Blog: PVH-Warnaco fit has good prospects
Leonie Barrie | 5 November 2012
In a move that is set to make PVH one of the world's largest and most profitable apparel companies, the clothing maker last week announced plans to buy The Warnaco Group in a $2.9bn deal.
As well as bringing control of the Calvin Klein underwear, jeans and sportswear lines under one roof, the acquisition also sets the stage for major expansion - not only across product categories, but also new geographies and distribution channels. In particular, top line growth is seen on the back of Warnaco's strong presence in Asia and Latin America.
US retailers have yet to weigh up the full impact of Hurricane Sandy, which hit the US East coast early last week. Despite estimates suggesting they were forced to close up to 10% of their stores as the Superstorm swept through, growth in US sales held up in October according to monthly figures. But analysts continue to weigh up the storm's longer-term impact on apparel and footwear sales.
Swedish fashion retailer H&M has hit back at accusations that it fails to pay adequate wages to workers in Cambodian factories - and says the situation would be a lot worse if it didn't source from the country. While Fast fashion retailer Forever 21 is being investigated by the US Department of Labor (DoL) for "significant" labour law violations among its suppliers in Southern California.
And environmental campaign group Greenpeace is stepping up efforts to clean up the clothing supply chain by calling on outdoor apparel firms to ban PFCs from production after tests found the chemicals in a number of leading brands. Separately, the latest report from brands who have committed to a toxic-free future by 2020 says more participation is crucial if their efforts are to have a major impact.
Meanwhile, the European Union has released details of planned changes to its Generalized System of Preferences (GSP) system for developing countries, which are due to come into effect from the beginning of 2014. The update will reduce the number of countries that enjoy preferential access to EU markets from 176 to 89.
However, two years after it was removed from the GSP+ scheme that allowed duty-free exports to the EU, Sri Lanka's apparel industry says it has been hurt by the loss.
The annual World Retail Congress has returned to Paris this week for three days where the great and the good of the retail industry have converged to discuss the industry climate as we move out of a t...
Two separate calls came last week urging the various safety initiatives in Bangladesh to work more closely to coordinate their efforts - and for more input from the Bangladeshi government if the work ...
The explosive growth of the Bangladeshi ready-made garment industry is more likely to be accompanied by accusations of sweatshop exploitation from labour rights activists than praise for the positive ...
US retailers ramped up stocks for the start of the back-to-school season in July, pushing apparel imports for the month up by 13.4%, according to the latest data. But while China and Vietnam were the ...
- INTERVIEW: Crystal CEO rises to the challenges
- Pacific Crystal Textiles gears up for production
- Li & Fung: China consumption to bring major change
- Growth in smart garments and wearable technology
- Innovation and e-commerce key to Nike's growth
- Adidas taps Nike designers for new creative studio
- China apparel interns in forced labour conditions
- Addressing anaemia key to Cambodia productivity
- Chinese firm to invest in Ethiopian textile plant
- Activists slam dismissals at Sri Lanka shoe firm