US apparel giant Gap Inc. has partnered with Middle East luxury retailer Chalhoub Group to expand Gap, Banana Republic and Athleta across the Gulf Cooperation Council (GCC), with a phased omnichannel rollout beginning later this year.

The partnership will launch online stores across the UAE, Saudi Arabia and Kuwait during the second half of 2026, followed by physical store openings across the region in 2027. Gap said the agreement forms part of its long-term strategy to strengthen its presence in the Middle East through locally tailored retail experiences.

The companies noted that the collaboration intends to combine Gap Inc.'s global brand portfolio with Chalhoub Group's regional retail and omnichannel expertise to deliver localised customer experiences across the GCC.

In a statement, David Vercruysse, president of managed companies at Chalhoub Group, said the partnership would help strengthen the brands' regional presence.

He commented: "For our group, this collaboration represents an opportunity of great potential and long-term vision: to amplify the cultural presence of the Gap, Banana Republic and Athleta brands across the GCC, leveraging our deep understanding of the consumer and the region's cultural dynamics, together with our digital expertise and omnichannel capabilities."

Eric Chan, chief business and strategy officer at Gap Inc., added: "Gap Inc. was built on the idea of bringing modern American style to people everywhere, and this partnership with Chalhoub Group allows us to do that in one of the world's most dynamic and fast-growing retail regions."

US-based fashion group Capri Holdings Limited (Capri) has announced its financial results for the first quarter of fiscal 2027 ended June 27, 2026. The company reported a total revenue of 769 million dollars from continuing operations, representing a 3.5 percent decrease on a reported basis and a 4.1 percent decline in constant currency compared to the prior-year period.

The group recorded net income of 69 million dollars, or 0.60 dollars per diluted share, up from 56 million dollars, or 0.47 dollars per diluted share, in the previous year. On an adjusted basis, net income reached 76 million dollars, or 0.67 dollars per diluted share.

Capri chairman and chief executive officer John D. Idol stated: “We are encouraged by our first quarter results, which exceeded our expectations and demonstrated the progress we are making to build a stronger and more profitable business. Our strategic initiatives across both Michael Kors and Jimmy Choo are driving deeper consumer engagement through enhanced brand storytelling and compelling product innovation.”

Performance across portfolio brands

Brand performance across the corporate portfolio diverged during the first quarter:

Michael Kors: Revenue fell 7.1 percent on a reported basis, or 7.6 percent in constant currency, to 590 million dollars. Approximately 10 million dollars in revenue was attributable to earlier-than-anticipated wholesale shipments. Gross profit stood at 377 million dollars, with a gross margin expansion of 280 basis points to 63.9 percent, while operating income declined to 55 million dollars.

Jimmy Choo: Revenue rose 10.5 percent on a reported basis, or 9.3 percent in constant currency, to 179 million dollars. Operating income expanded to 13 million dollars, delivering an operating margin of 7.3 percent, up 480 basis points YoY, supported by revenue scale. Gross margin eased 170 basis points to 68.7 percent due to channel mix.

Gross profit for the quarter stood at 500 million dollars, yielding a gross margin of 65 percent, up 200 basis points from 63 percent in the year-ago period. The margin improvement was primarily driven by higher full-price sell-throughs and lower tariff rates relative to the first quarter of fiscal 2026.

Financial results reflect continuing operations following the disposition of Italian luxury label Versace. On April 10, 2025, Capri entered into an agreement with Italian fashion group Prada to sell its Versace business, with the transaction officially completed on December 2, 2025.

Capri updates guidance

Capri continued to optimize its balance sheet during the quarter. During the first quarter, the conglomerate deployed 50 million dollars to repurchase approximately 2.6 million ordinary shares. As of June 27, 2026, remaining availability under the existing share repurchase program stood at 871 million dollars.

For the full fiscal year 2027, Capri adjusted its top-line outlook while maintaining its profit targets:

Total revenue is now expected to reach approximately 3.4 billion dollars, adjusted downward due to inventory delays at Michael Kors, softer trends across Europe, the Middle East and Africa, hereafter referred to as EMEA, and currency fluctuations.

Full-year diluted earnings per share, which will henceforth be referred to as diluted EPS, is maintained at approximately 2.15 dollars.

Operating income for the full year is projected at approximately 170 million dollars.

Full-year brand revenue is expected to reach approximately 2.765 billion dollars for Michael Kors and 635 million dollars for Jimmy Choo.

For the second quarter of fiscal 2027, Capri expects total group revenue of approximately 780 million dollars, operating income of approximately 10 million dollars, and diluted EPS of approximately 0.20 dollars.

Madrid – Spanish department store company El Corte Inglés continued to make solid progress towards its goal of becoming a “Net Zero” company by 2050 during the 2025 financial year. This goal has been approached through a general reduction in its greenhouse gas emissions. The company also continued to enhance the role of its department stores as the beginning and end of a circular model for the textile and fashion industry.

This comes as FashionUnited recently highlighted how Re-Viste, the collective extended producer responsibility (EPR) system for the textile and footwear industries to which El Corte Inglés belongs, is implementing various agreements and initiatives. These aim to promote public awareness and participation in the collection and recovery of textile waste. In line with this, El Corte Inglés has decided to showcase its own measures for fostering a circular economy. During its last fiscal year of 2025, a series of actions were carried out across its different areas of activity. This was particularly notable within its food divisions and in relation to the collection of textile waste.

In this regard, El Corte Inglés highlights how the company, during its last financial year ending February 28, 2026, continued “advancing in its commitment to the environment and the circular economy through”; among other actions, “the progressive incorporation of ecodesign criteria throughout the entire life cycle of its products, from the manufacturing phase to their subsequent recycling or recovery”. These guidelines align with its objectives to “make efficient use of raw materials”, “adapt to the environmental frameworks of the European Green Deal”, and “provide responsible and accessible consumption options for its customers”. Among other achievements, these efforts led the company to reach “the milestone of having 100 percent of the packaging in its food areas” designed “to be recyclable, reusable or compostable”.

A +10 percent increase in textile waste collection

Focusing specifically on how the company is contributing to the fashion industry's transition towards a circular economy model, the El Corte Inglés 2025 Non-Financial Information Report, published last week, details these efforts. According to the report, the company strengthened the role of its department stores as the start and end point of this new model during its last fiscal year. This position was supported by its customers, who used the collection bins installed inside El Corte Inglés department stores to give a new life to over 635 tonnes of textile waste.

Breaking down this figure, during 2025, the various bins installed inside El Corte Inglés department stores collected a total of 635,718 kilograms of clothing. This is the first time the figure has surpassed 600 tonnes. The volume was mainly generated in Spain, where 630,916 kilograms of clothing and textiles were collected from the 73 collection bins—one more than in 2024. These bins are installed inside its department stores as part of the group's collaboration with the Moda Re- initiative; a social cooperative specialising in the treatment and management of textile waste, promoted by Cáritas Española.

Regarding the destination of this textile waste, which increased by approximately +9 percent year-over-year, the percentage of textiles directly reintroduced into the sector fell from 57 percent to 54 percent. In contrast to this drop, textiles sent for recycling to obtain new textile fibres increased from 32.6 percent to 35 percent; and those sent for “energy recovery” due to their inability to be upcycled also rose, from 10.4 percent to 12 percent.

In addition to the tonnes collected in its Spanish stores, El Corte Inglés launched a pilot project for textile waste collection in its Portuguese department stores during its last fiscal year. This circular economy initiative is being developed in collaboration with the University of Minho and the company To-Be-Green. Through this project, 4,802 kilograms of textiles have been collected at its Lisbon and Porto stores. This amount, added to the collection in Spain, brings the total clothing and textiles collected by El Corte Inglés in its stores during the last fiscal year to 635,718 kilograms. This represents a +10.25 percent increase compared to the 576,621 kilograms collected in 2024.

General decrease in greenhouse gas emissions

Beyond these actions supporting the development of a circular economy model, El Corte Inglés's main sustainability goal is to become a “Net Zero” company by 2050. To achieve this, the department store group and parent company of the Sfera fashion chain has a Net Zero Transition Plan for decarbonisation. This roadmap is part of its 2025-2030 Sustainability Master Plan, which was approved by its board of directors in January of last year.

Progressing on the milestones and objectives set by El Corte Inglés for the short, medium, and long term, the group completed the 2025 financial year with a general decrease in its greenhouse gas emissions. In this regard, a year-over-year drop was reported in Scope 1 emissions, which account for 2.2 percent of the group's total emissions, down to 74,811 tonnes of carbon dioxide equivalent (-9.2 percent); Scope 2 emissions, representing 3.2 percent of the company's emissions, fell to 366 tonnes (-97 percent); and Scope 3 emissions, which make up 94.6 percent of El Corte Inglés's total emissions, decreased to 3,248,376 tonnes (-1.9 percent).

Footwear specialist Manolo Blahnik is doubling down on its direct-to-consumer (DTC) strategy after wholesale challenges, particularly linked to Saks Global's bankruptcy, weighed on its 2025 financial performance.

According to WWD, the luxury footwear brand reported turnover of 83.5 million euros for the year ended 31 December 2025, down 3 percent year-on-year. DTC sales, however, rose 14 percent as the company continued to shift its focus towards owned retail and e-commerce channels.

The company posted a pre-tax loss of 1.6 million euros, citing one-off factors including unpaid debts and unshipped goods tied to the financial difficulties of a key US wholesale partner, identified by the media outlet as Saks Global. EBITDA also declined 36 percent to 5.4 million euros, reflecting investment in new store openings.

Despite the setback, the brand said DTC strength has continued into 2026, with the channel seeing double-digit growth during the first half of the year. The company also expects revenue from its major US wholesale partner to recover following the retailer's restructuring.

As part of its expansion strategy, Manolo Blahnik opened new boutiques in Miami, Milan and Costa Mesa during 2025, followed by Beijing in early 2026, while also launching e-commerce in China.

Speaking to WWD, the company’s CEO, Kristina Blahnik, said it had "delivered a year of real resilience and strategic progress", "remaining vigilant and agile to the external pressures on the wider industry".

She added: “We invested with purpose this year — opening beautiful new stores, bringing e-commerce to China and nurturing long-lasting partnerships. Turnover was impacted by one-off factors beyond our control, but beneath everything lies the enduring strength of a brand built over more than 55 years of craftsmanship and artistry. That strength, above all, comes from our people, whose talent, dedication and creativity are the heart of the brand, and who will continue to shape its future.”

John Lewis Partnership chair Jason Tarry has warned employees that trading conditions have worsened, with the retailer preparing for a period of "lower sales and higher costs".

The British retailer shared the update in an internal staff blog seen by the Financial Times, posted ahead of the group's half-year results due September 10. Tarry said the company was reviewing its plans in response to a more challenging environment, while maintaining a focus on protecting margins and managing stock levels instead of heavy discounting.

The comments follow the retailer's full-year results released in March, when department store John Lewis reported a 3 percent increase in sales to 4.9 billion pounds and a 13 million pound rise in adjusted operating profit to 58 million pounds. The wider group, including Waitrose, posted total sales of 13.4 billion pounds, despite a drop in statutory pre-tax results to a 21 million pound loss.

Since becoming chair in 2024, Tarry has pivoted the business' focus towards its core retail operations, with continued investment in John Lewis stores, including new beauty, sports and hospitality concepts.

Dutch circular denim brand Mud Jeans has been declared bankrupt. CEO Dion Vijgeboom announced this today in a statement on LinkedIn. Vijgeboom writes that the company filed for bankruptcy itself because its debt burden was too heavy. Vijgeboom has been the company's CEO since January.

"Today is one of the most difficult days in the history of Mud Jeans," the company writes. According to the statement, the team has worked hard in recent months to secure a sustainable future for the company. The financial burden of old debts ultimately proved to be too great. "This is not the end we fought for," says Mud Jeans.

Hope for a restart

Despite the bankruptcy, the company says it hopes the brand will continue to exist. "Mud Jeans is more than a company. It is an idea, a community and a blueprint for what the future of fashion can look like," the company writes. "We truly hope that this bankruptcy is not the final chapter. We prefer to see it as the beginning of a new chapter."

In the statement, the company thanks its employees; customers; retailers; suppliers; investors and partners for their support. Mud Jeans says it is proud of the role it has played in the circular fashion industry in recent years.

Circular denim

The brand was founded in 2012. It gained international recognition for its focus on circular denim. Mud Jeans was one of the first brands to use recycled cotton on a large scale. The brand also introduced a lease concept for jeans. It also offered repair and take-back programmes to keep products in the chain for longer.

Canadian athleisurewear giant Lululemon has been sued in California over allegations it used misleading reference pricing on products sold through its website.

According to Modern Retail, the lawsuit, filed in Los Angeles Superior Court by consumer Annette Cody, claims the activewear retailer displayed "fictitious regular prices" alongside discounted prices to create the appearance of larger savings.

Cody alleges she purchased a pair of Wunder Train High-Rise tights in April for 59 dollars, which were advertised with a struck-through price of 98 dollars, despite the product allegedly not having been sold at that price since October 2025. The complaint argues the move violated California's consumer protection laws, with Cody now seeking damages, restitution and injunctive relief.

The case comes amid similar cases scrutinising "phantom discount" pricing, and follows a lawsuit filed against Nike earlier this month that alleged the sportswear giant had inflated prices on discounted products sold through its direct-to-consumer channels.

Nike's allegations come against the sale of a pair of Nike Air Max 2017 sneakers, which were listed for various sale prices between September 8, 2025, and March 14, 2026, alongside an original price of 190 dollars. The filing specifically references California's False Advertising Law, which is said to have been violated as retailers are required to list the true market price of a the product within the past 90 days.

US apparel conglomerate Digital Brands Group, Inc. (DBG) has announced that it has formally initiated a review of strategic alternatives to explore options to maximize shareholder value. The Austin, Texas-based business operates a portfolio of lifestyle and luxury apparel labels, including Stateside, Sundry, Bailey 44, DSTLD, and AVO Studio.

As part of the evaluation process, the board of directors will consider a spectrum of potential options, which includes a complete sale of the business, a strategic merger, or alternative financial transactions.

DBG has not established a definitive timetable or deadline for the conclusion of the strategic review. The company cautioned that the initiation of the evaluation does not provide any assurance that the process will culminate in a transaction or any specific operational outcome.

To assist the company throughout the review process, DBG has retained investment banking firm Roth Capital Partners to serve as its financial advisor.

DBG specializes in managing digital-first fashion banners, combining direct-to-consumer (D2C) e-commerce channels with selective wholesale distribution networks to scale retail operations and build long-term brand equity.

In the second quarter of 2026, Safilo Group recorded net sales of 239.1 million euros (275.7 million dollars), down 4.5 percent at constant exchange rates. The gross industrial margin was 73.1 percent, up 11.5 percentage points from 61.6 percent. The adjusted EBITDA margin was 20.5 percent, up 9.4 percentage points from 11.1 percent in the same period last year. Free cash flow amounted to 23.8 million euros, compared to 29.1 million euros.

In the first half of 2026, net sales stood at 512 million euros, down 1.9 percent at constant exchange rates and 4.8 percent at current exchange rates compared to the same period in 2025. The gross industrial margin was 67.2 percent, up 6.1 percentage points from 61.1 percent. The adjusted EBITDA margin was 16.8 percent, up 5.2 percentage points from 11.6 percent, and the group's adjusted net profit was 49.4 million euros, up 46.7 percent.

Free cash flow amounted to 36.4 million euros, compared to 43.5 million euros in the same period last year.

Net debt was 5.4 million euros at the end of June, compared to 46.1 million euros at the end of December 2025. “After a resilient start to the year, the second quarter was affected by a weakening of demand in our main markets. Lower visibility and more subdued consumer sentiment led our customers to adopt a more cautious approach to ordering,” said the company's chief executive officer, Angelo Trocchia, in a note.

“In this scenario, we continued to focus on the levers we could control, preserving the quality of the business through a disciplined commercial action plan, a favourable sales price/mix and constant cost control. These actions resulted in another quarter of solid margin expansion and strong cash generation, which allowed us to further strengthen our financial flexibility,” added the CEO.

Sunglasses confirmed as most affected product category

Safilo, as previously mentioned, closed the first half of 2026 with net sales of 512 million euros, down 1.9 percent at constant exchange rates and 4.8 percent at current exchange rates compared to the same period in 2025. The half-year showed a resilient start, followed by a weaker second quarter. This was characterised by a cautious approach to ordering from customers in the group's main markets, particularly from the end of March and throughout April and May.

The trend began to show signs of improvement in June. This was supported by initial indications of a stabilising business environment and a gradual recovery in consumer confidence in some markets.

In this context, sunglasses were confirmed as the most affected product category, given their more discretionary nature, while optical frames experienced a slowdown compared to previous trends.

Safilo benefited from positive contribution from Carrera, Smith, David Beckham and Kate Spade

Net sales for the second quarter were 239.1 million euros, down 4.5 percent at constant exchange rates and 5.1 percent at current exchange rates. Some markets showed a degree of polarisation, with more resilient performances in the premium and luxury segments that partially offset weaker demand for mid-to-low-end brands. In this scenario, Safilo continued to benefit from the positive contribution of several key brands, with Carrera, Smith, David Beckham and Kate Spade maintaining a solid performance in key markets and channels.

UK clothing retailer Next plc (Next) has upgraded its full year pre-tax profit guidance after second quarter full price sales outperformed internal forecasts. Full price sales for the 13 weeks to August 1, 2026 rose 9.2 percent compared to the same period in the prior year, exceeding the company’s expectation of 4 percent.

The Leicester-based group attributed the over-performance of 70 million pounds in sales to a combination of warm summer weather in the UK, a release of pent-up consumer demand in Northern Europe and the Middle East following a softer first quarter, and increased expenditure on marketing campaigns.

Following the Q2 momentum, Next increased its full year group pre-tax profit guidance by 25 million pounds to 1.24 billion pounds, representing a 7.3 percent increase compared to the previous financial year. The guidance adjustment incorporates a 15 million pound profit contribution from additional full price sales alongside a 10 million pound increase in projected returns from its equity investments.

International online demand drives second quarter momentum

Across business divisions, total online international sales experienced strong momentum during Q2, expanding 36.9 percent compared to the prior-year period. For the first half of the financial year, covering the 26 weeks to August 1, 2026, international e-commerce sales rose 23.9 percent.

Performance across domestic operations remained lower:

UK online Next brand: Q2 sales declined 1.2 percent, bringing first half growth to 2.1 percent.

UK online Label: Q2 sales expanded 13.2 percent, yielding a first half increase of 14.4 percent.

Retail stores: Q2 sales fell 0.3 percent, resulting in a first half decline of 1.7 percent.

Total UK: Q2 total sales across physical retail and e-commerce rose 2.8 percent, bringing first half growth to 3.6 percent.

Total product full price sales for Q2 grew 9.7 percent, while interest income from Next Finance rose 0.9 percent.

Reaffirmed second half sales guidance and capital allocation plans

For the second half of the financial year, Next maintained its full price sales forecast of 5 percent growth compared to the prior year. Domestic sales growth across retail stores and e-commerce is expected to remain consistent with Q2 levels at 2.8 percent.

International sales growth is projected to moderate to 14 percent in the second half due to tougher comparative figures from the prior-year adoption of Zeos distribution services, which elevated European inventory availability starting in August 2025.

For the full 2026/27 financial year, total group sales, incorporating markdown items, equity investments, and subsidiary revenues, are projected to reach 7.50 billion pounds, reflecting a 6.6 percent increase. Post-tax earnings per share are forecasted to reach 812.90 pence, up 9.2 percent.

The retailer’s earnings per share guidance assumes the completion of 524 million pounds in share buybacks during the year, an increase of 14 million pounds over previous estimates. To date, Next has deployed 355 million pounds toward share repurchases at an average share price of 127.69 pounds, reducing its total shares in issue by 2.3 percent.

The company plans to return any unallocated surplus cash to shareholders through a capital return or special dividend if share buyback return metrics are not met. Next will publish its detailed first half financial results on September 17, 2026.

Madrid – Kicking off what is already shaping up to be a particularly good summer for Inditex, the Spanish fashion multinational, owner of popular chains such as Zara, Bershka and Massimo Dutti, has started this August with its shares hitting new all-time highs. This stock market push has, in turn, led the company to also set a new record for market capitalisation, once again surpassing 180 billion euros in market value.

As reported by FashionUnited just a week ago, Inditex shares are being “pressured” by the latest valuations from analysts at firms such as Bank of America and Barclays. Against this backdrop, the Spanish company's shares broke their own valuation records during the trading session on Tuesday, August 4, 2026. Inditex shares opened higher at 58.06 euros (67 dollars) per share, soared to an intraday high of 58.44 euros, and ultimately closed the day at 58.18 euros per share.

The intraday high of 58.44 euros has now become the new all-time high for the Spanish fashion multinational's shares, pending how the stock evolves over the next few trading days. This new record surpasses the previous all-time high of 58.28 euros per share by +0.27 percent, which was also an intraday high reached on February 19, 2026.

Meanwhile, the closing price of 58.18 euros on Tuesday, August 4, also became the highest price ever recorded for Inditex shares at the end of a trading day. This marked the first time since the company's IPO on May 23, 2001, that its shares closed above 58 euros. The previous record closing price was 57.92 euros per share, set on February 19.

More than +40 percent revaluation over 12 months

Taking the closing high of 58.18 euros on Tuesday as a reference point, the Spanish company's shares have now appreciated by +20 percent compared to the low of 48.48 euros at the close of trading on May 12. This appreciation stands at +2.97 percent compared to the 56.50 euros at which Inditex shares opened the 2026 trading year. The revaluation soars to +40.67 percent compared to the 41.36 euros at which the company's shares closed on August 4, 2025.

As a result of this cumulative appreciation over the last 12 months, Inditex's market value has increased from 132.91 billion euros on August 4, 2025, to a market capitalisation of 181.22 billion euros. This value naturally represents a new all-time high for Inditex, which once again surpasses the 180 billion euro capitalisation mark, a threshold it had not crossed since February 19.

With an upward potential of up to +8 percent

Considering the latest valuations of the company and its share price by the various financial analysts who follow Inditex, including those from Bank of America and Barclays, the average target price for the Spanish company's shares is currently 59.54 euros per share. With this new high, the Zara owner's shares are approaching this figure, with a current upward potential reduced to just +2.34 percent.

However, looking beyond the consensus valuation of analysts, the Spanish company's shares still have an upward potential of +7.42 percent, up to the 62.50 euros per share target set by Barclays analysts in their latest update on Inditex, published on July 27. This potential appreciation rises to +8 percent, compared to the 63 euros per share target maintained by analysts at the investment bank RBC Capital Markets.

Israeli apparel manufacturer Delta Galil Industries, Ltd. (Delta Galil) has reported financial results for its second quarter ended June 30, 2026. Sales for the Caesarea-based business increased 9 percent to a second-quarter record of 511.60 million dollars, compared to 470.10 million dollars in the prior-year period. On a constant-currency basis, sales grew 5 percent.

Gross profit for the quarter rose 26 percent year-over-year, which will subsequently be referred to as YoY, reaching 253.20 million dollars. The performance was supported by a 33 million dollar tariff cash refund received during the quarter, which contributed a 16.80 million dollar benefit to gross profit and EBIT. Excluding the tariff recovery, gross profit rose 17 percent YoY, achieving an all-time record gross margin of 45.2 percent. Total reported gross margin for the period expanded by 670 basis points to 49.5 percent.

Delta Galil chief executive officer Isaac Dabah stated: “We delivered an outstanding second quarter that meaningfully strengthened the momentum established in the first quarter and demonstrated broad-based progress across our business. Excluding the benefits of an IEEPA tariff refund, we achieved record second-quarter sales and an all-time record gross margin of 45.2%, as well as double-digit growth in all other profitability indicators.”

Dabah added: “We expect to use a portion of the proceeds from the tariff refund to invest strategically in our manufacturing, supply chain and overall structure to support our future growth and profitability.”

Operating income and net profit metrics

The business recorded improvements across its core profitability metrics:

EBIT excluding non-core items and inclusive of tariff benefits surged 76 percent to 54.60 million dollars, compared to 31 million dollars in the second quarter of 2025. Excluding non-core items and tariff refunds, EBIT expanded 22 percent.

Net income excluding non-core items grew 106 percent to 34.40 million dollars. On a reported basis, net income reached 32.80 million dollars, up 96 percent YoY, benefiting by 13.20 million dollars, or 0.50 dollars per diluted share, from the tariff recovery.

Diluted earnings per share reached 1.21 dollars compared to 0.57 dollars in the second quarter of 2025. Excluding tariff impacts and non-core items, diluted EPS rose 25 percent to 0.71 dollars.

Earnings before interest, taxes, depreciation and amortisation, excluding IFRS 16 adjustments and tariff refunds, rose 17 percent to 45.90 million dollars.

For the six-month period ended June 30, 2026, total sales rose 12 percent to 1.08 billion dollars, compared to 968.80 million dollars in the first half of 2025. First-half gross profit reached 491.90 million dollars, delivering a gross margin of 45.4 percent. Net income excluding non-core items for the first six months rose 52 percent to 52 million dollars.

Reaffirmed full year 2026 financial guidance

Delta Galil reaffirmed its full-year guidance for 2026, which excludes non-core items and tariff refund impacts:

Sales: Projected between 2.29 billion dollars and 2.33 billion dollars, compared to 2.12 billion dollars in 2025.

EBIT: Forecasted between 204 million dollars and 212 million dollars, compared to 174.20 million dollars in 2025.

EBITDA: Expected between 324 million dollars and 332 million dollars, compared to 282.80 million dollars in 2025.

Net income: Anticipated between 116 million dollars and 123 million dollars, compared to 102.60 million dollars in 2025.

Diluted EPS: Projected to settle between 4.00 dollars and 4.23 dollars, compared to 3.55 dollars in 2025.

Fashion Roundtable has published an open letter to the UK’s new prime minister Andy Burnham urging the government to use public procurement as a tool to rebuild the region’s fashion and textile manufacturing sector.

Addressed to Burnham ahead of the finalisation of the proposed ‘Number 10 North’ initiative, the letter calls for public contracts for textile goods, beginning with NHS and defence uniforms, to prioritise suppliers that manufacture in the UK.

The organisation argues that public procurement is one of the fastest and most practical ways to support domestic manufacturing, create regional jobs and deliver on the government’s commitments to decentralisation and reindustrialisation.

What is public procurement and why does it matter?

Public procurement refers to the way government departments and public bodies purchase goods and services using public funds. This includes everything from hospital equipment and school meals to military uniforms and NHS workwear.

Fashion Roundtable said it believes procurement is an underused industrial policy tool that could provide long-term, stable demand for UK manufacturers. Instead of relying on short-term grants, consistent government orders could help factories invest, retain skilled workers and strengthen regional supply chains.

In the letter, Fashion Roundtable pointed to its April 2026 report, ‘Policy Fragmentation and Place-Based Opportunity in the UK Fashion and Textiles’, produced with the University of Birmingham’s Local Policy Innovation Partnership Hub. The report suggested that awarding public textile contracts to UK manufacturers represents the sector’s biggest opportunity to support skills retention, regional resilience and inclusive economic growth.

The organisation also argues that the UK’s manufacturing challenge does not lie in a lack of capability, but fragmented policymaking, with fashion sitting between the creative industries and manufacturing, leaving the sector without coordinated support.

What is Fashion Roundtable proposing?

Fashion Roundtable is calling on the government to introduce two key measures. First, the organisation wants onshoring requirements for public textile contracts, starting with defence and NHS uniforms, so that suppliers manufacture those products within the UK.

It is further requesting a dedicated manufacturing and textiles task force to oversee policy across multiple government departments, including the Department for Business and Trade, the Department for Culture, Media and Sport, Defra, the Ministry of Defence, the Department of Health and Social Care and the Cabinet Office.

The organisation has also requested a meeting with Burnham before details of the Number 10 North programme are finalised. The initiative, operating out of Heron House in Manchester, was launched by the prime minister in July with the goal of decentralising political power from London, drive local economic growth, and push for nationwide devolution.

Beyond this, the letter also references the July 2026 Covid Inquiry, which found that around 10 billion pounds of public money was wasted on unsuitable or excess overseas PPE during the pandemic. Fashion Roundtable argues this demonstrated the risks of relying on offshore manufacturing while overlooking domestic production opportunities.

Procurement rises up political agenda

Fashion Roundtable’s proposal comes as public procurement is becoming an increasingly prominent topic. According to Made in Britain, UK manufacturing was referenced 103 times in Parliament and the House of Lords during the second quarter of 2026, up from 79 mentions in the previous quarter. Public procurement, defence, supply chains and support for SMEs were among the most frequently discussed issues.

During a Commons debate in June, parliamentary secretary for the Cabinet Office Chris Ward said the government wants procurement to do more to support small and medium-sized businesses. He confirmed departments have been set targets to spend more with SMEs, totalling more than seven billion pounds annually by 2028, while procurement reforms are intended to simplify access to government contracts and strengthen social value considerations.

Meanwhile, in a House of Lords debate in July, Baroness Anderson of Stoke-on-Trent said the government had already introduced procurement reforms designed to "boost growth and build a fairer economy". She noted that departments are increasingly being encouraged to consider where goods are made, while government spending of around 400 billion pounds annually should deliver stronger outcomes for British businesses and local communities.

The wider policy direction is also reflected in the Cabinet Office's ‘Public Procurement: Growing British Industry, Jobs and Skills’ document, published in March. The government said procurement reforms are intended to strengthen UK supply chains, support SMEs, improve social value and ensure public spending contributes more directly to economic growth while remaining consistent with international trade commitments.

What happens next?

Fashion Roundtable is now seeking broader industry support for its open letter while awaiting a response from the prime minister. If adopted, its proposals would place UK-made uniforms at the centre of government procurement, positioning public contracts as a catalyst for rebuilding domestic textile manufacturing.

With procurement reform already high on the political agenda and the government continuing to review how public spending can better support British industry, the organisation believes the opportunity now exists to turn political ambition into long-term demand for UK fashion and textile manufacturers.

Sustainable apparel brand Hess Natur-Textilien GmbH & Co. KG (Hessnatur) has a new owner.

On Tuesday, the company announced it is being sold by Swiss investment firm Capvis to the UK-based textile group, Wourth Group. The acquisition is still subject to “the usual closing conditions, including the approval of the relevant competition authorities”. Financial details were not disclosed.

“The transaction underscores the successful strategic and economic development of Hessnatur in recent years and forms the basis for the company's future,” a statement read.

The portfolio of the future parent company, Wourth Group, which is backed by the investment firm Verdane, already includes brands such as Woolovers, Pure Collection, Hotter, Scotts & Co and Museum Selection. In Germany, the group is represented by the brand Peter Hahn, which was acquired at the end of 2024.

New owner to drive Hessnatur's growth with targeted investments

Mike Lester, CEO of the Wourth Group, explained the reasons for the acquisition. “Hessnatur has undergone an impressive development in recent years and has a strong brand with a sustainable business model,” he explained in a statement.

“We have long admired Hessnatur for its consistent focus on natural materials, its high standards along the value chain, and the transparency with which the company operates. Together with our shareholder, Verdane, we look forward to continuing on this successful path and actively supporting the company's further development.”

The sustainability pioneer from Butzbach, founded in 1976, will remain true to its strategic direction following the acquisition, Hessnatur announced. The company now plans “targeted investments in digitalisation, customer experience, brand development and operational excellence”.

CEO Andrea Homann has high hopes for the future owner. “The entry of the Wourth Group is an important milestone for Hessnatur. We are gaining a strong strategic partner who shares our long-term vision and actively supports our growth strategy,” she explained. “Together, we want to further expand our market position and consistently develop the potential of our brand, both nationally and internationally.”

Following Marc Jacobs, the group is continuing to refocus its portfolio. Behind the sale of Patou to Dilesh Mehta, a new doctrine seems to be emerging: houses that do not quickly reach the break-even point now have less time to prove themselves.

Sometimes, transactions that occur in the middle of summer go almost unnoticed, even though they reveal much more than a simple change of shareholder.

The sale of Patou by LVMH falls into this category. On Friday, the group led by Bernard Arnault officially sold its entire stake in the Parisian house to Nirvana Investments. This is the holding company of British businessman Dilesh Mehta, who has been a minority shareholder in the brand since 2018. No amount has been disclosed.

The transaction might seem like a simple capital round trip. In reality, it likely marks the end of a cycle that began eight years earlier.

When LVMH acquired 70 percent of Patou in 2018, its ambition extended beyond fashion.

An acquisition that was never just about ready-to-wear

Founded in 1912 by Jean Patou, the house was one of the most prestigious in French couture before gradually focusing its business on perfumes.

Its fragrance Joy, launched in 1930, remains one of the most famous in the history of perfumery.

In 2001, the house was sold to Procter & Gamble. A decade later, Dilesh Mehta, founder of Designer Parfums, acquired the Jean Patou brand, primarily for its perfume business and licenses. Designer Parfums notably retained the operating rights for Joy and developed the house's fragrance portfolio.

When LVMH became a shareholder in 2018, the agreement was based on a clear division of roles.

Bernard Arnault's group took a majority stake, relaunched the fashion house, hired Guillaume Henry as artistic director, and repositioned the brand under the shortened name, simply Patou.

For his part, Dilesh Mehta retained a minority stake and remained a key partner for the perfume-related assets.

In other words, LVMH was not starting from scratch. It was building a partnership with someone who already knew the house intimately.

Eight years of investment, but still no profitability

From a creative standpoint, it is difficult to call it a failure. Under Guillaume Henry, Patou quickly regained international visibility.

The feminine silhouettes, modernised couture volumes, and a highly identifiable communication strategy allowed the house to rejoin the Parisian calendar and major international retailers.

Behind the image of success, the accounts tell a different story. According to the financial statements of Jean Patou SAS, reviewed by FashionNetwork, turnover has grown steadily:

• 3.95 million euros in 2021;
• 8.02 million in 2022;
• 13.02 million in 2023;
• 13.76 million in 2024.

This represents real progress. However, it was insufficient to absorb the investments required to redevelop a luxury house.

According to these same accounts, Patou accumulated nearly 24 million euros in net losses between 2021 and 2024, with a deficit still reaching 7.18 million euros in 2024. The 2025 results have not yet been published but were reported by FashionNetwork.

In other words, eight years after its relaunch, Patou had still not found its economic footing.

Guillaume Henry's quiet departure had already sent a first signal

Another clue emerged in February. Guillaume Henry's departure, announced with a particularly brief statement, surprised some in the industry. The designer had embodied Patou's revival since his arrival. His replacement was never announced.

With the sale made official a few months later, this absence now takes on a completely different meaning. The artistic direction was perhaps no longer the priority. The shareholding had become the focus.

Why LVMH is selling now

For nearly two years, Bernard Arnault has adopted a much more selective discourse on investments.

During the presentation of the 2026 half-year results, the group's management reiterated its intention to concentrate its resources more on its most powerful houses, in a luxury market that has become more demanding.

The first half of the year ended with a turnover of 38.6 billion euros, down 3 percent, while several divisions remain under pressure. In this context, small, loss-making houses no longer benefit from the same patience they did at the end of the 2010s.

Patou is not an isolated case. Last May, LVMH had already announced the sale of Marc Jacobs to WHP Global and G-III Apparel. These transactions reflect less a disengagement from fashion than a refocusing of capital. In other words, the group now seems to be making stricter choices between brands capable of reaching a critical size and those that still require several more years of investment.

Why Dilesh Mehta is returning

For Dilesh Mehta, however, the transaction appears much more logical. The British businessman is not a newcomer. He is likely the person who best knows Patou's historical assets.

Since acquiring Jean Patou in 2011, Designer Parfums has built genuine expertise around beauty and fragrance licenses.

By acquiring 100 percent of the capital today, he is reunifying the brand. In his statement, he praised the work accomplished with LVMH. “It has been a privilege to build Patou alongside LVMH since its modern relaunch. Together, we have helped re-establish a remarkable French house with a strong creative identity and solid global foundations.”

He added that he wants to pursue “a long-term vision”, while further capitalising on the house's heritage.

This strategy could notably allow for greater synergies between fashion, perfumes, and international distribution, areas where Designer Parfums already has recognised expertise.

A mission accomplished for LVMH: a cycle analysis

Beyond the strict financial equation, this sale offers an interesting perspective on luxury cycles. What if Patou had, in fact, fully accomplished the mission LVMH had assigned to it?

In eight years, the global luxury leader provided Patou with something no other player could offer: an industrial resurrection. LVMH re-established the brand within the Parisian ecosystem, rebuilt a strong contemporary identity, a distribution network, and a level of global desirability.

Once this critical 'reboot' phase was complete, LVMH's purpose was not necessarily to bear the operational cost of a slower consolidation phase indefinitely. By selling its shares, the group frees up resources for its strategic mega-brands while passing the baton to a beauty specialist. Dilesh Mehta thus acquires a 'turnkey' house, fully rehabilitated from a creative standpoint, ready to exploit its commercial potential in the fragrance sector.

Shein is targeting a valuation of 30 billion to 40 billion dollars in a Hong Kong initial public offering (IPO) it could launch as early as mid-August, press agency Reuters reported on Tuesday, citing three people familiar with the plans.

The target marks a reset for the Singapore-headquartered fast fashion retailer, which was founded in China and whose worth peaked at 98.2 billion dollars in 2022 before falling to 64 billion dollars in private fundraising rounds in 2023 and April 2024. Reuters said neither the valuation nor the timetable is final and both could move after feedback from investors. Pre-deal meetings began last week, with sessions held in New York, Boston and San Francisco.

Some potential cornerstone investors are pushing for a figure closer to 30 billion or 32 billion dollars, one of the people told Reuters, who added that Shein is prioritising a price the shares can hold after listing over the highest possible headline valuation. The company has not disclosed the size of the offering, the price or the listing date.

Valuation would sit near H&M, far below Inditex

At the top of the range, Shein would be worth roughly as much as Swedish group H&M, at about 26 billion dollars, and well below Uniqlo owner Fast Retailing of Japan at about 161 billion dollars and Zara parent Inditex of Spain at about 208 billion dollars, according to Reuters.

The draft prospectus published on July 26, 2026 showed revenue rose 8 percent to 41.8 billion dollars in 2025, up from 38.7 billion dollars in 2024, while net income fell to 2.06 billion dollars from 3.37 billion dollars. In the first quarter of 2026 the company swung to a net loss of 99 million dollars, against a profit of 395 million dollars a year earlier, on revenue that edged up 1.1 percent to 9.05 billion dollars. The quarterly loss included a fair-value charge of 328 million dollars on convertible redeemable preferred shares, an accounting item rather than an operating one.

Thinning margins have fed concern that Shein's expansion is meeting resistance from higher trade costs, closer regulatory scrutiny and sharper competition in global e-commerce. Shein said in the filing that the removal of the US de minimis exemption in May 2025, which had allowed parcels worth less than 800 dollars to enter the country duty free, has weighed on its American sales and pushed up operating costs. In Europe, its largest market at 14.8 billion dollars in 2025, the EU introduced a temporary customs duty of three euros per item on low-value consignments of up to 150 euros from outside the bloc on July 1, 2026.

Third exchange in three years

The China Securities Regulatory Commission (CSRC) approved the Hong Kong listing on July 10, clearing the way for a float after unsuccessful attempts in New York and London. Shein has said it intends to use the proceeds for technology, global brand building, corporate responsibility work and general corporate purposes.

For the trade, the listing would open the first sustained public window into the economics of a business built on selling five-dollar dresses and 10-dollar jeans to shoppers in about 160 countries, at the moment when the duty-free parcel flows that underpinned those prices have been closed on both sides of the Atlantic.

This article was written with the assistance of AI.

A new sourcing report argues that the way brands are buying from Bangladesh has not kept up with the country they are buying from. “The Sourcing Times: Bangladesh” written by Forbes sustainability contributor Brooke Roberts-Islam and commissioned by trims manufacturer Harnest Label Industries argues that buyers are still judging the world's second-largest apparel exporter on unit price alone.

Thus, the central question buying teams should ask has changed from a simple “Is Bangladesh cheap enough?” to a more diversified approach that takes into account which suppliers can help reduce total landed cost, improve compliance readiness, shorten lead times, strengthen component control and commercialise circular innovation at scale.

While sourcing from Bangladesh is not risk-free given macroeconomic volatility, financing constraints, energy exposure, SME fragility and future trade-preference changes, the report argues that they are “increasingly manageable through better supplier selection and more strategic buying practices”. “The main risk is not sourcing from Bangladesh; it is sourcing from Bangladesh through an outdated FOB-only lens,” it emphasises.

What has changed

Bangladesh's leading apparel manufacturers are moving beyond basic cut-and-sew operations into fully vertically integrated production hubs that improve supply chain visibility, shorten lead times and enhance overall quality control. Concurrently, post-Rana Plaza reforms, ILO convention ratifications and extensive social auditing have transformed the country's top facilities into mature, externally verified compliance leaders.

Upstream component sourcing is also expanding, enabling buyers to directly nominate suppliers for trims, threads and labels to unlock cost savings and improve traceability for circular product lines. At the same time, regional recycling initiatives are turning post-industrial cotton waste into traceable feedstock, helping brands reduce reliance on virgin materials and comply with incoming European Union regulations. Advanced operational technologies, such as AI-assisted sewing, smart inspection tools, low-liquor dyeing and renewable energy upgrades, further reflect the sector's rapid modernisation.

This means that sourcing teams should stop viewing Bangladesh merely as a low-cost destination and evaluate it as a sophisticated, strategic ecosystem through a total landed cost and capability lens.

The report goes on to mention that Bangladesh has achieved the milestone of being the first Asian country to adopt all ten fundamental ILO conventions. It also has the highest average number of social audits among countries where the Social & Labour Convergence Programme (SLCP) is active before China, Vietnam, Turkey and India, respectively.

What is in store

In view of the country’s status change from ‘Least Developed Country’ (LDC) to ‘Developing Country’ on 24th November 2026, the report provides sourcing takeaways and recommendations as well as questions to ask potential suppliers. US apparel tariffs are already high and are structurally unchanged by LDC graduation.

In regards to procurement advancement, Bangladesh’s garment sector has recently entered into a few memorandums of understanding (MoUs) that prioritise product traceability, energy and water resilience and expansion to man-made fibres. The trade organisation BGMEA together with Dutch supply chain traceability platform Aware advances digital product passport (DPP) readiness and traceability while the Resilient Water Accelerator (RWA) and Greener Garments Initiative (GGI) as well as climate tech company SOLshare support the adoption of OpEx model-based water recycling technologies.

A corporate power purchase agreement framework has been approved between the H&M Group, Pran Group and IFC to pave the way for increased renewable electricity in Bangladesh. The Good Fashion Fund and Omera Solar support textile manufacturers to adopt rooftop solar and battery energy storage systems (BESS).

The BGMEA and exhibition organiser Savor International Limited are planning an annual Bangladesh textile expo in partnership with the Chinese textile sector, focused on synthetic textiles, sustainability and green innovation.

Sourcing stories

The report also mentions current brands that have invested in Bangladesh as a sourcing destination, among them The Cotton Group, which sources 88 percent of its production volume from seven production locations in the country.

Nobody’s Child, the UK’s fastest growing womenswear brand, counts Bangladesh as a sourcing country, but not yet a strategic one. “We started working in Bangladesh in 2021, when we expanded [the brand] from just dresses into knitwear and other products,” states the brand’s sustainability lead Philippa Grogan in the report. She cites quality, materials and availability of audits as reasons for entering Bangladesh. “After Rana Plaza, so much has happened and I think there’s an impressive amount of 3rd party verification and audits. There have been no negative flags from a sustainability perspective, so that’s why the suppliers are still on the books,”. adds Grogan.

Online platform Zalando sources roughly a quarter of its volume in Bangladesh, consolidated onto 18 production locations. According to the report, the online retailer shares its budget forecast with strategic suppliers ahead of the season to support better production planning. Ongoing supplier relationships are based on the annual evaluation of human rights performance.

Conclusion

The report “The Sourcing Times: Bangladesh” thus makes its case with the buyers, financiers and recyclers that already work in the country and adds useful question in each section to ask potential suppliers. It is a valuable resource for brands or retailers thinking of entering the country as a sourcing destination or planning to expand their existing supplier network.

However, they should keep in mind that given the nature of the project, there is a commercial bias, furthermore favouring top-tier factories while ignoring the challenges of smaller entities. The report also tends to overlook critical risks like political instability and climate issues and neglects broader procurement strategies in favour of a narrow focus on components and trims.

The full report can be downloaded from the Harnest website.

For almost two years, the same question has persistently resurfaced in the financial markets. American multinationals are spending billions of dollars to develop artificial intelligence, but when will these investments actually generate profits?

The results published by Amazon last week may offer an initial answer. Wall Street has been quick to respond.

On Monday, the American leader surpassed the symbolic 3 trillion dollar market capitalisation threshold for the first time. It now joins the exclusive circle of the world's five most valuable companies, behind Nvidia, Apple, Microsoft and Alphabet. Since the publication of its quarterly results on Thursday, its stock has soared by more than 20 percent, adding nearly 500 billion dollars in market capitalisation, according to AFP.

This surge reflects a shift in investor perception regarding the ability of technology companies to turn their investments in artificial intelligence into profitable growth.

True driver is AWS

At first glance, Amazon's results appear solid. However, one figure in particular has captured the market's attention.

In the second quarter, Amazon Web Services (AWS), the group's cloud division, posted 37 percent year-over-year growth, compared to 28 percent in the previous quarter. This represents its fastest pace of growth in nearly five years, according to figures released by the group.

AWS is no longer just a web hosting business. Today, it is the primary infrastructure where companies develop, train and deploy their artificial intelligence models. In other words, investments made over several years are now directly fuelling the group's growth.

What really reassures Wall Street

Investors have never disputed the relevance of artificial intelligence. The real issue was its cost.

For two years, Amazon, Microsoft, Alphabet and Meta have announced record investment programmes quarter after quarter. These are aimed at building new data centres, purchasing thousands of Nvidia processors and developing their own infrastructures.

These expenses, which now amount to tens of billions of dollars per year, fuelled a recurring concern: would profits be permanently sacrificed for a technology whose revenues were still difficult to measure?

Amazon provides the first demonstration to the contrary. Despite accelerating its AI investments, the group has managed to preserve its margins while also accelerating the growth of its cloud business.

This is precisely the combination the markets were waiting for. As Giovanni Mazzariello, a portfolio manager at UniCredit, summarises, the latest results from major US tech companies “have proved to be generally reassuring”. According to AFP, he stated that Alphabet, Microsoft and Amazon have not only confirmed their AI investment plans; they also continue to show sustained growth in their cloud businesses, improving profitability and an expanding order book.

Answer to doubts, but not a blank cheque

These results come as several observers have for months been raising the risk of an “AI bubble”.

The expression, however, deserves comment. Unlike the dot-com bubble of the 2000s, the companies at the heart of this revolution today are not solely based on promises of future growth.

Amazon remains, first and foremost, the global leader in e-commerce and one of the world's leading cloud providers. Microsoft still derives the bulk of its profits from Windows, Office or Azure. Alphabet continues to generate tens of billions of dollars from its advertising business. As for Meta, its revenue still comes mainly from Facebook, Instagram and WhatsApp.

In other words, the investments in AI are, for the most part, an extension of already extremely profitable business models. The markets are obviously not penalising AI itself. They are penalising, as is often the case, the lack of return on investment when it is slow to materialise.

This also explains the more mixed reaction seen with Meta. Despite solid results, Mark Zuckerberg's group was penalised by Wall Street, with investors judging that the increase in AI-related spending was weighing more heavily on its immediate profitability, AFP recalls.

New reading of tech valuations

Beyond the Amazon case, these results could mark a broader turning point. For several quarters, investors have been demanding proof that spending on artificial intelligence was producing more than just a promise.

The latest publications are beginning to provide this proof. The cloud is accelerating. Order books are filling up. Margins are holding up. The groups continue to invest.

Wall Street seems to be saying that it is no longer the amounts invested that are of concern, but rather the ability of companies to demonstrate that these investments create actual value. Amazon has just shown that it is possible to finance a global race in artificial intelligence without sacrificing profitability.

For the markets, which feared the financial black hole of AI, this is undoubtedly the most convincing demonstration of this earnings season.

The Metzingen-based fashion group Hugo Boss AG suffered significant losses in sales and profit in the second quarter of the 2026 financial year, as expected.

CEO Daniel Grieder sees the company, which is currently facing a takeover bid from British retailer Frasers Group, as on track with its reform efforts. The second quarter was “another important step” in the implementation of the Claim 5 Touchdown transformation programme, he emphasised in a statement released on Tuesday.

“Sales development continued to be shaped by our strategic refocusing and the challenging market environment. With our strategy, however, we are already making tangible progress and structurally strengthening Hugo Boss,” Grieder emphasised. “This enabled us to significantly improve the gross margin, reduce inventories and once again generate a strong free cash flow.”

Difficult market conditions curb demand

In the period from April to June, group sales amounted to 905 million euros (1,041 million dollars), missing the previous year's quarter by 10 percent. Adjusted for currency effects, revenues shrank by 9 percent.

The clothing provider explained that the company continued “the targeted refocusing of its brands and distribution channels”. However, “macroeconomic uncertainties and geopolitical tensions” weighed on demand worldwide.

The EMEA region, which includes Europe, the Middle East and Africa, was particularly affected by the adverse conditions, according to the group. There, group sales fell by 14 percent (currency-adjusted -13 percent) to 532 million euros.

“In addition to more subdued local demand in core markets such as Germany, the UK and France, this also reflects lower business with tourists in the region,” a statement said. “In the Middle East, sales fell by a double-digit percentage as a result of declining customer traffic following recent geopolitical developments.”

Management confirms annual forecasts

The gross margin increased from 62.9 to 64.9 percent due to “efficiency gains in procurement; targeted price adjustments; and a higher share of full-price sales”. Operating expenses also fell. Despite this, the operating result (EBIT) shrank by 28 percent to 59 million euros. However, it still exceeded analysts' expectations. Net profit attributable to shareholders fell by 29 percent to 33 million euros.

The latest figures gave management no reason to change the annual forecasts. For 2026, a currency-adjusted sales decline “in the mid to high single-digit percentage range” is still expected. The target for EBIT remains between 300 and 350 million euros.

Madrid – In the journey towards a more sustainable and circular model, the fashion and textile industries have found an unexpected partner: brewery waste. These materials, previously discarded, are now the subject of research by the Massachusetts Institute of Technology (MIT) and the University of La Coruña. The study, funded by Inditex, will assess their potential for transformation into textiles and natural dyes.

According to the University of La Coruña, the cultivation and processing of hops for beer production generates a significant amount of plant waste each year, most of which has previously been unusable. This research project, funded by Inditex, will focus on these surplus materials. Its primary objective is to determine whether these by-products and waste can be transformed into high-value raw materials for manufacturing textile fibres and/or natural dyes.

Supporting this research project, titled “Circular Innovation: Hop-Derived Fibers and Eco-Dyes for Sustainable Textiles”, is a team of researchers from the Centre for Information and Communication Technologies Research (CITIC) at the University of La Coruña and the Massachusetts Institute of Technology (MIT). The Galician companies Corporación Hijos de Rivera and Inditex are also involved. Corporación Hijos de Rivera, the brewing company that owns the Estrella Galicia brand, will provide access to the raw material for the research and assist in validating its development stages. Inditex is funding the project through the MIT.Spain Inditex Circularity Seed Fund programme. It will also participate in the industrial evaluation of the new materials and dyes developed and analyse their potential application as raw materials in the textile and fashion industries.

“Under the title of ‘Circular Innovation: Hop-Derived Fibers and Eco-Dyes for Sustainable Textiles’, the project will explore new ways to add value to waste generated by the brewing industry by developing sustainable textile materials from hop leaves and stems,” stated the University of La Coruña in a press release. These potential new circular raw materials would help to “advance the principles of the circular economy and the decarbonisation of the textile sector”.

From study to prototype manufacturing

This research project is the latest initiative from the “MIT-Spain Inditex Circularity Seed Fund”, an international academic research funding programme financed by Inditex and promoted jointly with MIT as part of its “MIT Global Seed Funds” (MISTI) initiative. MISTI is an international cooperation tool that allows the US academic institution to maintain various strategic and cooperative agreements in different countries. In Spain, it has enabled the promotion of a series of research projects with Spanish universities and research centres since 2017. These projects are specifically aimed at accelerating the development of innovative solutions in the circular economy and sustainability applied to the textile sector.

The research project will be led by a team including researcher Emery Brown from MIT, who was recently awarded an honorary doctorate by the University of La Coruña, and researchers Salvador Naya, Javier Tarrío Saavedra and Erika Francesch Domenech from CITIC at the University of La Coruña. On Thursday, July 23, the researchers held a working meeting at the centre to plan the initial phases of this research. The first stage will focus on analysing the potential of hops as a raw material for the textile sector, both for its fibres in textile production and for obtaining natural dyes. This initial task will be followed by the development of experimental prototypes and finally, their evaluation and analysis to determine their potential industrial-scale viability.

“The project combines complementary capabilities from both academic and business fields,” noted the University of La Coruña. From this joint effort, “the initiative aims to generate interdisciplinary knowledge in areas such as biomaterials, applied statistics and sustainable materials, while promoting new strategies for the valorisation of agricultural waste.” From an environmental perspective, “the project will contribute to reducing resource waste and promoting more sustainable production models, while also creating new economic opportunities for the rural environment.” To achieve these goals, they added that “the research team will identify compounds with potential for textile applications, develop experimental prototypes and evaluate their performance and environmental impact compared to conventional materials, in order to analyse their technical and industrial viability.”

Berlin-based online fashion retailer Zalando SE continued its growth trajectory in the second quarter of the 2026 financial year. The company reported a significant increase in sales and a rise in operating profit on Tuesday. Management has adopted a more cautious outlook for the remainder of the year, refining its forecasts accordingly.

Group sales amounted to 3.4 billion euros (3.91 billion dollars) in the period from April to June, representing an increase of 20.8 percent compared to the same quarter last year. This growth was largely attributable to the acquisition of e-commerce company About You, completed last summer. On a pro-forma basis, revenue rose by 1.1 percent. Gross Merchandise Volume (GMV) grew by 20.7 percent to approximately 4.9 billion euros.

Due to a lower gross margin, adjusted earnings before interest and taxes (EBIT) increased by only 10.4 percent to 204.8 million euros. Reported net profit decreased by 24 percent to 73.8 million euros.

Negative special effects impact earnings

For the first half of the year, Zalando generated sales of 6.4 billion euros, an increase of 22.2 percent compared to the same period last year. On a pro-forma basis, sales rose by 2.2 percent. According to the company, this development was supported by “strong sales growth in the business-to-business and retail media business, despite weaker demand, particularly in the business-to-consumer sneaker segment”. GMV grew by 21.0 percent to almost 9.2 billion euros; on a pro-forma basis, it increased by 5.0 percent.

Reported EBIT, which stood at 166.6 million euros in the first half of the previous year, fell to 31.4 million euros due to high one-off charges. The group recorded restructuring costs amounting to 138.9 million euros. According to a statement, these costs resulted from the “closure of our logistics centre in Erfurt as part of the redesign of our logistics network” and from other measures “to increase structural efficiency, particularly in our headquarters in Berlin as well as in our studios and outlets”.

Adjusted for special effects, EBIT increased by 16.1 percent to 269.6 million euros. The bottom line was a reported net loss of 13.8 million euros, compared to a net profit of 106.5 million euros in the same period last year.

Management cuts sales forecast

In light of recent developments, management has become more cautious regarding the full year. It now only expects GMV and sales growth “in the lower half” of the previous forecast range of 12 to 17 percent. The annual forecast for adjusted EBIT, which was previously between 660 and 740 million euros, has been refined to between 680 and 720 million euros.

The company is “even more confident of reaching the midpoint of the adjusted EBIT range,” according to a statement. This is due to “further synergy effects; expected benefits from the restructuring of the logistics network in the second half of the year; ongoing efficiency initiatives; and strong growth in the high-margin partner, software and retail media business”.

Chief financial officer (CFO) Anna Dimitrova sees Zalando as remaining on the right course. “Our resilient profitability results from the quality and mix of our revenues. This is largely due to growth in our high-margin partner business and retail media, our business-to-business scaling, and strict, AI-supported cost management,” she explained in a statement. “Our focus remains unchanged: We are implementing our strategy, investing in the massive opportunities that lie ahead and will deliver a strong, high-quality financial performance in 2026.”

UK apparel brand Fred Perry Limited (Fred Perry) has published its annual financial results for the year ended December 31, 2025. The London-based company reported a 5 percent increase in profit before tax to 18 million pounds (24.17 million dollars), compared to 17.15 million pounds in 2024.

Total turnover decreased by 1.61 percent to 141.27 million pounds from 143.58 million pounds in the prior financial year. Executive management attributed the top-line decline to broader international economic pressures and growth restrictions across global markets. Full-price sales expanded by 1 percent across the period, while discounted sales fell by 12 percent following tighter inventory management initiatives.

Fred Perry noted that the board continues to focus on consolidating product collections, operational processes, and overall inventory holding to support long-term profitability.

Gross margin expands on full-price sales focus

Gross profit for the 12-month period rose to 78.68 million pounds from 75.31 million pounds in 2024. The gross margin percentage widened by 320 basis points to 55.7 percent, up from 52.5 percent in the previous year. Profit before tax as a percentage of turnover also improved to 12.7 percent compared to 11.9 percent in 2024.

Margin improvements were driven by reduced stock purchase prices, tighter collection widths, disciplined cost management, and sales growth in core product lines, notably the signature Fred Perry shirt. The brand maintained stable retail pricing on its core polo shirt throughout the financial period, utilizing forward purchasing contracts and long-term supplier terms to absorb inflationary pressures.

Operating profit for the financial year stood at 16.52 million pounds, up from 13.94 million pounds in 2024.

Regional performance and distribution channels

Across operational sales channels, revenue contractions were primarily concentrated within UK wholesale and e-commerce distribution networks. Revenue from directly owned and operated retail stores increased year-over-year.

Regionally, European operations generated 93.10 million pounds in turnover, compared to 92.79 million pounds in 2024. Within the European market, Germany recorded a 25% year-over-year revenue increase. Turnover from the rest of the world fell to 48.17 million pounds from 50.79 million pounds in the previous financial period.

During the period, Fred Perry distributed 20 million pounds in dividends to its immediate parent entity, Fred Perry (Holdings) Limited. The board of directors recommended a final dividend of 8.80 million pounds for the year ended December 31, 2025, which remains subject to shareholder approval.

Salvatore Ferragamo spa reported second-quarter revenues of 259 million euros (298 million dollars). This represents an increase of 2.4 percent compared to the 253 million euros in the second quarter of 2025, up 4.6 percent at constant exchange ratesDT.

Consolidated revenues for the first half of 2026 amounted to 468 million euros. This is an increase of 1.9 percent at constant exchange rates but a decrease of 1.3 percent at current exchange rates compared to the first half of 2025. The positive performance was driven by the direct-to-consumer channel, which saw an increase of 6.1 percent at constant exchange rates.

Today, Monday, August 3, the board of directors of Salvatore Ferragamo spa, the parent company of the Salvatore Ferragamo Group, reviewed and approved the half-year financial report as of June 30, 2026.

Group's strategy boosts DTC revenues

In the second quarter of 2026, the group continued to implement its strategy, making further progress in the direct-to-consumer (DTC) business. A company note explained that net DTC sales increased by 6.6 percent at constant exchange rates. This was mainly due to the performance of the primary channel; a higher proportion of full-price sales; and continuous improvements in the conversion rate, the number of units per transaction, and the average transaction value.

"An effective product offering, retail excellence and a targeted communication strategy remain at the core of the group's efforts to increase brand desirability, strengthen customer engagement and support the quality and sustainability of long-term performance," the management added in a statement.

"Building on the progress made in recent collections, the group has further refined its product architecture and implemented a series of consistent and targeted communication initiatives. These are aimed at increasing the visibility of key categories and iconic products, while ensuring a consistent brand expression across different markets and customer touchpoints," the company stated in the note.

Net profit in first half of 2026 reach 1.5 million euros

In the second quarter of 2026, the direct-to-consumer channel recorded a 6.6 percent increase in consolidated net sales at constant exchange rates (+4.8 percent at current exchange rates) compared to the same period last year. All regions showed growth at constant exchange rates.

In the first half of 2026, the gross margin was 324 million euros, compared to 321 million euros on June 30, 2025. This represented 69.2 percent of revenues, up from 67.7 percent on June 30, 2025. The increase was driven by a higher proportion of full-price sales and a trend towards purchasing higher-value products.

Gross operating profit (EBITDA) for the period under review was 90 million euros, compared to 73 million euros on June 30, 2025. This represented 19.2 percent of revenues, up from 15.3 percent on June 30, 2025.

Operating profit (EBIT) reached 21 million euros, compared to an adjusted loss of three million euros on June 30, 2025, while profit before tax was positive at six million euros, compared to an adjusted loss of 24 million euros on June 30, 2025.

In the first half period, net profit, including third-party results, was 1.5 million euros, compared to an adjusted loss of 16 million euros on June 30, 2025.

Investments as of June 30, 2026, amounted to 18 million euros, compared to 16 million euros in the same period of the previous year. This was mainly due to the renovation of the distribution network.

But before moving forward, Béis decided to rebuild its foundation. In July, the company relaunched its Core Collection, updating its viral Weekender bags, in a commercial decision that meant transitioning out the brand's best-seller at the height of its success. "Our consumer told us it was the right time," Hussain Johnson said. Since launching in 2018, The Weekender has sold more than two million units and achieved an average year-over-year growth of 70 percent, according to the company.

The task, which she described as a tremendous logistical feat, was a capital investment, an inventory management challenge and a brand positioning decision at once. “It took years to assess the risk-equity on redesigning the Weekender, but we knew it was time. I wasn't afraid of the results, because I knew the team had done the work to ensure every change was consumer-forward, value-add and intentional,” she said, noting the brand’s conscious decision of making meaningful improvements “rather than changes just for the sake of having something new to market.”

“As a start-up, there's often an appetite to pursue every opportunity. At scale, that's neither realistic nor responsible. You have to make deliberate choices about where the greatest opportunity exists and where the business can make the smartest investment. Growth cannot only mean adding more. Sometimes the more strategic decision is to strengthen the foundation,” Hussain Johnson said.

"Building and scaling are two different skills"

Hussain Johnson believes that listening to the consumer is critical for a brand, something she learned throughout her career. She holds a degree from Indiana University and an MBA from its Kelley School of Business, and spent her early career at Ameriprise Financial in financial planning before moving to Target in merchandising and general management.

Target is where the operating instincts were formed. “Target taught me to start with the consumer while maintaining real discipline around the business,” she said. “As a merchant, you're incredibly close to the consumer-retail is where the customer interacts with hundreds of brands, and my job wasn't to represent one brand, it was to grow the full category. That forces a different kind of skill: prioritization, understanding the levers across a business and how they connect, and making difficult, sometimes multi-million or billion-dollar decisions where you have to sacrifice one part for the benefit of the whole. The weight of that scale is what really built the muscle over time.”

Knowing what best-in-class looked like gave her something to reverse-engineer. But the move to a start-up required deliberate forgetting. "What I had to unlearn was the expectation that there would always be an established process, a clear precedent or perfect information," she said. "You also cannot take the infrastructure of a Fortune 500 company and shrink it down. Process has to be introduced at the right time; too little creates chaos, but too much too early slows the speed and creativity that make a young company successful."

Her summary of the two halves is that "building and scaling are two different skills" and "having both made all the difference," she said.

Founding member to first chief executive

Béis was launched in 2018 by Shay Mitchell with the Los Angeles incubator Beach House Group. Hussain Johnson was there from the start, first as a founding member and later as president. The elevation to CEO came in July 2024, making her the company's first.

“Shay and I have a tremendously strong, complementary and aligned relationship. We're both very strong in different areas of the business that support each other well, and that has been a strength from the very beginning. It also helps that I genuinely love her as a person, we have a mutual respect and care for one another that makes all of this work,” Hussain Johnson said.

The next chapter

Béis is a 250 million dollar business, according to the company, reached in under eight years, with only one publicly documented outside funding round. Wholesale and retail partners now include Nordstrom, Anthropologie, Selfridges and Hudson airport locations.

In the next phase, she is expansive but hedged. "There's a lot to come, we haven't even scratched the surface yet. We still have tremendous opportunity domestically, especially in Middle America," Hussain Johnson said, adding that international growth "requires real investment in infrastructure.”

Physical retail is the frontier for a business born online, a strategy she framed to FashionUnited in 2024 around the Selfridges partnership as one of "creating retail partnerships that allow us to showcase our physical product in a way that brings our digitally native brand to life.”

"Each new touchpoint requires greater investment, so it has to be commercially viable," she said. "The opportunity is significant, but so are the trade-offs."

Eight years in, Béis wants to own the entire on-the-go journey, not just travel planning. “We read trends, we listen to the consumer, but the bigger piece is trying to anticipate what their needs could be before they've fully articulated it themselves. The greatest compliment we can receive is a consumer saying ‘I didn’t know I needed that and now I can’t live without it.' From there, it becomes a business decision as much as a brand one,” Hussain Johnson said.

