International expansion coupled with cost-cutting efforts in the U.S. is expected to start paying off in the next year for a range of apparel companies.The likes of Levi Strauss & Co., PVH Corp., VF Corp., Ralph Lauren Corp. and Under Armour Inc., among several others, are expected to see profits tick up in the latter half of this year, and grow more significantly during 2018, thanks in large part to the growth of sales abroad, according to new research from Moody’s Investor Service.The sale of athletic apparel is expected to increase mainly in China, not least due to the country’s formal five-year plan to grow its sports industry, but other branded apparel is expected to grow in a number of emerging markets that are benefitting from economic expansion, Moody’s said. Profits in 2018 are expected to grow in the apparel and footwear sector by 4 percent to 6 percent during 2018, according to the report. Moody’s noted that international growth will “vary by company,” but said overall, international sales have grown 7 percent in aggregate over the last year, compared to a 1 percent decline in the U.S. The outsized growth for athletic apparel driven by the ath-leisure trend in also expected to begin dropping off considerably in the U.S.But PVH is already seeing the fruits of an international push with sales of Calvin Klein up by 20 percent abroad, and Ralph Lauren’s new president Patrice Louvet recently said the company is looking to become “more global” in an effort to bolster revenue, as restructuring efforts continue.G-III Apparel Group Ltd. is another company on its way to a good year, according to Moody’s, considering its plans for international expansion of recent acquisition Donna Karen, a brand that is already well-known abroad.VF on the other hand is less focused on international, but Moody’s pointed to the company’s recent acquisition of workwear-focused Williamson-Dickie as a growth driver, along with its move away from contemporary apparel.Although Moody’s previously expected 2018 growth of up to 8 percent, the apparel market in the U.S. is still lagging with “soft traffic trends and high promotional activity.” But the credit monitor said an outlook of 6 percent growth is still “a marked improvement” from 2016, when overall profits in the sector fell more than 5 percent. Growth is also being tempered by Nike, which Moody’s says is headed for a “sizable” negative impact on its revenues and profits stemming from currency shifts, on top of revenue growth that’s already slowed to about 6 percent for fiscal 2017 from 14 percent two years before. Growth in operating profit also fell to 6.8 percent from just over 18 percent during the same period.“Nike’s slower growth is one of the main drivers behind our revised 2018 view,” Moody’s said.Nike is set to reveal financial results from its first fiscal quarter on Tuesday.For More, See:Ralph Lauren Embraces Streetwear Distribution ModelGlobal Consumers Are More Confident — But Are They Spending?Which Fashion, Beauty and Retail Players Saw Sales Grow the Most?
“I think what’s so interesting about the #MeToo movement and this whole new wave of feminism in general, is that women are finally seeing, ’Oh I can start my own company, oh I can lear to code, oh I can leave my nine-to-five job and do the thing I want to do,” said @brooklyndecker ahead of her @sxsw talk for @createcultivate. The former model took the stage to share wisdom about networking and female-driven entrepreneurship. #wwdeye #sxsw (📷: @jgreenery)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech at the @sxsw conference for @createcultivate, the online platform and conference series for women. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.