By  on August 25, 2008

Like much of the fashion industry, the children’s apparel sector is being pinched, both by higher operating costs and slower sales.

“It’s a fairly challenging environment, particularly the upward cost pressures in the supply chain,” said Carl Steidtmann, chief economist at Deloitte Research-Consumer Business. He said the dollar’s lower value against currencies where children’s apparel is produced, coupled with rising energy prices pushing transportation costs higher, are key price pressures for vendors.

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