"Listen first, talk second"

Hussain Johnson is based in Southern California with her husband, three children and a Goldendoodle named Montego. The best advice she has received, she said, is "listen first, talk second". The worst? "That financial performance is the only thing that matters. Performance absolutely matters, but how you achieve those results matters too."

She is one of relatively few Pakistani-American women running a consumer brand at this scale, and she traces her reading of the customer partly to that. "Growing up, I moved around a lot, and that built a certain adaptiveness in me," she said. "It broadened my perspective and taught me early that the world isn't black or white." Navigating different cultures, she added, "teaches you to pay attention to context and recognise that the loudest voice may not be the only, or most representative, one in the room." That scepticism about the loudest voice has a commercial edge. "There is no single universal Béis customer," she said. "Demographics can be informative, but behaviours, interests and the ways people actually move through their lives often tell us much more."

British fashion and homeware value retailer Matalan has confirmed that chief executive officer Henrik Nordvall will leave the business by “mutual agreement” with the board.

Nordvall, who joined Matalan in February, will be replaced by Karl-Heinz Holland as executive chair on a permanent basis, having served as chair since 2023, “to build on the momentum it has established while maintaining continuity”.

Holland, who has had a distinguished career in the retail and consumer goods sector, including leading Lidl and Takko Fashion, will take up the role immediately and lead the business alongside Matalan’s executive team.

In a statement, Matalan’s board said that it was “confident” that the new leadership structure would continue to deliver the retailer’s strategy “with pace and discipline, as well as long-term profitable growth”.

Commenting on Nordvall’s departure, Holland said: “Henrik has made a significant contribution during his time with Matalan, helping to shape the next phase of the business at the same time as delivering strong results in both revenue and EBITDA. On behalf of the board, I would like to thank him for everything he has done and wish him every success for the future.

"Together with Matalan’s executive team and colleagues across the business, I look forward to building on the progress we have made over the past year. We have a clear strategy, strong momentum and a significant opportunity ahead of us. Our focus remains on delivering better everyday style, quality and value for our customers as we continue to build a stronger business for the long term.”

Karl-Heinz Holland replaces Matalan CEO Henrik Nordvall to lead retailer

In June, Matalan said it has narrowed its annual losses and achieved a slight increase in total revenue for the full year 2026 results, with reported adjusted EBITDA growth of 24 percent to 69 million pounds, driven by its ongoing strategic priorities, such as improving in its product ranges, and strong online performance.

The retailer has built on that progress into FY27, with first-quarter revenue growth, further market share gains in both volume and value, and adjusted EBITDA growth of 45 percent to 14.9 million pounds.

Nordvall added: "During my time at Matalan, I experienced a company with genuine ambition and the capability to achieve its goals, driven by a highly talented leadership team and colleagues across the business.

“With a clear direction in place for Matalan’s future growth, I look forward to watching the company's continued success. I want to sincerely thank Karl-Heinz for the opportunity, and I wish him, the executive team and the entire organisation all the best moving forward."

On Friday, an agreement was signed for Italmobiliare to sell a 9.09 percent stake in Tecnica Group to Prime Holding , the Zanatta family's controlling holding company for Tecnica Group, for a total of approximately 50 million euros. Tecnica Group owns several major winter sports and outdoor footwear brands, including Blizzard, Lowa, and Moon Boot.

"The sale is subject to the finalisation of a financing agreement between the buyer and a pool of leading banks, based on a binding commitment already undertaken by the latter towards the buyer," a note specified.

"For the Zanatta family, Tecnica Group is not just a company. It is an entrepreneurial story spanning over sixty years, built on people, innovation and the desire to create globally competitive brands. When we decided to open up the capital in 2017, we did so to find a partner who shared our industrial perspective to support the group in strengthening its international leadership,” stressed Alberto Zanatta, president of Tecnica Group, in the note.

“We are grateful to Italmobiliare for its ongoing strategic and managerial support and are pleased that it continues to share this vision for growth with us. Strengthening our presence in the capital is the natural evolution of the journey we began in 2017. We deeply believe in the company's future and want to confirm our long-term commitment with this tangible investment,” Zanatta added.

Following the completion of the transaction, which is expected by the end of the third quarter of 2026, Italmobiliare will continue to hold a 30.91 percent stake in Tecnica Group . The Zanatta family's stake, held through various vehicles, will increase to 69.09 percent.

Upon closing the transaction, a new shareholders' agreement will be signed among Tecnica Group's shareholders, and new articles of association will be adopted. These will include protections for the minority shareholder, largely consistent with the current shareholder and statutory provisions. Additionally, they will grant purchase options to Prime Holding for Italmobiliare's remaining stake in Tecnica Group .

Adopting its characteristic medium-to-long-term investment strategy focused on creating value over time, Italmobiliare acquired a 40 percent stake in Tecnica Group at the end of 2017, supporting the Italian group's development. “After a period of growth that has seen the group's turnover increase from 368 million euros in 2017 to over 540 million in 2025, Italmobiliare is selling a portion of its stake to the founding family. It will continue to support Tecnica Group in achieving the ambitious goals set for the future,” the management further specified in the note.

Madrid – On Monday, August 3, 2026, Spanish jewellery company Tous reported its performance during its last full financial year, 2025. The jewellery and lifestyle brand ended the period with a contraction in sales and a significant drop in net profit. This decline was influenced by three factors: exchange rates, a general increase in raw material costs, and lower turnover.

According to information provided by the company's management and reported by various media outlets, Tous closed its 2025 financial year with a total turnover of 493 million euros. This figure represents a 5.74 percent decrease from the 523 million euros (603 million dollars) in turnover the jewellery and lifestyle firm achieved in 2024, when it had recorded a year-over-year increase of 9.6 percent.

Accompanying this significant drop in turnover, the century-old jewellery firm closed the year with a net profit of 18.6 million euros. This figure represents a 58.67 percent slump in net profit compared to the 45 million euros recorded at the end of the previous fiscal year. The company had already seen a 10 percent profit decline in 2024, making this the second consecutive year of falling profits.

To put this sharp drop in profitability into context, “during 2025, gold has seen an exceptional bull run, with prices doubling since 2023 and rising by 36 percent in 2025 alone,” the Barcelona-based company noted. These inflationary pressures also affected the prices of other key raw materials for its jewellery. However, “in line with its unwavering commitment to its affordable luxury positioning, Tous has made the strategic decision not to pass this increase in raw materials on to the end customer, with the company absorbing the cost increase”.

Renewal of strategic plan

Faced with this marked deterioration of its balance sheets, the new management of Tous has announced a new phase of its “GEM” strategic plan, which was first presented in mid-2024. This follows a new chapter for the company in 2025, marked by the departure of Swiss fund Partners Group from its share capital and Carlos Soler-Duffo from his executive management role at the year's end. This updated roadmap aims to regain international momentum from 2027 onwards.

According to information shared by the jewellery firm's management, this “reorientation” of its strategic plan will be based on four strategic pillars: product, through greater diversification of Tous' offering to expand its audience and brand universe both within and beyond the world of jewellery; innovation, with the adoption of new technologies and processes to shorten design and development times by up to 40 percent; retail experience, introducing a new store format; and growth and internationalisation. Through these processes, alongside the new retail format and local partners, they will carefully review their commercial network. From 2027, they will accelerate their international expansion and the pace of new openings in key markets across Europe, Asia, and Latin America.

With these new pillars, “we are starting a new stage with the ambition of becoming one of the most relevant global jewellery companies in the sector,” highlighted Susana Sánchez, CEO of Tous since September 2025. To achieve this goal, “the transformation initiated in 2026 will allow us to raise our competitiveness on a global scale,” although she anticipates that “the coming years will not be easy” for the company. However, Sánchez adds, “we are sure of the path to follow. We will focus our efforts on revitalising our product categories, revisiting our retail model, and relying heavily on innovation and talent to ensure the sustainable growth of Tous”.

The Paris Commercial Court has approved the acquisition of Moreau Paris, a historic leather goods house, by Cardinal Invest, owner of the French manufacturer Groupe Lécuyer. This transaction marks the beginning of a new chapter for one of the last independent Parisian houses specialising in monogrammed canvas.

A historic heritage and commercial development

Founded in 1882, Moreau Paris shares the heritage of famous Parisian trunk makers. Relaunched in the early 2010s, the brand initially benefited from investment from the Japanese group Onward. It was then taken over in 2020 by a group of industry entrepreneurs. Under their leadership, the brand continued its international expansion.

Today, the house generates approximately ten million euros in annual global turnover through a network of boutiques, department stores, franchise partners and digital channels. The Japanese market, in particular, saw a sales increase of over 30 percent between 2022 and 2025. The opening of a partner-managed boutique in Houston in December 2025 confirms this development momentum.

A strategic alliance between craftsmanship and industry

The arrival of Groupe Lécuyer, a Normandy-based company owned by the Odend'hal family and employing around 800 people, offers Moreau Paris new production capabilities. This manufacturer, which draws on over three centuries of expertise in leather and textiles, already supplies major luxury brands. The aim of this takeover is to combine Moreau Paris' current Italian production know-how with Groupe Lécuyer's French manufacturing expertise.

Charles Odend'hal, managing director of Groupe Lécuyer, explained in a statement: “Moreau has an extraordinary history, an international clientele and significant growth potential. Our ambition is to build on everything that makes the house unique while investing in its products, craftsmanship and global development.”

The transaction follows an internal reorganisation that affected the company's historic structure, suddenly placing the brand's global activities on the market. The sale process was conducted by the firm Asteren, with support from Richard Morgan Advisory, and it immediately attracted interest from commercial and financial buyers.

Pablo Castanon, judicial liquidator at Asteren, commented: “The result demonstrates how an effective judicial restructuring process can attract serious industrial investors and offer companies a real long-term future.”

The court order, signed on July 29, thus lays the foundation for new investment and sustainable industrial development for the Parisian label.

This article was written in part with the support of an artificial intelligence tool before being supplemented and edited by a FashionUnited journalist.

Walmart has fallen short of the 2025 climate target it had approved by the Science Based Targets initiative and has replaced it with a new goal running to 2031, according to the company's FY2026 ESG report published in July.

Absolute emissions from Walmart's own operations, covering scopes one and two, fell 7.5 percent year over year to 14.4 million metric tons of carbon dioxide equivalent, leaving them 24.6 percent below the 2015 baseline. The target the company had signed up to was a 35 percent absolute reduction by the end of the fiscal year. Walmart notes in the report that the result exceeds an earlier, less demanding target aligned to two degrees of warming.

The replacement near-term target, validated by SBTi as consistent with a 1.5 degree pathway, is a 28 percent cut in absolute scope one and two emissions by FY2031 against an FY2025 baseline. The retailer's aspiration to reach zero operational emissions by 2040 is unchanged. On energy, Walmart reported that renewable sources supplied 53.3 percent of its global electricity, ahead of the 50 percent it had targeted for 2025.

Walmart attributed the year's progress mainly to lower refrigerant leakage and the shift to refrigerants with lower global warming potential, which cut related emissions 20.7 percent, alongside clean energy expansion in the US. Working against those gains were store network growth in several markets, higher long-haul fleet mileage and colder seasonal conditions in the US and Canada.

Sustainable cotton sourcing slips at Sam's Club, holds at Walmart US

The report, which covers the fiscal year from February 1, 2025 to January 31, 2026, also sets out the retailer's textile fibre sourcing results for the year in which its 20x25 commodity programme ended.

Supplier-reported cotton volume classified as more sustainable in Walmart private brand apparel and home textiles reached 90.6 percent at Walmart US, up from 89.8 percent a year earlier though still below the 93.5 percent recorded in FY2024. At Sam's Club US the figure fell to 64.0 percent from 80.7 percent, while Walmart Canada rose to 89.8 percent. Walmart counts recycled cotton and cotton certified under Cotton USA, Better Cotton, organic or Fair Trade standards within the definition.

Recycled polyester passes half of US private brand volume

Recycled polyester accounted for 50.4 percent of supplier-reported polyester volume in Walmart US private brand apparel and home textiles, against 28.0 percent the previous year, the largest single-year movement in the report's textile data. Walmart Canada rose to 42.8 percent from 12.6 percent and Sam's Club US to 69.5 percent from 63.3 percent.

Man-made cellulosic fibres sourced from what Walmart terms more sustainable forests, verified through the Canopy 'green shirt' designation, reached 89.7 percent at Walmart US, though Sam's Club US slipped to 75.1 percent from 79.1 percent. The share of apparel and soft home net sales from suppliers with at least one facility completing the Sustainable Apparel Coalition's Higg FEM assessment was unchanged at 97.5 percent.

All the fibre figures are self-reported by suppliers representing roughly 95 percent of in-scope net sales, and are not covered by the limited assurance Walmart obtained for its greenhouse gas data. The retailer states in the report that traceability beyond first-tier suppliers remains limited in complex supply chains including apparel, restricting its ability to verify upstream labour and environmental practices. Walmart said the strategies developed under 20x25, which covered cotton and man-made cellulosics among 20 commodities, have been folded into its merchandising approach, with no replacement dated targets set out.

This article was written with the assistance of AI.

Madrid – Renowned Barcelona-based brand Munich, which specialises in the design and sale of fashion and footwear, has begun negotiations for a collective redundancy procedure. This will affect approximately 65 employees and involve the closure of 15 stores. The restructuring of its workforce and retail network is a result of the economic difficulties the company has faced over a particularly challenging last fiscal year.

Both the company and the legal representation for its employees have confirmed to the EFE Agency that Munich, based in Capellades, Barcelona, has initiated a collective redundancy procedure citing economic reasons. This will result in 65 redundancies and the closure of 15 stores. The impact is expected to be staggered, with the job losses concentrated among the staff of the 15 affected stores. Through this restructuring process, Munich aims to streamline its retail network by closing its least profitable points-of-sale.

This measure is considered a last resort for the company's management to address the decline its business model has experienced over the past year. The decision comes after Munich's management attempted to implement alternative solutions to closures and the subsequent redundancies. These efforts included attempts to renegotiate the lease terms for the affected stores. These talks ultimately did not yield the desired outcome, leading to the implementation of this collective redundancy plan. Munich has described the decision to Efe as painful, stating it was driven by losses within a portion of its retail network.

Closure of 15 stores and 65 redundancies

Munich's origins trace back to Luis Berneda and the small workshop where he began manufacturing and selling footwear between 1939 and 1945. The company officially launched as a brand in 1966 and is currently managed by brothers Xavier and David Berneda, the third generation of the founding family. Following a period of sustained expansion in recent years, the brand now operates nationally in Spain. It has a significant presence in multi-brand stores and through a network of approximately 40 monobrand spaces, which includes 27 stores and 13 corners within various El Corte Inglés department stores.

The employees affected by this restructuring work at the points-of-sale within this store portfolio, which is managed by the company La Tormenta Perfecta. These stores are spread across 14 provinces, located both on the high street and inside some of the country's main shopping centres and the department store group controlled by sisters Marta and Cristina Álvarez. The process directly involves the brand's intention to close a total of 15 points-of-sale. According to the employees' representatives, these are located in cities such as Barcelona; Madrid; Seville; Málaga; Zaragoza; and San Sebastián.

Regarding these closures and redundancies, the employees' legal representatives also state that the company intends to expedite the redundancy process, with the consultation period ending in mid-August. They also claim the company plans to pay the legal redundancy packages in instalments and will not make a real reduction in the number of affected employees or stores, but rather just postpone some closures and dismissals for a few months. Munich has denied that this delay is an attempt to mislead employee representatives. The company insists that the closures and redundancies will ultimately align with the specific contractual conditions it holds for each of the different stores affected by this restructuring.

Decline in sales and order delays

To put this collective redundancy procedure into a broader context, local generalist newspaper La Vanguardia reported in early March 2026 that Munich had entered into discussions with its banking pool. The purpose was to refinance its debt, which exceeds 20 million euros. At the same time, the company reportedly began trying to negotiate rent reductions for its stores. It appears these negotiation efforts did not achieve the Barcelona-based brand's desired objectives, ultimately paving the way for the announcement of this redundancy plan.

In March, it was reported that both measures were aimed at reducing operating expenses and postponing short-term debt maturities. This debt was fuelled by investments in recent years to expand its retail network and diversify its product catalogue with new categories. These actions followed a decline in Munich's business during its last fiscal year. The brand was particularly affected by the current macroeconomic climate, which led to a significant drop in sales in its direct-to-consumer operations and delays in orders from its wholesale and multi-brand partners.

In response to these disruptions to its usual operations, the Barcelona-based company had already begun to restructure its sales channels. This included closing two stores in Spain, one in Sant Cugat del Vallès (Barcelona) and another in Leganés (Madrid), and opening two new international stores in the Dominican Republic and Costa Rica. These initial adjustments will now be complemented by the effects of this redundancy plan on both Munich's workforce and retail network. The company expected to close its last fiscal year 2025, on March 31, 2026, with a turnover of around 70 million euros. This figure would be 14.63 percent behind the nearly 82 million euros the company turned over in its 2024 fiscal year, following a year-over-year sales growth of approximately 9 percent.

The landscape of international trade and e-commerce logistics across Europe has undergone a fundamental structural realignment. For years, the European Union’s long-standing low-value customs duty exemption—the de minimis threshold—allowed billions of individual parcels valued under 150 euros to flood into member states from Asian manufacturing hubs completely free of standard import duties. This mechanism served as the bedrock for the direct-to-consumer (DTC) models deployed by ultra-fast-fashion giants like Shein and Temu.

However, legislative changes implemented by the European Union abolished the duty-free exemption for low-value packages, replacing it instead with a transitional flat-rate customs handling fee per tariff classification line. This means that as of July 1, 2026, all 27 EU member states have removed the 150 euro de minimis duty-free exception and temporarily replaced it by a flat-rate customs duty of three euros per parcel. This regulatory pivot was explicitly designed to level the playing field between domestic European retailers and cross-border platforms.

Three euros per parcel

But there is a caveat as the three euros customs duty only targets parcels shipped individually from outside the European Union. Once inside, it does not apply. Therefore, rather than absorbing the cumulative financial penalty of per-parcel charges, passing prohibitive costs onto consumers or scaling back their total European market share, major e-commerce players have executed a pre-emptive operational pivot by fundamentally changing how goods enter the EU: They now import inventory in bulk via standard business-to-business (B2B), paying standard commercial container duties once, and stocking goods in regional European fulfilment hubs. For example, Shein has actively expanded its warehouse footprint in locations like Wrocław, Poland, to fulfil EU orders locally.

The numbers confirm this: According to official data from the European Commission and the European Parliament, low-value e-commerce imports into the EU under the old 150 euro de minimis exemption skyrocketed from 1.4 billion items in 2022 to 2.3 billion in 2023, 4.6 billion in 2024, and 5.8 billion to 5.9 billion items in 2025, with approximately 91 to 97 percent originating directly from China via platforms like Shein and Temu. This equated to an average of 12 million to 16 million small parcels entering the EU daily.

Parcel volumes drop overnight...

France implemented its small-parcel-tax of two euros already on 1st March 2026, causing small-parcel clearance volumes at Paris-Charles de Gaulle airport to plummet by 92 percent almost overnight according to B2B data and analytics company Freight Waves. After the broader EU-wide rollout of a flat three-euro interim customs duty per product category, FreightWaves confirmed that online giants faced double-digit drops in direct China-to-doorstep parcel routes. Hence, direct-from-origin air parcels are rapidly giving way to high-volume, containerised B2B freight movements destined for regional European distribution centres.

Industry analysts note that this shift represents a calculated manoeuver by platforms owning the logistics stack. “Cross-border regulation aimed at parcel-level flows is easy to route around with warehousing,” explains Antoine Huet, CEO of logistics intelligence group Nova Analytics. By shifting inventory closer to European consumers well ahead of enforcement deadlines, these platforms neutralised the intended friction of the new tariff structure.

The immediate consequence of this transition has been a measurable contraction in individual cross-border air-parcel volumes entering Europe from Asia. The sudden erosion of the hyper-cheap, single-item shipping model could cause an immediate cooling effect on direct-from-China parcel counts. “Air shipments of e-commerce goods into the EU could fall by 10 to 35 percent in the weeks after the fees take effect, with likely repercussions for global air cargo volumes”, said Derek Lossing, e-commerce and air cargo consultant at Cirrus Global Advisors, according to Hong Kong daily The Standard.

... while bulk inventory movement surges

According to data by market research company Mordor Intelligence, the volume of bulk inventory moving into European warehouses—particularly across logistics powerhouses like Germany, Poland and the Netherlands—has experienced a dramatic surge. Logistics networks have raced to secure regional capacity to handle incoming container loads, completely altering traditional port-of-entry dynamics.

Trade bodies such as the European Express Association (EEA) and commercial carriers like DHL, FedEx and UPS have closely monitored these rapid adjustments. “Without a stable and practical legal framework, there is a real risk of cargo pileups at EU borders,” warned the CEOs of the latter, Mike Parra, Wouter Roels, and Daniel Carrera, respectively, in a joint letter to EU finance ministers prior to the 1st July deadline. They caution that complex data requirements and unresolved legal procedures could add to the bottlenecks at EU borders without sufficient and even stall industrial production across the continent.

Market observers emphasise that this strategic migration changes the competitive arena rather than subverting it. “Temu and Shein are among the best equipped to absorb the change because they own the logistics stack,” notes Adam Clermont in supply chain magazine The Loadstar. Smaller e-commerce merchants relying on individual fulfilment lots face rigid cost additions that larger, localised competitors have successfully engineered around. However, until March 2029, they have a way out too as the UK does not plan to change its de minimis requirement until then, making it an attractive market to sell to or distribute small parcels from.

Ultimately, the volume shift from individual parcels to bulk warehouse stock underscores the limits of traditional parcel-level trade barriers. As ultra-fast retail platforms mature into localised inventory models, the European supply chain has been forced to adapt to a permanent baseline of regionalised, high-density distribution.

The European Union on Friday accused Temu of failing to hand over information during an inspection as part of a probe into the Chinese-owned online retailer.

The EU's powerful antitrust sheriff said it carried out surprise raids between December 2 and 5, 2025, seeking evidence in an investigation looking at whether Temu received "potentially distortive foreign subsidies".

The European Commission said it "preliminarily finds that Temu has infringed its duty to actively cooperate on multiple aspects related to the conduct of the inspection" at a premises of its subsidiary, WhaleCo, in Dublin.

Temu did not provide information related to the organisation and management of Temu's activities in the EU, and the IT tools and systems used by the company for its activities, the commission said in a statement.

It also did not provide specific books and records on the company's activities in the EU, it added.

"Not providing the information prevented the commission from reviewing sources of information that could be relevant for its investigation," the EU said.

The EU's accusation pertains only to the December 2025 inspections, and Temu now has the right to reply to Brussels' concerns.

Temu has 130 million users in the 27-nation EU -- nearly a third of the bloc's population -- making it one of the biggest online retailers in Europe.

Madrid – Following its last Annual General Meeting exactly one week ago, the management of El Corte Inglés has now published the financial and non-financial reports for its 2025 financial year. The period ended on February 28, during which the company quietly continued to give a special international boost to Sfera, its fashion and accessories chain.

Created in 2001, while still under the presidency of Isidoro Álvarez, the first Sfera stores began to open to the public during the 2002 financial year. This marked the beginning of a bold venture for El Corte Inglés into the retail scene. The move came at a time when the declining relevance and influence of department stores was becoming increasingly apparent.

Specialised chains had already begun to demonstrate their strength in responding better, and above all faster, to the changing needs and tastes of fashion consumers. In response to these strengths, El Corte Inglés sought to combine its efforts. The decision was made in 2020, under the presidency of Marta Álvarez, to absorb Sfera and integrate it into its structures.

As a result of this merger by absorption, which was carried out with the aim of “leveraging synergies between the group's different formats” to “gain in efficiency and profitability”, Sfera ceased to operate independently. This occurred at a time marked by the coronavirus pandemic, and the brand began to operate entirely under the El Corte Inglés group umbrella. This corporate restructuring meant that Sfera no longer had to present its own financial results, which were instead integrated into the general balance sheet of El Corte Inglés.

Adding 21 net stores in 2025

The consequence of all this is that it is currently impossible to know the exact year-on-year performance of the El Corte Inglés fashion and accessories chain in full detail. While the group does not detail the chain's evolution in terms of revenue and profit on its own, it does offer a series of different insights to estimate how positive or negative its performance may be.

These notes include its market performance in terms of revenue and, above all, the investment strategies for its retail network being executed by El Corte Inglés. These efforts could be seen as the group's response to positive returns, or at best, its firm intention to continue investing in its growth and market consolidation.

Profit fall of more than -44 percent in Sfera's Mexican business

Starting with its economic indicators, as noted in the 2025 Financial Report, Sfera's results are integrated into the retail business chapter of El Corte Inglés. This includes the activity of its department store network, convenience stores, supermarkets and hypermarkets. This segment generated global revenues of 13,216 million euros (+1.22 percent), representing 76.63 percent of its annual revenue of 17,247 million euros (+1.14 percent). It also recorded a net profit of 470 million euros (+28 percent), which is 74.84 percent of its annual net profit of 628 million euros (+22.65 percent).

Alongside these general figures, from which it is impossible to extract an analysis of the performance of Sfera stores, El Corte Inglés does offer details on the evolution of its Mexican subsidiary. The company, Moda Sfera Joven México, is 51 percent owned by El Corte Inglés and 49 percent by the Mexican group El Puerto de Liverpool. It closed the 2025 financial year with an estimated net profit of around 11.22 million euros (-44.45 percent).

With 28 new international points of sale

Despite this apparent drop in the profitability of its operations in Mexico, the 2025 financial year has highlighted El Corte Inglés's clear objective to continue promoting and consolidating Sfera's position as a multinational chain. This goal has materialised in the last fiscal year with the opening of a total of 28 new points of sale outside Spain. These openings have enabled the chain to expand its international retail network by 21 net points of sale.

By geography, Sfera ended the 2025 financial year with a total of 171 stores in Spain, two fewer than at the end of the previous year. This included 102 of its own independent stores (one fewer than the previous year) and 69 stores located inside El Corte Inglés shopping centres (one fewer). Within the Iberian Peninsula, its retail footprint was completed with the nine stores Sfera had in Portugal at the end of the year, one fewer than the previous year after reducing its independent stores from eight to seven. In addition, there are two spaces within the El Corte Inglés centres in Lisbon and Oporto.

Beyond the Iberian market, Sfera significantly boosted its international footprint during the 2025 financial year, increasing its international points of sale from 346 to 367. This followed the opening of 28 stores which, together with the -seven closures made during the year, resulted in 21 net openings outside Spain and Portugal. These openings were led by the inauguration of 20 new franchised stores, increasing from 289 to 309 points of sale across 14 international markets.

The openings were completed with the inauguration of one more Sfera-owned store outside Spain and Portugal, a category that grew from 57 to 58 international stores. This corresponds entirely to the chain's points of sale in Mexico, which are managed through the joint venture between El Corte Inglés and the Mexican group El Puerto de Liverpool.

A retail network growing to 547 points of sale across 17 countries

In more detail, of the 547 stores Sfera had at the close of the 2025 financial year (+18 more stores), 171 were in Spain (-two fewer stores); nine in Portugal (-one fewer store); and 367 were distributed across 15 international markets (+21 more stores). Within this group of countries, Sfera adjusted its retail footprint with 28 openings throughout the year in Switzerland (+13 openings); Ireland (+10 openings); Cyprus (+two openings); Costa Rica (+one opening); Mexico (+one opening); and Panama (+one opening). These more than compensated for the -seven closures that took place in Chile (-three closures); Martinique (-two closures); El Salvador (-one closure); and Réunion Island (-one closure).

As a result of these openings and closures, Sfera ended the 2025 financial year with a total of 547 stores, distributed across 17 markets. Specifically, these were in Spain (171 stores); Switzerland (65 stores); Mexico (58 stores); Chile (58 stores); Peru (45 stores); Thailand (42 stores); Ireland (32 stores); El Salvador (13 stores); Paraguay (12 stores); Panama (12 stores); Guatemala (10 stores); Portugal (nine stores); Costa Rica (eight stores); Nicaragua (four stores); Cyprus (four stores); the United Arab Emirates (three stores); and Qatar (one store). It is also noteworthy that, following the closures made during the year, the chain no longer had a commercial presence in the markets of Martinique and Réunion Island at the end of the financial year.

UK fashion posted a sixth consecutive week of growth, though the gain came against a weak prior-year comparison as momentum across the wider high street faded to a standstill. Fashion total like-for-like (LFL) sales rose +4.74%, according to the latest BDO High Street Sales Tracker — but that was measured against a -6.56% base a year earlier, meaning much of the headline reflects a soft comparison rather than fresh demand.

Store fashion again led the category, up +6.93%, though it too lapped a negative -4.35% base. In-store has carried fashion throughout the summer, but this week's figure rests heavily on the weakness of the same week in 2025.

Online remained the soft spot. Non-store fashion fell -1.30%, a second consecutive week of decline, confirming the reversal from the double-digit online growth seen earlier in the summer.

The wider high street effectively stalled. Total LFL sales inched up just +0.08% from a -2.69% base, while total store sales edged +0.09% higher — a fourth week of nominal growth, but barely positive. Total non-store sales slipped -0.07%, ending a five-week run of growth.

Springboard footfall rose +0.2% overall, driven by retail parks at +2.4%, while high street footfall fell -0.6% and shopping centres -0.5%.

The week marked a transition from July's prolonged heat to more mixed conditions, with parts of Wales officially in drought while the north saw cloud and showers. Fashion's six-week streak remains technically intact, but with online falling and the latest gain flattered by a weak base, the underlying momentum that drove the early-summer recovery has clearly cooled.

The soft finish caps a month BDO described as one of two halves. Across July, discretionary sales — fashion, lifestyle and homewares combined — rose +2.7% year on year, with in-store sales up +3.8% for the best high street performance since January. But that growth was front-loaded: strong early weeks gave way to a near-standstill by month-end, and BDO linked the fade in part to the warm early summer pulling wardrobe spending forward, leaving less demand later in the season.

Australia’s Takeovers Panel has decided not to investigate Frasers Group’s concerns over Accent Group’s recommendation that shareholders reject its takeover offer.

The panel was asked by Frasers earlier this month to review Accent’s target statement, which outlined why the Australian footwear retailer believed Frasers’ 0.65 Aus dollar-per-share proposal was “materially inadequate”.

Accent, which operates brands including Hoka, Platypus and The Athlete’s Foot, issued a corrective statement after the panel raised concerns about some of the information supporting its recommendation.

These included Accent’s assessment of the offer price against its six and 12 month volume weighted average share prices, previous prices paid by Frasers for Accent shares, and the extent to which its 2030 Strategic Growth Plan had been considered.

The panel said the supplementary statement had addressed its concerns and provided shareholders with enough information to assess Accent’s claims about the value of Frasers’ offer.

Frasers launched its takeover bid on July 1 and has since extended the offer period to the end of September. There has so far been no change in Frasers’ shareholding in Accent.

Real estate giant Hammerson has announced plans to raise up to 10 percent of its existing issued share capital, worth approximately 190 million pounds, to partly fund its recently completed acquisition of a 50 percent stake in Manchester Arndale.

The capital raise follows the property group's purchase of the interest from Palma Arndale BidCo for 218 million pounds.

The fundraising will include an institutional placing, a UK retail offer and a director subscription, with chief executive officer Rob Wilkinson and chief financil officer Hans Bakker among those intending to participate.

Hammerson said the acquisition significantly expands its presence in one of its core UK markets. Manchester Arndale attracts around 45 million visitors annually and serves a catchment of 6.4 million people, the largest outside London.

In a statement, Wilkinson said the deal was "another important step" in the company's strategy to grow its portfolio of retail-led destinations, adding that the asset offers "a clear path to income and value creation."

The company expects the acquisition and associated equity raise to be immediately earnings accretive, with projected FY26 EPRA earnings per share increasing by more than 2 percent.

Hammerson has also upgraded its full-year guidance, forecasting EPRA earnings of around 132 million pounds, up from previous guidance of 120 million pounds, with Manchester Arndale expected to contribute approximately seven million pounds.

British retail giant Frasers Group has extended the acceptance period for its 2.3 billion pound takeover offer for Hugo Boss after securing backing from just 7.3 percent of independent shareholders by the initial deadline.

The retailer's 38 euro-per-share cash offer, which values the stake Frasers does not already hold in the business at 1.7 billion pounds, was rejected last month by Hugo Boss' board, which described the bid as "inadequate" and said it undervalued the business. Following additional share purchases, Frasers increased its holding above 30 percent, triggering a mandatory takeover offer under German takeover rules.

