From the Sector

The Japanese textile manufacturer ECOSENSOR™ by Asahi Kasei Advance presents its SS 2023 collection, made of high-tech fabrics implementing new-generation values, with the aim of keeping nature, body and mind in harmony.

ECOSENSOR™ presents 40 new references that meet the needs of the contemporary consumer, such as durability, wellbeing and performance. Being capable of combining active climate control, exquisite touch, lightness and comfort with sustainable values, ECOSENSOR™ stands out as a unique eco-high-tech performance proposition in its market. The collection covers the different market applications with 7 items for INNERWEAR, 2 for OUTERWEAR, 17 for SPORT KNIT and 14 for SPORT WOVEN.

Furthermore, all of ECOSENSOR™ fabrics are made with sustainable materials which are certified by internatinal certification such as GRS, RCS or self-certification by each yarn supplier, through a traceable and transparent production process and supply chain.
100% of the stretch articles (representing 35% of the collection) are made with ROICA™ EF by Asahi Kasei, the recycled stretch yarn made from pre-consumer materials.

The main fibers are GRS certified recycled polyester and recycled polyamide, but the collection also features some blends, such as in Bemberg™, the high-tech yarn born from the transformation of cotton linters through a circular, transparent and traceable process with a precious hand, optimal moisture management characteristics,  whose end of life guarantees its biodegradability.
Even the dyeing and finishing phases have been certified by international labels such as bluesign® or OEKO-TEX® Standard 100.

SANITIZED AG, a specialist for hygiene function in textiles, is expanding its Sanitized® Odorex™ portfolio for odorneutralizing technologies. The new OX20 product is usable on cotton, viscose, or synthetic fibers. It does not contain any biocides, it is highly wash-resistant, and it can be combined well with other effects.

Sanitized® Odorex™ is the product of several years of experience with environmentally friendly textile treatments. SANITIZED focuses heavily on the causes of, the production of, and the fighting of unpleasant sweat odor in textiles. The basis for the newly introduced biocide-free OX20 product is a metal-free polymer that neutralizes odors. It meets market requirements regarding wash-resistance with excellent results after up to 50 household washes.

Versatile and highly cost-efficient
The new product can be applied in extraction, pad, and spray. It can be used on all common substrates and is compatible with other textile effects. These properties increase the flexibility and efficiency during product design, and they reduce production costs. As one of the first technologies worldwide, OX20 can be applied to synthetics in the dye bath.

Feel and wearing comfort
Binders and particle systems negatively affect the textile’s feel and moisture management. OX20 is a particle-free product with a long-lasting effect that does not change how the textile feels, nor does it affect the textile’s moisture management.

• 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.

• adidas expects double-digit sales growth in 2022

Major developments FY 2021

•    Currency-neutral revenues up 16% driven by growth in all markets
•    Excellent top-line momentum in EMEA, North America and Latin America with strong double-digit increases in each region
•    Double-digit growth in DTC reflecting improvements in both online and offline
•    Gross margin increases to 50.7% driven by higher full-price sales and better inventory management  
•    Operating margin increases 5.3 percentage points to 9.4%  
•    Net income from continuing operations grows more than € 1 billion to € 1.492 billion
•    Executive and Supervisory Boards propose dividend increase of 10% to € 3.30 per share

Outlook for FY 2022

•    Currency-neutral sales to increase at a rate between 11% and 13%, already reflecting up to € 250 million of risk in Russia/CIS business related to the war in Ukraine
•    Gross margin to increase to a level of between 51.5% and 52.0%
•    Operating margin to increase to a level of between 10.5% and 11.0%
•    Net income from continuing operations to grow to between € 1.8 billion and € 1.9 billion

Kasper Rorsted, CEO of adidas: “Unfortunately, we release our 2021 results in unsettling times. Our thoughts and prayers are with the Ukrainian people, our teams on the ground and everyone affected by the war. We strongly condemn any form of violence and stand in solidarity with all those calling for peace. We also provide immediate humanitarian aid to those in need of support. We will continue to follow the situation closely and take future business decisions and actions as needed, always prioritizing our employee’s safety and support.”

“In 2021, we delivered a strong set of results despite several external factors weighing on both demand and supply throughout the year”, Kasper Rorsted continued. “Wherever markets operated without major disruptions we have been experiencing strong top-line momentum. This is reflected in double-digit revenue growth in EMEA, North America and Latin America. While we continued to invest heavily into our brand, our direct-to-consumer business, and our digital transformation, we improved our bottom-line by more than € 1 billion. Taking it all together, 2021 was a successful first year within our new strategic cycle. In 2022, we will build on this momentum and continue to grow both our top- and bottom-line at double-digit rates amid heightened uncertainty.”

