From the Sector

Radilon® Chill-fit is the new solution to maximise the breathability and freshness that a fabric can offer. The highly functional nylon yarn is capable of ensuring an intrinsic and permanent thermoregulation without the need for additional treatments while offering high protection against UV rays. Visitors will be able to touch and feel the yarn for the first time at the autumn edition of Performance Days, the reference trade fair for trends and innovations in yarn, fabric and accessories, to be held in Munich (Germany) on 4 and 5 October.

Radilon® Chill-fit’s high breathability allows air and moisture to pass through quickly, keeping the wearer fresh and comfortable: a result also proven by a specific test on body temperature changes (thermocamera test) comparing a garment made with traditional yarn and one made with Chill-fit.

ITM Exhibitions will open its doors to host "ITM 2024 International Textile Machinery Exhibition" from June 4-8, 2024. Preparations are in full swing for the organization, where textile technology leaders will bring the latest products together with their visitors for the first time.

The ITM team focused on advertising and promotional activities in order to host thousands of visitors and sector investors from all over the world at the ITM 2024 Exhibition, which halls were almost full due to intense participation demands. In this context; 'ITM 2024 Video', which tells the story of the increasing success of ITM exhibitions over the years and which is eagerly awaited by the whole sector, has recently been published. The video, which was published in Turkish and English on social media accounts such as YouTube, LinkedIn, Instagram, Twitter and Facebook, was viewed by more than 30 thousand people in total and received great appreciation from the viewers.

“Discover the Future!” in the video prepared with the main theme “Discover innovations, technologies, the future...” and including clues about the ITM 2024 Exhibition, was revealed as follows:
The textile sector is among the souls of the economy with its production capacity, export volume, and contribution to employment. Many R&D centers around the world and in Turkey are breaking new ground by taking their work and innovations one step further every day. Textile technology leaders are developing technologies that consume less water and energy, are easy to use, are software and automation supported, keep up with trends and respect the environment while doing so. Industry stakeholders, especially textile manufacturers, are now curious about the answer to this question: 'What will be the future of the textile industry, which is digitalizing, complying with sustainability principles, and signing groundbreaking innovations? This question will be answered at ITM 2024, which will host the latest innovations, technologies, artificial intelligence-supported machines, software and design excellence devices in textile machinery.

INDA, the Association of the Nonwoven Fabrics Industry, is partnering with the Waterloo Filtration Institute to deliver the FiltXPO™ technical program on October 10-11, 2023 in Chicago, Illinois. The Waterloo Filtration Institute was instrumental in recommending program topics and world-class presenters.

Engineers, scientists, and industry professionals will gain the latest insights into the filtration and separation topics affecting the industry today and into the future. The program features presentations include: filter media technologies, advancements and opportunities in filtration machinery and equipment, innovations in clean air for homes and urban areas, standards and testing, industry trends and new developments, and filtration challenges and opportunities.

The keynote for this year’s event is “IAQ Is the New Black” presented by Suzanne Shelton, President & CEO, Shelton Group. Shelton will share the latest data around consumer views on health, safety, people, and the planet. Participants will gain an understanding of the filtration opportunities and the challenges manufacturers face in communicating the value of their products.

A preview of the subject matter experts includes:

• AAF Flanders – “Air Filter Standards Activity and What It Means for Innovation”
• Ahlstrom – “Expanding Wetlaid Filtration Media Performance Through Innovation”
• Air Techniques International – “Application of Automated Filter Tester in Quality Control Testing: Importance of Consistent Aerosol Particle Size Distribution”
• American Truetzschler, Inc. – “How Really Good Filter Media Is Made”
• CEREX Advanced Fabrics – “The Antimicrobial Nylon Advantage”
• Elsner Engineering Works, Inc. – “When Does Automation Make Sense”
• Hollingsworth & Vose – “Accelerating Membrane Adoption with ROI”
• INDA – “Beyond Porter’s Five Forces – When Regulation Reshapes Markets”
• MANN+HUMMEL GmbH – “Filtration for Cleaner Urban Mobility – Introducing Horizon Europe Innovation Action Aersolfd”
• NatureWorks – “Optimizing Biopolymers to Improve Filter Performance – A Spectrum of Approaches and Opportunities”
• Palas GmbH – “Influence of Temperature and Humidity to Filter Efficiency and Dust Holding Capacity”
• Ptak Consulting – “Residential Filtration – Performance Against Infectious Aerosols”
• The University of Georgia – “Recent Advances in Melt Blown Nonwovens and Filter Media Research”

New this year to FiltXPO are Lightning Talks. Lightning Talks are an opportunity to connect with new trends, products, innovations, and ideas with speakers rotating every eight minutes. Presenting companies include Ahlstrom, Elsner Engineering Works, Inc., Gottlieb Binder GmbH, TSI, and the Waterloo Filtration Institute.

