around Jörg Arntz, Maren Wiebus, Franziska Diers and Marie-Luise Patzelt have big plans again: new insider round tables outside the main dates, structured brand portfolios, an expanded content programme, new meeting spaces, exclusive tours for buyers and much more. The next editions will take place on 16 and 17 January at Station Berlin.

With the redefined and successful July editions this summer, the makers of the Premium Group have shown how proactively change can be realised: only 2 days instead of 3, a new-old location, new brand portfolios and fresh concepts. And the next Berlin experience is going to be even more attractive and profitable.

Registration for brands and buyers is now open and the team cordially invites the entire fashion and creative scene to set new standards together, to meet and to strengthen a platform from which everyone can benefit. For the first time, PREMIUM and SEEK will not take place at the same time as Berlin Fashion Week. The scheduling of Berlin Fashion Week and the event formats of the Premium Group are a result of the respective business and calendar model. Nevertheless, the team will continue to be in close contact with the organisers of Berlin Fashion Week.

The project "A Dress For Venice" get on the Red Carpet at the Venice Film Festival to advocate for sustainability. September 7th, actress Margot Sikabonyi will wear a dress from the collection designed by conscious designer Tiziano Guardini, illustrated by artist Jacopo Ascari, and produced by Martina Vidal Venezia, with the following materials:

• Bemberg™: The innovative and biodegradable fiber from the Japanese company Asahi Kasei.
• Burano lace: Produced by the historic Martina Vidal Venezia for four generations.

"Returning to Venice and experiencing the emotions of this place and the artists who have enriched it is exhilarating," says Tiziano Guardini. "It's a work based on volumes, shapes, three-dimensionality, colours and materials research… from Mariano Fortuny to the Ottoman Empire's Turcherie."

Illustrator Ascari adds, "I started with a careful study of the works of Canaletto, Guardi and Bellotto, masterpieces of Eighteenth-Century Vedutismo. I portrayed new perspectives on the city's splendour, enhanced by Guardini's vibrant shapes and color choices."

On Thursday, September 7th, at 12:30, in the Veneto Region's room at the Hotel Excelsior on Lido, Elena Donazzan, Councilor for Education, Training, Employment, and Equal Opportunities, will present the project alongside its creators Laura Scarpa and Lorenzo Cinotti of Venezia da Vivere, designer Tiziano Guardini, artist Jacopo Ascari, and actress Margot Sikabonyi.

"We conceived A Dress For Venice for Homo Faber in 2019, to celebrate Venice's 1600 years of craftsmanship," explains Laura Scarpa. "This year, the research extends to sustainable innovation thanks to an international team of designers, artisans and companies," continues Lorenzo Cinotti.

The project reaffirms Venice's role as an international laboratory to reflect on the planet's future. "A Dress For Venice" is a limited-edition collection realized with the support of a network of companies identified by the Tavolo Veneto della Moda (Confartigianato, CNA, Confindustria, Confesercenti and Confcommercio of Veneto), the global platform C.L.A.S.S. (Creativity Lifestyle and Sustainable Synergy), the partnership of Camera Buyer Italia and the media partnership of The Italian Rêve.

The presentation of the collection to buyers will take place at the Marina Guidi showroom in mid-September, while it will have its dedicated exhibition on Friday, October 20th, during the Venice Fashion Week.

"A Dress for Venice" is endorsed by the Comune di Venezia, the Regione del Veneto, and Homo Faber - Fondazione Cologni dei Mestieri d’Arte, which promotes worldwide high craftsmanship and savoir-faire.

Partners in the project Infinity srl and Tessitura Grisotto, renowned Italian textile manufacturers who expertly craft Bemberg™ fiber into exquisite fabrics. Creazioni Digitali, a specialized company in sublimation digital printing, carries out the prints on Bemberg™ textiles with its unique project GreenDrop; with inks that reduces the water consumption.

Other partners include Marina Iremonger, Camera Buyer Italia, and the Tavolo Veneto della Moda, representing Confartigianato, CNA, Confindustria, Confcommercio, and Confesercenti.

• 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.