According to a filing with the London Stock Exchange, support for the offer now totals 37.6 percent of Hugo Boss's share capital. The additional acceptance period opened on July 31 and will run until August 13. The bid, which recently received EU competition clearance, has no minimum acceptance threshold. Frasers has said the offer is final and will not be increased.

Frasers has been a shareholder in Hugo Boss since 2020 and has said it supports the German fashion group's existing management and strategy. The move marks the latest acquisition attempt by Mike Ashley's retail group, which has expanded its fashion portfolio in recent years through acquisitions including House of Fraser, Jack Wills and Missguided, while also building stakes in luxury brands such as Burberry.

The US fashion industry is facing another year of uncertainty. From the IEEPA tariffs that were ruled unconstitutional by the Supreme Court to the expiring Section 122 tariffs that took their place to the new 301 and 232 tariffs – tariffs remain a top concern for US fashion businesses from brands and retailers to importers. The United States Fashion Industry Association (USFIA) surveys about 30 of them and publishes its findings in the annual USFIA Fashion Industry Benchmarking Study, which provides an essential roadmap of where apparel supply chains and corporate leadership are heading.

“What is different this year is that brands and retailers are changing how they respond to the tariffs and trade uncertainty. Successful sourcing strategies have shifted from diversification to consolidation. Since tariff challenges will affect costing and availability for the foreseeable future, the goal is to maintain geographic diversity while consolidating sourcing networks to work more closely with key strategic partners overseas that offer sourcing flexibility and strong compliance,” sums up USFIA president Julia K. Hughes in the foreword.

FashionUnited highlights ten strategies of the US fashion industry for the coming years.

1. From crisis response to operational resilience

The 2026 study reveals that despite operating in a highly uncertain business environment shaped by elevated tariffs, rising sourcing costs, geopolitical tensions and increasingly complex regulatory requirements, the industry is entering a new phase of strategic maturity. Rather than treating geopolitical friction and duty hikes as temporary shocks, US fashion companies are shifting from short-term crisis management to long-term operational resilience.

“Compared with 2025, survey results suggest that companies are moving beyond short-term crisis response and increasingly adopting longer-term strategies focused on supply chain optimisation, compliance capabilities and operational resilience,” finds the study.

2. Protectionist trade policies and rising sourcing costs

Trade policy uncertainty remains the single largest headache for global fashion executives. A staggering 92 percent of respondents rated “Protectionist US trade policies and related policy uncertainty, including the impact of the Trump tariffs” as one of their top two business challenges in 2026.

Furthermore, “Increasing production or sourcing costs” rose to become the third most significant corporate challenge. These cost spikes directly squeeze financial margins and reduce capital available for product innovation and sustainability programs.

3. Sourcing consolidation: partnering with fewer, highly capable vendors

In a major departure from post-pandemic expansion strategies, fashion companies are shifting away from rapid vendor expansion toward vendor network consolidation. Only about a fifth (21 percent) of respondents plan to source from additional countries through 2027 (down from 59 percent in 2025), and just about a fourth (26 percent) plan to expand their supplier count (down from 41 percent).

Nearly half of surveyed companies intend to trim their supplier rosters. Hughes highlights this tactical shift, stating that because tariffs continue to influence costs, the objective is to “preserve geographic variety while tightening sourcing networks to partner more intimately with key overseas allies that provide sourcing adaptability and robust compliance.”

4. Higher tariff policy does not equal reshoring

The survey reinforces that a policy of higher tariffs does not automatically translate into reshoring of production. Only 10 percent of respondents identified sourcing more “Made in the USA” products as a tariff response strategy.

“USFIA remains committed to working with brands and retailers and our supply chain partners to develop creative solutions and incentives to support manufacturing in the US and in our key FTA partners,” promises Hughes from the association side. “Fashion companies know from history that tariffs will not achieve that goal,” she adds.

5. Balanced diversification across global sourcing hubs

While individual companies are working with fewer suppliers, collective geographic diversification remains high. Surveyed firms sourced from 49 countries in 2026 (up from 46 in 2025), with about two thirds (65 percent) of large firms maintaining sourcing footprints across ten or more nations.

However, concentration at the upper extreme fell dramatically: only 7 percent of brands sourced from 20 or more countries in 2026, down from 20–30 percent in previous years. Although Asia remains dominant, utilisation rates in traditional hubs like China, Vietnam and Bangladesh declined as sourcing expanded into non-Asian destinations like Guatemala, Egypt and Jordan.

6. Nearshoring momentum and constraints in the western hemisphere

Nearshoring into Central and South America gained clear traction, with three fourths (76 percent) of respondents sourcing from CAFTA-DR member nations in 2026 (up from 64 percent in 2025). About one fourth (24 percent) source over 10 percent of their total volume from the region, primarily Guatemala, El Salvador and Honduras). Sourcing from USMCA members (mainly Mexico) held steady.

However, regional growth is bottlenecked by narrow product capabilities—focused primarily on basic t-shirts (67 percent), activewear (33 percent) and bottoms (27 percent). The report emphasises that “exempting CAFTA-DR and USMCA-qualified apparel products from additional tariffs... and avoiding policy uncertainty will be essential to supporting US fashion companies' nearshoring efforts.”

7. Legal and technical tariff mitigation strategies

Rather than relying purely on factory relocation, corporate trade teams are using specialised legal and financial mechanisms to offset tariff impacts. Almost two thirds (63 percent) of brands actively renegotiated supplier contracts in 2026, while more than half (58 percent) utilised sourcing diversification, alongside tariff refund applications and First Sale Valuation rules.

As the study authors Sheng Lu and Emilie Delaye note, “US fashion companies today view successful tariff mitigation as requiring not only sourcing capability but also strong expertise in trade regulations and close collaboration with suppliers and other supply chain stakeholders.”

8. Forced-labour risk & regulatory compliance integration

Managing forced-labour compliance has moved to the core of executive decision-making, climbing from tenth place in 2025 to sixth place in 2026 among top corporate business challenges. Heightened enforcement under the Uyghur Forced Labor Prevention Act (UFLPA) and global traceability mandates have prompted brands to invest heavily in supply chain mapping. Executives report collecting detailed origin data down to the yarn and raw cotton level to maintain regulatory compliance and prevent costly customs detentions.

9. Artificial intelligence scaling across sourcing & operations

Artificial intelligence is no longer an experimental gimmick in fashion management; it has become central to operational workflows. The study revealed that more than half (56 percent) of fashion companies now use AI for “demand forecasting and inventory planning,” while half (50 percent) utilise AI for “sustainability tracking,” “risk management” and “sourcing strategy and cost optimisation.” AI tools are increasingly deployed to model tariff scenarios, optimise fabric yield and monitor supplier compliance risks in real time.

10. Hiring increase: in-demand roles

A standout highlight for corporate professionals is the robust expansion in white-collar positions. A majority (87 percent) of surveyed fashion companies plan to increase hiring over the next five years—up from 75 percent in 2025 and tying the highest level recorded since the pandemic.

Demand is concentrated across specific corporate and technical roles like data scientists and analysts to lead predictive demand modelling, inventory agility and AI integration. Trade compliance specialists and customs attorneys are also in demand to navigate shifting tariffs, free trade agreements and First Sale valuations.

To oversee carbon accounting, traceability and green regulatory compliance, fashion companies are looking for environmental sustainability and ESG managers. Sourcing executives and vendor relationship managers are also high on the list to manage consolidated, multi-country vendor capabilities. Last but not least, companies are looking to hire supply chain transparency officers dedicated specifically to audit forced-labour risks and tier-3/tier-4 raw material mapping.

Long-term outlook

Despite persistent trade barriers, executive sentiment remains resilient. The fundamental takeaway of the 2026 USFIA report is that the era of chasing the lowest unit cost in a single market is over. The modern fashion enterprise is winning through structural agility, data intelligence and compliance rigour.

In addition, companies that invest in skilled white-collar talent—pairing trade legal experts and data scientists with forward-thinking sourcing directors—are best positioned to navigate ongoing market turbulence and drive sustainable growth.

The USFIA Fashion Industry Benchmarking Study is an annual survey of executives from 30 leading US fashion brands, retailers and importers, a majority of which (80 percent) have more than 1,000 employees.This year’s survey was conducted by Dr. Sheng Lu and Emilie Delaye at the University of Delaware in collaboration with the USFIA.

The complete report can be viewed and downloaded from the USFIA website.

Gordon Brothers, the US investment firm behind retailers including Laura Ashley and the owner of Poundland, has submitted a bid to acquire luxury department store Harvey Nichols, according to a report by Sky News.

The offer was reportedly submitted ahead of this week's bidding deadline, with a further deadline now set for next week as owner Sir Dickson Poon mulls a sale of the business after 35 years. Sky News reported that Frasers Group and Next remain among the leading contenders, while Dubai-based Chalhoub Group and India's Reliance Retail are also understood to be interested.

The sale process comes as Harvey Nichols continues efforts to turn around its business after recording five consecutive years of losses. According to Sky News, interested buyers have been told they would need to commit up to 60 million pounds to support the retailer's ongoing transformation programme, despite improvements at its flagship Knightsbridge store following recent investment.

Founded in 1831, Harvey Nichols operates stores across the UK and Ireland, as well as locations in Hong Kong, Dubai, Riyadh, Kuwait and Doha, and stocks brands including Armani Beauty, Balmain, Cartier, Max Mara and Polo Ralph Lauren.

Corporate restructuring and weaker demand linked to the Middle East conflict have impacted the sportswear manufacturer Puma's sales in the second quarter.

Revenue fell by almost ten percent to nearly 1.7 billion euros (1.96 billion dollars), the company announced on Friday in Herzogenaurach. The wholesale business in the American and European regions was particularly weak. Puma is currently reducing sales through this channel, especially in North America and Europe.

Puma therefore remains in the red. The adjusted loss before interest and taxes (EBIT) increased to 41.9 million euros, following a loss of 24.5 million euros in the previous year. The bottom-line deficit decreased by a good 70 percent to 72.8 million euros due to significantly lower one-off costs.

The company confirmed its forecast and continues to expect a decline in revenue and an operating loss.

A new meeting on the Aeffe dispute was held yesterday in Rome at Mimit. During the meeting, it was announced that the Ferretti family, the group's current owner, has submitted a binding offer for the company's relaunch. The offer was made together with Invitalia, the Oxy Fund and a Chinese industrial partner.

The transaction, valued at approximately 115 million euros (132.4 million dollars), includes maintaining and enhancing the group's historic brands; ensuring the continuity of industrial activities; and safeguarding employment levels.

Next meeting at Mimit scheduled for September 28

The proposal also includes granting an exclusive license for the Moschino brand in the Chinese market to the industrial partner. This aims to consolidate the brand's presence and promote its commercial expansion in the country.

The transaction is expected to be completed by the end of the year, once ongoing due diligence is finished and contractual agreements are finalised.

The next meeting at Mimit is scheduled for September 28, during which the proponents will present the business plan.

Offer supported by a detailed industrial project

Aeffe explained in a statement that the offer involves the acquisition of substantially all of the group's business assets by a newly formed company. This new entity will be owned by Oxy and a pool of co-investors. Concurrently with the completion of the acquisition, the acquiring company will be demerged into three new, operational and independent companies. Each company will be dedicated to developing the Moschino brand; the Alberta Ferretti brand; and the production activities in San Giovanni in Marignano and the Pollini business, respectively.

The offer aims to ensure business continuity, albeit indirectly. It is supported by a detailed business plan that includes relaunching the group's brands. The management explained in the statement that this will be achieved “through a plan to strengthen industrial and commercial activities, operational efficiency measures and initiatives aimed at enhancing the group's expertise in its respective target markets”.

Company to be debt-free upon completion of transaction

The offer includes the sale of the business assets in exchange for a cash payment to Aeffe and Pollini spa. The buyer will also assume some of the group's liabilities, which will be restructured through a crisis resolution tool. This aims to rebalance the group's financial situation and create the conditions for implementing the business relaunch plan. Upon completion of the transaction, the company would be debt-free and substantially without assets.

Oxy's co-investors include a publicly listed industrial investor in China. Oxy may also be joined by other industrial and financial partners. The statement specifies: “The offer also provides for the possible intervention of the Business Safeguard Fund managed by Invitalia (Invitalia), to be requested by the Company in agreement with Oxy. This would support the turnaround process, the relaunch of historic Italian brands and the protection of the luxury textile supply chain. The transaction also considers the potential involvement of illimity Banca Ifis (illimity) to provide the so-called ‘plan financing’.”

Oxy's offer is binding, although it is subject to certain conditions precedent. These include confirming the involvement of Illimity and Invitalia. It also requires reaching necessary agreements with the credit institutions involved in the liability assumption and with the relevant trade union representatives regarding employment management, particularly the activation of social safety nets.

Aeffe's board of directors has reviewed Oxy's offer. It has acknowledged it favourably as a significant step in the ongoing recovery process and has resolved to proceed. The board will act with the support of its advisors and in coordination with Riccardo Ranalli, the expert appointed for the negotiated crisis settlement. All necessary activities for its implementation will be initiated to best protect the interests of the company, the group, creditors and all stakeholders involved.

The management added that “activities aimed at defining the final structure of the transaction and the related crisis resolution tool will continue in the coming weeks. This will be done in compliance with the timelines required by the negotiated crisis settlement and for obtaining the necessary authorisations”.

Aeffe also reports that a hearing was held before the Court of Bologna on July 15, 2026. The hearing concerned the granting or extension of selective precautionary measures to protect the assets of the company and Pollini spa from possible individual enforcement and precautionary actions by certain company creditors. The judge has reserved her decision pending a further hearing scheduled for September 9, 2026.

Animal welfare organisation People for the Ethical Treatment of Animals (PETA) said it has purchased stock in Reformation after the US womenswear brand debuted on the New York Stock Exchange yesterday.

While the size of the stake was not disclosed, PETA confirmed it was enough to allow it to attend annual meetings where it plans to pressure executives to stop selling products made from animal skins, hair and wool.

Reformation has already found itself in the firing line of PETA’s scrutiny. In 2023, the brand was labeled ‘Greenwasher of the Year’ by the organisation, which accused the company of marketing itself as “sustainable” while selling items made from animal products.

PETA’s concerns come particularly in regards to Reformation’s sale of wool from a Nativa certified farm, where the organisation said that during an investigation by its Asia arm it had found evidence of animal abuse by shearers.

Reformation has previously rejected PETA’s accusations in the past, calling the claims a “completely false characterisation” and noting that it makes “transparent” disclosures in publicised metrics.

By snapping up shares in Reformation, PETA is mirroring similar efforts made among other brands and fashion groups to raise questions over animal welfare issues in their respective supply chains. The organisation has acquired stock in the likes of Capri Holdings, Tapestry, LVMH, Kering, Target and Under Armour.

In a statement, PETA president Tracy Reiman said: “If Reformation wants to live up to its purported values, it’ll stop hiding behind greenwashed marketing schemes and rid its shelves of the skin, hair, and wool of abused animals.

“With this stock purchase, PETA will push Reformation to do right by animals, the planet, and consumers by switching exclusively to luxurious and sustainable vegan materials. After all, it’s 2026 and no-one needs to dress like cave people.”

Madrid – London-based biotechnology start-up Epoch Biodesign has announced the acquisition of the former Domo Polymer nylon 6,6 polymerisation plant in Blanes, Gerona. The company specialises in the enzymatic biorecycling of pre- and post-consumer textiles. The acquisition has been described as a “fundamental step” towards its goal of moving to a fully vertically integrated model. This will help address the challenge of producing circular textile materials at scale.

In early June, local newspaper La Vanguardia reported that Epoch had successfully won the bid to acquire the polymer production plant in Blanes. The facility belonged to the Spanish company Domo Polymer Solutions Spain, which entered administration at the beginning of the year. This was a direct result of a major business model restructuring by its parent company, the Belgian group Domo Chemicals.

This process resulted in a bidding war for the acquisition of Domo Polymer Solutions Spain's production unit. The purchase by Epoch Biodesign was ultimately approved. Both the insolvency administrator and the Commercial Court No. 2 of Girona considered the British start-up's offer superior to those from other bidders. Other bidders included Building Davidyluis and Juheshun Advanced Materials. Epoch's winning offer was for approximately 6.5 million euros (7.48 million dollars) for the production unit and included retaining 60 of the plant's 70 employees.

Capacity to produce up to 52,000 tonnes of recycled nylon 6,6 polymers annually

Regarding Epoch Biodesign's plans for the plant, the biotechnology company has stated that the Blanes facility will immediately play a key role in its operations. It will be crucial for its goals of accelerating the move towards vertical integration and the industrial-scale production of 'textile-to-textile' recycled nylon 6,6. To achieve these ambitions, the company has acknowledged that its relationship with Inditex and Lululemon, two of its key investors, is moving beyond simple funding.

In this regard, Epoch Biodesign confirmed its plans last April to build and commission a pilot production plant in London. This plant will use its AI-designed enzymes to break down nylon fibres into their basic chemical components. The company now adds that once the plant becomes operational, expected before the end of this year, these monomers will be sent to Spain. They will be processed and transformed into finished polymers at the Blanes plant. With this facility, Epoch will integrate and internally manage the key process of recycling nylon waste, moving towards a vertically integrated model. For now, the final stages of this model, up to the finished garment, will be completed through third parties. Epoch will begin to facilitate the industrial-scale supply of recycled nylon 6,6 polymers to these manufacturers and suppliers once the Blanes plant resumes production, expected in October.

From then on, the plant will become the destination for all monomers produced by Epoch Biodesign at its London pilot plant. In the future, it will also process monomers from the industrial-scale plant the company aims to launch by 2028. This future plant will have an estimated capacity to produce over 20,000 tonnes of monomers annually from the enzymatic recycling of nylon waste. These tonnes would also be transported to the Blanes facility, which has the capacity to produce some 52,000 tonnes of nylon polymers. This production was previously of virgin polymers. Under Epoch's management, it will now be of recycled nylon 6,6 polymers. The company is already working with Lululemon and Inditex to introduce these polymers to the market as a circular raw material for fashion garments.

“Nylon 6,6 is one of the highest-performing materials in the world. It is used in clothing, automotive and industrial applications on a scale of more than two million tonnes per year. However, less than 1 percent is recycled at the end of its life.” Based on this assessment, the biotechnology company points out, “Epoch offers a solution to companies by using AI-designed enzymes to break down plastic waste at a molecular level, resulting in virgin-quality recycled monomers that can be recycled indefinitely without loss of quality.” These monomers, they add, “will now be transformed into high-performance polymers in Blanes.”

To put this operation into a broader context, the “acquisition will allow for the full integration of Epoch's recycled nylon 6,6 production,” covering the process “from waste to polymer.” “With the acquisition of a plant with an annual capacity of 52,000 tonnes,” they highlight, “Epoch becomes the only biorecycling company in the world with the capacity for commercial-scale polymer production. This vertical integration will allow Epoch to accelerate the scaling of its technology and start supplying materials on a commercial scale from today, reducing supply chain risks for its customers and giving a new lease of life to a fossil-fuel era facility.” Furthermore, in line with its objectives to move towards industrial-scale production, “we work very closely with our partners Lululemon and Inditex, both at a capital and commercial level,” emphasised Jacob Nathan, founder and chief executive officer of Epoch Biodesign, in a statement to the US publication WWD. Nathan added that the relationship with Lululemon and Inditex “already goes beyond capital and extends to ongoing collaboration to bring recycled nylon 6,6 to the fashion market.”

Louis Vuitton, owned by the LVMH group, has won a lawsuit against Molly Tea, a Chinese bubble tea chain founded in Shenzhen in 2021.

The dispute concerned Molly Tea's logo, a stylised four-petal flower. The Suzhou Intermediate People's Court in Jiangsu province, China, affirmed that the logo infringed upon seven of Louis Vuitton's registered trademarks that feature the Monogram's floral pattern.

Court ruled on trademark law, a branch of intellectual property

Louis Vuitton holds several registered trademarks in China protecting the various elements of its monogram. These have been registered in the country since 1997.

In 2022, Louis Vuitton extended this protection to class 43, which covers restaurant services. This extension allows Louis Vuitton to also invoke its rights for food and beverage activities.

Since March 2024, Molly Tea had filed several applications to register floral designs with the China National Intellectual Property Administration (CNIPA).

These applications were rejected due to their similarity to Louis Vuitton's trademarks. Despite these rejections, Molly Tea continued to use the design on its shops, cups, packaging and derivative products.

Chinese law is based on the first-to-file principle

Unlike some systems where prior use of a trademark can confer rights, the first-to-file principle in China is a simple rule: whoever files first owns the right. This logic prioritises legal certainty and administrative simplicity. It requires companies to adopt a proactive protection strategy.

Although mechanisms exist to combat abuse, the best protection remains early and strategic trademark filing.

Molly Tea ordered to pay 10.3 million yuan to Louis Vuitton

On June 29, 2026, the court ordered Molly Tea to pay a total of 10.3 million yuan. This includes 10 million yuan in damages and 300,000 yuan for the costs Louis Vuitton incurred in defending its rights.

The company was also ordered to stop using the logo and to publish a corrective statement on its communication platforms and social media networks.

Molly Tea has announced its intention to appeal.

LVMH reiterates the importance of protecting its brands

While the court ruled on an intellectual property dispute, the debate quickly shifted to cultural grounds. Some internet users accused Louis Vuitton of appropriating a traditional Chinese motif.

According to several Chinese media outlets, including China Daily and Nanfang Metropolis Daily, the hashtag about the trial surpassed 400 million views on Weibo, China's main microblogging social network.

Many internet users believe the floral pattern is reminiscent of traditional Chinese ornaments, particularly the Baoxiang flower found in Tang dynasty art. Others pointed out that the dispute concerns a registered trademark and not the use of a traditional motif as such.

When asked about the case by Antoine Bege, an analyst at BNP Paribas, during the presentation of LVMH's half-year results, LVMH's chief financial officer Cécile Cabanis responded: “Regarding your question about the lawsuit, I am sure you will agree with me that intellectual property is an absolutely essential asset for us, and we protect our brands with the utmost vigilance.”

“Our houses very regularly handle cases of trademark infringement in many countries, including China, but not exclusively. This case has received significant media coverage. The legal proceedings are still ongoing; therefore, I will not comment further on this matter.”

Madrid – On Thursday, July 30, 2026, at market close, the Spanish fashion and beauty multinational Puig reported its results for the first half of its 2026 fiscal year. The group owns fashion houses such as Jean Paul Gaultier, Paco Rabanne, Carolina Herrera and Byredo. The period, which ended on June 30, saw the company achieve low single-digit sales growth and a profit decline of over four percent.

According to information filed with the National Securities Market Commission (CNMV), Puig's growth rate increased in the second quarter (+4 percent) compared to the first (+0.8 percent). The company ended the first six months of the year with sales of 2.35 billion euros. This figure represents an increase of +2.37 percent, or +4.4 percent on a like-for-like basis at constant exchange rates, compared to the 2.30 billion euros in revenue from the same period last year.

In terms of profitability, the company reported a half-year net profit fall to 266.50 million euros (-5.12 percent), with an attributable net profit of 262.8 million euros. This figure represents a profit decline of 4.4 percent compared to the 275 million euros in attributable net profit from the first half of the previous fiscal year. This is the second profit drop the group has reported since its IPO. The decline was attributed to a series of unspecified “extraordinary transaction-related costs recorded during the first half” and an “unfavourable comparative basis” against the “extraordinary income recorded in the first half of 2025”.

Nevertheless, “Puig has had a solid first half of 2026, gaining market share across all categories and regions,” stated Jose Manuel Albesa, who has been CEO of Puig since mid-March. “The +4.4 percent LFL growth in net sales reflects the strength of our connection with consumers globally and the distinctive character of our brands,” he explained. Albesa highlighted that “our performance has been solid and balanced, led by ‘Fragrances and Makeup’, and the strength of our business was reflected in all the regions where we operate.”

Makeup and Asia post highest growth rates

Breaking down the company's performance for the first six months of the year by business line, the “Fragrances and Fashion” division remained Puig's main source of revenue, with total sales of 1.72 billion euros (+1.86 percent). This was complemented by sales from its “Makeup” division at 358.8 million euros (+5.81 percent) and its “Skincare” division at 278.8 million euros (+1.20 percent).

In terms of market performance, despite positive results in all main regions during the second quarter, Puig ended the first half with sales in EMEA of 1.22 billion euros (+1.87 percent) and in the Asia-Pacific region of 273.4 million euros (+17.04 percent). These stable and strong growth figures were offset by a decline in turnover in the Americas to 859.2 million euros (-0.90 percent).

Regarding this performance, Puig noted that exchange rate fluctuations had a negative impact of 2.1 percent on net sales during the first half, mainly due to the weakness of the US dollar. The company added that the situation in the Middle East had an estimated impact of approximately -0.6 percent on total half-year sales, amounting to around 14 million euros.

Reaffirming outlook

Following its first-half performance, Puig has reiterated its outlook for the full 2026 financial year. The company expects to end the year with sales growth outperforming the premium beauty market. It also anticipates an adjusted EBITDA margin in line with 2025, when it closed with a 20.7 percent margin.

“Looking ahead, we remain confident in the structural strength of premium beauty and in Puig's ability to continue to outperform the market,” noted Albesa. To this end, “we will continue to invest in our brands, foster innovation and execute our strategy with discipline, always focusing on sustainable growth and long-term value creation.” He added that from this standpoint, “we face the future from a strong position,” as the company prepares to “share more details about our strategy during our Capital Markets Day.”

US e-commerce and technology conglomerate Amazon.com, Inc. (Amazon) announced its financial results for the second quarter ended June 30, 2026.

Net sales for the Seattle-based group increased 20 percent to 200.60 billion dollars, compared with 167.70 billion dollars in the second quarter of 2025. Foreign exchange rates provided a favorable impact of 0.10 billion dollars during the period.

Net income expanded significantly to 62.60 billion dollars, or 5.75 dollars per diluted share, up from 18.20 billion dollars, or 1.68 dollars per diluted share, in the prior-year period. Second quarter net income included non-operating pre-tax other income of 53.40 billion dollars, primarily derived from valuation adjustments on its investments in artificial intelligence firm Anthropic.

Amazon president and chief executive officer Andy Jassy commented: “AWS is booming, growing 36.7% year-over-year in Q2—our fastest growth in 18 quarters—and our AI and Chips businesses each eclipsed run rates of more than 25 billion dollars. In Stores, we again set record delivery speeds for Prime members in the first half of the year.”

Segment breakdown and operational profits

Performance across the principal business divisions remained strong throughout the three-month period:

North America: Net sales grew 16 percent year-over-year (YoY) to 116.20 billion dollars. Operating income for the region reached 9.10 billion dollars, compared to 7.50 billion dollars in the second quarter of 2025.

International: Net sales increased 15 percent YoY to 42.20 billion dollars, delivering an operating income of 1.70 billion dollars compared with 1.50 billion dollars in the prior-year period.

Amazon Web Services (AWS): Sales grew 37 percemt YoY to 42.20 billion dollars. Operating income for the cloud division surged to 16.60 billion dollars from 10.20 billion dollars in the year-ago quarter.

Total consolidated operating income for the group reached 27.50 billion dollars, up from 19.20 billion dollars in the second quarter of 2025.

In retail and supply chain operations, the corporate group launched Amazon Supply Chain Services, allowing external commercial enterprise clients—including Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters—to utilize its global distribution networks. The company also added over 700,000 new products to its selection from brands including Bobbi Brown, Rabanne, and Ted Baker.

Third quarter 2026 outlook

For the third quarter of 2026, Amazon expects to report the following financial metrics:

Net sales: Projected between 197.00 billion dollars and 202.00 billion dollars, representing a YoY growth rate of 9 percent to 12 percent.

Operating income: Anticipated between 22.50 billion dollars and 26.50 billion dollars, compared with 17.40 billion dollars in the third quarter of 2025.

The outlook includes an estimated unfavorable foreign exchange impact of approximately 80 basis points, alongside adjustments for the timing of its annual Prime Day event.

US outdoor apparel and footwear manufacturer Columbia Sportswear Company (Columbia Sportswear) announced its financial results for the second quarter ended June 30, 2026.

Net sales for the Portland, Oregon-based group increased 2 percent to 614.4 million dollars compared to 605.2 million dollars in the prior-year period. On a constant-currency basis, net sales rose 1 percent. Growth across international markets helped offset lower net sales in the US, where performance was impacted by reduced spring 2026 wholesale orders and lower direct-to-consumer (D2C) brick and mortar demand.

The company achieved net income of 26.6 million dollars, or 0.52 dollars per diluted share, rebounding from a net loss of 10.2 million dollars, or 0.19 dollars per diluted share, in the second quarter of 2025. Diluted earnings per share included a 0.93 dollars benefit stemming from the recovery of International Emergency Economic Powers Act (IEEPA) tariffs.

Columbia Sportswear chairman and chief executive officer Tim Boyle stated: “We’re pleased to have delivered net sales exceeding our guidance for the second quarter, driven by the resilience of our international business, which was partly offset by continued softness in the U.S., amid growing global macroeconomic headwinds.”

Margin expansion and operational expenditure

Gross margin for the quarter expanded 920 basis points to 58.3 percent of net sales, compared to 49.1 percent in the corresponding period of 2025. The expansion was primarily driven by an approximate 980 basis point benefit from IEEPA tariff refunds, which was partially offset by promotional activity within D2C brick and mortar channels.

Operating income reached 30.9 million dollars, or 5 percent of net sales, compared to an operating loss of 23.6 million dollars, or 3.9 percent of net sales, in the second quarter of 2025.

First half performance and capital allocation

For the first half ended June 30, 2026, net sales increased 1 percent to 1.39 billion dollars compared to 1.38 billion dollars in the first half of 2025. Gross margin expanded 400 basis points to 54.1 percent, benefitting from a 430 basis point contribution from tariff recoveries.

Net income for the six-month period stood at 60.9 million dollars, or 1.17 dollars per diluted share, compared to 32.1 million dollars, or 0.58 dollars per diluted share, in the year-ago period.

During the first quarter of 2026, the business repurchased 2,498,685 shares of common stock for an aggregate total of 150 million dollars, at an average price of 60.03 dollars per share. No shares were repurchased during the second quarter, leaving 276.5 million dollars available under its current stock repurchase authorization. The board approved a regular quarterly cash dividend of 0.30 dollars per share, payable on September 3, 2026.

Full year 2026 outlook and strategic strategy

Despite moderating its outlook for the second half of the year due to geopolitical and macroeconomic friction, Columbia Sportswear updated its full year 2026 financial guidance:

Net sales: Expected to increase 1 percent to 3 percent to between 3.43 billion dollars and 3.50 billion dollars, compared to 3.40 billion dollars in 2025.

Gross margin: Projected to expand 160 to 180 basis points to between 52.1 percent and 52.3 percent of net sales, reflecting an approximate 180 basis point benefit from IEEPA tariff refunds.

Operating margin: Expected to range between 8.5 percent and 9.3 percent of net sales, up from 6.1 percent in 2025.

Diluted earnings per share: Projected between 4.45 dollars and 4.90 dollars, compared to 3.24 dollars in 2025.

For the third quarter of 2026, net sales are expected to range between 929 million dollars and 943 million dollars, representing a decrease of 1.5 percent to flat performance compared to the prior-year period. Diluted earnings per share for the third quarter are projected to reach 1.15 dollars to 1.35 dollars.

Boyle concluded that the business remains focused on its multi-year Accelerate strategy, which targets younger and more active consumers through differentiated product lines, elevated demand creation, and enhanced e-commerce platforms.

Brunello Cucinelli has reported first-half revenues of 749.4 million euros for the period ending June 30. This represents an increase of +13.3 percent at constant exchange rates and +9.5 percent at current exchange rates.

According to a statement, the retail channel saw an increase of +19.3 percent at constant exchange rates. This was driven by double-digit growth in all key markets. The second quarter also saw a rise of +18.6 percent at constant exchange rates.

As of June 30, 2026, the network included 141 directly-operated boutiques. A new boutique was opened in the Oakridge area of Vancouver during the second quarter.

The wholesale channel confirmed a solid performance in both quarters, with an increase of +2.7 percent at constant exchange rates as of June 30, 2026.

Net profit of 78.2 million, up 2 percent

EBIT amounted to 128.2 million euros, an increase of +12.6 percent compared to the first half of 2025. The margin was 17.1 percent, up from 16.6 percent on June 30, 2025.

Net profit reached 78.2 million, up 2.0 percent on June 30, 2025, representing 10.4 percent of revenues.

