From the Sector

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.

As part of the 12-piece collection, adidas introduces the SST Jacket – for men and women – as well as the Avacourt in a refreshed look. Both pieces share a bold blue hue – synonymous with the outfit that Billie Jean King wore in the Battle of the Sexes match – which is applied throughout the collection as a consistent design story.

The SST Jacket is inspired by the classic adidas tennis tracksuits from the era when Billie Jean King was at the height of her career, changing tennis on and off the court for years to come.

The Avacourt, having originally launched in 2022, is created and engineered to best support women when playing tennis – featuring a women’s specific last, increased torsion, softer materials and a midfoot support saddle. Updates for the 2023 season bridge today’s silhouette with the one worn by Billie Jean King 50 years ago – which was adidas’ first ever signature tennis shoe for women – via its color story, as well as key material updates. The suede leather tongue has a retro feel and soft premium touch, with the toe guard made from a synthetic suede finishing. Adding to the comfort, the heel collar is lined with terry cloth – a fabric synonymous with the era.

Other key pieces in the collection include the Tennis Modular Leotard AEROREADY Pro with detachable skirt, the Tennis Transformative AEROREADY Dress Pro that evolves into two different styles, and the Tennis Reversible AEROREADY Match Skirt Pro with Tennis HEAT.RDY Short Tight Pro layered underneath. For men, key pieces include the Tennis HEAT.RDY Freelift Polo Shirt Pro, the Tennis Reversible AEROREADY Freelift T-Shirt Pro and the Tennis AEROREADY 2 IN 1 Short Pro.

• 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.

• Green Fashion community increasingly ‘thinking out of the box’

Networking and agility are in greater demand than ever – that was the conclusion at the close of the 52nd INNATEX which took place from 29 to 31 July 2023. 244 Green Fashion labels presented their collections to 1500 visitors at the international trade fair for sustainable textiles. Audience figures thus matched the level at the previous summer edition of the fair in 2022. With 244 brands, INNATEX again delivered remarkable variety, with many new exhibitors and fresh looks.

“We're pleased that our figures are remaining constant,” says Jens Frey, Managing Director of trade fair organiser MUVEO GmbH. “Undeniably, sustainable brands and the retail trade are currently living through a long period of challenges. But from our point of view, the Green Fashion sector is responding with extraordinary willpower and perseverance. Why? Out of a sense of conviction and because sustainability is the future.”

Future-related topics were also the subject of panel talks and personal discussions at various points. A key aspect was the urgent need for cooperation agreements and networks to open up new sales channels and fields of activity. Experts at the fair also recommended an honest review of business strategies that may have outlived their usefulness. As Dr Eva Stüber of Cologne’s Institute for Retail Studies (IFH Köln) points out, “The pandemic, the war of aggression, inflation, digitalisation – there are many factors prompting a change in lifestyles and demands. What is required now is creativity. Brands and retailers can exploit new potential by, for example, checking their ranges for market relevance, being sharper in their targeting, making shopping a social event, joining up with people from entirely different areas and not immediately rejecting apparently mad ideas.”

From August 20^th to 21^st, 2023, the INNATEX Showroom will take place in Bern.

The 53^rd INNATEX fair will be held from January 20^th to January 22^nd, 2024.

PrimaLoft, Inc., a leader in advanced material technology, is expanding its  Active Insulation Range by adding four new Active Evolve styles, reaffirming its commitment to providing cutting-edge solutions that meet the evolving needs of consumers.

Originally launched in 2018, PrimaLoft Active Evolve is a line of insulating fabrics that is designed to evolve performance, design, and sustainability. Combining the lightweight warmth of insulation with the breathability of fabric, this technology is developed to perform in a wide range of activities, regardless of intensity or season. From pushing yourself during a cross country ski tour, to working up a sweat hiking to the next peak, PrimaLoft Active Evolve keeps you in your comfort zone – even when you’re pushing yourself out of it.

