From the Sector

London Marathon Events (LME) partnered with the Salvation Army Trading Company (SATCoL), the trading arm of The Salvation Army, to collect discarded participant clothing at its event in London. On 21st April The Salvation Army collected a record 18.9 tonnes of clothing from the mass participation event.

Salvation Army volunteers and helpers supported to collect clothing discarded by participants prior to the Start line. The clothing was transported to The Salvation Army’s processing centre in the East Midlands for sorting and distribution to be resold, reused or recycled.

The profits that the Salvation Army Trading Company raise, is donated to The Salvation Army to continue to support the work they do across the UK.

The scheme is one of LME’s new sustainability initiatives for 2024 aimed at reducing the environmental impact of its events, with a particular focus on lowering carbon emissions, cutting waste and improving circularity.

The Salvation Army team will continue with the clothing collections at the following events this year:

• Ford RideLondon on Sunday 26 May
• The Big Half on 1 September
• The Vitality London 10,000 on 22 September
• The Royal Parks Half on 13 October

• Revenue up 5.7 percent year-on-year to EUR 658.4 million
• EBITDA more than doubles year-on-year to EUR 71.4 million
• Free cash flow of EUR 87.3 million (compared with minus EUR 132.3 million in the first quarter of 2023) and thereby positive for the third consecutive quarter
• Performance program shows positive effect on revenue, EDITDA, and free cash flow
• Lenzing confirms EBITDA guidance for 2024

The Lenzing Group, a leading supplier of regenerated cellulose for the textile and nonwovens industries, recorded a further improvement in fiber sales volumes in the first quarter of 2024. An expected recovery in markets relevant for Lenzing has to date failed to materialize. Fiber prices remained at a low level. Although the costs of raw materials and energy continued to decrease, they remained higher than in the pre-crisis 2019 year.

Outlook
Even though the IMF has upgraded its growth forecast for 2024 from 3.1 percent to 3.2 percent, a number of risks remain for the global economy: potential geopolitical shocks, persistently higher inflation and key interest rates, as well as market risks emanating from the Chinese real estate market are currently considered to be the most relevant.

General inflation and falling incomes in real terms are continuing to exert a negative impact on consumer sentiment. A recovery in the consumer clothing market, which is important for Lenzing, will also depend on a further normalization of stock levels.

The currency environment is expected to remain volatile in regions relevant to Lenzing.

In the trend-setting market for cotton, a stable price trend is expected for the 2023/2024 harvest season.

Earnings visibility remains limited overall.

Revenue and earnings in the first quarter exceeded Lenzing’s expectations, despite the persistently difficult market. Lenzing is ahead of schedule with the implementation of its performance program. By appointing a separate Managing Board member, the projects identified to date are to be implemented even more rapidly, and new potentials are to be leveraged. Lenzing expects that these measures will increasingly contribute to further earnings improvement over the coming quarters compared to the first quarter of 2024.

Taking the aforementioned factors into consideration, the Lenzing Group confirms its guidance for the 2024 financial year of year-on-year higher EBITDA.

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 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.

Meisheng Group has started up a new ANDRITZ needlepunch line at its facility in Shaoxing City, Zhejiang Province, China. It is the third line supplied by ANDRITZ to the manufacturer of high-end nonwoven synthetic leather. This expansion will enable Meisheng to address the growing demand for synthetic suede in the automotive industry, particularly for New Energy Vehicles (NEVs).

The advanced line is equipped with a ProWid™ system that allows Meisheng to ensure an optimum web weight regularity across the full product width. As a result, the web distribution is improved, which reduces material consumption (fibers) and improves web weight evenness (CV%) – factors that are particularly important in synthetic leather manufacturing for automotive applications.

By establishing touchpoint textile, drupa has created a special forum to showcase pioneering applications in digital textile printing. The highlight will be the Digital Textile Micro Factory – a fully connected, integrated process chain starting with the customer enquiry and design through to large-format digital textile printing.

touchpoint textile represents drupa’s growing expansion into new markets comprising such segments as packaging production, large-format or industrial and functional printing next to packaging production. All of these segments are undergoing the same transformation processes and offer enormous growth potential. The special forum revolves around the opportunities and challenges of digital textile printing, brings together renowned exhibitors, industry partners and brand owners and provides scope for cross-industry cooperation, new projects as well as product and manufacturing ideas. The operational content partners of touchpoint textile include the German Institutes for Textile and Fibre Research Denkendorf (DITF), as Europe’s largest textile research centre, as well as ESMA, the European Specialist Printing Manufacturers Association.

Digital Textile Micro Factory: on-demand and virtual products – on the path towards sustainable production
In cooperation with 12 partners from industry and research the DITF will demonstrate a Digital Textile Micro Factory live at drupa and, hence, a fully connected, integrated process chain from design to finished product. This will present new possibilities for digitalisation and direct customer involvement, for instance in the form of 3D apparel simulations complete with links to design networks for creative input. Digital workflows and virtual products are integrated directly in the manufacturing process. As a special highlight for all trade visitors the technology partners of this Micro Factory will demonstrate an automated on-demand production, textile printing, cutting and sorting – without any manual interaction. Such decentralised and digitally connected design and production chains will enable the textile industry to respond to customers’ requests and trends in a more targeted manner in future. This means, touchpoint textile 2024 technologically points the way to a future without shelf-warmers. In addition, the carbon footprint for the complete process from virtual development to finished product will be modelled and presented at the trade fair.  

2024 will see the design competition “drupa – textile design talents” being held for the first time. This was conceived of by the DITF and will be implemented by the partner Mitwill. This provides up-coming textile designers and newcomers with a unique opportunity to introduce their ideas and visions to a professional audience.

Broad industry support
A project as comprehensive as the Micro Factory requires many strong partners. The companies “on board” here include: Assyst/Germany (3D simulation for digital apparel twins), Mitwill Textiles Europe/France (creative design network), D.G.I. Digital Graphics Incorporation/South Korea, Multi-Plot Europe/Germany (large-format textile printing), LEONHARD KURZ Stiftung/Germany, Zünd/Switzerland (digital cutting), robotfactory/Denmark, Asco/The Netherlands (presenting an innovative buffer solution between digital printing and cutting, automated sorting of cut parts from the cutter by robotfactory) as well as Brother/Japan (for small-format textile printing and bonding technology). Vaude and berger textiles will be sponsoring the touchpoint. Another key partner is the Albstadt-Sigmaringen University that is supporting the project as a conceptual sponsor and which has set itself the clear mission to incorporate these new topics into its curriculum. This means the staff of the future will be geared up to the new challenges ahead.

Another partner of touchpoint textile is the European Specialist Printing Manufacturers Association (ESMA), which is responsible for the lecture programme. ESMA represents industrial, functional and specialist printing and acts as an organiser of educational events in the field of textile printing. At drupa speakers from research, development, and industry will address issues related to printing and finishing techniques, workflows, market developments and sustainability, to name but a few. The focus will also be on trends and applications that unlock ever new potential through the interplay of digital printing and textile printing substrates. The lectures are divided into the categories Research, Finishing, Print Systems & Hardware, Substrates, Inks & Chemistry and Software & Electronics. Assyst, for example, will deliver talks on the virtual development of apparel as well as the research project ECOShoring, which is funded by the “Deutsche Bundesstiftung Umwelt” – DBU (German Federal Environmental Foundation) and focuses on personalised and on-demand sustainable manufacturing. Other speakers represent Adobe, Balta Group, Barbieri Electronic, Brother, Centexbel, CST, DITF, Fujifilm Speciality Ink Systems, HS Albsig, Kornit Digital, Meteor Inkjet, Mimaki, Mitwill, Multiplot, Print-Rite, RWTH Aachen, Seiko Instruments, Tiger Coatings, Xaar, Zünd and the list is updated on regular basis.

drupa will be held at the Düsseldorf Exhibition Centre from 28 May to 7 June 2024.

The demand for water in Germany is increasing and used water is not being utilized sufficiently. Graywater in particular, i.e. wastewater from showers, bathtubs and washbasins, offers great potential for further use. It can be brought to service water quality on site and reused for flushing toilets or watering gardens, for example. Thanks to flexible 3D textiles, it can even be used in almost any building to save space.

Around 50 to 80 percent of all domestic wastewater is graywater. Until now, large containers and tanks have been needed to reprocess it and return it to the cycle, taking up a lot of space in the building. The German Institutes of Textile and Fiber Research Denkendorf (DITF) and their project partner ARIS have developed a biological, textile-based system.

