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.
Myanmar is set to become a more attractive garment sourcing and investment destination after plans were agreed on labour law reforms in the country – with Gap and H&M coming out in support of the prop...
Congratulations to Textured Jersey Lanka Plc, which has won top prize in the inaugural World Textile Awards sponsored by The Textile Institute. ...
Ongoing efforts to reverse a slump in sales at its namesake brand are to see US clothing retailer Gap Inc shutter 175 of its namesake stores in the US and axe 250 head office jobs....
Efforts to move forward on key pieces of US trade legislation intensified last week. A package of measures to renew the African Growth and Opportunity Act (AGOA) and extend the Haiti HELP/HOPE program...
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- Global market review of lingerie - forecasts to 2020
- World Textile and Apparel Trade and Production Trends: The EU - May 2015
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Myanmar's Garment Sector - Opportunities & Challenges in 2015