The group sells branded products under its kids, men’s and women’s fashion, footwear and accessories verticals. Operating primarily as a wholesale business, the products are sold across multiple geographies and through various distribution channels, including department stores, hypermarkets/clubs, off-price retailers, independent chains, specialty retailers and e-commerce.
Revenue for the kids vertical decreased by 5.5 per cent to $1,514 million year-on-year, while total margin decreased by 4.3 per cent to $396 million. With further impact of one-time losses/gains and impairment of goodwill, during the reporting period, kids vertical recorded an operating loss of $524 million.
During the fiscal 2018, revenue from men’s and women’s fashion increased by 39.4 per cent to $1,143 million as compared to last year, while total margin increased by 56.9 per cent to $484 million. The increase was primarily attributable to the addition of new licenses. Operating costs increased by 84.0 per cent to $464 million as a result of the addition of new licenses and significant strategic investments in direct-to-consumer channels for key brands.
"Through the 12 months ended March 31, 2018 (the 'reporting period'), the group continued to grow our topline while total margin progressed on a positive trajectory, in line with our expectations. However, the reporting period has also been one of significant challenge amidst an evolving industry landscape. Our sales volume was also affected, as anticipated, and as discussed in our interim results announcement," Bruce Rockowitz, chief executive officer & vice chairman.
In the fiscal 2018, well-known brands such as Calvin Klein and Katy Perry continued to have a strong appeal to consumers, driven by our contemporary designs and fashion-oriented approach, which sustained their performance. In addition, we continued to leverage the group’s brand portfolio and expertise across multiple categories and our global platform to expand our businesses.
"Looking ahead, we will continue to invest in our brands as an operator and partner to brand owners, especially our long-term licensed brands, to sustain their competitiveness in the constantly changing marketplace. While the strategic divestment discussed above will substantially reduce our brick and mortar locations, our highly selective investments in direct-to-consumer channels will inevitably attribute to higher operating costs in the short term. We believe men’s and women’s fashion will continue to be a fast-growth business for the Group and deliver attractive margin profiles in the long run," concluded Rockowitz. (RR)
Fibre2Fashion News Desk – India
| On 7th May 2021
The value of exports of garments and accessories from the Southeast...
| On 7th May 2021
Sateri, the world's largest producer of viscose fibre, has entered...
Petrochemical company Hanwha Total Petrochemical (HTC) has invested...
Good tidings expected for textile industry
International apparel brands
Launched first collection at onset of Covid
Still struggling to mop up higher sales
Dr. Vijaya Kumar
Dr MM Kariappa founded the Vogue Institute of Art & Design in 1996....
The Condé Nast College of Fashion & Design or CNC as it is known as,...
Miko Srl, a subsidiary of US-based Sage Automotive Interiors and a member...
Bebop Sensors' smart fabrics allows for a new level of interaction between ...
INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...
Michaela Griggs & Peggy Schulz
Founded in 1929, Barco Uniforms started as an apparel company for beauty...
Vidur Adlakha & Riccardo Bennidini
With an active presence in US, Italy and India, clothing brand La Fuori...
Twee In One
Best known for convertible clothing, Indian brand Twee In One by designer...
Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.
Download Free Report
Rising Opportunities in Technical Textiles Market: 2020-2026
Thank you for showing interest in our free report on 'Rising Opportunities in Technical Textiles Market: 2020-2026'
You will receive an email shortly with a link to download the report and in case if you don't receive our email, you can write back to firstname.lastname@example.org.