It is based on a 3D spacer fabric made of highly durable polypropylene. Its advantage is that it can be installed flat and is therefore extremely space-saving. Thanks to its special system geometry, it can be installed in places that would otherwise remain unused - for example in a new building under the floor of an underground garage, on a flat roof or in the garden. It can be modularly adapted to the water requirements and structural conditions in the respective buildings. "Even vertical solutions on facades are conceivable," explains DITF scientist Jamal Sarsour. This means that the graywater treatment system could be used in densely built-up cities in particular.

The system developed by the project partners requires little maintenance and is therefore particularly cost-effective. Compared to previous solutions, it is characterized by a long lifespan. It therefore contributes to sustainable water use and makes a valuable contribution to the circular economy.

ARIS plans to launch the new textile-based graywater treatment system on the market in 2024.

The project will be presented on June 13, 2024 at the SME Innovation Day of the Federal Ministry for Economic Affairs and Climate Protection in Berlin.

The research project with the number 16KN080829 of AiF Projekt GmbH, Berlin, was funded by the Federal Ministry of Economics and Climate Protection as part of the Central Innovation Program for SMEs (ZIM) on the basis of a resolution of the German Bundestag.

adidas introduces its 15-piece SS24 Paris Collection ahead of the 2024 clay season. Built to help players adapt to clay court conditions, the collection includes a core 8-piece range of apparel and footwear to help raise awareness of adidas’ annual Move For The Planet activation.

Designed to be played in seasonably warm Parisian temperatures, the collection features HEAT.RDY technology – breathable and lightweight fabrics that maximize airflow, to help keep players feel comfortable on court. Meanwhile increased mobility is unlocked thanks to adidas’ FreeLift Construction – a paneled fabric structure under the armpits – that enables greater freedom of arm movement during play while preventing the hems from riding up.

The pieces have been intentionally paired back, using zero prints to allow other bolder design features to make maximum impact, through striking color blocking, engineered paneling and textured fabrics. White and black panels on the garments emulate classic tennis court lines, highlighted by black bonding seams, meanwhile a stimulating Orange ‘Spark’ is used throughout to foster a sense of joyful energy for players during high-pressure games.

The collection will be worn by athletes including Caroline Wozniacki , Elina Svitolina, Xinyu Wang, Dana Mathewson, Jessica Pegula, Maria Sakkari, Stefanos Tsitsipas , Felix Auger Aliassime, Jason Wu and Martin de la Puente.

Global apparel retailer UNIQLO announces that it has signed a partnership agreement with the Singapore National Paralympic Council (SNPC) where UNIQLO becomes the Official Clothing Partner for the Singapore Paralympics team. Under the partnership, UNIQLO will provide LifeWear apparel to Singapore's delegations and officials at the coming major summer sports tournament in France. This comprises apparel to be worn for the opening and closing ceremonies, athlete village, and travel during the Games.

This is the first time that UNIQLO is providing apparel for a national team in Southeast Asia. The Singapore team clothing for the 2024 Summer games will largely comprise LifeWear items available at UNIQLO stores.

UNIQLO worked closely with SNPC to thoughtfully curate a selection of LifeWear apparel that emphasises function and comfort, while featuring modern looks that represent Singapore and blend seamlessly with the cityscape of Paris.

A red accent is applied to the accessories and lining as a tribute to the Singapore national colours. Touches of Singapore icons such as the orchid and the Singapore Lion Head symbol are reflected in the women's scarf and men's tie alongside a colour application of red, white and blue to represent Singapore and France.

UNIQLO'S commitment to diversity and inclusion
As part of the partnership, UNIQLO will also undertake community contribution activities with the council and athletes.

UNIQLO will be taking part in the inaugural Singapore Paralympic Fiesta to support Singapore's Para Athletes. Held at Our Tampines Hub from 4 - 7 May 2024, a UNIQLO Singapore team of over 100 staff and family will be participating in the Walkathon.

In line with UNIQLO's Next Generation Development Program, an initiative to inspire children and youth to discover a love of sport, UNIQLO will also join SNPC on their schools outreach efforts to raise awareness on Diversity and Inclusion and disability inclusion with programmes such as UNIQLO Access.

CARBIOS and Hündgen Entsorgungs GmbH & Co. KG (Hündgen), a waste management expert in logistics, sorting services and the recycling of recyclable materials from waste mixtures, announce the signing of a non-binding Memorandum of Understanding relating to the sourcing, preparation and recycling of 15kt/year of post-consumer PET waste using CARBIOS’ biorecycling technology at its first commercial plant in Longlaville, from end 2026.

The partnership will leverage Hündgen’s expertise and network in the sourcing and preparation of light packaging waste collected from German households. This PET waste will be prepared into flakes ready for biorecycling using CARBIOS’ enzymatic depolymerization technology, which produces food-grade PTA and MEG, further re-polymerized into PET.

The supply partnership with Hündgen contributes to securing the majority of CARBIOS’ feedstock needs for its first commercial plant in Longlaville, France. This plant will have a 50kt/year capacity when it will be fully operational and is currently under construction. This latest sourcing announcement comes in addition to previously announced agreements, such as with Landbell Group for food trays from Germany, and the winning CITEO tender for trays in France. The location of the Longlaville plant is strategically close to nearby waste supplies in Belgium, Germany and Luxembourg.

Through its enzymatic depolymerization process, CARBIOS can process all types of PET waste, including waste that cannot be recycled with current technologies. Multilayered, colored, and opaque packaging waste as well as polyester textile waste now have circular recycling solutions.

Major developments:

• Currency-neutral sales up 8% driven by growth in all regions except North America
• Double-digit DTC growth reflects strong adidas sell-through
• Gross margin improves 6.4pp to 51.2%, reflecting healthier inventory levels, reduced discounting, lower sourcing costs and a more favorable business mix
• Operating profit of € 336 million compared to € 60 million in the prior-year period
• Inventories down more than € 1.2 billion versus the prior year to € 4.4 billion
• Top- and bottom-line guidance upgraded on April 16 due to successful start to the year

Full-year outlook
adidas expects revenues to increase at a mid- to high-single-digit rate in 2024
On April 16, adidas upgraded its full-year financial guidance as a result of the better-than-expected performance in the first quarter. adidas now expects currency-neutral revenues to increase at a mid- to high-single-digit rate in 2024 (previously: increase at a mid-single-digit rate). Within this guidance, it is assumed that the remaining Yeezy inventory will be sold on average at cost, resulting in sales of around € 200 million throughout the remainder of the year. This corresponds to a projected total amount of Yeezy-related sales of around € 350 million in FY 2024 (previously: around € 250 million), of which around € 150 million were generated in the first quarter. For its underlying business, adidas remains focused on scaling its successful franchises, introducing new ones, and leveraging its significantly better, broader, and deeper product range. Improved retailer relationships, more impactful marketing initiatives, and the company’s activities around major sports events are also expected to contribute to sales increases throughout 2024.

Outlook impacted by significant currency headwinds
Unfavorable currency effects are projected to weigh significantly on the company’s profitability in 2024. They are expected to continue to adversely impact both reported revenues and the gross margin development in the remainder of the year.

Operating profit of around € 700 million projected
Following the better-than-expected performance in the first quarter, the company also increased its full-year profit guidance on April 16. The company’s operating profit is now expected to reach a level of around € 700 million (previously: to reach a level of around € 500 million). The improved bottom-line guidance includes a contribution of around € 50 million from Yeezy (previously: no Yeezy contribution) related to the drop in Q1. The sale of the remaining Yeezy inventory is assumed to result in no further profit contribution during the remainder of the year.

Lectra’s Annual Shareholders’ Meeting held on April 26 appointed a new Director, Jérôme Viala, for a four-year term. He becomes member of the Audit Committee, the Strategic Committee and the Compensation Committee.

For the 2023-2025 period, Lectra aims to harness its transformation to accelerate its growth, significantly increase the share of SaaS solutions in its sales, and seize opportunities for external expansion. Supported by the commitment of its employees and recognized by its customers, the Group is at the forefront of a more sustainable future.

Jérôme Viala has held various positions within the Lectra Group since 1985. In recent years, and until his retirement on March 31, 2024, he served as Executive Vice President, Vice Chairman of the Executive Committee and Secretary to the Board of Directors of Lectra.

Jérôme Viala began his career as a credit analyst at Esso (France) before joining Lectra's financial department in 1985. He held the positions of Financial Controller for Europe and North America (1988-1991) and Finance Director of Lectra France (1992-1993), then of the products division (1993-1994). He was then appointed Chief Financial Officer of the Group in 1994, a position he held until 2016, when he was appointed Executive Vice President.