Blog: US retail sales and sporting sponsorships
Leonie Barrie | 6 August 2012
Lured by warm weather and promotions to clear summer merchandise, US shoppers hit the stores in July giving an overall boost to many apparel retailers - but the results shed little light on back-to-school spending plans.
Highlights included a 10% jump in same-store sales at Gap, and a 12% rise at Limited Brands, operator of the Victoria's Secret and La Senza shains. Sales were also up 3.1% at Target, and rose 4.1% at Macy's.
That said, it wasn't all plain sailing. Consumers continue to remain cautious and as the focus shifts to the all-important back-to-school period - the second-largest selling season after the holidays - retailers will be hoping shoppers buy more and visit more stores during August, as two recent surveys suggest.
Sportswear brand Adidas is confident its full-year earnings will come in at the top of forecasts as it capitalises on its successful sponsorships of the Euro 2012 football tournament and the London Olympic Games. "Our association with major sporting events sets us apart from all the competition," chief executive Herbert Hainer said last week, as the company booked a 30% increase in first-half profit to EUR455m (US$563m).
But basic apparel specialist Hanesbrands is still hurting from the impact of the cotton price hikes of recent times, some loss-making divisions and volatility in the US retail market. This challenging combination was reflected in the company's second quarter results - but with the majority of the cotton inflation now in the past, the firm predicts a stronger second half of 2012.
Legislation that will help provide stability for US apparel and textile firms sourcing from sub-Saharan Africa and Central America, and also renews trade sanctions on Burma, was finally passed last week.
But while the move puts an end to uncertainties over AGOA's third-country fabric provision, which had been set to expire in September 2012, the ongoing US import ban on goods from Burma has been criticised for hindering the country's economic recovery by preventing the growth of job-creating sectors such as garments.
And Bangladesh's strong growth in garment exports should not to be taken for granted, according to a report from The World Bank. It says the country must address a number of challenges if it is to see future growth - and that greater export diversification is needed beyond clothing.
Do you have strong opinions, insight and expertise in a particular area of the textiles and apparel industry?...
As if political tensions and strikes for higher wages by garment workers have not already caused enough disruption in Cambodia, new research has suggested they will continue to weigh on the country's ...
Beleaguered US department store retailer JC Penney is at last getting something right as it continues to try to turn around its business: its commitment to saving energy and fighting climate change....
The biggest news from just-style last week was the rollout of our new-look site. It has been redesigned to make it easier to find the key content that you need, whether you're reading it on a desktop ...
- PSF 2014: No one size fits all in apparel sourcing
- PSF 2014: Shifting focus from cost to consumer
- Teen retail being rocked by fast fashion headwinds
- Bangladesh industry development moving backwards
- US retailers' March 2014 sales roundup
- Gap issues mirror widespread industry challenges
- H&M "pushing the process" on sustainable fashion
- Adidas plans mobile phone hotline at all suppliers
- Adidas China supplier in discussions over strike
- VF Corp eyes speed to market with China hub
- Ethiopia – the emerging textile and clothing industry
- Antimicrobial fibres, fabrics and apparel: innovative weapons against infection
- Jeans in Italy
- Trade and trade policy: clothing imports, consumer expenditure and trends in five emerging markets: Brazil, Colombia, India, Kazakhstan and Peru, 4th quarter 2013
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects