Industry news
7 June 2022
US denim giant Levi Strauss & Co has unveiled plans to hit US$9bn-$10bn in revenues by 2027 by elevating and strengthening its brands in addition to its investment in stores, online platforms, and other digital capabilities.
Levi Strauss says 2027 net revenue of $9bn-$10bn would reflect 6-8% organic annual growth, with the jean specialist also eyeing 15% adjusted EBIT margin by the same year.
At its recent Investor Day, Levi Strauss introduced an accelerated five-year growth algorithm for the period from fiscal year 2022 to fiscal year 2027.
This includes 6-8% annual net revenue growth up from prior targets of 4-6% and an adjusted EBIT margin improvement to 15%. Plus, a commitment to increase shareholder returns through a new dividend payout target and recently approved share repurchase programme of $750m.
8 June 2022
Asos announces resale trial partnership with Thrift+
UK online fashion retailer Asos has launched its second circular design collection alongside a trial partnership with resale service Thrift+.
Asos says its trial partnership with clothing resale service Thrift+ will help to extend the life of clothes. The move allows customers to sell pre-loved clothes for credit which can be spent on Thrift+, donated to charity, or redeemed as Asos vouchers.
The move is said to tap into Asos’ 2030 Fashion with Integrity strategy and its key pillars, which includes being more circular.
Vanessa Spence, commercial design and visual director at Asos, says to have a successful commercial future, the fashion industry needs to be both sustainable and circular.
8 June 2022
US names new envoy to tackle supply chain disruptions
The White House and US Department of Transportation (USDOT) have named retired general Stephen Lyons as the new port and supply chain envoy to the Biden-Harris Administration Supply Chain Disruptions Task Force.
Former commander of the US Transportation Command, Lyons will work with the USDOT, the White House National Economic Council (NEC), ports, rail, trucking, and other private companies across US supply chains to address bottlenecks, speed up the movement of goods, and help lower costs for US families.
Lyons said: “I look forward to rolling up my sleeves and continuing to engage industry, labour, and port stakeholders to improve the fluidity of our supply chains, cut down on shipping costs, and ultimately save money for the American people.”
1 June 2022
Bangladesh court orders injunction against Edinburgh Wollen Mill
EWM Group, the owner of brands, including The Edinburgh Woollen Mill and Peacocks, has rejected claims it deliberately filed for bankruptcy to avoid paying its suppliers as “unfounded”, as a Dhaka court imposed a temporary injunction on it conducting business with any factory in Bangladesh.
According to a report in the Dhaka Tribune, a court ruled any agent or buying house of Edinburgh Woollen Mill Ltd (EWM) will not be able to conduct business with Bangladesh.
The report, citing the managing directors of four Bangladesh Garment Manufacturing and Exporters Association (BGMEA) member-companies in the country, says a filing alleges EWM was trying to evade payment worth BDT5.98cr on the pretext that its subsidiary company Peacocks, which imported the products, was bankrupt.
Image credit: David Pimborough | Shutterstock
8 June 2022
Gap Inc to scale Central America sourcing
US clothing retailer Gap Inc, apparel wholesaler SanMar, and yarn manufacturer Unifi plan to create economic opportunities in northern Central America as part of Vice President Kamala Harris' Call to Action for the region.
Harris announced more than US$1.9bn in new private sector commitments yesterday (7 June), more than doubling the value of initial private sector investments in response to her Call to Action for Northern Central America.
Gap Inc plans to increase its sourcing in the region by approximately $50m per year, for a total growth commitment of $150m by 2025. These increased purchases from the region will support an estimated 5,000 additional jobs.
In brief
Eni completes acquisition of stake in Dogger Bank A and B wind farms
Eni has completed the acquisition of a 20% stake in the first two phases of the 3.6GW Dogger Bank Wind Farm in the North Sea for £206.4m ($287.3m).
Neoen reaches financial close for 300MW Australian battery facility
Neoen has reached the financial close of the Victorian Big Battery project, a 300MW/450MWh energy storage facility in Australia.
Southern Power Generation’s Track 4A plant begins operations in Malaysia
Southern Power Generation’s 1.44GW Track 4A Power Plant in Pasir Gudang, Johor, Malaysia has started commercial operations.
Total farms down solar and wind portfolio in stake sale in France
The renewable generation subsidiary of oil giant Total has agreed to sell half of its equity stake in several solar and wind farms to two French financiers.
Scatec and Nizam Energy close financing for solar plant in Pakistan
Renewable developer Scatec and local partner Nizam Energy have secured a $100m financial closure for a solar project in Pakistan.
In brief
Eni completes acquisition of stake in Dogger Bank A and B wind farms
Eni has completed the acquisition of a 20% stake in the first two phases of the 3.6GW Dogger Bank Wind Farm in the North Sea for £206.4m ($287.3m).
Neoen reaches financial close for 300MW Australian battery facility
Neoen has reached the financial close of the Victorian Big Battery project, a 300MW/450MWh energy storage facility in Australia.
Southern Power Generation’s Track 4A plant begins operations in Malaysia
Southern Power Generation’s 1.44GW Track 4A Power Plant in Pasir Gudang, Johor, Malaysia has started commercial operations.
Total farms down solar and wind portfolio in stake sale in France
The renewable generation subsidiary of oil giant Total has agreed to sell half of its equity stake in several solar and wind farms to two French financiers.
Scatec and Nizam Energy close financing for solar plant in Pakistan
Renewable developer Scatec and local partner Nizam Energy have secured a $100m financial closure for a solar project in Pakistan.
8 June 2022
Apparel Impact Institute Fashion Climate Fund draws major industry names
H&M Group, H&M Foundation, Lululemon and The Schmidt Family Foundation have been named as the lead funders for the Apparel Impact Institute (Aii) US$250m Fashion Climate Fund.
By leveraging a first-of-its-kind collaborative funding model for fashion between philanthropy and corporate entities, the fund could unlock an estimated $2bn in blended capital across various asset classes, including debt and equity, to help meet the industry’s goal to halve carbon emissions by 2030.
Aii says the Fashion Climate Fund is a “bolder, more urgent, and holistic evolution” of Aii’s existing programme, Clean by Design.
Since 2018, Clean by Design has aggregated and deployed over $12m in philanthropic funding into energy efficiency programmes for factories, which has unlocked $175m in financial capital in addition to environmental savings.
Image credit: Wang Sing | Shutterstock
6 June 2022
ZDHC and TMC tackle microfibres within wastewater
The ZDHC Foundation (ZDHC) and The Microfibre Consortium (TMC) have unveiled details for the next stage of a major initiative to address microfibres in textile manufacturing wastewater.
Designed to help companies and supply chains better control microfibres in wastewater during apparel and footwear manufacturing, the preliminary guidelines identify an industry-wide approach to best support change within manufacturing.
The first phase aimed to identify the use of existing technologies across the industry and the next phase will focus on measurement and baselining so that progress can be managed effectively and transparently.
27 May 2022
Nike ends investments, franchises in Russia
US sporting goods giant Nike, Inc. is not renewing its franchise agreements with Up and Run in Russia, nor will any new investments take place, due to “operational challenges” within the region.
“Our business remains on pause, and we are providing pay continuity to our employees,” Nike said.
On 3 March, Nike announced it was temporarily suspending its operations in Russia, although some independent stores remained open, according to news publication, Reuters. Nike’s complicated franchise agreements with Russian stores made extricating itself more difficult than simply pulling out.
Nike retained its position as the world’s most valuable apparel brand, despite a “significant” 12% drop in brand value to US$28bn.
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