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?
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye