Tag: us denim

Export To USA & EU By Pakistan | 2012-16

Table Of Contents

Serial No.	Particulars
1	Table showing Imports of Men and Women Jeans Into USA For Jan-June,2015 & 2016 (Pcs In Millions)
2	Graph Showing Imports of Men and Women Jeans Into USA For Jan-June,2015 & 2016
3	Table showing Imports of Men and Women Jeans Into EU For Jan-May,2016 (Pcs In Millions)
4	Graph showing Imports of Men and Women Jeans Into EU For Jan-May, 2016
5	Table showing Imports of Men and Women Jeans Into USA for 2012-15 ( Pcs In Millions)
6	Graph showing Imports of Men and Women Jeans Into USA for 2012-15
7	Table showing Average Price of Imports of Men and Women Jeans Into USA for 2012-15 ( US$/Pc)
8	Graph showing Average Price of Imports of Men and Women Jeans Into USA for 2012-15
9	Table showing Imports of Men and Women Jeans Into EU for 2012-15 ( Pcs In Millions)
10	Graph showing Imports of Men and Women Jeans Into EU for 2012-15
11	Table showing Average Price of Imports of Men and Women Jeans Into EU for 2012-15 ( Euro/Pc)
12	Graph showing Average Price of Imports of Men and Women Jeans Into EU for 2012-15

Over the last 2 decades and specially in last 10 years, the denim industry of Pakistan has grown by leaps and bounds and now there are many leading companies are involved in fashion oriented denims, twills, drills and other apparel fabrics manufacturing in Pakistan. The denim apparel industry grew alongwith the growth in fabrics and today it is key exporters in Asia. Denim is now one of the key sectors and the driving force behind the apparel exports of the country.

In our previous report , we did a detailed analysis of top exporting countries of denim to EU including those from Pakistan . In the current report, we are presenting a detailed analysis of Pakistanâ€™s export of denim to EU and USA , for both Men and Women, from the year 2012 to June ,2016.

Exports To USA

2015-2016

Analyzing the figures of Jan-June ,2015 & 2016 gives a clear indication that the export of Womenâ€™s Jeans is more than that of Menâ€™s Jean and it also indicates the initial slowdown in the export of Menâ€™s Jean from Pakistan which are now 5.30% lower than the previous year of same period in 2015. The women jean on the other hand shows a positive trend with a growth of 3.40% during Jan-June , 2016 . The export during Jan-June 2015 was [private_special] 5.46 million pcs which reached t0 5.652 million pcs during Jan-June 2016 .

Imports of Men and Women Jeans Into US For Jan-June,2015 & 2016

(Pcs In Millions)
Year	YTD-2015	YTD-2016
Men	4.152	3.936
Women	5.46	5.652
* YTD- Jan To June

2012-2015

In 2012 , export of Menâ€™s and Womenâ€™s denim to US were 8.8 and19.58 Million Pcs respectively , clearly indicating the countryâ€™s inclination towards the production of Women Denim. However, the country fails to maintain such trend for so long and after 2012 ,the export of women jeans shown a downward trend . From whooping 19.58 million pcs in 2012, the export dropped down to 11.63 million pcs. Export of Menâ€™s jeans has been growing very slowly and it reached to 10.24 million pcs in 2015 which could be considered as reasonably fair growth.

Imports of Men and Women Jeans Into USA for 2012-15 (Pcs In Millions)
Year	2012	2013	2014	2015
Men	8.8	9.13	9.19	10.24
Women	19.58	11.45	11.87	11.63

The Average price of Menâ€™s Jean in 2012 was USD$ 7.23/Pc and of Womenâ€™s Jean was USD$4.41/Pc which was 39% lower than the average price of Menâ€™s Jean. But later in the year of 2013,2014 and 2015 , Women Jean became more expensive than Menâ€™s Jean . In 2013, Avg Price of Menâ€™s Jean reduced to USD$ 6.91/pc however the Avg Price of Womenâ€™s Jean increased massively by 50% to USD$ 8.76/Pc. In the year 2015 , the average price of both Men and Women Jeans were somehow very closed as compared to previous years. The Av Price of Menâ€™s Jeans and Womenâ€™s Jeans was USD$ 7.54/pc and USD$ 8.6/pc respectively.

Average Price of Imports of Men and Women Jeans Into USA for 2012-15 (US$/Pc)
Year	2012	2013	2014	2015
Men	7.23	6.91	6.89	7.54
Women	4.41	8.76	8.68	8.6

Exports to EU

2015-2016

As far as the EU market is concerned , Pakistan managed to grow reasonably well . During the period of Jan-Mayâ€™15 , Pakistan exported 23.18 million pcs to EU and in the very next year for the same period, the country exported 10% more pcs to EU with 25.47 million pcs. Export of women jean is comparatively slower in terms of growth . In Jan-Mayâ€™15 export was 13.38 million pcs while in the year 2016 for the same period it was 13.72 million pcs. However, overall, it exported about 39 million pieces of denim to EU in 2016 which is good !

