Report on specific benchmarks for fashion & apparel companies

24 Jan '08

3 min read

A new report commissioned by Lawson Software highlights performance within the fashion industry, by providing a benchmark for companies in EMEA, the US and Asia Pacific to compare their performance with their counterparts.

According to the report, fashion industry companies in the EMEA region are outperforming their counterparts in regions on certain key metrics, but there is notable room for improvement.

Lawson Software provides enterprise software applications that can help establish, track and report on specific benchmarks for fashion and apparel companies by defining operational excellence, which can help companies evaluate and improve their performance.

The report examined four sectors: general apparel, sportswear, intimates, luxury goods and three business models: brand owner with manufacturing, brand owner – design, source, distribute, and manufacturers.

Examining the global results for the average and top 25 percent best-in-class performance, the findings show the average performance for these organizations is higher than their counterparts in the US and Asian countries in terms of return on capital expenditure (ROCE), return on assets, asset turnover and inventory turn rate.

EMEA companies have the highest average inventory turn rate of 5.8 per annum closely followed by US companies at 5.0 per annum (12.8 and 9.5 per annum, respectively for the top 25 percent in each region).

Asian companies have the lowest inventory turn rate averaging at 4.2 per annum (7.8 for the top 25 percent). However, a negative average earnings per share figure for EMEA companies indicates greater challenges ahead.

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