"We have closed the first half of the year with what we consider to be excellent results. We feel that the brand is experiencing a very favourable 'tempus' worldwide. The boutiques represent our style identity, our way of working, our way of relating to others, and ultimately, the lifestyle in which we have always believed," said Brunello Cucinelli, executive chairman and creative director of the fashion house, in a statement.

Brunello Cucinelli raises 2026 forecast

"The order intake for the men's and women's spring/summer 2027 collections has been excellent. The start of sales for the autumn/winter 2026 collections in our boutiques has also been particularly positive. Satisfied with these important indicators, we are raising our 2026 year-end forecast from 10 percent to 10-11 percent. We also remain very positive for 2027, where we envision healthy growth of around 10 percent," Cucinelli added.

Americas and Asia represent company's main growth drivers

In terms of geographical areas, the Americas recorded a +20.6 percent increase in revenues at constant exchange rates, amounting to 278.7 million euros. Asia saw a +14.1 percent increase at constant exchange rates, reaching 215.1 million euros. These two regions continue to be the company's main growth drivers.

Europe confirmed a positive trend with a +5.3 percent increase at constant exchange rates, reaching 255.6 million euros and contributing to the overall growth.

Heidi O'Neill spent nearly three decades at Nike, helped grow its women’s business into a multibillion-dollar engine, and was pushed out when new CEO Elliott Hill reorganized the leadership team. She will become Lululemon’s CEO on September 8, inheriting weak North American sales and a founder, Chip Wilson, who has publicly said she is not the kind of transformative, creative-first leader he wanted.

“We’ll let the work answer”

In the second week of May, staff at Lululemon’s Vancouver headquarters watched a video message from a chief executive who did not yet work there. “Since the announcement, some people have been underestimating me. Some have been underestimating Lululemon,” Heidi O’Neill said, in remarks reported by Bloomberg. “That’s fine. We’ll let the work answer.”

An unusual first note for an incoming CEO, and an accurate reading of the room. When the Canadian athletic apparel company named her its next chief executive on April 22, 2026, the shares fell about 5 percent in after-hours trading, analysts called the choice a surprise and the founder said so on the record.

The girl who skied to school

O’Neill grew up in Charlevoix, a small town on Lake Michigan, where her parents ran a sporting goods store called Port Side Sports and she worked the back room, as she told Footwear News in 2022. When she was 12, her father set out to introduce cross-country skiing to the town, and taught her something about publicity on the way.

“He kicked me out the door and had me cross-country ski to school. Then he called the local newspaper and had them meet me on the way so he could get the cover story,” she told Footwear News. Ski clinics followed, which she likened to Nike Run Club: “My father had so much passion around sport and bringing it to the community, and I was part of that.”

She studied journalism at the University of Colorado Boulder, made vice president at the advertising agency Foote, Cone & Belding, then moved to Levi Strauss & Co. as marketing director for Dockers — the last job before the one that defined her.

Twenty-six years inside the Swoosh

O’Neill joined the American sportswear company Nike in 1998 and stayed 26 years, running the global women’s and training business, leading North America apparel, then taking over Nike Direct, the stores, apps and e-commerce operation.

Her promotion to president of consumer and marketplace landed at the worst moment imaginable. “I started my official new role on March 11, two weeks earlier than I was supposed to start, as sport went dark, and the world went dark,” she told WWD of the March 2020 shutdown. “John called me and said, ‘OK, it’s game time.’”

The John in question, then-CEO John Donahoe, described her in coaching terms to Footwear News: “Heidi is one of the world’s truly great coaches, always inviting in diverse opinions and insights to get the most from her team.” She had staffed her women’s business almost entirely with women and considered that a weakness. “I thought we should have women focused on the NFL and we should have men focusing on women’s,” she said in 2019.

Her exit was not her idea. A transition letter dated May 1, 2025 and filed with the SEC records the elimination of her role, president of consumer, product and brand, under new CEO Elliott Hill, who split the remit three ways; Nike presented it as retirement. “For nearly three decades, Heidi has been a true champion for Nike, for sport and for athletes across the globe,” Hill said.

The candidate nobody predicted

Lululemon was meanwhile coming apart at the top. Calvin McDonald announced in December that he would leave after seven years, and two shareholders pushed from different directions: Elliott Investment Management, which built a stake reported above one billion dollars and championed former Ralph Lauren finance chief Jane Nielsen, and founder Chip Wilson, the largest individual shareholder, who launched a proxy contest.

The board chose neither camp’s candidate. “Heidi is the best, perfect, right next leader for this company,” executive chair Marti Morfitt told WWD, adding that O’Neill “basically was our bull’s-eye candidate” and that the hire was not an attempt to import Nike’s magic. O’Neill starts on September 8 on a base salary of 1.4 million dollars, per the 8-K.

The market was unconvinced. William Blair called her an “out-of-left-field” pick, Retail Dive reported, and Guggenheim’s Simeon Siegel wrote that “now comes the hard part”. Wilson was blunter, saying he hoped O’Neill was the right person for Lululemon but that a “near 30-year veteran” of Nike was “not the symbol of transformative, creative-first leadership” the moment called for.

Product first

Her stated plan is drawn from her own history: accelerate product breakthroughs, deepen cultural relevance, unlock growth outside North America. “Lululemon is an iconic brand with something rare: genuine guest love, a product ethos rooted in innovation, and a global platform still in the early stages of its potential,” she said on appointment. The company credits her with helping grow Nike from a nine-billion-dollar business to more than 45 billion dollars.

Supporters point to range rather than tenure. “Heidi is one of those rare people who can hold two things at once — real creative vision and the discipline to execute,” Spotify founder Daniel Ek said in a company statement. Critics see in the same CV the architect of Nike’s direct-to-consumer pivot, the strategy Hill has spent two years unwinding.

The numbers she inherits

First-quarter results for the period ended May 3, published on June 4, show why the board wanted a product operator. Revenue rose 4 percent to 2.5 billion dollars, but the Americas fell 3 percent while international grew 22 percent, operating income dropped 37 percent to 276.9 million dollars and gross margin contracted 410 basis points to 54.2 percent.

The company then cut full-year guidance to between 11 billion and 11.15 billion dollars in revenue, with interim co-CEO Meghan Frank blaming “spikes of negative commentary in the media and on social channels” and product launches that had not generated the anticipated guest response. Lululemon’s market value has fallen from roughly 64 billion dollars at the end of 2023 to about 19 billion in April 2025.

In the news

For most of her career, O’Neill was a trade-press figure. April changed that: Bloomberg, The Wall Street Journal and Business of Fashion all covered the appointment, and the company has been unusually busy defending it, publishing a page titled “Why Heidi O’Neill is the right next CEO for Lululemon”.

The controversy attached to her is other people’s. The Wilson proxy fight ended on May 27: two of his nominees, former On co-CEO Marc Maurer and former ESPN marketing chief Laura Gentile, joined the board after the June 25 annual meeting, and Wilson agreed to roughly 18 months of standstill and non-disparagement. Separately, the Texas attorney general has opened an investigation into the company’s potential use of certain chemicals; Lululemon says its products are made without PFAS.

Michigan, Portland, Vancouver

O’Neill has spent decades in Beaverton and Portland, Oregon, sits on the boards of Spotify, Hyatt Hotels and Lithia & Driveway, and relocates to Vancouver for the job. Mentoring is the thread she returns to.

“Forty years in this industry taught me to recognize something rare when I see it,” O’Neill said in Lululemon’s own account of her hiring. Her description of the work itself is less polished, and more revealing.

“What I love most about leading a business is that the work that matters is built together. It’s messy. It’s collaborative. And it’s fun. And when the product is right, when the team is right — there is nothing better.” From September 8, the product and the team are hers.

This article was written with the assistance of AI.

Swiss outdoor outfitter Mammut Sports Group AG has a new owner. On Thursday, the mountain sports specialist announced that Chinese investment firm CPE has signed an agreement to acquire Mammut from Jacobs Capital.

CPE will support Mammut in “accelerating its global growth, particularly in Asia and North America,” a statement said. The company will retain its headquarters in Seon following the transaction and will continue to be led by the existing management team under CEO Heiko Schäfer.

Jacobs Capital acquired Mammut in 2021 through the company Telemos from the Swiss holding company Conzzeta. Since then, the brand has “internationalised across all continents and outperformed the market with exceptional growth, especially in key Asian markets such as China and Japan,” the company said. Additionally, the product range was expanded and “the brand positioning as a leading mountain performance brand was sharpened.”

Mammut CEO Schäfer calls CPE right partner for next growth phase

Mammut CEO Schäfer paid tribute to the departing partner: “Together with Jacobs Capital, we have achieved an extraordinary transformation. Mammut is now financially and operatively stronger and more internationally relevant than ever,” he explained in a statement.

Looking to the future, the company now sees “great opportunities to further expand the brand internationally,” said Schäfer. “We have a clear strategy and a strong business plan. We are convinced that CPE is the right partner for this next phase of growth, while preserving the values, heritage and identity that make Mammut unique.”

Mark Mao, managing director of CPE, explained the new owner's goals. “It is both a privilege and a responsibility for us to take on the role of guardian of Mammut in the future,” he explained. “Following the completion of the transaction, CPE will do everything possible to preserve and further develop the brand strength, technical excellence and authentic heritage that have made Mammut one of the most respected outdoor brands in the world.”

E-commerce group eBay has completed its acquisition of London-based fashion resale marketplace Depop from Etsy, both companies announced on Thursday. The seller received approximately 1.4 billion dollars in cash. According to the announcement, the figure reflects a purchase price of 1.2 billion dollars plus 200 million dollars of net purchase price adjustments and interest, and remains subject to certain post-closing adjustments.

The transaction, first announced on February 18, closed on July 30 following the receipt of required regulatory approvals. Depop will operate as a complementary business within eBay, retaining its brand, platform, customer experience and culture, with Peter Semple continuing as chief executive officer.

For Etsy, the exit ends a five-year ownership below its entry price, the Brooklyn-based company having acquired Depop in 2021 for approximately 1.625 billion dollars at the peak of pandemic-era resale valuations. Etsy said it will use the proceeds for general corporate purposes in line with the capital allocation strategy set out in its April 29 shareholder letter, which included plans to accelerate share repurchases.

"We are excited for what's next for both Etsy and Depop," said Kruti Patel Goyal, chief executive officer of Etsy in a statement. "This transaction allows us to move forward with a clear focus on building the best marketplace for Etsy's buyers and sellers, and is a strong outcome for our shareholders. We're proud of what the Depop team has built - a truly differentiated brand with a passionate community - and we wish them continued success as part of eBay."

Combined growth potential

At the February announcement, Depop reported 2025 gross merchandise sales of roughly one billion dollars, including close to 60 percent year-over-year growth in the US, with seven million active buyers as of December 31, 2025, nearly 90 percent of them under the age of 34, and more than three million active sellers.

“As a global leader in C2C and recommerce, eBay’s acquisition of Depop further strengthens our C2C value proposition. This combines two distinct customer experiences and expands our reach with the next generation of buyers and sellers,” said Iannone said. “Our goal is to preserve Depop’s strong brand, community, and product experience, while helping the team accelerate the roadmap that is already underway and explore synergies with eBay in areas that can supercharge our combined growth potential.”

Consolidation arrives as resale scales elsewhere. Lithuanian marketplace Vinted reported 2025 GMV of 10.8 billion euros, up 47 percent, and entered the US in January 2026, putting it in direct competition for the Gen Z sellers Depop has been growing fastest among.

Canadian apparel company Canada Goose Holdings Inc. achieved double-digit revenue growth in the first quarter of the 2026/27 financial year, exceeding market expectations primarily due to strong growth in China. The Toronto-based down jacket specialist's loss was significantly lower than in the same period last year, although analysts had anticipated a better result.

According to a statement released on Thursday, revenue for the first quarter, which ended on June 28, amounted to 118.9 million Canadian dollars. This represented an increase of 10.3 percent compared to the same period last year. Adjusted for currency fluctuations, revenue grew by 8.6 percent.

In its direct-to-consumer (D2C) channel, revenue grew by 8.6 percent (or +6.7 percent on a constant currency basis) to 84.8 million Canadian dollars, driven by increasing demand in the Asia-Pacific region and North America. The company's wholesale business saw an increase of 66.5 percent (or +65.4 percent on a constant currency basis) to 29.8 million Canadian dollars.

Strong growth in China drives revenue

Revenue in North America decreased by 4.9 percent (or -5.7 percent on a constant currency basis) to 48.8 million Canadian dollars. A 10.7 percent increase in Canada, reaching 27.0 million Canadian dollars, was insufficient to offset losses in the US, where revenue fell by 19.0 percent (or -20.4 percent on a constant currency basis) to 21.8 million Canadian dollars.

Revenue was also down in the EMEA region, which includes Europe, the Middle East, Africa and Latin America. It decreased by 5.7 percent (or -7.4 percent on a constant currency basis) to 16.5 million Canadian dollars.

Canada Goose experienced strong growth in the Asia-Pacific region. In Greater China, revenue increased by 44.2 percent (or +39.6 percent on a constant currency basis) to 37.5 million Canadian dollars. In the rest of the region's markets, it grew by 23.8 percent (or +24.6 percent on a constant currency basis) to 16.1 million Canadian dollars.

Company reduces its loss

Thanks to an increase in the gross margin from 61.4 to 62.4 percent and lower costs, the operating loss decreased to 103.8 million Canadian dollars from 158.7 million Canadian dollars in the prior-year quarter. However, the previous year's result was impacted by negative one-off factors.

The adjusted earnings before interest and taxes (EBIT) loss decreased from 106.4 to 103.8 million Canadian dollars. The net loss attributable to shareholders was 90.8 million Canadian dollars, compared to a loss of 125.2 million Canadian dollars in the first three months of the previous year.

Annual forecasts remain unchanged

Chairman and CEO Dani Reiss believes the company remains on the right track. “Our first quarter is further proof that our strategy is working,” he explained in a statement. “We are successfully developing Canada Goose into a year-round luxury brand.” The company is now increasingly reaching customers across different seasons and product categories, Reiss added.

The recent performance gave management no reason to change the existing forecasts. For the current financial year, the company continues to expect low single-digit percentage revenue growth and an adjusted EBIT margin of between eleven and twelve percent.

Steve Madden, Ltd. has raised its full-year revenue and adjusted earnings guidance after second-quarter revenue rose 19.1 percent to 665.9 million dollars, from 559 million dollars in the same period of 2025.

Net income attributable to the company was 27.7 million dollars, or 38 cents per diluted share, against a loss of 39.5 million dollars, or 56 cents per share, a year earlier. Adjusted net income, which excludes items the company treats as outside its core business, rose to 31.7 million dollars from 13.9 million dollars. Adjusted income from operations was 44.5 million dollars, or 6.7 percent of revenue, against 22.6 million dollars, or 4 percent.

The second quarter of 2025 was the group’s only loss-making quarter in recent years, weighed down by costs related to its acquisition of the British brand Kurt Geiger, completed on May 6, 2025. Those included 38.8 million dollars in acquisition-related compensation paid to the brand’s management sellers. Steve Madden posted net income of 71.8 million dollars in the first quarter of 2026 and 44.7 million dollars across the whole of 2025.

Chairman and chief executive officer Edward Rosenfeld said the quarter reflected the strength of the group’s brands and its execution. “The Steve Madden brand was the highlight, continuing to gain momentum as consumers responded enthusiastically to the trend-right assortments created by Steve and his design team,” he said in a statement.

Wholesale returns to growth after first-quarter decline

Wholesale revenue rose 13 percent to 407.5 million dollars, or 11.5 percent excluding Kurt Geiger. That reverses the first quarter, when wholesale revenue excluding the acquisition fell 8.2 percent and wholesale footwear excluding it fell 12 percent.

DTC revenue rose 30.6 percent to 255.4 million dollars, an increase that narrows to 11.1 percent once Kurt Geiger is stripped out. Gross margin widened to 46.5 percent of revenue from 40.4 percent, which the company attributed to higher average selling prices, reduced promotional activity, a lower share of private label business and a smaller negative impact from tariffs.

The group ended the quarter with 382 brick and mortar stores, including 92 outlets, alongside 164 concessions in international markets and eight e-commerce sites.

Steve Madden now expects full-year revenue to grow 11 to 13 percent, up from 10 to 12 percent, and adjusted diluted earnings per share of 2.05 to 2.15 dollars, up from 2 to 2.10 dollars. GAAP earnings guidance of 2.55 to 2.65 dollars was reaffirmed, sitting above the adjusted figure because of a 55.1 million dollar pre-tax benefit booked in the first quarter for the expected recovery of tariffs paid under the International Emergency Economic Powers Act.

Board appointment

Ken Pilot will join the board on October 1, expanding it from ten to 11 directors. Pilot, founder and chief executive officer of advisory and investment firm Ken Pilot Ventures, has held senior roles at J.Crew, Gap Inc., Ralph Lauren, American Eagle Outfitters and ABC Carpet & Home, and invests in retail and e-commerce technology.

US footwear company Crocs, Inc. (Crocs) reported its financial results for the second quarter ended June 30, 2026. Consolidated revenues rose 2.6 percent, or 2 percent on a constant currency basis, reaching 1.18 billion dollars. The growth was led by the flagship Crocs brand, which surpassed one billion dollars in quarterly revenue for the first time.

Direct-to-consumer (D2C) revenues grew 12 percent, or 11.3 percent on a constant currency basis. In contrast, wholesale channel revenues fell 7.2 percent, or 7.6 percent on a constant currency basis.

The gross margin for the quarter contracted to 59.4 percent from 61.7 percent in the prior-year period. Adjusted gross margin decreased 170 basis points to 60 percent. Diluted earnings per share reached 4.13 dollars, while adjusted diluted earnings per share increased 7.6 percent to 4.55 dollars.

Crocs chief executive officer Andrew Rees stated: “We are pleased to have delivered a stronger-than-expected second quarter, highlighted by record enterprise revenue, including the Crocs Brand surpassing 1 billion dollars in quarterly revenue for the first time ever. Our results reflect broad consumer demand across both brands, healthy direct-to-consumer growth, and strong consumer response to new product innovation.”

Divisional performance and capital allocation

Across the corporate portfolio, performance diverged between the core brand and secondary labels:

Crocs brand revenues expanded 4.3 percent to 1.0 billion dollars, or 3.7 percent on a constant currency basis. D2C revenues grew 12.9 percent to 559 million dollars, while wholesale revenues declined 5 percent to 441 million dollars. Across markets, North America revenues increased 0.4% to 459 million dollars and international revenues expanded 7.8 percent to 542 million dollars.

On the contrary, Heydude brand revenues fell 5.7 percent to 179 million dollars, or 5.8 percent on a constant currency basis. D2C revenues increased 7.2 percent to 96 million dollars but wholesale revenues fell 17.2 percent to 83 million dollars.

During the quarter, the company repaid 31 million dollars of debt and repurchased approximately 2.3 million common shares for 251 million dollars, at an average share price of 106.87 dollars. On July 27, 2026, the board approved a 1.5 billion dollars increase to the share repurchase authorization, bringing total available repurchases to approximately 2.0 billion dollars.

Financial outlook for third quarter and full year 2026

Following the second quarter performance, management updated its financial projections for the full year 2026:

Total Revenue: Expected to rise approximately 1 percent to 2 percent compared to full year 2025, up from previous guidance of down 1 percent to up 1 percent.

Crocs brand: Revenues projected to grow 2 percent to 2 percent.

Heydude brand: Revenues forecasted to decline 4 percent to 2 percent, an improvement from previous guidance of a 7 percent to 5 percent decline.

Adjusted operating margin: Expected to expand modestly from 22.3 percent.

Adjusted diluted earnings per share: Projected between 13.70 dollars and 14.00 dollars, raised from the prior range of 13.20 dollars to 13.75 dollars.

For the third quarter of 2026, revenues are expected to remain flat compared to the third quarter of 2025. The Crocs brand is projected to grow by approximately 1 percent, while Heydude revenues are expected to range from a 3 percent decline to flat. Third quarter adjusted operating margin is anticipated at 21.5 percent, with adjusted diluted earnings per share expected between 3.20 dollars and 3.30 dollars.

Prada spa reported net revenue of 3.048 billion euros (3.50 billion dollars) in the first half ending June 30, an increase of 16 percent year-over-year (plus 5 percent on an organic basis).

The company closed the second quarter with 7 percent growth.

According to a statement from Prada spa, retail sales amounted to 2.633 billion euros. This is an increase of 12 percent year-over-year and 3 percent on an organic basis, compared to 10 percent growth in the first half of 2025. As for the Versace brand, it maintains its strategic focus on elevating sales quality and retail execution, closing the first half at 305 million euros.

Patrizio Bertelli: "we must remain agile and constantly innovate, leveraging our industrial structure"

“Our constant commitment to product excellence, supported by craftsmanship and creativity, has always been essential. This has allowed us to achieve 22 consecutive quarters of organic growth. The context will remain uncertain; we must remain agile and constantly innovate, leveraging our industrial structure and maintaining a balance between short-term discipline and long-term vision," stated Patrizio Bertelli, chairman and executive director of the Prada Group, in the note. The group owns the brands Prada, Miu Miu, Church's, Car Shoe, Versace, Marchesi 1824, and Luna Rossa.

Regarding the individual brands, Prada's retail sales grew by 3.3 percent year-over-year in the first half. This further strengthened to plus 6.3 percent in the second quarter, driven by like-for-like and full-price sales.

Miu Miu's retail sales increased by 2.5 percent year-over-year in the first half. The second quarter saw 2.6 percent growth, consistent with the first. This performance was achieved despite greater exposure to the Middle East and a challenging comparison base of plus 40 percent in the second quarter of 2025.

The company, led by CEO Andrea Guerra, achieved sequential improvement in all geographical areas except for the Middle East, which contracted by 24 percent in the first half.

Versace's performance was in line with expectations, with net revenue of 305 million euros in the first half.

The brand maintains its strategic focus on elevating sales quality and retail execution, the management specified in the note. Pieter Mulier's arrival in July marked the beginning of its creative repositioning journey.

"The first fashion show presenting Versace's new vision is scheduled for early next year, when the first collection under the new creative direction led by Pieter Mulier will be shown," said Lorenzo Bertelli, executive chairman of Versace, last March. He was speaking during the conference call with analysts and the press for the presentation of the Prada Group's 2025 results. "Until then, the work will be focused on analysing and developing future collections."

Returning to Prada spa's first-half results, released today, July 30, the adjusted Ebit was 530 million euros. This corresponds to a margin of 17.4 percent, including Versace and the impact of exchange rates.

Net profit for the half-year was 327 million euros.

Cash generation and the balance sheet position are solid, according to the note, with a net financial debt of 693 million euros.

CEO Andrea Guerra: "pieter Mulier's arrival at Versace marks the beginning of a new creative journey"

“We closed the first half with solid results, supported by an accelerating second quarter after a good start to the year. Prada recorded a very positive performance in the second quarter, and we will continue to invest in product, retail, and communication to guide the brand towards its full potential," Guerra emphasised.

"Miu Miu has confirmed its relevance and desirability, building on a solid and consistent path developed over the years, despite a still challenging comparison base. Pieter Mulier's arrival at Versace, who became chief creative officer of Versace on July 1 and reports to Lorenzo Bertelli, executive chairman of Versace, marks the beginning of a new creative journey for the brand. We are excited to welcome his talent and vision to the group. Our strategy is clear and our brands have solid foundations. Looking ahead to the coming months, we will maintain discipline and dynamism in execution, pursuing the group's ambition to generate sustainable, above-market growth," the CEO added.

Retail sales in Europe up 5 percent in H1, Middle East down 24 percent

Asia Pacific continued to show strength, with growth of 15 percent year-over-year and 6 percent on an organic basis; Prada saw continuous improvement in the second quarter, supported by rigorous execution and driven by positive trends across the region; Miu Miu experienced robust growth throughout the entire period.

Europe grew by 5 percent but contracted by 4 percent on an organic basis; the second quarter improved to minus 2 percent, supported by a recovery in tourist spending and local demand.

The Americas maintained a strong growth trajectory, recording a 37 percent year-over-year increase and a 17 percent rise on an organic basis. The second quarter accelerated thanks to increased local demand. Both Prada and Miu Miu continued to benefit from the strengthening of their respective organisations and investments made in recent years.

Japan showed a positive trend, growing by 6 percent year-over-year and 2 percent on an organic basis. There was an improvement in the second quarter due to the strength of the local clientele and increased tourist demand.

The Middle East recorded a contraction of 24 percent year-over-year and 24 percent on an organic basis, due to the ongoing conflict throughout the second quarter; local demand remained relatively resilient, showing a quarter-on-quarter improvement.

Focus on sustainability and responsible sourcing

"The transition plan towards lower-impact raw materials has continued to promote responsible sourcing and product innovation. Meanwhile, chemical management and efforts to decarbonise the supply chain have been further strengthened, in collaboration with other industry players," the note specified.

Canadian apparel manufacturer Gildan Activewear Inc. (Gildan) announced its financial results for the second quarter ended June 28, 2026. The Montreal-based business recorded net sales from continuing operations of 1.58 billion dollars, representing a 72.3 percent increase compared to 918.50 million dollars in the prior-year period.

The top-line expansion was primarily driven by the acquisition of US apparel brand HanesBrands Inc. (HanesBrands), partially offset by inventory optimization initiatives. Compared to proforma net sales of 1.72 billion dollars from continuing operations, sales declined due to lower volumes stemming from proactive inventory reductions across customer channels and the non-recurrence of pre-buying activity observed in Q2 2025.

Gildan president and chief executive officer Glenn J. Chamandy stated: “We delivered strong results this quarter as our teams continued to execute with discipline against our strategic priorities. We continue to make excellent progress integrating HanesBrands and capturing synergies, while leveraging the combined strength of our brands, manufacturing network, and commercial capabilities, and investing strategically in innovation”.

Segment operational performance and tariff refunds

Across sales channels, wholesale revenue decreased 1.5 percent year-over-year to 769.40 million dollars. Despite overall channel softness, brands such as Comfort Colors, American Apparel, and Champion generated double-digit sales growth YoY. Retail sales surged to 813.10 million dollars compared to 137.10 million dollars in Q2 2025, largely reflecting the inclusion of HanesBrands.

Gross profit reached 459.80 million dollars, or 29.1 percent of net sales, up from 289.40 million dollars, or 31.5 percent of net sales, in the year-ago period. Adjusted gross profit stood at 545.40 million dollars, or 34.5 percent of net sales, after adjusting for an 85.60 million dollar inventory fair value step-up cost.

Operating income for Q2 stood at 175.90 million dollars compared to 199.50 million dollars in Q2 2025. Adjusted operating income rose 68.8 percent YoY to 352.30 million dollars, yielding an adjusted operating margin of 22.3 percent. Diluted earnings per share from continuing operations were 0.49 dollars, while adjusted diluted earnings per share reached 1.28 dollars.

The company expects to receive 220 million dollars in International Emergency Economic Powers Act tariff refunds from US Customs and Border Protection in 2026, with 25 million dollars recorded in Q2 and the majority expected in the third quarter. A significant portion will be reinvested into brand building, retail marketing, and product innovation.

Divestment of Australian unit and full year outlook

Gildan has entered into a definitive agreement to sell HanesBrands Australia to Singapore-based investment entity BBFIT Investments Pte Ltd for an enterprise valuation of approximately 700 million Australian dollars. The transaction is expected to close in the second half of 2026, with net proceeds deployed to pay down outstanding bank debt.

The company updated its full year 2026 guidance, expecting revenue at the low end of its previously communicated range of 6.0 billion to 6.2 billion dollars. Full year adjusted operating margin is projected at approximately 21.8 percent, with adjusted diluted earnings per share anticipated between 4.65 and 4.75 dollars, representing a YoY increase of 32.5 percent to 35 percent.

Payment provider Klarna is now available as a payment method in Lululemon stores in Germany and the UK.

The move expands a partnership that has existed online for more than five years, Klarna announced last week. The integration is made possible by the payment platform Adyen, which Lululemon uses. At the checkout, customers scan a QR code with their smartphone and pay via the Klarna app.

According to the company, the purchase amount can be split into three interest-free instalments or postponed by one month. No application at the checkout or separate card is required.

“Shopping shouldn't become less flexible just because you walk into a store,” said David Sykes, chief commercial officer of Klarna. “We have worked for years to make the online checkout smarter. Now we are bringing the same freedom to the physical checkout. Whether customers buy their gear in-store or order online, they should always be able to pay in the way that suits them best.”

For Klarna, the move is part of its expansion beyond e-commerce. The company estimated annual global spending in physical retail at around 28 trillion US dollars, almost four times the spending in e-commerce.

Klarna is listed on the New York Stock Exchange and works with more than one million retailers and fashion companies, including H&M, Nike and Sephora.

This article was created with the help of AI.

New research from Earth Action has found that textile manufacturing generates around 92,000 tonnes of microfibre pollution annually, with more than 63 percent of this waste ultimately leaking into the environment.

In the NGO’s ‘From Shedding to Solutions’, it is suggested that despite wastewater treatment capturing a significant proportion of fibres, current infrastructure prevents only 34,000 tonnes, or 37 percent, of annual leakage from reaching the environment.

Bangladesh was identified as the largest contributor to global microfibre leakage, accounting for 24 percent of annual emissions, followed by China at 15 percent and Pakistan at 11 percent.

While Bangladesh, Pakistan and China together account for 54 percent of production-related fibre losses, the report noted that differences in wastewater treatment and sludge management mean pollution levels do not directly reflect manufacturing output.

Earth Action said coordinated action across the textile supply chain could reduce production-stage microfibre leakage by approximately 95 percent by 2032.

The report highlights three key areas for improvement: designing textiles that shed fewer fibres, expanding wastewater treatment in manufacturing regions and improving sludge containment after treatment.

"The greatest opportunity lies upstream..."

According to the study, wastewater treatment alone would reduce overall leakage by around 6 percent, while improved sludge management could reduce emissions by 43 percent. Combined with cleaner manufacturing processes, the measures could cut leakage by roughly 74,000 tonnes.

The report also points to emerging research showing that relatively small changes to textile construction, including yarn structure, fabric density and finishing treatments, can reduce polyester fibre shedding by between 60 and 90 percent.

In a statement, Sarah Perreard, co-founder of Earth Action, said: "This is the first time the full system has been mapped at this scale, and it won't be the last. Each new phase will sharpen the picture further. But the evidence is already strong enough to act on now.

"Brands and regulators don't need to wait for a complete picture. They need the will to use what we already know."

Kyle Blakely, SVP innovation, design studio, development & testing at Under Armour, which sponsored the report alongside Patagonia and Decathlon, added: "This report reinforces that the industry has reached an inflection point - measurement alone is no longer sufficient.

"The greatest opportunity lies upstream: treating low-shedding construction as an engineering parameter embedded in design decisions from day one, not a metric measured at the end.

"No single brand can solve this alone. Coordinated action across the value chain is essential to achieving the reductions the science demands, and Under Armour is committed to contributing its data, methodology, and experience to that collective effort."

Australian fashion brand Bardot has expanded its international e-commerce strategy with the launch of dedicated online stores for customers in the UK and Europe.

Previously, shoppers in both markets accessed the brand through its US website and wholesale partners. The new regional platforms intend to introduce local payment options, transparent duties at checkout and faster delivery services tailored to each market.

In a post on LinkedIn, Bardot chief executive officer Basil Artemides said the move reflects the growth of the brand's international customer base.

“Our global community has been growing for years. Rather than simply shipping internationally, we wanted to create distinct destinations built around the way our European and UK customers shop,” he said.

Founded in Melbourne in 1996, Bardot has been expanding its international presence through both wholesale and direct-to-consumer channels. The launch of dedicated regional websites marks the latest step in that strategy, providing a more localised shopping experience for customers across Europe and the UK.

US womenswear label Reformation has priced its initial public offering at 15 dollars per share, raising approximately 211 million dollars ahead of its planned debut on the New York Stock Exchange.

The Los Angeles-based brand is offering 14,062,500 shares, including 9,478,821 newly issued shares and 4,583,679 shares sold by existing shareholders. Trading is expected to begin on 30 July under the ticker symbol "REF", with the offering due to close on 31 July, subject to customary conditions.

The pricing follows Reformation's IPO roadshow earlier this month, during which the company targeted a price range of 15 to 17 dollars per share.

Founded in 2009, Reformation has grown into a global womenswear retailer with 70 stores across the US, UK, Canada and France, while selling to more than 150 countries online. The company reported net revenue of 507.1 million dollars for 2025 and first-quarter 2026 sales growth of more than 30 percent, extending its run of 20 consecutive quarters of double-digit revenue growth.

Private equity firm Permira, Reformation's majority shareholder, is expected to retain a significant stake following the listing. J.P. Morgan and Morgan Stanley are leading the offering.