Several products in the Active Evolve line can be used as a next-to-skin fabric. This enables brands to forego liner fabrics, which means heat and moisture are more efficiently managed, breathability is supported, and user comfort is maintained. In addition to achieving optimal performance during aerobic activity, this yields a wider utility and year-round use, all while allowing brands to use less overall material when designing a garment, reducing footprint and waste.

PrimaLoft Active Evolve offers several advantages to designers. It enables them to utilize the full spectrum of color, incorporate unique patterns, and provides greater flexibility in fabric selection. Additionally, Active Evolve eliminates the need for quilting in the design process. Products within the Active Evolve line are made from up to 100% post-consumer recycled content, including three of the four new styles.

With more than a dozen brand adoptions thus far, PrimaLoft Active Evolve’s adaptability for the user, range of use across activities, and seasonal timing, is quickly making this one of the most versatile products in the PrimaLoft portfolio. For Fall/Winter 2023-2024, key partner brands beside Sitka and Löffler will include CP Company, Eddie Bauer, Endura, Martini Sportswear, OMM, Quiksilver, Ziener and more.

Three strong women, each different from the other, but who have managed to leave their mark on the history and evolution of the female role, and despite living in different eras, have left an indelible mark on society: Madame De Pompadour, nicknamed Reinette, the favourite of King Louis XV, Luisa Amman, called Corè by the great poet Gabriele D'Annunzio, and the iconic Vivienne Westwood, Miss Viv.
The three women are the FOREVER ICONS chosen and celebrated Iluna, where each woman becomes the protagonist of a “traveling exhibition” that will accompany Iluna between events and fairs.

Reinette
The nickname "Reinette" belonged to Madame De Pompadour, the favourite of King Louis XV. She had a significant influence in politics, arts, and fashion, shaping the style of the first half of the 18th century. Beauty and grace are represented in a floral theme, featuring small romantic details that become opulent with the use of lurex and golden cords. The color palette is soft, muted, and powderyry.

Corè
Luisa Amman, born in the late 19th century into a wealthy bourgeois family, married at a young age and became Marchesa Casati. "Corè" is the endearing nickname given to her by her lover Gabriele D'Annunzio, inspired by Kore, the Queen of the Underworld. She was a patron of the arts, an eccentric and transgressive collector. This theme celebrates opulence, from peacock feathers to Liberty-style designs in deep colours and warm metallic glimmers. An innovative proposal for the theme is the pleating technique, achieved directly in the weaving process of the Ultralight jacquardtronic laces.

Miss Viv
Vivienne Westwood, an extraordinary protagonist with an intense and irreverent life. Her insights have forever marked fashion and transformed the general standards of dressing. Rock and rebellious, she drew inspiration from street trends, anticipating avant-garde movements. In the 1990s, she brought back Tartan, mixing it with sensual roses in a maximalism that went against the prevailing trends, featuring vibrant colours. At the beginning of the third millennium, she grasped the importance of preserving the planet and left us with a motto that is more urgent and relevant than ever: "Buy Less, Choose Well, Make it Last." Within this theme, there is a new GRS-certified print that saves water, applied to ultra-fine Lurex nets, which are also certified.

In the printing industry, direct-to-film technology is having a transformative impact on the apparel decoration space. It provides a simple and affordable garment printing process that facilitates vibrant, dynamic, full-colour designs with a durable print. It opens up opportunities for digital print service providers (PSPs) to expand their product offerings in the textile industry, their network of potential customers and expand the range of fabrics they can print on.

Direct-to-film vs. Screen Printing
Direct-to-film printing is the process of digitally printing directly onto a special transfer film sheet. The printed film is subsequently sprinkled with a hot-melt powder and heated. Once the transfer sheet is cured and dried, it can be heat-pressed onto a variety of fabrics to create premium transferred designs for customised merchandising, sportswear, and an array of other promotional applications for the textile market. Compared with traditional screen printing, the plate creation required for that process is far too time-consuming. Not only this, but it does not match direct-to-film’s ability to produce vivid colours and quality details such as shapes, lettering, and motifs often sought after in the promotional and merchandising space for bespoke textiles.