The FiltXPO exhibition takes place October 10-12 and will run concurrently with the technical program.

Source Home & Gift came to a successful conclusion after four days of innovation, networking, and collaboration. The global showcase provided a hub for manufacturers, designers, buyers, and distributors to engage in meaningful conversations, explore emerging trends, establish invaluable business connections, and foster global trade relationships.

From the 3rd - 6th September, the second edition of Source Home & Gift which has tripled in size since its inaugural show in February, brought together brands and retailers including Oh Deer, Sainsburys, Dunelm, Haskins Garden Centre, Indico, Blue Diamond, Funky Pigeon, M&M, Matalan, Disney, Morrisons, M&S, Next, Costcutter, AIS, Alzheimers Society, Amazon, B&Q, Card Factory, Ridleys Games, and more.

Hundreds of accredited manufacturers, producers, and artisans from 14 countries including Bangladesh, China, Germany, Ghana, Hong Kong, India, Nepal, Pakistan, Palestine, Philippines, Sri Lanka, Uganda, UK, Uzbekistan, and the first dedicated Egyptian Pavilion organised by Egypt Expo & Convention Authority (EECA) told their stories and showcased their products and manufacturing capabilities across product categories including homewares, furniture, gifts, stationery and greetings, toys, textiles, household and pet supplies, and packaging.

The next show takes place on the 4th – 7th February 2024.

As global business activities pick up towards the back end of the year, Intertextile Shanghai Home Textiles – Autumn Edition 2023 closed its doors last week, ending a successful three days of trade at the National Exhibition and Convention Center (Shanghai). From 16 – 18 August 2023, 1,034 exhibitors (up 38.1%) from 13 countries and regions crossed paths with over 32,000 visitors (up 59.2%) from 96 countries and regions, more than 10% of which were overseas buyers. In a further testament to this edition’s internationality, new exhibitor countries and regions represented were Indonesia, Portugal, Taiwan (China), Turkey, and the US. With buyers able to source products covering the whole home textile value chain, and a fringe programme that transcended the norm, the international platform has once again marked its importance at bridging trade and communication within the industry and across sectors, circulating trade benefits to every edge of the globe.

As the country perhaps most well-known for its immense market and prolific manufacturing hubs, for the past several decades China has been a desirable business destination for international traders. In a positive step in March, the government relaxed pandemic control measures, enabling a return to cross-border, in-person business activities. This led to a strong increase of international exhibitors and buyers at the recently concluded fair, with visitors flying in from as far away as Africa, Europe, and South America. In addition, three country and region pavilions, from Belgium, Taiwan (China), and Türkiye, added some location-specific internationality to proceedings in Shanghai, and were well-received by fairgoers.

Speaking at the show’s curtain call, Ms Wilmet Shea, General Manager of Messe Frankfurt (HK) Ltd, said: “With China’s doors widely opened to the world again, we were pleased to welcome so many new and returning international participants to the fairground over the past three days. Across the four halls, not only was the visitor flow strong, but the booths were busy and business interactions were high. The increase in overseas exhibitors, and the return of several country and region pavilions, has meant even more diversified sourcing options for our devoted buyers from home and abroad. After overcoming some global turbulence, we have strengthened this bridge to help industry players reconnect, and redirect themselves towards the new, post-pandemic era.”

Cross-sector collaboration a key highlight of the fringe programme
Enhancing the constant buzz on the show floor, the fair’s concurrently held fringe events saw upstream and downstream suppliers, industry insiders, and even inter-industry guests share some pertinent insights and innovations. This year, a series of mixed events delved into topics related to interior design trends, sustainability, new technologies, globalised and localised designs, health and wellness, and many more. One highlight was the International Intertextile Trend Forum 2023 – 2024, which illustrated the most in-vogue home designs for the upcoming season. More specific inspiration was provided by leading Japanese furniture brand IKASAS, whose exclusive seminar and display area showcased fresh home textile applications for furniture. Finally, a cross-sector conference hosted by the CRECC Full Decoration Council invited experts from both the real estate and furnishing sectors to help attendees broaden their business possibilities.