Geox spa has closed the first six months with revenues down 11.4 percent compared to the first half of the year (8.8 percent on a like-for-like basis), at 270 million euros (309 million dollars). The company reported an adjusted Ebitda of 13 million euros, compared to nine million in the same period last year.

“Geox has faced a difficult and sharply contracting market, already characterised by very strong competition, as well as extraordinary natural and other events. We have leveraged all the actions under our control to recover profitability, even accepting the possible consequence of losing sales volumes. The effect of this strategy translates into an adjusted Ebitda (excluding the IFRS 16 impact) of approximately 13 million euros, which compares to about nine million euros in the previous comparable period. Meanwhile, the adjusted Ebit for the period stands at approximately six million euros (net of non-recurring costs of about one million euros) compared to the previous figure of about one million euros. Debt to banks amounts to 95.3 million euros (100.5 million on June 30, 2025), and working capital is 21.9 percent of the last 12 months' turnover, fully in line with seasonal trends,” chief executive officer, Francesco Di Giovanni, said in a statement.

The management continued that measures to streamline the cost structure have led to savings in operating costs of approximately 19.1 million euros in the reporting period.

Di Giovanni specified that rationalisation measures in production processes and sourcing methods “have brought economic benefits and, above all, improved the debt situation. Despite the reduction in sales revenue, this allows for a forecast of year-end debt in the range of 40-45 million euros. This is a truly significant result considering that the debt stood at approximately 93 million euros at the end of the 2025 financial year”.

Revenues in the first half of 2026 showed a decline of 8.8 percent on a like-for-like basis, excluding the impact of voluntary store closures and the discontinuation of some unprofitable distribution channels and customers. The absolute decline compared to the same period last year was 11.4 percent and affected virtually all sales channels and geographical areas.

Geox develops and patents new product, Climasandal

During the first half of 2026, Geox developed and patented a new product, the Climasandal, a preview of which was distributed in selected stores. It is a men's and women's sandal based on an internally developed and patented technology, the Ventilated Cushioning System, which allows air to recirculate, generated by the natural movement of the foot.

With more than 35 years in the apparel industry, Ton Wiedenhoff, Executive Director Europe for the sizing and apparel technology company Alvanon, has helped hundreds of brands and retailers integrate transformative sizing standards and smarter processes into their value chains.

In this insightful interview for FashionUnited, he explains why sizing is a strategic business issue and how brands can use foundational data to increase their visibility and reach their sustainability and business goals in the agentic era.

Q:The fashion industry is facing no shortage of challenges. What concerns you most?

Ton: We still make too many clothes.

We have seen decades of over production - too many garments are being manufactured and too many being sold at discount or worse, ending up in landfill. My frustration is that while many brands and retailers are investing in sustainable practices and processes, many are still overlooking one of the biggest contributors to waste: making clothes that don’t fit real bodies.

A recent report we collaborated on with Coresight Research* shows the scale of the problem. Last year in the US alone, consumers returned over $47 billion of merchandise – and 70 per cent named size and fit as the reason for the return. That is a lot of frustrated customers, a lot of waste and a huge cost to brands.

Q: So what can companies do to address overproduction, waste and returns?

Ton: Go back to serving their specific consumer demographic - ‘one size’ will never fit all so it’s about defining what your customers look like, their size and shape, and then making clothes for those consumers.

It’s easier said than done. Making it happen requires leadership and a commitment to hard wire a brand’s specific sizing standards into its processes across the value chain. This usually means breaking down legacy silos and processes, defining and sharing a single source of sizing truth and making sure this is consistently applied to every garment and clearly communicated to the consumer.

Q: AI is transforming retail at an incredible speed. Is it helping or making things more complicated?

Ton: The answer is both.

The era of agentic commerce is here and it has already transformed the way many of us shop. AI agents rely on structured machine-readable data to evaluate and recommend products. If a brand’s sizing information is inconsistent or incomplete, AI agents won’t be able to recommend its products effectively. Even worse, if AI is working with inaccurate sizing data, it will simply recommend the wrong products more efficiently, making the returns problem even bigger! That’s why getting the foundational sizing right isn’t just an operational issue – it’s a strategic requirement for succeeding with AI.

Q: Is anyone using foundational sizing data in this way to benefit their businesses?

Ton: Absolutely.

Bershka, a sister company to Zara and part of the Inditex Group, has built its product development and e-commerce strategy around a clearly defined sizing range standard for its target consumer demographic.

Its designers, pattern makers, manufacturers and e-commerce teams refer to this core standard as their single source of truth. They use digital avatars and physical ‘twin’ mannequins based on that standard ensuring consistency across the value chain. It’s resulted in a ten per cent reduction in Bershka’s return rates and it shows what’s possible when foundational sizing data becomes central to the business.

Q: Beyond reducing returns, what other advantages does a strong sizing strategy deliver?

Ton: It will help designers make better decisions, improve assortment planning and merchandising, reduce guesswork, support more accurate inventory planning, minimise waste and enable better demand forecasting. The benefits extend across the value chain.

Q: It sounds rather complicated. Where should a company start?

Ton: The Coresight Research Report looked at exactly this and identified three core pillars to future-proof for sizing and fit: establish foundational size and fit standards; implement robust Product Information Management; and communicate sizing clearly through Product Detail Pages.

I’ve already talked about the importance of establishing foundational sizing and fit standards. What I should emphasise is that these core standards should be locked in for five to seven years. If they're continually adjusted, you can create ‘fit drift’, where sizing gradually changes over time. Customers lose confidence because they no longer know what size to buy. It takes time to achieve trust in a brand's fit.

Q: And so what of the second pillar, Product Information Management? Many apparel brands have those systems in place already?

Ton: Indeed. As an industry we already know how important PIM is to aligning processes. Product Information Management has become the operational backbone that connects fit strategy to execution across the apparel value chain. Once a brand has established its size and fit standard they need to translate that standard into structured, usable product data such as garment measurements, intended fit profiles, fabric composition and stretch characteristics.

Just as important is ‘ownership’. Technical design, product development and ecommerce teams all need to agree and ‘own’ how fit information is created, validated and maintained.

The most advanced organisations create feedback loops. They analyse returns, customer reviews and regional buying patterns to identify recurring sizing issues, then feed these insights back into future product development. That creates continuous improvement rather than repeating the same mistakes.

Q: And so, to the third pillar consumer experience and the Product Detail Page. How can companies accurately communicate their sizing and fit strategies to their customers especially as predictive sizing tools and virtual try-on become more common?

Ton: For consumers, the Product Detail Page, is the moment of truth.

Consumers need clear, practical information that helps them understand how a garment will fit their body. That means detailed measurements, clear descriptions of intended silhouette and fit, and information about how fabrics behave when worn.

Showing garments on different body shapes helps communicate aspects of fit that measurements alone cannot capture, including drape, volume and movement.

Customer reviews are equally valuable, particularly when they are filtered by body type, height or fit preference. Combined with accurate model measurements and comparative sizing guidance, they help consumers buy with much greater confidence.

Q: Finally, looking ahead, what should fashion businesses be focusing on now?

Ton: Big tech may own the AI platforms, but apparel brands and retailers own the proprietary data that serves their customers and businesses. That’s where competitive advantage lies.

To succeed in the AI era, the need for clean, machine-readable fit data is an imperative. Accurate agentic recommendations depend entirely on the quality of the information we as an industry provide.

Success in the AI era won’t be determined by who had the best visual AI. It will be determined by who has the best and most accurate foundational data and that is something every brand can control.

*Coresight Research Report May 2026 'Shifting the Size & Fit Paradigm: A Three Pillar Framework to Reduce Returns and Future-Proof for Agentic Commerce’

US footwear specialist Skechers has said construction of its new European distribution centre is set to finalise in August, making way for the company’s next chapter of growth in the region.

Located near Liège Airport in Belgium, in close proximity to its existing site in Milmort, the 230,000 square metre centre intends to place Skechers at the “forefront of innovative distribution to the continent”, chief operating officer David Weinberg said.

The site has been developed as an “automated and sustainable” location, holding a BREEAM Excellence certification that reflects “high standards of energy performance”. It has further been developed alongside Weerts Group and KNAPP, two partners overseeing the scaling and implementation of technology.

Automation will be at the core of the site, with installation to begin in August and the first phase to be complete by the end of 2028. Skechers noted that such processes, spanning goods receipt to shipping, would not replace the existing work of on-site teams, and instead ensure balance across operations.

The set-up was described by KNAPP vice president of partner & product solutions, Oliver Lehner, as the “next-generation warehouse”. He added: “A deep level of integration of broad automated processes and the high performance capable of handling very large volumes will ensure excellent service to Skechers customers B2C and B2B.”

For Skechers, the new centre brings the company into its next phase of European expansion. By implementing innovative technologies, the retailer said it hopes to create new business opportunities in the Wallonia region, where it has had a base for over 23 years.

Europe as a market has also remained integral to Skechers, which operates over 500 retail locations in the region. Prior to going private following 3G’s acquisition of the company last year, the continent was among the company’s strongest performing markets financially.

In the final report before the takeover finalised, Skechers recorded a 22 percent growth in international revenue driven by EMEA, where revenue increased 48.5 percent to 731.5 million dollars. This contrasted with more turbulent performance in the US and China, where revenue dropped 0.2 percent and 8.2 percent, respectively.

Adidas AG, the German athletic apparel, footwear, and related products company, on Thursday reported a decline in net profit for the second quarter of fiscal 2026, hurt by loss from discontinued operations. However, the company recorded a rise in net sales, helped by improved demand.

For the three-month period, the company reported a net income of 355 million euros, or 2.02 euros per share, less than 369 million euros, or 2.07 euroes per share, in the same period last year. Loss from discontinued operations was 14 million euros, compared with a gain of 6 million euros a year ago.

Net profit from continuing operations was 398 million euros, or 2.10 euros per share, higher than 375 million euros, or 2.03 euros per share, in the prior year. Operating income stood at 574 million euros as against 546 million euros in the previous year.

The company posted net sales of 6.743 billion euros, up from 5.952 billion euros last year. The Apparel business of Adidas registered net sales of 2.721 billion euros, higher than 2.029 billion euros a year ago.

In addition, Adidas has appointed Birgit Kretschmer to its executive board with effect from September 1. She will succeed Harm Ohlmeyer as the company's chief financial officer at the end of the year. This follows Ohlmeyer's decision not to extend his executive board mandate beyond his current term.

With this appointment, Kretschmer returns to Adidas, where she had spent her 25 years in different leadership roles across the organization. For the past six years, she worked as the CFO of C&A, a fashion retailer.

Looking ahead, for fiscal 2026, the company has reaffirmed its operating profit guidance of 2.3 billion euros. For fiscal 2026, citing its better-than-expected current earnings performance, Adidas now anticipates revenue growth of 9 to 10 percent against its earlier expectation for revenue growth in a high-single-digit rate.

For fiscal 2025, Adidas had posted an operating profit of 2.056 billion euros, with net sales of 24.811 billion euros.

Authentic Brands Group is moving into the next phase of its growth strategy for Guess with the appointment of operating partners in the US and Canada, seeing it expand into new categories, such as homeware.

Centric Brands LLC has been tasked with overseeing children’s apparel, sleepwear and accessories alongside men’s sleepwear, underwear, and small leather goods, belts and cold-weather accessories. Vandale Industries, Inc. will lead women’s intimates and sleepwear, Orly Shoe Corporation will helm socks and slippers and E.S. Originals, Inc. will take on children’s footwear.

Guess will further expand into homeware through a deal with Creative Home Ideas/YMF, which will oversee bedding, bath, rugs, lighting, kitchenware, outdoor accessories, pet products and more from the home category.

The appointments build on Authentic’s continued effort to expand the Guess name after acquiring the intellectual property rights of the brand last year. Next to taking Guess private, Authentic sought to strengthen Guess’ lifestyle offering and expand its North American presence through partnerships with “best-in-class operators”.

In a statement, Authentic’s global president of sports & lifestyle, Jarrod Weber, recognised Guess’ existing positioning in the market, and added that the group’s focus was on continuing to develop the brand “in thoughtful ways” by “bringing consumers the categories they expect from Guess while ensuring every product reflects the style, quality and point of view that have made it iconic”.

Lille - French kidswear retailer Okaïdi has exited administration after a court approved a recovery plan that has resulted in the loss of 244 jobs and the closure of 57 stores in France, the company announced on Tuesday.

The brand has also ceased trading outside France, shutting 25 stores in Poland, 17 in Germany and two in Portugal, it told news agency Agence France-Presse (AFP).

Okaïdi belongs to IDKIDS, a group based in northern France that was placed into administration in February for most of its French brands. The proceedings at the Lille Métropole commercial court covered Obaïbi, which sells clothing for children up to the age of three; Okaïdi, aimed at children aged three to 14; the early-learning toy retailer Oxybul; and the logistics platform IDLOG, together employing 2,000 people in France.

The court "validated the recovery plan presented by the IDKIDS group", the company said in a statement, allowing Okaïdi to "successfully exit administration in six months" on the strength of what it described as "a solid continuation plan".

Network refocused on best-performing sites

The group said the process had supported a "profound transformation" of the business, marked by a "refocusing of the French network on its best-performing sites", the "cessation of structurally loss-making international activities" and the "adaptation of its head office organisation".

When the proceedings opened, Okaïdi said the continuation plan was intended to address a "persistently challenging environment", citing a declining birth rate, "pressure on families' purchasing power" and "the rise of second-hand fashion and competition from ultra-fast fashion".

A historic brand within IDKIDS, which is headquartered in Roubaix in northern France, Okaïdi generates 600 million euros in turnover worldwide, of which 300 million euros comes from France, according to figures the group gave AFP in February.

IDKIDS parted with the most profitable label in its portfolio a few weeks ago, selling the high-end children's ready-to-wear brand Jacadi to French fashion group Deveaux, whose brands include Armand Thiery and Jacqueline Riu.

France's apparel sector has been under pressure for several years, moving from the growth of e-commerce through Covid-19 and inflation to competition from second-hand fashion and ultra-fast fashion.

This article was written with the assistance of AI.

The US apparel group VF Corporation (VF Corp) experienced a decline in revenue in the first quarter of the 2026/27 fiscal year, but it managed to exceed expectations. The parent company of brands such as The North Face, Vans and Timberland subsequently raised its full-year revenue forecast on Wednesday.

In the three months to June 27, group revenue amounted to 1.67 billion dollars. This represented a 5 percent decrease compared to the prior-year quarter. However, analysts had anticipated greater losses. Adjusted for currency fluctuations, revenue fell by 7 percent. Excluding contributions from the Dickies brand, which was sold in November, the company reported that group revenue increased by 1 percent and remained constant on a currency-neutral basis.

The North Face and Timberland continue to show solid growth

The North Face and Timberland brands once again achieved solid growth. Revenue for The North Face increased by 6 percent (up 4 percent on a constant currency basis) to 590.9 million dollars. Timberland reported a 4 percent increase (up 3 percent on a constant currency basis) to 266.1 million dollars.

The struggling Vans label saw a decline of 8 percent (down 9 percent on a constant currency basis) to 459.8 million dollars. The combined revenues of the group's smaller brands shrank by 22 percent to 352.6 million dollars due to the sale of Dickies.

The group also made progress in its earnings, largely due to a higher gross margin. The operating loss was reduced by 4 percent to 83.1 million dollars, slightly exceeding management's forecasts. The reported net loss, which stood at 116.4 million dollars in the prior-year quarter, decreased to 97.2 million dollars. This figure was, however, higher than analysts had previously expected.

Abhishek Dalmia to become new CFO

CEO Bracken Darrell acknowledged the overall “solid start to the year”. In light of the surprisingly positive revenue performance, management raised the corresponding forecast for the full year. Adjusted for currency effects and contributions from the Dickies brand, growth of 2 percent or more is now expected. Previously, an increase of 1 to 2 percent had been forecast.

The group also announced a change in a key position. Chief financial officer (CFO) Paul Vogel will step down from his position at the end of the month. His successor, Abhishek Dalmia, will take over on August 1. Dalmia will retain his current role as chief operating officer (COO) and will assume a dual role in management.

Millions of workers worldwide are employed by the digital platform economy, that is economic and social activities conducted on online platforms that connect directly with consumers. According to research by the Harvard Kennedy School, this could be between 154 million and 435 million people, depending on how broadly gig work, ride-hailing, delivery and online freelancing are defined. While only a fraction of countries currently track platform labour formally, it is even harder to estimate how many of these workers are employed in the fashion industry.

However, one can extrapolate the scale of fashion’s digital platform workforce by analysing where the broader global fashion industry connects with the platform economy. The total global fashion workforce sits at roughly 60 million to 75 million garment and retail workers. With fashion e-commerce revenues exceeding 760 billion US dollars globally, this has opened up many job opportunities for stylists and photographers, copywriters and graphic designers on the creative and content side, digital marketers and fashion buyers on the business side, and software engineers, data analysts and interface designers on the technical side.

The fashion industry and the gig economy

The fashion e-commerce industry not only relies heavily on platform labour for the “last mile” delivery but in major apparel hubs like India, the boom of rapid 10-to-15-minute delivery apps is fundamentally altering the fashion workforce. Reports from garment-manufacturing hubs note that factory workers are increasingly leaving traditional textile floor jobs to become flexible digital platform drivers due to better hourly flexibility and better pay according to media house Apparel Resources.

Out of the estimated 154 million to 435 million online gig workers globally, creative fields heavily feed into fashion with brands sourcing freelance fashion illustrators, apparel pattern makers, textile designers and e-commerce copywriters. A massive subsection of digital platform workers includes fashion content creators, stylists and social media influencers who generate income directly through platforms like Instagram, TikTok and YouTube via brand deals and affiliate link deals.

Another and unique layer of fashion platform work includes peer-to-peer micro-entrepreneurs. Millions of independent workers generate partial or full-time income by operating as professional resellers on specialised digital fashion platforms like Depop, Poshmark, Vinted and eBay. Driven by a secondhand apparel market expected to scale to 350 billion US dollars, these platform participants function as independent supply-chain workers—handling sourcing, photography, customer service and fulfilment algorithmically via these applications.

Until now, these millions of digital platform economy workers had no international labour standard dedicated specifically to them. This changed in June of this year with The Decent Work in the Platform Economy Convention, 2026 (No.193) by the International Labour Organisation (ILO).

Scope of Convention 193

It has established a global framework to help ensure that technological innovation and new business models go hand in hand with workers’ rights, fair competition and sustainable economic growth: “It seeks to ensure that all digital platform workers, regardless of their status in employment, can benefit from fundamental rights and appropriate protections, while recognising the opportunities created by digital labour platforms,” explains the ILO in a press release.

Convention 193 applies to all digital labour platforms and digital platform workers, whether they are in an employment relationship or not, including self-employed workers, and regardless if they work in the formal or informal economy. It also covers location-based as well as online platform work. Given that the nature of platform work is often organised across borders and may involve intermediaries, the Convention includes provisions aimed at ensuring the effectiveness of its protections in various countries and extending to intermediaries.

Should certain digital platform workers’ rights already be recognised in certain member states, the Convention does not negatively affect these. It rather “establishes a floor of protections and introduces safeguards in areas that have become increasingly important in the digital economy, including algorithmic management and data protection,” states the ILO.

The Convention also seeks to ensure that the protection afforded to digital platform workers is not less favourable than that granted to other workers with the same status in employment. In other words, digital platform workers who are employees should not be less protected than other categories of employees.

Rights and protections under Convention 193

The Convention addresses a broad range of issues, including fundamental principles and rights at work, occupational safety and health, violence and harassment, the promotion of decent work opportunities, remuneration or payment and social security.

It also covers the impact of the use of automated systems based on algorithms on workers, data protection and privacy, suspension, deactivation and termination, protection of migrants and refugees and access to justice.

Algorithms and artificial intelligence

Convention 193 also contains provisions on the impact of the use of automated systems based on algorithms, including automated decision-making systems, which should be used responsibly. It establishes principles relating to their transparent use and access to review mechanisms when such systems affect workers. It also needs to be ensured that digital labour platforms have appropriate human involvement.

“While the Convention does not explicitly refer to artificial intelligence, its provisions apply to automated systems used to monitor or evaluate work or to generate decisions relating to work, including those that may incorporate AI technologies,” explains the ILO.

Applicability

Convention 193 will not apply immediately in all 187 ILO member states. Like all ILO Conventions, Convention 193 becomes legally binding only for those member states that ratify it. Once that is done by the competent authority (normally the member state’s parliament or legislative assembly together with the executive branch), the convention must be implemented through national laws, regulations, policies, collective agreements or other measures, in accordance with each country's legal system and national practice.

While this may require some time and effort on the part of each member state, the involvement of millions of workers (up to 5.7 percent of a country’s workforce according to an ILO research brief of February 2026) should make it a pertinent issue. In addition, there are unique employment challenges that need to be tackled sooner rather than later, for example the lax classification of workers as independent contractors or self-employed sole proprietors, thus systematically bypassing standard labour rights, minimum wages and collective bargaining frameworks.

The future of Swiss brand Bally, owned by American fund Regent Lp, looks bleak. According to reports from Ticino online, citing LaRegione, the brand has now been seized by the bankruptcy office. This follows the Lugano court's decision to block its sale to Aare Llc, a US company established last May.

The Swiss press reports that these actions raise suspicions of a controlled devaluation to reacquire assets without the burden of historical debts. Regent also reportedly rejected an offer from Swiss entrepreneur Roberto Martullo, who was interested in the entire group, including the brand. Martullo told LaRegione that the deal is meaningless without the brand, which he considers the main asset.

FashionUnited has contacted Regent for comment.

On July 24, the Ocst union stated in a note: “The information published in LaRegione regarding Bally's situation raises increasingly serious questions about the composition moratorium granted to the company from June 15, 2026.” Ocst is a trade union with over 40,000 members active across all sectors and professions.

“According to public reports, an acquisition offer was submitted by entrepreneur Roberto Martullo aimed at maintaining some operations, certain jobs, and purchasing the brand,” the unions explained. “The rejection of this proposal, if confirmed, makes it even more urgent to understand the actual industrial plan for Bally and what concrete prospects exist for the workers.”

“In recent months, Ocst has consistently reiterated that our Canton needs entrepreneurs interested in creating value through work, production, and local roots, not operations that risk leaving only debts and social consequences behind,” the union representatives stressed in the note. “If it is confirmed that a purchase offer capable of preserving activities, jobs, and supplier relationships has been rejected, the ownership must explain what better alternatives it intends to pursue and why this proposal was not deemed worthy of further consideration.”

“Ocst does not intend to replace the authorities in fact-finding or to fuel speculation. However, the series of events in recent months, from the worsening financial situation to the ongoing procedures and discussions about the company's strategic assets, poses questions to which workers, creditors, and the public deserve clear answers,” the workers reiterated. They added that they “trust the competent authorities are following this matter with the utmost attention and that all necessary investigations will be carried out.”

Last June, Bally Schuhfabriken Sa was placed under a composition moratorium with an estimated debt of around 20 million francs, the unions stated.

In May, following the announcement of 27 redundancies planned for the end of August, a social plan was agreed upon. During the negotiations, the Ocst union explicitly requested guarantees on the availability of funds needed to finance support measures for the affected workers.

Bally had always responded affirmatively to these requests, confirming the commitments made, Ocst pointed out.

Shein has confirmed that it is under investigation by US regulators under the Federal Trade Commission (FTC) as it continues to pursue an IPO listing on the Hong Kong Stock Exchange.

The Chinese fast fashion giant disclosed the development, which impacts its US business, in a regulatory report filed in connection with its planned IPO, however did not state what the investigation was regarding.

“The outcome of the investigation, whether in settlement or otherwise, may require us to make significant monetary payments that could have a material adverse effect on our financial condition and results of operations,” the company stated.

An FTC spokesperson has since confirmed to multiple media outlets that it is conducting a consumer investigation into Shein.

The latest regulatory filing forms part of the Hong Kong listing process for Shein, which also reported softening profitability and decelerating revenue growth in the report. The company recorded a net loss of 99 million dollars in the first quarter of 2026, contrasting a net profit of 395 million dollars seen in the same period of the year prior.

The e-tailer is seeking an IPO in Hong Kong after encountering obstacles in efforts to list in New York and London, specifically related to allegations against its supply chain and business practices.

French luxury goods group Hermès slightly increased its sales in the first half of the 2026 financial year, exceeding market expectations despite negative currency effects. Its profit remained almost unchanged year-over-year, according to the latest figures released by the company on Wednesday.

Group sales for the months of January to June amounted to 8.16 billion euros (9.30 billion dollars). This represented a growth of 1.6 percent compared to the same period last year. Adjusted for currency fluctuations, revenue increased by 6.1 percent. The slight increase was due to a rise in sales in the second quarter (+4.8 percent; +6.7 percent at constant exchange rates), after revenues had declined in the first three months of the year (-1.4 percent; +5.6 percent at constant exchange rates).

Leather goods revenue grows strongly

The leather goods category was the main growth driver, with sales increasing by 5.1 percent (+9.8 percent at constant exchange rates) to 3.76 billion euros in the first half of the year. The silk and textiles division also performed well, with an increase of 4.8 percent (+9.7 percent at constant exchange rates) to 469 million euros.

In contrast, revenue from ready-to-wear and accessories decreased by 2.5 percent to 2.20 billion euros (+2.0 percent at constant exchange rates). In the perfume and cosmetics category, sales fell by 6.1 percent (-4.5 percent at constant exchange rates) to 233 million euros. The watches division saw a decline of 4.2 percent (+0.2 percent at constant exchange rates) to 269 million euros. The other product categories, which include jewellery and home goods, collectively generated sales of 1.06 billion euros, surpassing the previous year's level by 0.8 percent (+5.4 percent at constant exchange rates).

Negative currency effects impact sales development in key markets

Performance varied across the different market regions in the first half of the year. In Europe, group sales rose by 4.9 percent (+6.0 percent at constant exchange rates) to 1.92 billion euros. In the Americas, sales grew by 8.9 percent (+15.3 percent at constant exchange rates) to 1.58 billion euros.

In Asia, the group's most important region, revenues of 4.33 billion euros missed the previous year's level by 1.3 percent; however, at constant exchange rates, they increased by 4.0 percent. In the Middle East, sales decreased by 8.9 percent (-4.2 percent at constant exchange rates) to 330 million euros. The company emphasised that the region had shown “remarkable resilience” in light of the challenging conditions.

Group enters second half of the year with confidence

The operating result, adjusted for special items, was 3.35 million euros in the first six months of the year, an increase of almost one percent compared to the same period last year. The net profit attributable to shareholders amounted to 2.24 billion euros, remaining almost constant (-0.4 percent).

Executive chairman Axel Dumas described the results as “solid”. Given the upward trend in the second quarter, the group is now looking to the second half of the year “with confidence”.

Sales of AI-enabled eyeglasses, which have nearly doubled since last year, helped EssilorLuxottica accelerate second-quarter growth, the world's largest maker of eyeglasses reported Tuesday.

Second quarter sales rose 7.2 percent in the three months to June to 7.7 billion euros (8.8 billion dollars).

"AI glasses confirmed their exponential growth, almost doubling in sales in the second quarter versus last year," the company said.

The company didn't provide a figure for sales of AI glasses, however.

The company's chief executive Francesco Milleri said sales of AI glasses expanded across the globe and consumer segments and were generating sustainable profits.

EssilorLuxottica's share price took a hit after releasing its first quarter results, with analysts saying investors had switched from seeing AI eyeglasses as an opportunity to a risk.

Earlier this year the company expanded its AI-enabled offering with a new line developed by Ray-Ban in partnership with Meta aimed at a younger public that is more price sensitive.

"We look to expand our market, targeting new consumers that have more sensibility to price and maybe are younger and more interested in having something technology" integrated, said Milleri during a conference call.

While the company's frames are the most visible segment, it was built from a merger that included lens manufacturer Essilor.

The company has continued to innovate with lenses that slow the progression of short-sightedness in children. Sales of these lenses jumped by 24 percent.

EssilorLuxottica has also branched into hearing correction, with its Nuance Audio integrating hearing aids into eyeglasses frames.

Milleri said a second generation of the products offering better performance would hit markets in mid-September.

First half sales rose 5.7 in the first half of the year to 14.8 billion euros.

Net profits soared by 12.9 percent to 1.6 billion euros.

3.3 billion euros. In a word, as in a number, is Kering's financial trajectory finally changing? By reducing its debt by 4.7 billion euros in just six months, the world's number two luxury group has secured what it needed most: time and capital to complete its turnaround.

Presented on July 28, 2026, the half-year results show revenue of 7.22 billion euros (8.23 billion dollars) (+1 percent on a like-for-like basis). Beyond the overall revenue, a sequential analysis reveals a tangible change of pace. The second quarter (+2 percent on a like-for-like basis) confirms the initial effects of a drastic refocusing strategy led by its chief executive officer, Luca de Meo. Through targeted divestments, the rationalisation of its retail network and the strengthening of its Jewellery and Eyewear divisions, Kering is no longer at the mercy of the economic climate but is restructuring its model.

Sequential momentum validates turnaround plan

A comparative analysis of the first half (H1) and the second quarter (Q2) highlights the group's accelerated trajectory, driven by the exceptional performance of its non-fashion divisions.

Taken in isolation, these figures might seem relatively modest. Their reading, however, reveals a much more significant shift. Behind the limited 1 percent like-for-like growth in the first half lies a genuine redistribution of the group's performance drivers.

Historically dominant activities continue to weigh on the accounts, while businesses developed in recent years are beginning to take over. This shift highlights the logic behind the strategic decisions made by the new management over the past several months.

Fashion division rationalises as Gucci initiates its turnaround

While the Kering Fashion & Leather Goods division declined by 1 percent over the half-year (to 5.80 billion euros), its stability in the second quarter (+0 percent on a like-for-like basis) suggests that the lowest point has likely been reached.

This performance is part of a deliberate streamlining of the retail network. The group closed 84 directly-operated stores in the first half (following 75 closures in 2025), representing a 5 percent reduction in its overall physical footprint.

At Gucci, the group's prodigal yet troubled child, the sequential improvement appears to be taking effect. Revenue reached 1.41 billion euros in Q2 (-2 percent on a like-for-like basis), marking a 7-point gain in its directly-operated network compared to the first quarter. Budgetary discipline has raised the house's recurring operating margin to 17.0 percent (+1.0 percentage points).

The early signing of the 50-year beauty licence with L’Oréal for Gucci Beauty (and the acquisition of rights from Coty) secures the brand's value for the very long term.

Clinical execution of divestments

The reduction in financial debt (from 8.0 to 3.3 billion euros) is commendable and bears the direct mark of the industrial decisions led by Luca de Meo, chief executive officer of Kering.

“These first-half results demonstrate the positive impact of the decisive measures we have implemented to strengthen the uniqueness of our brands, simplify our organisation and increase the efficiency of the entire Group,” stated Luca de Meo.

Indeed, this statement is reflected in radical decisions and uncompromising execution:

• Rebuilding the war chest: The finalisation of the sale of Kering Beauté to L’Oréal on March 31, 2026, brought in 4.0 billion euros in net cash.

• Monetisation of non-strategic assets: The partial sale of the building at 8 Via Monte Napoleone in Milan with Al Mirqab Group generated an immediate inflow of 729 million euros (with a further 432 million euros expected within five years).

• Acknowledged restructuring: The group recorded 223 million euros in non-recurring charges in H1, accepting the cost of store closures and internal reorganisations to permanently lower its financial break-even point.

Jewellery and Eyewear: highly profitable growth drivers

While the fashion division undergoes its refocusing, the diversified divisions are establishing themselves as powerful drivers of profitability.

• Kering Jewellery (+20 percent on a like-for-like basis in H1): With 521 million euros in revenue and an operating margin soaring by +2.7 percentage points (to 6.2 percent), the division is reaping the rewards of its restructuring. Boucheron continues to break records in the Asia-Pacific region, while the division's directly-operated store network has grown by +28 percent.

• Kering Eyewear (+8 percent on a like-for-like basis in H1): The division surpassed the 965 million euro mark and posted an exceptional operating margin of 23.0 percent (+2.9 percentage points). Driven by the launch of Valentino eyewear and the relaunch of Maui Jim, the division is asserting itself as one of the group's most profitable gems.

A healthier financial profile to tackle the next cycle

With an operating free cash flow of 2.6 billion euros for the half-year and a cash cushion of 8.5 billion euros, Kering enters the second half of the year with a restored balance sheet.

Between the appointment of new leaders at the helm of its houses (Romain Spitzer at Bottega Veneta, Gianfranco D’Attis at Alexander McQueen) and the launch of the Kering Accademia, the group is reaffirming its ambitions. Above all, its acquisition of a minority stake in ICCF (owner of ICICLE) aligns with a trend observed among industry conglomerates: investing in premium 'gems' with strong identities, founded on quiet luxury, eco-design and exceptional craftsmanship.