Over 400 employees work hard every day to improve the environmental performance of Radici Yarn’s site. Through teamwork and continuous improvement in energy efficiency, Radici Yarn has obtained ISO 50001 Energy Management Systems certification, which attests to the organization’s commitment to contain and progressively reduce energy consumption.

Radici Yarn, one of the companies in the RadiciGroup Advanced Textile Solutions Business Area, is engaged in the production and sale of polyamide 6 polymer, PA6 and PA66 continuous filament and staple yarn, and other synthetic fibres, including products made of recycled or bio-based materials.

All the processes - polymerization and spinning (Villa d'Ogna plant), as well as warping and draw-warping (Ardesio plant) - are run under constant monitoring with the goal of achieving maximum energy efficiency and lower consumption. Both sites are powered by two hydroelectric power plants owned by Geogreen, a RadiciGroup partner and energy supplier. The share of energy consumption from renewable sources and reduced environmental impact (natural gas) sources  is constantly increasing.

The energy issue has always been a priority for Radici Yarn, whose products serve numerous sectors, including automotive, clothing and furnishings.

"Already at the beginning of the 1990s, Radici Yarn started investing in cogeneration, the simultaneous production of electricity and steam,” pointed out Laura Ravasio, energy manager of Radici Yarn SpA. “We have recently started up an advanced trigeneration plant – a highly efficient system that produces not only electricity and steam, but also chilled water for our production processes. One of the first results recorded in 2021 was a 30% reduction in water consumption. Thus, ISO 50001 certification seemed like the next logical step to take in formalizing a long-term approach to energy.”

The ISO 50001 certification, which is voluntary and valid for a period of three years, was added to the ISO 14001 Environmental and ISO 9001 Quality Management system certifications previously achieved by Radici Yarn.

The year 2021 is expected to end on an extremely positive note for the Swiss Group, with an organic turnover record (significantly higher than pre-pandemic levels) and an acceleration of the product range completion strategy: after the addition of Amom, in June, Riri is proud to share the closing of the acquisition and integration into the Group of DMC, a company specialized in the metal components sector for haute couture, more specifically leatherwear. This is another step towards creating a single hub dedicated to luxury accessories, whose goal is to develop a balanced portfolio including zips, buttons, metal hardware, and fashion jewels.

DMC, established in 1976 in Scarperia e San Piero a Sieve, near Florence, has a consolidated experience with major luxury brands and a strategic position, being located close to the Tuscan leatherwear district. Originally a family-run business, today it is a company which combines highly skilled Italian artisan tradition, which has a strong connection in the region, with the use of cutting-edge technologies. Its comprehensive vertical integration system allows for in-house management of all production process phases.

“The addition of DMC to the family” – explains Renato Usoni, CEO of the Riri Group – “is not just a bonus for our offer in terms of product range. It means also a fundamental milestone in the creation strategy of a fully integrated business model”. As a matter of fact, the operation is a further improvement in the Group’s designing potential, increasingly able to provide tailor-made accessories, as requested by each client, achieving very high levels of customization while keeping up massive investments in new technologies, organization systems and sustainability projects with a cross-cutting impact.

“Our Group” – Usoni adds – “is, to all intents and purposes, a leader in terms of innovation, thanks to its state-of-the-art plants, which are located in seven production factories, and thanks to its constant search on emerging technologies and materials”. More specifically, DMC’s proposal – in line with Riri’s – is increasingly focused on the use of sustainable products and on processes with a low environmental impact.

Furthermore, the new company in the Group is committed to integrating the economic development of its business with the ensuing social accountability. Evidence of this attention is shown by its having been awarded the certifications ISO 9001, due to the quality of its processes, products and services, and SA 8000, for its ethical management of human resource. Moreover, every year DMC produces a social report which, in line with what have always been distinctive values of Riri, bears witness to its intent of communicating its achievements clearly and transparently.

The Premium Group events will take place in Frankfurt am Main in the third week of January 2022, taking into account the 2G+ regulation (all participants have to be vaccinated, recovered and additionally daily tested).
 
On the basis of the current regulations of the federal government and the Hessian state government, which did not announce any further restrictions for vaccinated people last week, the fashion fairs PREMIUM and SEEK, the FASHIONTECH talks and the showcase of the new format THE GROUND will comply with the official health and hygiene regulations from 18th to January 20, 2022 in Frankfurt am Main.
 
This decision is based on the representative feedback from many protagonists of the industry, expert opinions and a close observation of the situation as well as an assessment of all measures that can be taken in Europe to ensure a safe event.

Four formats - one large exhibition hall
The conceptual novelty is that the PREMIUM, SEEK, THE GROUND and FASHIONTECH events will - for the first time and once - take place all together in a spacious hall, which roughly corresponds to the entire area of Station Berlin, on a total area of approx. 20,000 square meters. The resulting simplified admission management serves the safety of everyone. In this way, visitors can quickly and comfortably experience all the inspiration and concentrated brand power at once.