The Mimaki TxF150-75
Mimaki’s first direct-to-film inkjet printer is the TxF150-75, a fitting extension to the 150 series, with a maximum printing width of 80cm. Offering a stable printing plotter, the model’s built-in ink circulation system and degassed ink pack are resolutions to common direct-to-film challenges such as poor ink ejection and white ink clogging. The new printer also includes core Mimaki features including NCU (Nozzle Check Unit) and NRS (Nozzle Recovery System) for stable, uninterrupted print production. Operating in harmony with the textile printer itself is Mimaki’s ECO PASSPORT by OEKO-TEX® certified water-based pigment textile inks, formulated especially for the TxF150-75. Coupled with Mimaki’s RasterLink7 RIP software, users are offered end-to-end oversight and efficiency from creative design to final product.

In addition, and in line with Mimaki’s collaborative approach to meeting customer needs, Adkins has developed an 80cm wide powder shaker cure unit to complete this ‘A brand’ direct-to-film printing solution. By offering the printer and post-processing unit at 80cm wide, customers can print larger garments with less waste and quicker production times, making the process much more cost effective.

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

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

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

adidas unveils its new campaign to celebrate the FIFA Women’s World Cup Australia & New Zealand 2023™. The campaign is dedicated to next gen icons Alessia Russo, Lena Oberdorf and Mary Fowler and looks to drive more global attention for the game and inspire other young women and girls to follow in their footsteps.

Marking adidas’ most impactful Women’s World Cup campaign to date, the brand unites its global family of football legends and advocates of the women’s game. Headlined by a series of fast-paced films, the campaign welcomes a star-studded line up of David Beckham, Leon Goretzka and Ian Wright, actor and football fan, Jenna Ortega, as well as Argentina’s World Cup hero, Lionel Messi. They come together to celebrate the skills that Russo, Oberdorf and Fowler are renowned for, from vision and interception to power, creativity and accuracy.

The films are part of a new creative proposition from adidas for the upcoming tournament. ‘Play Until They Can’t Look Away’ aims to platform and showcase some of the world’s greatest football players on the biggest stage – whose skills and passion for the game demand global attention and support.

Set against the soundtrack of SL2’s iconic song, On a Ragga Tip, fans see World Cup winner, Lionel Messi, alongside Mary Fowler, guiding both viewers and Jenna Ortega across the world to Fowler’s home country of Australia , with preparations for the biggest women's sporting moment underway.

Meanwhile, David Beckham and Ian Wright, alongside his granddaughter, Women’s Arsenal FC player, Raphaella Wright-Phillips, are unable to look away in a supermarket as Russo spectacularly weaves her way through the narrow aisles, in her own creative fashion. Finally, Goretzka is expertly interrupted while bowling as Oberdorf whizzes around an arcade, powerfully intercepting balls in each scene to achieve a high score of her own.

Paying respect to those who have gone before, the films are also filled with subtle references to memorable moments that football super fans will revel in, including shirt numbers, iconic tournament balls, plus much more.

Archroma is bringing the entire portfolio of 5,760 Archroma Color Atlas colors to swatchbook, a platform for material digitalization and sourcing.

The new partnership provides fashion, apparel and textile designers and manufacturers with an elevated standard for color accuracy that meets the needs of today’s increasingly technology-driven and integrated supply chain. This will help the textile and fashion community to improve sustainability, whilst lowering costs and shortening turnaround times.

The Color Atlas by Archroma® was launched in 2016 to provide fashion designers and stylists with off-the-shelf color inspiration that can be implemented in production with just a few clicks.

Designers will use the 5,760 Archroma Color Atlas colors on swatchbook to rapidly develop accurate digital colorways and visualize their final product. They can then share these digital swatches with their manufacturing partners, providing access to the swatchbook metadata, which can include information such as the materials’ composition, weight and color.

This will streamline the overall design and production process for color-critical fashion and textile products, allowing for faster turnaround. Digital materials supported by trusted coloration technology also reduce the need for samples and eliminate physical swatchbooks, bringing environmental benefits and lower costs to brands and suppliers.

All 5,760 Color Atlas by Archroma® colors are now available free of charge to subscribers on the swatchbook platform.