By betting on these new players in fashion and carrying out a welcome financial overhaul, Kering is consolidating a more agile, diversified and financially equipped organisation to tackle the next luxury cycle.

French fashion group SMCP announced its consolidated financial results for the first half ended June 30, 2026. The Paris-based parent company of Sandro, Maje, Claudie Pierlot, and Fursac recorded net sales of 597 million euros (680.7 million dollars), representing an organic growth of 0.6 percent compared to 601.10 million euros in the prior-year period.

Reported group net income surged 52 percent to 16.80 million euros, up from 11 million euros in H1 2025. The profitability expansion was supported by a management gross margin ratio of 76 percent, driven by a strict full-price strategy that reduced the average discount rate by two percentage points. Adjusted EBIT increased 25 percent year-over-year to 53.20 million euros. The adjusted EBIT margin expanded by 1.80 percentage points to 8.90 percent of sales.

SMCP chief executive officer, Isabelle Guichot, stated: “In the second quarter, our momentum strengthened, supported by solid growth in the Americas and EMEA, a confirmed return to growth in Asia-Pacific, and an improving trend in France despite a cautious consumer environment. These results demonstrate the relevance of our strategy and the quality of its execution across all our markets”. Guichot added that the business delivered a strong improvement in profitability while maintaining disciplined execution to support brand desirability.

Maje and regional expansion drive second quarter rebound

Trading momentum accelerated in the second quarter, with sales reaching 309.80 million euros, up 2 percent on an organic basis compared to 304.50 million euros in Q2 2025. Like-for-like sales rose 3.90 percent during Q2, contributing to a positive LFL growth of 1.60 percent for H1 overall.

Across product lines, Maje recorded organic sales growth of 5.20 percent during H1 to reach 232.60 million euros. Sandro maintained momentum with 299.60 million euros in sales, reflecting organic growth of 0.70 percent. The segment comprising Claudie Pierlot and Fursac generated 64.70 million euros, declining 13.20 percent organically due to network optimization and reduced off-season inventory liquidation.

Geographically, sales in the Americas grew 11 percent organically in H1 to 97.70 million euros, while Europe, Middle East, and Africa (EMEA), rose 7 percent organically to 218 million euros. Asia Pacific returned to organic growth, rising 1.90 percent to 96.60 million euros. Conversely, sales in France fell 10.80 percent organically to 184.80 million euros amid a subdued consumer climate and store network contraction.

Debt reduction and confirmed full year outlook support profitability

Disciplined capital allocation enabled the group to reduce its net debt to 144.60 million euros as of June 30, 2026, down 30 percent from 205.60 million euros a year earlier. During the period, SMCP fully repaid its remaining 42 million euros state-guaranteed loan and extended the maturities of its term loan and revolving credit facility to May 2028.

The retail estate encompassed 1,589 points of sale at the end of June 2026. On July 28, 2026, the board of directors authorized a share buyback program of up to 970,000 shares between July 30, 2026 and October 30, 2026 to cover employee long-term incentive plans.

Management reconfirmed its full year 2026 financial targets, including an adjusted EBIT margin of around 10 percent in the second half and full year free cash flow generation of 50 million euros.

UK retail conglomerate Frasers Group has disclosed a 4.16 percent exposure in luxury fashion label Burberry Group plc (Burberry), according to a regulatory filing released by the London-based company on July 28, 2026.

The FTSE 250 retail business, controlled by billionaire Mike Ashley, has steadily expanded its financial position in the luxury brand in recent days. Frasers Group increased its holding from 3.05 percent as of July 24, 2026, by building a larger position in sold put options linked to the equity of the brand.

The retail conglomerate holds the entire financial exposure through sold put options rather than direct shareholding, representing 15 million voting rights in the British luxury brand. Following the strategic accumulation, the group is set to become the third largest shareholder in Burberry, positioning itself behind MFS Investment and BlackRock Investment Management (UK) Ltd, according to data from LSEG.

Strategic stake accumulation follows withheld guidance

The financial move into Burberry follows recent operational developments across both corporate entities. Earlier this month, Frasers Group withheld its financial outlook for the financial year 2027, citing ongoing public takeover bids for German fashion house Hugo Boss and Australian footwear distributor Accent Group, which created forecasting complexity for the year ahead.

Reuters report revealed that following the release of the regulatory filing, shares of Burberry closed approximately 5 percent higher, while shares of Frasers Group ended the trading session up 2.50 percent.

For fashion brands, the question of whether to label AI-generated imagery has stopped being a matter of principle and become a matter of law.

In the U.S., New York’s Synthetic Performer Disclosure Law took effect on June 9, requiring any advertisement featuring a “synthetic performer” to include a clear and conspicuous disclosure within the piece. The law applies to any company whose ads reach New York consumers, regardless of where the advertiser is based. On August 2, the EU Artificial Intelligence Act will take effect, reinforcing disclosure obligations regarding companies' use of AI-generated or manipulated image, audio, or video content.

Evidence of the impact is already visible in production. Caimera, the AI imagery platform that works with more than 200 enterprise brands, told FashionUnited the regulation is reshaping the brief before it reaches the disclosure line. “There are some clients who have decided to switch the type of AI content, for example flat lay or ghost shots without models, or use it for design teams,” Caimera's co-founder Kirti Poonia said.

The specifics of each law explain why. New York’s statute, signed by Governor Kathy Hochul in December 2025 and billed as first-in-the-nation, targets the advertiser that produces or creates the ad, applies where the advertiser has actual knowledge that a synthetic performer is used, and carries civil penalties of 1,000 dollars for a first violation and 5,000 dollars for each subsequent one. Audio-only ads, promotional material for expressive works such as films and video games, and AI used solely for language translation are exempt, and publishers that merely disseminate a non-compliant ad are shielded.

The EU rules cut wider, with provisions applied even without intent to deceive, including content that looks or sounds like a real person must be labeled even if no deception was intended and even if no real individual is depicted. According to the regulation, disclosure must reach the viewer clearly and at first exposure, and cannot be buried in terms and conditions or left to machine-readable metadata alone.

For fashion, the exposure is concentrated in on-model campaign imagery, one of the areas brands have been most eager to automate. Consumers want transparency. Caimera’s 2026 survey of 502 U.S. consumers found that 85 percent could not reliably tell AI-generated images from real ones, while 75 percent still believe AI imagery should be disclosed, and when two brands both use AI, 79 percent said they would trust the one that labels it.

The consumer response

Last December, Valentino published an image created with the help of AI to promote one of its handbags on social media. The backlash came right after.

Dr. Rebecca Swift, senior vice president of creative at Getty Images, told the BBC at the time that the negative reaction suggested many see AI content as "less valuable" than human creations. "While people are excited by AI-generated content for personal use, they hold brands to a higher standard, especially expensive brands," she said. "Even full transparency about AI use wasn't enough to win them over."

Diesel, Gucci, Collina Strada, Baggu, Selkie, Mango, H&M, Zalando, Guess and Levi’s are just a few of the brands that have also faced public criticism after using generative AI models or imagery in their campaigns.

Questions about IP, exploitation and environmental impact have also been previously pointed out online by consumers as reasons for concerns about the use of AI in fashion. Those concerns aren't abstract: a New York model sued Rainbow Shops this spring over AI images generated from an expired contract; the state's new Fashion Workers Act now requires consent for models' digital replicas, and image generation remains one of the most carbon-intensive AI tasks, according to The Sustainable Agency, undercutting the sustainability case brands often make for it.

The rules are unlikely to push brands away from AI altogether

According to Caimera’s report, the AI visualisation during the design phase can cut sampling costs by roughly 45 percent and marketing production costs by as much as 80 percent, while compressing a six-month concept-to-launch cycle by up to four months. “AI helps run the whole workflow more efficiently and sustainably; there is at times no sampling as sketches turn into CADs and then into On-model images using AI,” Poonia said.

It is also reshaping roles in the industry. As AI moves from concepting into production, Poonia expects the impact to fall unevenly across a marketing team. "Marketing has always had two types of people, the thinkers/ideators and the executioners," she said. "In the future, the first set will have the same skills and the same jobs; the second set will have to move to embracing AI skills, just as analog photographers had to learn digital photography."

As Playtime hosts another edition of its trade show in New York City, buyers are cautious about stock and delivery — a trend seen across different sectors of the apparel industry, currently dealing with the unpredictability of US market tariffs.

“Buyers currently have short visibility on geopolitical changes. It's difficult to anticipate what will happen and how it will affect them. They have to build collections that respond to the needs of their customers, while also respecting the price points, limiting their stock, and requiring on-time deliveries,” Playtime’s show director Chantal Danguillaume told FashionUnited.

To manage the uncertainty, brands started to offer different drops throughout the year, Danguillaume said, allowing for greater flexibility. Meanwhile, buyers are also focusing on raising brand awareness and paying attention to standards regarding quality, sustainability, and legacy.

According to the United States Fashion Industry Association (USFIA)’s Fashion Industry Benchmarking Study published in July, 92 percent of business owners rated “Protectionist U.S. trade policies and related policy uncertainty, including the impact of the Trump tariffs” as one of their top two business challenges in 2026. These challenges are also keeping international brands away, Danguillaume said.

“We can see that international brands are struggling with the US market tariffs and trade tensions. The ones who decide to work in the US are well prepared and ready to play the game. There is still a strong appetite for the market, but some brands feel there are too many obstacles at the moment, so they are postponing opening to the US market,” Danguillaume said.

Playtime Fest

For summer 2026, Playtime launched Playtime Fest, an attempt to make the classic trade show format more fun for buyers. In New York, the show’s lineup featured over 270 brands covering product categories from fashion to lifestyle, shoes to accessories, and parenthood through newborns.

“Playtime Fest came naturally to us for the theme this season. It's all about good summer vibes, bringing people together from around the world, and trying to make it a fun, joyful, exciting, and relaxed experience. We are not simply a trade show. We try to offer exhibitors and visitors activations centered around fashion, emotions, and inspiring moments,” Danguillaume said.

On the floor, buyers are looking for what their clients want to buy, and concept stores have risen as one of the biggest trends of the year. “We’ve seen an increase in the number of concept stores that allow their customers to find everything they’re looking for in one place. Lifestyle products are also a great way to draw customers in. Then they’re able to discover fashion and accessories at the same time, leading to additional purchases,” she said.

The case for kids’ footwear

Among all the categories showcased at Playtime, kids’ footwear seems to have the stronger case for in-store shopping, as parents still prefer to buy where their kids can try the shoes on.

“Today we’re seeing footwear play a key role in styling, with no outfit being complete without the right pair of shoes. Quality is extremely important when it comes to children’s shoes as well, so being able to feel the materials and how they conform to children's feet is important. It’s something parents prefer to buy new, rather than in the resale market. We’re also seeing a lot of fashion brands collaborating with footwear labels, for example, The Campamento and Veja, Tinycottons and Victoria, and Bobo Choses and Camper to name just a few,” Danguillaume said.

As for fashion trends, exhibitors have brought everything for minimalists or maximalists. “The total looks are not to be missed! Matching sets covered in prints are really standing out this season. Bold color combinations are standing out as well, and barefoot styles for shoes and a resurgence of backpacks,” she said.

Playtime Fest New York runs through Tuesday at Metropolitan Pavilion. The event will then travel to Los Angeles, opening its doors from August 2 to 4.

Brazilian fashion brand Farm Rio will run its inspections, laboratory testing and product traceability through the supply chain platform of US software company Inspectorio, the two companies said in a joint announcement. The rollout covers the brand's retail markets in France, Italy, Mexico, the United Arab Emirates, the UK and the US.

Farm Rio is taking three of the platform's modules: quality risk management, which standardises inspection scheduling and reporting across markets; lab test management, which centralises test requests and results in an audit-ready format; and traceability and transparency, which automates document collection, validation and real-time translation. The brand says the lab testing module should shorten the time it takes to bring new styles to international markets.

The stated driver is compliance. Inspectorio says the platform will let Farm Rio automate its response to rules on forced labour, corporate sustainability reporting and supply chain due diligence in the US and Europe, replacing what its chief executive officer, Chirag Patel, described as fragmented, market-by-market operations with a single digital system.

"As we grow, Inspectorio provides us with the platform and regulatory expertise to fully digitize our operations," said Alexandra Brito, head of quality at Farm Rio, adding that the brand can now scale its international business with confidence that its supply chain meets the standards of the markets it serves.

Compliance deadlines in the US and Europe

The regulatory picture the announcement points to is moving in two directions. The EU's forced labour regulation, in force since December 2024, bars products made with forced labour from the single market from December 14, 2027, and the European Commission published its implementation guidelines and opened a supplier risk database in June 2026. In the US, the Uyghur Forced Labor Prevention Act has since 2022 placed the burden on importers to show that goods linked to the Xinjiang region were not made with forced labour, with cotton among the enforcement priorities.

Reporting and due diligence rules, by contrast, have been loosened. The EU's Omnibus I directive, in force since March 2026, narrowed the scope of both the corporate sustainability reporting directive and the corporate sustainability due diligence directive and delayed their application, leaving product-level import bans as the nearer-term pressure on apparel brands. Inspectorio's own 2026 State of Supply Chain Report found 52 percent of retail supply chain leaders naming regulatory change as a top focus this year, while 62 percent of those already using AI cited a reduced manual workload.

Farm Rio's position inside Azzas 2154

The investment lands while the brand's ownership is under review. Azzas 2154, the largest fashion retail group in Latin America and the product of the 2024 merger of Arezzo&Co and Grupo Soma, told the market on June 19 that it had hired Morgan Stanley to assess strategic alternatives for Farm Rio, saying it wanted to unlock the asset's value while stressing that no decision, formal offer or structure had been settled. FashionUnited has reported that a US listing is among the options under discussion, according to newspaper O Estado de S. Paulo.

Farm Rio accounts for roughly a quarter of group revenue and draws about 40 percent of its own sales from outside Brazil, making it the group's principal growth engine. Founded in 1997 by Katia Barros and Marcello Bastos as a market stall in Rio de Janeiro, the brand now operates more than 135 stores in Brazil and 17 boutiques across the US, Europe, the Middle East and Mexico, alongside more than 2,000 wholesale accounts including Le Bon Marché, Selfridges, Liberty and Bloomingdale's.

The compliance work builds on disclosure the brand already makes, as a Sedex member that has its tier one suppliers audited to the SMETA standard and publishes that supplier list through Open Supply Hub. For Inspectorio, which counts Brazilian retailer Lojas Renner and US chain Dick's Sporting Goods among its customers, the deal follows a growth investment from Apax Digital announced on July 16.

This article was written with the assistance of AI.

Austrian fibre producer Lenzing AG has announced additional drastic measures as part of its ongoing reform efforts.

On Monday evening, the group announced that it will close two more sites. The affected factories are in Heiligenkreuz, Austria, and Grimsby in the UK. Fibre production in Heiligenkreuz is set to cease by the end of this year and in Grimsby by the end of 2027. The company is currently examining “strategic options for the affected sites, including a possible sale or other value-preserving solutions,” according to a statement. A sales process had already been initiated for the PT South Pacific Viscose site in Indonesia.

Lenzing to focus on nonwovens

The reason for these measures is a “strategic transformation of the company,” Lenzing explained. This aims to “strengthen the focus on nonwoven applications and simultaneously realign the textile business” in light of market changes. The intention is to “significantly expand the nonwovens business by 2030.” Investments in production capacity at the Lenzing site will contribute to this goal.

CEO Georg Kasperkovitz commented on the announcement. “We are aware that the planned discontinuation of production at individual sites is a difficult but necessary decision that affects our employees,” he said in a statement. “It is important to me that we act responsibly towards our employees in this situation. We are currently holding constructive discussions with employee representatives about the necessary measures within the framework of existing social plans and applicable local conditions.”

In connection with the site closures, the group expects impairment losses of up to 150 million euros. These are expected to “negatively impact the group’s EBIT and net result for 2026” but will have “no effect on EBITDA in 2026,” the company announced. “In addition, restructuring provisions related to personnel measures of up to 40 million euros are expected to weigh on EBITDA in 2026.” Last year, the group had already decided on extensive job cuts at its headquarters in Lenzing.

Group plans comprehensive refinancing

At the same time, the group announced a comprehensive refinancing programme. This includes a capital increase of 300 million euros; new financing agreements worth 300 million euros; and an “extension of the maturities of existing liabilities until 2030.”

“The multi-stage financing plan enables Lenzing to sustainably strengthen its financial structure,” explained chief financial officer (CFO) Mathias Breuer. “The comprehensive package of measures includes new equity, which will reduce overall debt, as well as an expansion of syndicated financing.” This creates “a maturity profile that is optimally aligned with the ongoing implementation of our strategy,” Breuer emphasised. However, the news was not well received on the stock market. On Tuesday morning, the group’s share price temporarily fell by more than 17 percent.

Marc O'Polo is transforming its customer loyalty programme, launched in 2019, into an international brand community, which will launch on August 3 in eleven European markets.

The programme will offer members exclusive benefits, content and experiences, extending the brand experience beyond the point of purchase, Marc O'Polo announced on Tuesday. Since the member programme was introduced in 2019, two million customers have registered. The guiding principle behind the development is “Love for the Product”.

The Marc O'Polo Community will be available from August 3 in the brand's stores and outlets, in participating franchise stores and in the online shop. The programme will initially launch in Germany, Austria, Switzerland, Italy, Spain, France, the Netherlands, Belgium, Poland, the Czech Republic and Romania.

It will combine a flexible points system based on the 'earn and burn' principle (collecting and redeeming points) with community levels, exclusive benefits and gamified elements such as challenges and badges. Members can earn points through sustainable behaviour or by participating in community activities, allowing them to reach new levels and unlock digital awards.

“With the Marc O'Polo Community, we are creating a place for everyone who shares our love for high-quality products and Scandinavian design,” said Dirk Schneider, chief sales officer at Marc O'Polo. “Our aim is to bring people together, offer inspiration and make the exchange with our community even more vibrant.”

In the future, the offering will also become part of the Marc O'Polo shopping app, connecting the brand's touchpoints more closely. Additional features, further benefits and launches in other markets are also planned.

This article was created with the help of AI.

The European Union (EU) is imposing import duties of 60 to 67.5 percent on Chinese nylon, report Dutch media Nu.nl and De Telegraaf. The measure follows an investigation by the European Commission, which found that polyamide yarns, better known as nylon, were being offered on the European market at dumped prices.

According to the European Commission, the measure is intended to protect the European nylon industry from unfair competition. The nylon sector within the EU represents a value of approximately 400 million euros and employs around 2,000 people.

Nylon is widely used in items such as sportswear, jackets, swimwear and hosiery. The import duties are part of a broader series of trade measures by the EU. Similarly, exemptions for small shipments from outside the EU will also be removed from July 1, 2026, making online orders from countries including China more expensive.

The North American textile and garment ecosystem is reeling following Washington's announcement to invoke Section 338 of the Tariff Act of 1930, slapping a maximum 50 percent ad valorem (according to value) duty on a vast array of Canadian imports effective 19th August 2026.

While initial political headlines focused heavily on disputes involving the dairy, alcohol and automotive sectors, the garment and textile industry quickly realised that clothing would not be spared. Annex II of the White House executive order targets Harmonized Tariff Schedule (HTS) Chapters 50 through 63, encompassing everything from raw yarns and nonwoven fabrics to finished knitwear, outerwear and made-up textile products.

For apparel sourcing stakeholders, the breadth of these subheadings means very few Canadian textile products entering the US will escape the 50 percent penalty. For an industry built on tightly integrated cross-border production, the 30-day window between announcement and implementation represents one of the most severe policy disruptions in decades.

Overriding protective trade agreement

What makes this tariff unprecedented—and uniquely damaging—is that it completely bypasses the protective shield of the Canada-United States-Mexico Agreement (CUSMA/USMCA) where CUSMA-compliant goods entered duty-free. From 19th August, goods meeting strict North American rules of origin will enjoy no duty exemption under Section 338. By overriding preferential trade status, the US measure abruptly strips away the core financial incentive that drove regional manufacturing investment over the past three decades.

The Canadian Apparel Federation (CAF) issued an immediate Trade & Tariff Alert on 21st July to manufacturers and exporters, warning of the immediate logistical race now underway. In guidance to industry members, CAF emphasised that customs enforcement relies strictly on the formal US entry timestamp rather than order or dispatch dates.

“The duty would apply to goods entered for consumption on or after 12:01 am Eastern Time, 19th August 2026. The entry date — not the order or ship date — governs, so Canadian exporters will want to determine whether shipping can be moved up and should plan entry timing now,” advises the Trade & Tariff Alert. “Prime Minister Carney condemned the measure as the latest unilateral breach of CUSMA and affirmed that Canada stands ready to negotiate while taking 'any measures necessary' to protect its economy and workers,” it read further.

What makes Canada’s garment sector vulnerable

Canada’s garment sector is uniquely vulnerable because of its market structure: It is neither a mass-market nor a low-cost sewing destination, thus its competitiveness relies on high-value niche products, including specialised winter outerwear, technical performance apparel, uniforms and premium direct-to-consumer fashion brands. These labels operate on typical fashion margins that simply cannot absorb a 50 percent tariff hike, leaving brands facing canceled wholesale orders or severe retail price increases right at the start of the crucial autumn shipping season.

The damage, however, will not remain confined to the northern side of the border. Analysis published by B2B platform Fibre2Fashion revealed that US yarn and fabric mills face substantial collateral damage. Data shows that Canada imports approximately 1 billion US dollars in synthetic fibres, yarns and fabrics annually from US textile suppliers. If Canadian garment assembly lines slow down or halt due to lost US retail demand, American yarn spinners and fabric weavers will see immediate order cancellations.

“We are buyers of US textiles, yarns, sewing threads, consulting services, machinery and so forth. If this 50 percent tariff were implemented, there would be a significant reduction in production in Canada, and a significant reduction in the customer base for US textile companies,” confirmed CAF’s executive director Bob Kirke according to Sourcing Journal. The federation is CAF urging US textile companies that supply to Canada to voice their concerns about the proposed duties.

What apparel companies can do

In the meantime, Canadian apparel companies and logistics companies are scrambling to execute emergency contingency plans. Third-party logistics provider Evolution Fulfilment reports that mid-sized brands are actively exploring moving direct-to-consumer fulfilment, warehousing or final garment finishing into the United States to bypass entry duties.

The extent of the problem will also depend on where brands produce their clothes or textile products. Those that make most of their products in Canada like outerwear brand Canada Goose will be more affected than others, like activewear brand Lululemon and outdoor brand Arc'teryx, that produce a majority of their products in countries not affected by the recent US tariffs. Others, like outerwear brand Moose Knuckles, that produces partly in Canada, Europe or Asia, may have to reallocate production capacities.

Simultaneously, exporters are looking to pivot sales toward domestic Canadian consumers and leverage the Comprehensive Economic and Trade Agreement (CETA) to expand duty-free garment exports into the European Union.

With the August 19 deadline looming, trade associations on both sides of the border are lobbying government officials to modify the product schedules or negotiate an administrative resolution. However, if these 50 percent duties take effect as written, North American fashion sourcing will undergo an immediate restructuring, forcing brands, retailers and textile mills to unwind years of regional integration in a matter of weeks.

Madrid – Adding to the recent series of analyst recommendations on Inditex and its business model, British financial institution Barclays has issued a new report. The report assesses the strengths and potential of the Spanish fashion multinational. The company is expected to perform remarkably well both on and off the stock market. Consequently, Barclays has decided to raise its price target for Inditex shares, which have seen their trading value soar in response.

Financial media and platforms such as MarketScreener, Investing, Expansión, and Cinco Días reported this past Monday that the British financial services group Barclays has issued a new equity research report on Inditex. The report is restricted to the financial institution's institutional clients. As key highlights, Barclays has upgraded its recommendation on Inditex shares from “hold” to “overweight,” or buy. The bank has also raised its price target for the shares from 56 to 62.50 euros per share.

According to reports from the aforementioned financial media, the report, reportedly signed by British financial institution analyst Matthew Clements, highlights the company's key strengths. These include its ability to pass on increased costs to the final price of its products without affecting customer demand and its efficient inventory management. These are two competitive advantages over other companies in the sector. Barclays is confident that these strengths, combined with improved productivity that will offset wage and rent costs, will lead to improved profitability in the coming years.

From luxury's decline to Ozempic's rise

Additionally, the British financial institution points to two issues that are collateral and external to the Spanish fashion multinational's own dynamics. Nevertheless, they have the potential to positively influence its future performance. Barclays anticipates that these returns could exceed market expectations. This is partly due to the decline in luxury goods consumption and partly to the rise of diabetes and obesity drugs in the US.

Barclays identifies a factor with clear potential to continue driving the Spanish fashion multinational's revenue and profits to new highs. This factor is the growing and persistent inflationary pressures. These pressures, combined with the price hike policies adopted by major luxury companies, have put their brands out of reach for a growing number of consumers. Barclays believes that Inditex, particularly its main commercial brand Zara, is well-positioned to capitalise on this gap. It can occupy the space that has widened between the aspirational image luxury brands project and the economic reality of consumers. The creative alliance established between Zara and the Gibraltarian designer John Galliano is expected to play a decisive role in this potential, a point previously highlighted by FashionUnited.

Regarding the second factor, the British bank notes that the increasing use of obesity and diabetes drugs in the US, such as Wegovy, Mounjaro, and the particularly popular Ozempic, also presents additional growth potential for Inditex. The US is a key market for the company. The Spanish company currently has physical stores for its Zara and Massimo Dutti chains there. It is also scheduled to open the first Bershka stores, one of its main young fashion brands, in the country this year. Barclays estimates that these chains could benefit from the wave of “wardrobe renewals” prompted by these new medications.

Growth forecasts for the first half of the year

Following the publication of its results for the first quarter of 2026 on June 3, Inditex is scheduled to report its first-half results on September 9. This period will include performance from May to July. Inditex began this period with +11.5 percent growth recorded between May 1 and June 1. Barclays expects the company to close the period in line with the first quarter, with +8.8 percent growth at constant exchange rates.

Shares pushed upwards, heading for new highs

As a result of this latest analysis by the financial institution, Inditex shares rose by +1.87 percent this past Monday. They increased from 54.46 euros per share at the close of trading on Friday, July 24, to 55.48 euros (63.05 dollars) at the close of trading this past Monday, July 27. The value has continued to rise, currently trading at 56.30 euros. This is +3.37 percent higher than the 54.46 euros at which Inditex shares were trading before the Barclays report.

Putting this into a broader perspective, the report follows a similarly positive valuation update from Bank of America just a week ago. Bank of America raised its price target for Inditex shares from 62 to 65 euros. This valuation, along with the current one from Barclays, has pushed the Spanish company's shares higher. At 56.30 euros, they are trading +4.76 percent above the 53.74 euros at which they closed on Friday, July 17. This amount is still -0.35 percent below the 56.50 euros at which Inditex shares started the year. However, it is +30.62 percent above the 43.10 euros at which they were trading on July 29, 2025, approaching the all-time high of 58.28 euros per share reached on February 19, 2026.

European private equity group CVC Capital Partners is in talks to buy a stake in Monaco-based fashion jewellery brand APM Monaco from US investment firm TPG, Bloomberg reported, citing people familiar with the discussions.

CVC has moved ahead of rival bidders and is now seen as the frontrunner for the holding, according to the report, though other private equity firms have also shown interest and further suitors could still emerge. The talks are continuing and no agreement has been reached, the sources told Bloomberg. Representatives for CVC and TPG declined to comment.

The approach follows TPG's decision, first reported late in 2025, to weigh its options for APM Monaco through either a sale of its stake or a stock market listing. The firm has been seeking a valuation of at least two billion dollars for the business.

TPG built its position in the jeweller in 2019, when a consortium it led took a 30 percent interest alongside European investment firm Trail and investment firm China Synergy, investing through the group's Asia-focused private equity arm. APM Monaco filed for an initial public offering in Hong Kong in 2021, but the listing never went ahead. TPG managed around 286 billion dollars in assets as of late September 2025.

APM Monaco was founded in 1982 by Ariane Prette and her son Philippe Prette, initially as a manufacturer supplying gold and gemstone pieces to established jewellers. The family launched the consumer-facing brand in 2012 under Philippe Prette, now chief executive, and his wife Kika Prette as creative director, repositioning the company around accessible sterling silver fashion jewellery. It now operates around 500 stores worldwide, with a particularly strong presence across Asia, and remains family-controlled despite TPG's minority holding.

A stake would extend CVC's reach in accessible-luxury accessories. The firm, which managed about 205 billion euros in assets at the end of 2025, already owns Swiss watchmaker Breitling, in which it invested in 2017, and Japanese streetwear label A Bathing Ape. Investor appetite for fashion jewellery has held up as shoppers trade into lower-priced categories, a backdrop that has made fast-expanding brands such as APM Monaco attractive targets.

Solomei AI, the company that developed the Callimacus platform, has announced an investment agreement from Salesforce. The deal will support the expansion of Callimacus' engineering and AI research capabilities, accelerating product development and commercial growth in Europe and North America.

Callimacus was developed over three years with the support of Brunello Cucinelli's holding company. It is an artificial intelligence-based platform designed to enable a new generation of websites and applications without fixed pages. Through an orchestra of AI agents, the system interprets each visitor's intent, composing a personalised experience in real-time. It integrates with traditional digital and e-commerce systems as a headless presentation layer.

The platform's capabilities were first validated in January 2026 with the launch of a new e-commerce experience for the luxury brand Brunello Cucinelli. This debut was followed by significant spontaneous interest from companies in multiple sectors. This confirms the need for traditional static websites to evolve to meet the demands of the emerging agentic era.

Salesforce will join the founders and seed shareholders, including Foro delle arti, the Cucinelli family's holding company.

"It is with some pride and genuine satisfaction that I present a project that opens up extraordinary possibilities for technology in the coming years," said Brunello Cucinelli, chairman of Solomei AI, in a statement.

"Three years ago, Marc Benioff (chair and CEO of Salesforce) and I began a journey with mathematicians, philosophers, humanists and technologists, from which Callimacus was born. Our idea was to create a simple and intuitive product capable of speaking the language of human beings. It is a kind of new web, without pages, categories or predetermined paths, capable of accompanying the intent of each individual browser user."

The transaction falls under the scope of Italy's 'golden power' legislation, which applies to technological assets considered of national strategic importance. The completion of the transaction is subject to authorisation from the Presidency of the Council of Ministers (Department for Administrative Coordination), as well as the fulfilment of further conditions for completion.

UK retail giant Frasers Group (Frasers) has secured merger control clearance from the European Commission for its voluntary public takeover offer to acquire all ordinary shares in German fashion house Hugo Boss. The regulatory approval, granted on July 27, 2026, satisfies the offer condition outlined in the offer document published on June 25, 2026, making the takeover offer unconditional.

Frasers initially announced its decision to launch the voluntary public takeover offer on June 10, 2026.

Offer of 38 euros per share remains open until August 13

The offer of 38 euros per share remains open for shareholders of Hugo Boss to accept. Following the satisfaction of the merger control condition, the additional acceptance period for the offer will conclude on August 13, 2026, at 11pm BST.

Frasers previously disclosed that it had acquired additional shares via put option exercises, surpassing the mandatory 30 percent bid threshold under the German Takeover Code.

Potential leadership shift as Frasers seeks greater control

Following the threshold crossing, reports emerged that Frasers is actively preparing to install its chief executive officer, Michael Murray, at the helm of Hugo Boss. According to a report by The Times published on Sunday, the Mike Ashley-controlled retailer is laying the groundwork to position Murray as chief executive of the Metzingen-based brand to secure greater operational influence over the business.

Frasers originally appointed Murray as group chief executive in 2022 at the age of 33, succeeding his father-in-law, Ashley. Murray joined the group in 2015 within property and retail before serving as head of elevation in 2019, leading the corporate rebranding from Sports Direct International to Frasers Group. In May last year, Murray was appointed to the supervisory board of Hugo Boss.

Strategic expansion shapes full year outlook

The acquisition bid for Hugo Boss aligns with a broader global strategy by Frasers. Alongside its transaction in Germany, the company launched an on-market takeover offer of 0.65 Australian dollars per share for Australian footwear distributor Accent Group, in which it currently holds a 22.9 percent equity stake.

For the 52 weeks ended April 26, 2026, Frasers reported group revenue of 5.33 billion pounds, supported by a 59.2 percent surge in international sales. Owing to the ongoing nature of both takeover offers, the board of Frasers previously announced that it will withhold financial guidance for the financial year 2027 until its half year results, noting that acceptance levels could yield a range of structural outcomes.

