Further expansion by American brands into regions like China is expected to bolster growth as challenges continue in the U.S. market.
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?
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)