In addition to the security aspect, the merger of the two flagship events PREMIUM and SEEK in one large exhibition hall will bring new features, above all, in terms of content and atmosphere. Apart from an unprecedentedly strong brand portfolio, completely new synergies and energies will arise, which will make the meeting in January a unique momentum in the history of the industry.

Numerous brands have already signed-up and despite some decisions for smaller pop-up presentations, instead of large stands, the willingness to start again together and to want to send positive signals prevails! In addition to established players, many new brands also want to show their collections now.

THE GROUND - new generation, new platform
THE GROUND will give an outlook on what can be expected in summer with an exclusive press and influencer event. The Fashion Festival ‘for a young and purpose driven generation’ is an innovative platform for brands to get in direct contact with Gen Z with interactive installations, campaigns and storytelling.

At the preview event in January, 15 curated brands and key partners will present their value-based projects and products. In keynotes and panel talks, THE GROUND is dedicated to the topics most relevant to GEN Z: diversity, inclusion & sustainability.

FASHIONTECH - innovation, inspiration, content
FASHIONTECH is the content platform for fashion, technology and lifestyle. This is where decision-makers, industry insiders, communication experts and innovative minds meet to exchange experiences, discuss potential and developments, generate new leads and promote exchange between the various industries.

In addition to the core events, the Premium Group will also organize its popular evening events - due to the conditions, of course, to a slightly different extent than usual.

Following a thorough assessment by rating agency S&P adidas’ sustainability performance has received an outstanding evaluation. Assessed across Environmental, Social and Governance (ESG) dimensions, adidas was awarded with an ESG Profile Score of 79 out of 100. Combined with a strong Preparedness Score (+6), the company’s overall ESG Evaluation Score amounts to 85, placing adidas sixth in the entire S&P Global Rating Universe.

In its assessment, S&P emphasizes adidas’ industry-leading approach to innovation, supply chain management and consumer engagement. In particular, credit is given to adidas’ ambitions to scale the use of sustainable materials, to expand circular services and to deliver against ambitious net-zero emission targets. In addition to adidas’ strong control mechanisms over its supply chain ensuring fair and safe labor practices, the analysis also calls out the integration of a sustainability target into the compensation system of the Executive Board. The close interaction between the Supervisory Board and the Executive Board is seen as exemplary and supportive of the overall strategy execution.

For its FW 22/23 collection, ECOSENSOR™ by Asahi Kasei Advance presents a high-tech fabric collection, which implements a new generation of values, with the aim of keeping nature, body and mind in harmony.

The whole collection is focused on advanced technology and environmental responsibility. Thanks to ECOSENSOR™ by Asahi Kasei Advance’s unique value-chain based on recycling technology, most part of its yarns are certified by the renowned GRS (Global Recycled Standard). Even the dyeing and finishing phases - key moments for  performance wear - have been certified by international labels such as bluesign® and OEKO-TEX® Standard 100.

The collection is composed of 7 outerwear fabric, 22 sportswear fabrics and 7 innerwear fabrics.

Among the compositions of the fabrics, dominant are the recycled polyamide (58%) and polyester (39%) yarns. The stretch component present in 22 articles of the collection is based on ROICA™ EF by Asahi Kasei - the sustainable recycled stretch yarn made from pre-consumer waste. In addition, 8 fabrics of the FW22/23 collection are made of Bemberg™ by Asahi Kasei - the high-tech yarn born from the transformation of cotton linters through a fully circular, transparent and traceable process with an amazing precious hand, optimal moisture management characteristics,  whose end of life guarantees its biodegradability and it also carries GRS certification.

Devan Chemicals has been supporting high performance sport in the UK and Belgium with its ‘cool comfort technology’ Moov&Cool.

Worldwide, hot temperatures are a new reality that brings extra challenges for athletes. Thermoregulation technology is becoming more and more important in order for athletes to perform at their best on the pinnacle of sports.

Working alongside the English Institute for Sport (EIS) and Sally Cowan Ltd, the technology is being applied to garments with the aim of improving the thermal comfort of elite athletes.

Moov&Cool consists of a multi-functional polymer technology that proposes to absorb heat during performance and improve the moisture management properties of the fabric. The treatment has been designed to simultaneously react to sweat build up and heat emission.

In Belgium, Devan has been involved in the Gold2Gold project carried out by Sport Vlaanderen. Gold2Gold is a unique collaboration between sports, government and the industry to prepare Belgian athletes to perform better in hot environments during world-level championships. Thermoregulating technology is increasingly becoming a key aspect of endurance performance for elite athletes. At that top level, small differences in body core temperature can make the difference between being on the podium or sometimes not even finishing the race.