Most people know Emu Australia for one thing: its sheepskin boots. But the brand’s heritage and its product offering run considerably deeper than that. The Australian footwear brand is currently undertaking a complete overhaul of its business, including a rebranding and a new e-commerce platform, with an elevated campaign for FW26 and a collaboration with skiwear brand We Norwegians, launching soon. Here, FashionUnited takes a closer look at how Emu Australia is preparing its brand for the next stage of growth.

The brand first started in 1948, at Jackson’s Tannery in Victoria as one of the original makers of sheepskin boots. Close to eight decades later, Emu Australia continues to manufacture a selection of its footwear in Australia, using A-grade, Woolmark-accredited, and SATRA-certified water-resistant Australian sheepskin and Woolmark Merino wool. Officially launching under the name Emu Australia in 1994, the brand quickly rose to international acclaim in the 2000s following the Australian sheepskin boot trend, which saw interest in slip-on sheepskin boots go from a niche style in surf culture to a mainstream fashion essential. In the late 2010s, interest in Emu Australia skyrocketed once more following the debut of its sheepskin slipper, Mayberry.

Emu Australia rebrands for global lifestyle market

Now the brand has quietly been undergoing what it describes as a “comprehensive brand evolution,” as it seeks to redefine how Emu Australia presents itself to a global audience, while remaining anchored to its Australian heritage. The brand is set to launch a full rebrand, built around four anchors, as well as a new e-commerce platform later this year as part of its transformation. Its refreshed brand identity is anchored around these four pillars: ‘Born to go beyond,’ ‘Nature shapes us,’ ‘The emu guides us,’ and ‘Comfort is our calling.’ Each of the pillars leans into the brand’s Australian individuality, or what the brand calls “emu-ness,” rather than serving as a product function alone, as it positions itself within the premium lifestyle market.

The first stage of its imagined brand can be seen in Emu Australia’s Fall/Winter 2026 campaign, which offers a more elevated visual direction that is centered on craftsmanship, natural textures and timeless design. Another sneak peek of Emu Australia’s new brand direction can be seen in its upcoming collaboration with  Scandinavian knitwear and skiwear label We Norwegians. First announced last October, the limited edition Fall/Winter capsule collection includes winter boots, two sweater styles and accessories in a color palette of red, white and blue, as a nod to both nations’ flags.

The collaboration between the two brands is a natural fit and extension of both their values. We Norwegians, founded in 2014 by Tove Grane and Øyvind Lauritzen in Voss, began with a love of Merino wool, the same natural fiber that has defined Emu Australia’s footwear for generations. With flagship stores in London, Aspen and Park City, the Norwegian label also sits firmly in some of the lifestyle markets and spaces that Emu Australia’s brand repositioning is leaning towards.

“We wanted to merge Scandinavian heritage with the relaxed Australian lifestyle and Emu Australia was the perfect partner,” said Grane, founder and head designer at We Norwegians, in a press release. Aleks Polak, women’s designer at Emu Australia, described the result as “a collection that feels both modern and timeless — pieces designed to be cherished through many winters.” The capsule collection will launch with selected premium retailers and on emuaustralia.com in September 2026.

Emu Australia’s brand evolution is also being backed by commercial and retail momentum. The brand is currently available in 50 countries across 3,000 points of sale, spanning premium department stores, key accounts and independent boutiques. Its wholesale network includes SSENSE, Brown Thomas, Isetan, United Arrows, David Jones, Rinascente, El Corte Inglés, Takashimaya, Free People and Urban Outfitters among others.

While Australia remains the brand’s home market, Germany, the United States and the United Kingdom are quickly becoming Emu Australia’s most important markets, each with what the brand describes as an “incredibly loyal customer base.” Building on this demand, Emu Australia is continuing to expand across these key markets through both wholesale partnerships and premium retail distribution.

The brand’s own consumer research suggests the fundamentals are in place for this push: 94 percent of buyers rate Emu Australia’s comfort as outstanding, while 80.2 percent recognise its price-to-quality balance, the sort of value perception a premium brand repositioning needs beneath it.

As Emu Australia enters its next chapter, the challenge will be translating its heritage and loyal customer base into a more elevated global brand. If its rebranding, retail expansion and strategic collaborations resonate with consumers, the brand could be well positioned to move beyond its identity as a sheepskin boot maker and strengthen its place in the premium lifestyle market.

US apparel conglomerate Digital Brands Group (DBG) has announced a 32 percent expansion of its secured US program, bringing its total value to 165 million dollars. The company, headquartered in Austin, Texas, stated that the growth follows a one-for-40 stock consolidation.

The addition of new apparel and footwear categories serves as the primary driver behind the 40 million dollar program expansion. Following the reverse stock split, DBG maintains approximately 575,000 common shares outstanding. Based on this consolidated capital structure, the updated US program represents approximately 286 dollars in revenue per share.

Management clarified that the baseline revenue-per-share calculation reflects only the US program. The figure excludes potential future earnings from other distribution channels, including its collegiate program, expanded partnerships with Gulf Cooperation Council (GCC) entities, or digital scaling initiatives led by its newly appointed chief digital board member.

DBGI plans to submit an official Form 8-K covering the operational update to the US Securities and Exchange Commission (SEC).

Incremental revenue expands commercial outlook

DBG chief executive officer Hil Davis commented on the contract expansion: “As we stated in our official Form 8-K filed April 30, 2026 outlining the GCC partnership and the U.S. Program, we believed that our partnership represented the beginning of a much broader commercial opportunity.”

Davis added: “This additional $40 million in revenue is entirely new and incremental to the Company’s previous financial guidance presented in its official Form 8-K filing issued on May 12, 2026.”

Alongside commercial operations, DBG disclosed that it is taking legal and regulatory steps to safeguard its share structure. Working with legal counsel at Christian Attar and market analytics firm ShareIntel, the business is conducting a forensic audit into potential clearinghouse ledger discrepancies, volume anomalies, and fails-to-deliver (FTDs).

The monitoring process focuses on tracking cross-border settlement balances between the primary listing of DBG on the Nasdaq stock market, under the ticker DBGI, and its secondary European listing on the Frankfurt Stock Exchange. The company stated it will submit verified tracking packages directly to exchange compliance departments, regulatory bodies, and clearing intermediaries to ensure proper settlement close-outs.

DBG operates a portfolio of lifestyle and luxury apparel banners, combining direct-to-consumer (D2C) e-commerce channels with selective wholesale distribution.

US brand management firm Crown Brands Group (Crown) has completed the acquisition of Italian luxury lingerie label Cosabella from Swiss apparel group Calida. The transaction represents the second acquisition for Crown since its establishment, following its purchase of US intimates brand Hanky Panky in December 2025. Financial details of the agreement were not disclosed.

Under the terms of the transaction, Crown will direct global brand strategy, marketing, and licensing for Cosabella through an operating model supported by category partners. The asset purchase includes the trademark, intellectual property rights, and commercial inventory for the lingerie brand.

Operational integration and strategic licensing

US manufacturer Rafar Group (Rafar), the parent company of Gelmart International, will serve as the core operating partner and exclusive intimate apparel licensee for Cosabella. In this role, Rafar will oversee product design, development, e-commerce operations, and distribution. Rafar holds an identical licensee position for Hanky Panky within the corporate portfolio of Crown.

Additionally, US apparel manufacturer Dreamwear has been named as the exclusive licensee for the sleepwear and loungewear categories of the label. Together with its operational partners, Crown plans to expand distribution across department stores, specialty boutiques, digital channels, and international retail markets.

Portfolio expansion and corporate strategy

"Cosabella is everything we look for in a brand: true Italian craftsmanship, a devoted customer, and a name that means something in every major market," said Raymond Dayan, chief executive officer of Crown, in a press statement. "Alongside Hanky Panky, Cosabella gives Crown a clear leadership position in premium intimates, and it validates the model we set out to build: to acquire authentic heritage brands, pair them with best-in-class operating partners and invest in their next chapter of growth".

The divestment allows Swiss group Calida to streamline its corporate portfolio and focus on its core brands, Calida and Aubade. Crown confirmed it is actively evaluating further acquisitions of heritage labels with global recognition across apparel and lifestyle categories.

Advising on the deal, Lincoln International served as financial advisor and Benesch acted as legal advisor to Crown. Covington acted as legal advisor to Calida.

On Monday, luxury giant LVMH announced sales of 38.6 billion euros for the first half of 2026. This figure demonstrates stability and accelerated growth, despite a climate disrupted by the conflict in the Middle East.

From January to the end of June 2026, the net profit of the owner of Louis Vuitton, Dior, Celine and Moët & Chandon remained stable compared to 2025, amounting to 5.7 billion euros. Recurring operating income reached 8.7 billion euros, generating an operating margin of 22.5 percent. The company also reported available cash flow of 4.1 billion euros.

In the second quarter, the group's organic sales growth was 3 percent. Excluding the impact of the conflict in the Middle East, this growth reached 4 percent.

Bernard Arnault, chairman and chief executive officer of LVMH, emphasises that the group's houses are maintaining a strict focus on cost and margin control. This strategy, focused on quality standards and product innovation, is the group's main focus for the second half of 2026.

Fashion and leather goods division's momentum

The fashion and leather goods sector experienced a gradual acceleration, returning to organic growth of 1 percent in the second quarter. This strategic division reported half-year sales of 18.15 billion euros.

Several elements cited in the press release explain this performance:

• Louis Vuitton is celebrating the 130th anniversary of its Monogram pattern and is building on the results of its new boutiques in Beijing and Seoul.
• Christian Dior is benefiting from the launch of Jonathan Anderson's first creations, particularly with the release of the Cigale bag.
• The houses of Celine, Loewe, Givenchy and Fendi are continuing to refresh their collections under the direction of their respective designers.
• Loro Piana is maintaining its commercial progress with the launch of its new “Nomadic Reverie” collection.
• An agreement has been officially signed with the company WHP Global for the sale of the Marc Jacobs brand by LVMH.

Arnault states that Jonathan Anderson's creations for the house of Christian Dior are a commercial success: “The acceleration of growth in the second quarter is notably due to the great success of Jonathan Anderson's first creations for Christian Dior”.

Complementary sector performances

The LVMH group does not specify the figures for each house. However, documents reviewed by FashionUnited indicate that the brands Tiffany & Co. and Bvlgari are driving the growth of the watches and jewellery division, which amounted to 11 percent in the second quarter.

In selective retailing, organic growth was 5 percent in the first half of 2026. The Sephora brand is gaining market share and continuing its sustained international expansion. The retailer continues to enhance its offering with exclusive launches in key markets such as North America and the UK.

For 2026, the group states that despite a still uncertain geopolitical and economic climate, it “remains confident and will maintain a strategy focused on continuously strengthening the desirability of its brands.”

Madrid – Spanish fashion multinational Mango has just reported its turnover results for the first half of 2026. During this period, from January to June, the company continued to post positive turnover growth. However, the rate was significantly lower than previously.

The management of the Spanish company announced that Mango closed the first six months of its current 2026 fiscal year with total sales of 1.85 billion euros (2.11 billion dollars). This figure is +7.2 percent higher—or +10.7 percent at constant exchange rates—than the turnover recorded at the end of the same first half of 2025. A year ago, Mango closed the period with total sales of 1.73 billion euros. This represented a year-over-year sales growth of +12 percent—or +14 percent at constant exchange rates—compared to the results of the first half of the previous year.

Comparing these results clearly shows a slowdown in the Spanish company's growth rate, both in reported results and at constant exchange rates. This slowdown appears to have been more pronounced at the start of this very complex 2026 financial year. This is true both on a macroeconomic scale and in terms of the company's own performance, considering Mango completed its last fiscal year of 2025 with a growth rate of +13 percent and annual sales of 3.77 billion euros.

Despite this easing of revenue momentum, “we are approaching the final stretch of our 4E 2024-2026 Strategic Plan with the goal of reaching four billion in turnover by the end of this financial year,” noted Toni Ruiz, chairman and chief executive officer of Mango, in a statement provided by the Spanish fashion multinational. “The results for the first half of the year show a positive trend, with growth above the market average, and strengthen our position as an international benchmark in fashion,” defended the executive, who is also a shareholder with 5 percent of the company's share capital. Therefore, “in a highly complex environment, we are making progress thanks to a distinctive value proposition, our commitment to expansion, and the hard work and dedication of all the teams at Mango”.

With 77 percent of business being international

Among the details provided by the company for the first half of 2026, by business line, Mango stated that the bulk of turnover continued to be led by sales from its “Woman” line, although no specific figures or percentages were given. This was followed by the “Man” line for menswear. The smaller “Kids” and “Teen” lines for children and young adults, and the “Home” line for home collections, continued to advance their consolidation strategies, both in physical stores and online.

Regarding its performance by sales channel, in-store sales accounted for 68 percent of the company's total turnover, with the online channel representing the remaining 32 percent of Mango's total turnover for the first half of 2026. This percentage is higher than the 31 percent the channel represented at the end of the first half of 2025. The increase, for which no total figures were provided, was reportedly driven by double-digit growth in online sales, which continues to be one of Mango's main growth drivers.

Finally, by market, Spain remained Mango's main global market, accounting for 23 percent of the company's total sales. This is a key and representative percentage, which has actually grown from the 22 percent it represented at the end of the first half of 2025, when Mango's international sales accounted for 78 percent of its turnover. This percentage has naturally decreased and now stands at around 77 percent. France is the Spanish company's leading international market, followed by Turkey, Germany and the US.

With 90 million euros in investments

A particularly noteworthy factor from the start of 2026 is the nearly 90 million euros Mango has invested during the first half of the year. These funds were allocated to expanding and improving its stores, strengthening its operations and logistics capabilities, and expanding its headquarters. All these initiatives fall under the umbrella of the 4E Strategic Plan, which the company continued to promote during the first half of the year. Key moves included signing Hailey Bieber as an ambassador; launching a capsule collection with British house Richard James for its menswear line and with US brand Eckhaus Latta for its womenswear line; and renovating 37 stores and opening 127 new ones.

As a result of these initiatives, regarding its retail portfolio, Mango ended the first half of the year with a total of 2,960 stores across more than 120 countries. This figure is 35 stores higher than the 2,925 the company had at the end of the first half of 2025. Mango plans to continue this growth through its expansion plans in France, with investments of 66 million euros to open 45 stores by 2028, 15 of which will open in 2026. In Italy, an agreement with Coin will see 22 stores open between next September and 2028. In the UK and Turkey, the company plans to add 10 new points of sale in each market during 2026. For this year, regarding Spain, Mango also aims to end the year with more than 10 standalone Mango Home stores located throughout the country.

In this regard, and to put the expansion of its retail network into context, which the company has been accelerating in recent years, Mango reported having a total of 2,700 points of sale at the close of the 2023 financial year when it presented its new 4E Strategic Plan in March 2024. The company aimed to build on this figure with an ambitious plan for 500 new openings by 2026. According to the latest data, 260 net openings have been completed so far.

A fur coat or a crocodile leather bag has long been considered the 'ultimate luxury'. New research from Collective Fashion Justice (CFJ) suggests this is no longer the case.

The report, ‘Wildlife Exploitation is Not Luxurious’, reveals that a striking 95 percent of high-earners surveyed in London, Paris and New York believe the use of wild animal skins and fur makes a fashion brand less chic. The preference is for ‘modern, responsible luxury’ made from faux fur or leather.

According to analysts, both high and low earners now share similar concerns for animal welfare. 85 percent of respondents stated they would only invest in animal-derived products if the producer guarantees ethical treatment of the animal, for instance, through certification.

Consumers take issue with the use of animal leather, not the aesthetic. The patterns and textures of a beautiful bag or jacket made with imitation animal skins are still widely appreciated. Therefore, faux leather and faux fur present the solution, according to CFJ.

The study was conducted by The Culture Studio and Innovate MR among an equal mix of men and women from fashion capitals such as Paris and New York. All participants spend a significant amount on luxury clothing annually, ranging from 5,000 to over 60,000 dollars per label at major brands including Chanel, Fendi, Balenciaga, Cartier, Burberry and The Row.

Singapore-based fast fashion retailer Shein has disclosed a softening in profitability and a deceleration in revenue growth, providing investors with an initial detailed view of its financial health ahead of a planned initial public offering (IPO) in Hong Kong.

According to a regulatory filing submitted to the Hong Kong Stock Exchange under the entity name Shein Global Holdings, the company recorded a net loss of 99 million dollars in the first quarter of 2026. This performance contrasts with a net profit of 395 million dollars achieved during the corresponding period a year earlier. First quarter revenue expanded modestly to 9.05 billion dollars from 8.95 billion dollars in the prior year, reflecting a slower pace of expansion compared to historical rates.

The business disclosed an operating income of 258 million dollars for the first quarter, representing a 26 percent drop year-over-year. For the full year 2025, net profit stood at 2.06 billion dollars, down from 3.37 billion dollars recorded in 2024. Management noted that the first quarter net loss was primarily driven by fair value losses of 328 million dollars on its convertible redeemable preferred shares.

Regulatory shifts and international trade friction weigh on growth

The regulatory filing forms part of the Hong Kong listing process for Shein, which secured listing approval following multi-year delays after previous public listing efforts in New York and London did not proceed. Historically, the retailer provided investors with limited headline guidance regarding sales and profitability. The business is backed by institutional investors including IDG Capital, Mubadala Investment Co., Tiger Global Management, and HSG.

The growth momentum of the retailer has moderated as US trade policy changes and geopolitical disruptions contributed to elevated material expenses, leading to price adjustments for end consumers. Indicators such as global web traffic, mobile application downloads, and US sales volumes have experienced stagnation or decline during the current year.

Shein stated that the removal of the US de minimis tariff exemption on imported parcels valued under 800 dollars adversely impacted its US trade performance and total net revenue growth. However, the business noted that sales trends in the region have since shown signs of normalisation.

European tariff policy and market competition present ongoing risks

The company highlighted additional headwinds stemming from European Union policy shifts, specifically the removal of the 150 euros customs duty exemption. Shein disclosed that the European market accounted for approximately one third of its aggregate revenues in 2025 and during the first quarter of 2026. Management warned that the commercial impact of the EU regulatory change could mirror or exceed the disruption experienced following the US de minimis adjustment.

Alongside trade barriers, Shein continues to navigate competitive pressures from PDD Holdings subsidiary Temu across core European and US markets, while international regulatory authorities maintain heightened scrutiny over its operational practices.

Originally established in mainland China before relocating its corporate headquarters to Singapore, Shein built an international direct-to-consumer (D2C) fast fashion platform by distributing low-priced, trend-driven apparel directly from supplier networks to global retail markets.

UK fashion extended its run of growth to a fifth consecutive week, with in-store sales now carrying the category almost single-handedly, according to the latest BDO High Street Sales Tracker. Fashion total like-for-like (LFL) sales rose +3.31% against a positive +1.68% base a year earlier — genuine growth, if at a gentler pace than the recent peak.

Store fashion remained the engine, up +8.24% against a modest +1.36% base, leading the category for a third straight week. A recovery in high street footfall helped, giving physical stores more visitors to convert.

Online, however, has now turned negative. Non-store fashion fell -2.23% against a +7.16% base, completing a clear reversal: after double-digit online growth earlier in the summer, the channel has decelerated week by week and has now slipped into decline, leaving the category's growth narrowly based on stores.

Across the wider high street, total LFL sales rose +1.75%, a fifth straight week of growth from a +2.30% base. Total store sales grew +3.36% for a third consecutive week, while total non-store sales rose +1.52% — extending their own run to five weeks, though BDO noted the pace has slowed each week.

Springboard footfall increased +1.1% overall, led by the high street at +2.0% and retail parks at +0.7%, while shopping centres slipped -0.5%. The return of high street footfall aligns with the strength in store-based sales.

The UK's third heatwave of the summer brought very hot, dry conditions across England and Wales before easing late in the week. Fashion's five-week run remains intact, but with online in decline it now rests increasingly on the strength of physical stores.

Ukrainian drones hit a warehouse for a Russian e-commerce giant near Saint Petersburg early Friday, triggering a fire that sent smoke pouring over the historic city, according to local officials and an AFP reporter.

Kyiv has targeted Saint Petersburg as it steps up long-range drone strikes on Russian energy, military and logistics sites in recent weeks. An AFP reporter saw grey smoke rising into the morning sky over high-rise buildings in the city, which is more than 800 kilometres (500 miles) from the Ukrainian border.

The local governor reported that a warehouse for Wildberries -- Russia's largest online retailer often referred to as "Russia's Amazon" - was on fire after the strike.

"Three people were wounded," Alexander Drozdenko, governor of the surrounding Leningrad region said on social media. It was the third overnight attack by Ukraine on Wildberries' sites in the past week.

One of the company's logistics hubs outside Moscow was hit last weekend, killing eight night-shift workers and burning the facility to the ground.

Ukrainian President Volodymyr Zelensky alleged after the first attack that the facilities were used to "supply sanctioned components for drone production and navigation equipment."

Kyiv calls its campaign "long-range sanctions", saying the attacks are justified retribution for Russia's nightly drone and missile barrages of its cities. The campaign has triggered nationwide fuel shortages and, Kyiv says, dented Russia's financial war chest.

'Escalation'

Saint Petersburg's Pulkovo airport suspended flights during the attack, resuming operations around 06:00 (0300 GMT), with around 50 departures disrupted.

Wildberries said two of its warehouses in the city had temporarily halted operations, without giving more details.

Leningrad Governor Drozdenko said 59 Ukrainian drones had been shot down. Russian officials rarely concede that Ukrainian drones hit their targets, typically detailing only the number intercepted or attributing fires to falling debris. Both Russia and Ukraine have escalated their long-range strikes in recent months.

Moscow's forces have fired increasing numbers of ballistic missiles at Kyiv - killing dozens and ripping open apartment blocks. US President Donald Trump has appeared to give his backing to Ukraine's counter-attacks on Russia - calling the strikes "an escalation that can lead to an end".

Washington's attempts to mediate a peace deal between warring sides has largely stalled with its own war on Iran raging. Moscow has also refused to compromise its hardline demands that Ukraine agree to permanently give up territory it still controls and renounce Western military support.

The Kremlin has said the Ukrainian strikes make it more determined to prosecute the war and threatened to take seize more land in the country's east and south.

The United Nations has reported a surge in civilian deaths in 2026, saying June was the deadliest month since mid-2022.

Hundreds of thousand of soldiers and tens of thousands of civilians have been killed since Russia launched its full-scale offensive in February 2022 -- though there is no precise toll with neither side routinely revealing the number of their losses.

Zelensky has in the past week replaced both his defence minister and commander-in-chief amid splits in the military hierarchy over a reform drive inside the army.

Swiss company Calida Group is selling its US lingerie brand Cosabella to the New York-based Crown Brands Group. The sale was made as part of an asset purchase agreement concluded on July 23, 2026. The purchase price of the transaction was not disclosed. The Swiss lingerie company aims to simplify its brand portfolio and focus on its core brands, Calida and Aubade, going forward. Cosabella was only acquired in May 2022 for 80 million US dollars.

The sale follows a strategic review of the brand. In the first half of 2026, Cosabella recorded a 36.6 percent decline in sales to 4.3 million Swiss francs (5.26 million dollars) as part of a repositioning. However, Calida Group emphasises that the divestment is part of its strategic focus.

Sales decline, profitability increases

With the announcement of the sale, the group also published its half-year figures. In the first half of 2026, Calida Group generated sales of 93.7 million Swiss francs, representing a decline of 7.9 percent. However, the adjusted operating loss (EBIT) improved to 0.3 million Swiss francs from minus 1.8 million Swiss francs in the same period last year.

The core brand Calida generated 62.7 million Swiss francs and recorded a currency-adjusted sales decline of 3.7 percent. At the same time, the brand improved its gross margin by deliberately avoiding extensive discount campaigns, according to the company. Investments in modernised collections and a stronger focus on younger female customers are intended to support growth in the direct-to-consumer business.

Aubade also suffered a decline, with a currency-adjusted sales decrease of 5.5 percent to 26.7 million Swiss francs. However, the e-commerce business developed positively, growing by almost double digits, particularly in the US.

For the full year, the company confirms its forecast of an operating EBIT margin of more than 6 percent.

UK high street retailers recorded their fifth consecutive week of like-for-like sales growth, according to data from the latest High Street Sales Tracker published by accountancy and business advisory firm BDO. Total like-for-like (LFL), sales grew by 1.75 percent for the week ending July 19, 2026, compared to a positive base of 2.30 percent during the same week in 2025.

The performance was supported by high temperatures across England and Wales during the third heatwave of the summer season. Footfall data from retail intelligence firm Springboard indicated an overall increase of 1.1 percent, led by high street footfall at 2 percent and retail parks at 0.7 percent, whereas shopping centre footfall decreased by 0.5 percent.

Store sales outperform as heatwave drives footfall

Physical brick and mortar locations served as the main operational engine during the week. Total store LFL sales grew by 3.36 percent, marking three consecutive weeks of positive store performance, compared to 1.70 percent in the prior year period.

Conversely, total non-store LFL sales grew at a more modest rate of 1.52 percent, compared to 6.53 percent for the equivalent period in 2025. Although non-store digital channels have registered five consecutive weeks of growth, the rate of expansion has moderated each week.

Fashion and lifestyle sectors post positive results while homewares decline

Category performance within discretionary retail showed clear divergence, with fashion and lifestyle capitalizing on seasonal consumer demand. Total fashion LFL sales expanded by 3.31 percent, compared to 1.68 percent in the previous year, marking five consecutive weeks of positive performance for the category. Store fashion sales performed strongly, surging by 8.24 percent against a base of 1.36 percent. However, non-store fashion sales fell by 2.23 percent, down from a positive 7.16 percent in 2025.

Total lifestyle LFL sales rose by 3.09 percent, recovering from a negative base of 0.83 percent in the previous year. Non-store lifestyle sales grew by 3.50 percent, compared to 1.27 percent last year, while store lifestyle sales saw a slight increase of 0.11 percent.

Total homewares LFL sales dropped by 12.90 percent, compared to an adjusted positive base of 18.70 percent in the corresponding week of 2025. In-store homewares sales decreased by 13 percent, while non-store homewares sales fell by 11.45 percent.

The BDO High Street Sales Tracker monitors weekly LFL sales metrics across approximately 80 mid-tier UK retailers representing around 10,000 individual retail doors

Adidas shares remained under pressure on Friday. The downward spiral intensified, with the share price temporarily falling by 5.6 percent to a six-week low in Xetra trading.

The discount most recently stood at 3.3 percent. At 170.60 euros (194.22 dollars), the shares have now fallen below the 50-day line, having already dropped below the 21-day line a few days ago. This further clouds the short-term technical chart outlook.

Traders cited disappointment over the lack of preliminary figures, which might have contained positive news, released a week ahead of the quarterly report. This absence had a negative impact during after-hours trading. The market had hoped for positive news for the second quarter, driven by the Football World Cup.

This hope for preliminary figures was based on the market's experience, as they are often released a week before the actual quarterly report. Last year, this was the case in October and April. This pattern is beginning to break, as there was no preliminary report in April.

Since hitting a 2023 low in March, Adidas shares had been on a rally from April, peaking at almost 188.80 euros in early July during the Football World Cup. Since then, they have lost 11 percent of their value.

On Friday, the pressures only affected Adidas itself. Puma shares managed to end the week with a moderate gain.

Danish lifestyle brand Rains is set to become the main sponsor of Copenhagen football club B.93. The contract, which applies to the men's first team, will commence from the 2026/2027 season.

The idea behind the partnership is rooted in Rains' origins as a rainwear specialist. The club is based in Østerbro, where it rains approximately 170 days a year. Each season, B.93 plays around sixteen home games. This means that for fans and players, many match days are wet, cold, or both. Nevertheless, this does not deter fans from attending the games. “Rains was founded in 2012 for this very weather,” the company wrote in its press release.

B.93, officially “Boldklubben af 1893”, is one of Denmark's most historic and popular clubs. It is firmly embedded in the local community and the city's cultural life. “We have been trying to establish this partnership for years. The fact that it has finally come to fruition makes us proud and excited. We wanted a sponsor who cares as much about our culture as our results. Rains brings a large platform and can advance us creatively and commercially. At its core, however, the brand remains focused on the local community, just as it was when it started in 2012,” says Nicolaj Thomsen, CEO of B.93.

The new home and away kits, created in collaboration with Puma, will be launched in September. Rains and B.93 collaborated on the design of the kits. They drew inspiration from classic Italian sportswear, featuring bold monograms, contrast stitching and a simple collared silhouette.

The season kicks off on August 7 with the first home game in Copenhagen. It will be accompanied by a campaign that blurs the lines between players and fans.

Madrid – US president, Donald J. Trump, has once again disrupted trade relations with key partners and major global economies by announcing new additional tariffs for 60 economies. These new tariffs range from 10 to 12.5 percent. Special tariff quotas have also been added for textiles from Bangladesh, Cambodia, Indonesia and Malaysia, which are conditional on the import of US textiles and cotton.

The trade war initiated by the US in April 2025, from its proclaimed “Liberation Day”, was justified by allegedly abusive and unbalanced trade relations with its main partners. Tensions with China, Canada and Mexico were attributed to poor control over fentanyl entering the country. This time, the rationale is based on goods produced through forced and slave labour. The entry of such goods is prohibited in the United States (US) economy. The Trump Administration aims to enforce this ban fully, following an investigation by the Office of the United States Trade Representative (USTR). The USTR, a US government agency, investigated the actions, policies and practices of 60 economies related to forced labour.

According to the Memorandum signed by the US president on July 23, 2026, the investigation found that all 60 economies engaged in acts, policies and practices contrary to the US ban on goods made with forced labour. Some countries, including Canada, Ecuador, the European Union, Mexico and Pakistan, have laws prohibiting such imports but do not enforce them effectively. Others have unfulfilled commitments to ban these products, partial tariff regimes to prevent their import, or a complete lack of restrictions on goods produced or imported using forced labour. In response to these findings, the US government aims to effectively enforce the ban on importing goods made with forced labour.

Tariffs of 10 to 12.5 percent for 60 economies

To this end, and after considering the findings of the investigation, the US president has authorised the USTR to impose tariffs of between 10 and 12.5 percent on all 60 economies investigated. These are generalised tariffs, but with exemptions. Exemptions apply to raw materials where new tariffs could cause supply shortages; products that could cause economic “disruptions”; goods that cannot be grown or produced in sufficient quantities in the US or sourced elsewhere; products where tariffs would not effectively enforce the ban; and “certain products” from Argentina, Bangladesh, Cambodia, Ecuador, El Salvador, the European Union, Guatemala, Indonesia, Jordan, Malaysia, Switzerland, Taiwan or the UK. The latter exemption is intended to encourage these economies to enact, fulfil commitments, or effectively enforce laws banning goods made with forced labour.

Aside from these exemptions, the presidential memorandum states that from 12:01am US East Coast time on Friday, July 24, 2026, president Trump has ordered an additional +10 percent tariff on imports from Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, the UK, and Trinidad and Tobago.

In another set of measures, which does not represent an additional increase, it has been ordered that products from the European Union and Taiwan will have a minimum total tariff of 10 percent if the original rate is lower. This percentage will be 12.5 percent for products from Japan, South Korea and Switzerland.

Finally, for the remaining investigated economies, the US president has ordered an additional tariff of +12.5 percent. This is the most severe measure in the Memorandum issued by Donald Trump. It is reserved for economies that the USTR investigation found to have the least determination to prohibit the import and procurement of goods made with forced and slave labour.

Special tariff quotas for textile products from Bangladesh, Cambodia, Indonesia and Malaysia

As the second part of his presidential edict, Trump has ordered the USTR to establish a special tariff quota for some of the main Asian textile-producing countries as soon as possible, specifically for Bangladesh, Cambodia, Indonesia and Malaysia. The US will seek to impose a special tariff regime on these countries, initially for three years. The aim is to encourage each of these four nations to import both US textile products and US-grown cotton. This is intended to reduce their “dependence on inputs” from other sources that are “more likely to contain inputs from forced labour”. This measure, although not explicitly stated, appears to be aimed at China and the controversial Xinjiang cotton. This raw material, whether raw or used in garments and textiles, has been banned from entry into the US since January 2021. The ban is due to its connection with the alleged slave labour of the Uyghur ethnic minority, which the Chinese government is accused of using for harvesting.

In return for these potential imports, the US president has also ordered the USTR to adjust the tariff quotas for the four Asian producing countries in due course. This will allow “a certain volume” of textiles and apparel from Bangladesh, Cambodia, Indonesia and Malaysia to enter the US completely free of the new tariffs. The volume of textiles and garments will be determined “based on the import of US inputs” and “the import of US cotton” by each of the four countries.

New tariff rates imposed by US