The 2024 Intertextile Shanghai Home Textiles – Spring Edition will take place from 6 – 8 March, while the Autumn Edition is scheduled for 14 – 16 August 2024. The fair is organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA).

Baldwin Technology Co. Inc. has launched PrintEnomic$, a new online resource of specialized eBooks and resources for corrugated, narrow web and sheet-fed and web offset printers at PrintEnomics.com.

The collection of Baldwin videos, podcasts and instructional guides are available for free and without firewalls to help maximize printer profitability. The eBooks analyze trends, issues, and technology options specific to printers in all three categories.

More than 5,000 print industry professionals have already downloaded or viewed earlier, limited-release eBooks “Untangling the Web” for narrow web and “From Beast to Beauty” for corrugated. The addition of “Video Didn't Kill the Radio Star. And Digital Didn't Kill Print” for sheet-fed and web offset printers completes the comprehensive PrintEnomic$ portfolio.
 
Through interviews with customers, industry insiders, in-house engineers – and reviews of the latest reporting – the eBooks explore pressing topics including sustainability, labor challenges, counterfeiting, and brand protection.

From 16 – 18 August 2023, 1,022 exhibitors from 13 countries and regions will occupy four halls and 100,000 sqm gross at the National Exhibition and Convention Center (Shanghai). This Autumn Edition of Intertextile Shanghai Home Textiles will return to its regular format, as a comprehensive platform held separately from Messe Frankfurt’s other autumn textile fairs. Complementing the strong lineup of exhibitors over all three days, a varied selection of fringe events will communicate key insights, offer industry specific inspiration, and facilitate cross-sector exchanges for fairgoers.

Buyers from 66 countries and regions have already pre-registered for the show, while a range of international brands are preparing to showcase their latest innovations. Multiple exhibitors will gather according to origin, with three country and region pavilions a must-see for fairgoers seeking exotic home textiles:

• Belgium Pavilion: products on show include bedding fabrics and sets, curtains and curtain fabrics, sofa covers, upholstery, and much more. With the pavilion set to feature a number of Belgian brands, its highlighted exhibitors are Libeco and Love Home Fabrics.
• Taiwan (China) Pavilion: multiple Taiwanese exhibitors, including JWL Fabrics Co Ltd, Maxland Home Textile Industrial Co Ltd, and Vanttex International Co Ltd, will demonstrate specific examples of the varied applications of their home textiles.
• Türkiye Pavilion: organised by Uludag Textile Exporters’ Association (UTIB), the pavilion will showcase a range of curtains, upholstery fabrics, and other home textiles, from suppliers such as Aleran Tekstil Inşaat Gida Sanayi Ve Ticaret Ltd Şti, Küçükçalik Tekstil San Ve Tic A Ş and Weavers Tekstil San Ve Tic A Ş.

Beyond the pavilions, buyers can easily locate their desired home and contract textiles via conveniently placed product zones, covering categories such as curtain and curtain fabrics; sun protection and window shades; upholstery and sofa fabrics; furniture leather; bedding and editors; loungewear and bath; and rugs. Wide-ranging suppliers from China and beyond will showcase their various products, featuring international exhibitors such as Elastron – Leather & Fabrics, Morgan and PT Sinar Continental; and well-known domestic manufacturers including Hangzhou Aico Home Textile Co Ltd, Huatex International (Hangzhou) Co Ltd and Zhe Jiang Maya Fabric Co Ltd.

Fringe programme: keeping fairgoers up-to-date with range of industry developments
Business exchange at Intertextile Shanghai Home Textiles will once again be supplemented by multiple concurrent events, for home textile players to learn more about the latest industry innovations, as well as upcoming design trends. These include:

• International Intertextile Trend Forum 2023–2024: held in the afternoon of day one, the event will be hosted by a prominent member of the ‘2023 – 2024 Intertextile International Lifestyle Trend’ trend committee, Mr Shen Lei, joined on the panel by multiple designers. They will discuss various impacts on designs, such as sustainability’s effect, the influence of emerging technologies, and international integration and localised expression.
• IKASAS Japanese Home Design Gallery and themed seminar: the leading Japanese furniture brand IKASAS will utilise a display area to illustrate its unique design philosophy, by showcasing innovative furniture products that predominantly align with contemporary trends. The company’s founder, Mr Akiyuki Sasaki, will delve deeper into his design views in a seminar held on the morning of day one.
• The New Power of Healthy Home Decoration Environment: a first-time collaboration with CRECC Full Decoration Council, the cross-sector conference in Hall 5.1 on day two will welcome keynote speakers from the real estate industry, to discuss topical insights at the intersection of realty and home textiles. The audience will come away with a widened scope of the different applications and demands of home textiles, and an ability to more accurately identify business opportunities within the property market.

• 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.

• Revenues: 239.6 million euros (-4%)*
• EBITDA before non-recurring items: 35.3 million euros (-21%)*
• Net income: 13.9 million euros (-31%)
• Free cash flow before non-recurring items: 16.6 million euros (+13%)

Lectra’s Board of Directors, chaired by Daniel Harari, reviewed the consolidated financial statements for the first half of 2023, which have been subject to a limited review by the Statutory Auditors.

Comparisons between 2023 and 2022 are based on 2022 exchange rates unless otherwise stated (“like-for-like”). As the impact of the acquisition of TextileGenesis (see press release dated December 8, 2022) on the financial statements for 2023 is not material, like-for-like changes exclude only the variations in exchange rates.

Business Trends and Outlook
In its 2022 Annual Financial Report, published February 8, 2023, Lectra presented its new roadmap for 2023-2025. The Group also specified that 2023 remained unpredictable given the degraded macroeconomic and geopolitical environment, which lead to numerous uncertainties that could continue to weigh upon the investment decisions of its customers.

At the beginning of the year, the Group had set itself objectives of achieving, in 2023, revenues in the range of 522 to 576 million euros and EBITDA before non-recurring items in the range of 90 to 113 million euros.

Given the delay in orders for new systems in the first quarter, and poor visibility on new systems orders for subsequent quarters, the Group reported on April 27 that it now anticipated revenues in the range of 485 to 525 million euros (-5% to +3% at constant exchange rates relative to 2022) and EBITDA before non-recurring items in the range of 78 to 95 million euros (-15% to +3% at constant exchange rates relative to 2022). The Group also noted that despite limited visibility regarding new systems orders over the next few quarters, there is strong visibility regarding recurring revenues, which should enjoy substantial growth and account for 65% of total revenues in 2023. These revised scenarios had been prepared on the basis of the closing exchange rates on April 27, 2023, for the remaining nine months of the year, and particularly $1.10/€1.

The results of the second quarter support these revised objectives.

A 1-cent appreciation of the euro against the U.S. dollar in the second half of the year (at an exchange rate of $1.10/€1) would mechanically decrease revenues by approximately 1.0 million euros and EBITDA before non-recurring items by 0.45 million euros. On the contrary, a 1-cent fall in the euro against the dollar would mechanically raise revenues and EBITDA before non-recurring items by the same amounts.

Because the Group's customers operate in a highly competitive environment that demands they continue to improve performance, their investments will pick up as soon as the macroeconomic situation improves. Lectra's roadmap for 2023-2025, which was launched on January 1, 2023, will enable the Group to take full advantage of the upturn and accelerate its growth.

INDA, the Association of the Nonwoven Fabrics Industry, announced that registration and tabletop exhibit reservations are open for the ninth edition of Hygienix™, November 13-16, New Orleans, Louisiana. More than 450 absorbent hygiene and personal care professionals from around the world will gather for four days of networking, presentations, and business opportunities.
 
The theme for this year’s Hygienix is “Shaping the Future of Absorbent Hygiene.” The event will focus on the market’s continued growth with presentations on sustainability, technology advancements, disruptive small brands, and market data and trends. Hygienix will also offer a workshop on absorbent hygiene systems led by Jim Robinson, Absorbent Hygiene Insights, LLC, Monday, November 13^th. The full Hygienix program will be announced at a later date.
 
INDA is also introducing a new element for Hygienix – pre-conference webinars. Carlos Richer, Principal, Diaper Testing International, will present insights and trends in diaper design in the U.S. market and Heidi Beatty, CEO, Crown Abbey, LLC, will share her expertise in the absorbent hygiene sector.
 
More than 50 companies will showcase their innovations and technologies during the evening tabletop exhibits and receptions. Participants will be able to discuss their needs with technical leaders and source better solutions for their products, Nov. 14-15.
 
Nominations are being accepted through August 7th for the Hygienix Innovation Award™. Three finalists will be selected to present their absorbent hygiene products on Tuesday, November 14^th to hundreds of senior-level professionals. The winner of the Award will be announced at the end of the event, Thursday, November 1^6th.