Imports of Men and Women Jeans Into EU For Jan-May,2016

(Pcs In Millions)
Year	Jan-May’15	Jan-May’16
Men	23.18	25.47
Women	13.38	13.72

2012-2015

In 2012 , the total export of Menâ€™s Jean to EU was 34.54 million pcs which kept on increasing and reached to the export of 63.96 million pcs by the end of 2015. However the growth rate of export ,which was close to 30% in 2014 has been reduced to 13 % in the year 2015. Looking at the export of Womenâ€™s Jean, there is reasonable growth from 2012 to 2015 . In 2012 , the export was 18.28 million pcs and in 2015 it reached to 32.49 million pcs in 2015. Pakistan is now exporting about 100 million pcs taking together both men and women jeans. This is more than 20% share of the EU market !

Imports of Men and Women Jeans Into EU for 2012-15

(Pcs In Millions)
Year	2012	2013	2014	2015
Men	34.54	38.61	55.62	63.96
Women	18.28	26.4	30.58	32.49

The average price of both Menâ€™s and Womenâ€™s Jean moved in a limited range from 2012 to 2015. In the year 2012 the average price of Menâ€™s Jean was USD$ 6.8 and the average price of Womenâ€™s Jean was USD$ 6.2 . Average price of both Menâ€™s and Womenâ€™s Jean increased in 2014 and till 2015 the average price of Menâ€™s and Womenâ€™s Jean reached to USD$ 7.93 and 7.51/pc.

(Euro/Pc)
Year	2012	2013	2014	2015
Men	6.8	6.65	6.78	7.93
Women	6.2	6.2	6.4	7.51

On the whole if we see, Pakistan has emerged a large exporter of jeans to EU and to some extent to US. With about 20 million pcs going to US and about 100 million pcs going to Europe, Pakistan is not lacking in its capacity as a dream exporter. However, its share of 20% of EU market is quite good and next only to Bangladesh and China . It might soon overtake Chinese exports of denim jeans and be number two after Bangladesh. [/private_special]

August 27, 2016

AG Releases Indigo Capsule Collection

AG Jeans, an American premium denim brand founded by the Godfather of denim â€“ Adriano Goldschmied, recently launched yarn-dyed indigo knitwear-Indigo Capsule Collection – for women and men. The collection has nostalgic references to the old skin tight jeggings. The Jeggings made in recent times with woven knits have been big hit . However, the feeling of a knitted fabric is altogether different and when it combines with the color indigo and special finishing processes of denim, the fabric combines the best of the two worlds. The complete wardrobe of 6 pieces made with knitted denim wear is very interesting to look at â€“ to say the least â€“ and should have a great comfort quotient !

These pieces are very soft, comfortable as well as stretchy likely to your pair of normal jeans.The latest Indigo collection by AG is a perfect mix of slinky dresses and cropped tops for women. The collection includes trousers, joggers, drapey T-shirts, long dresses and cropped jumpers. The collection is designed to age gracefully.

August 3, 2016

VF Corporation–Q1 2016 | Financial Analysis

VF Corporation, with well known brands in its stable like The North FaceÂ®, VansÂ®, TimberlandÂ®, WranglerÂ®, LeeÂ® and NauticaÂ® , is a global leader in the design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories. The companyâ€™s highly diversified portfolio of 30 powerful brands spans numerous geographies, product categories, consumer demographics and sales channels. Denim and Jeanswear is one of the key segments where VF brands has a powerful presence. A study of VFâ€™s financials gives an idea of the direction company is taking and some idea on how consumers are reacting to its various segment offerings.

In this report we have done a detailed analysis as well as comparative analysis between the 1stÂ Quarter 2016 and the same quarter in the last year.

	In Millions ( US$)
Particulars	Q1 – 2015	Q1 – 2016	%
Outdoor & Action Sports	1606.9	1644.4	2.3%
Jeanswear	699.7	710.6	1.5%
Imagewear	282.9	269.1	-5.1%
Sportswear	135.7	118.4	-14.6%
Contemporary Brands	87.5	74.4	-17.6%
Other	24.6	22.4	-9.8%
Total Revenue	2837.3	2839.3	0.1%

In the 1st Quarter ofÂ 2016, VF Corporationâ€™s total revenue isÂ US $2839.3 million, out of which Jeanswear was $710.6 million whichÂ isÂ 25 %(approx)Â share of total revenue. The share of Jeanswear has risen marginally by 1.5% while Outdoor & Action Sports has taken aÂ jump of about 2%Â in sales. This is not surprising as ActivewearÂ is the current flavour of the consumers and VF, like many other brands, is trying to struggle to keep their denim sales to theÂ same levels. If we look at the revenue distribution of Sportswear , there is a fall of 14.6%Â from the same quarter of last year . Except Outdoor Sports and Jeanswear , rest of the segments registered a fall in the revenue.

If we look at the profit sharing of different segments ,there is marginal increase in the Jeanswear by 4.1 % from the Q1 of last year ,however the Sportswear segment reduced substantially by 62.5% . There is a fall of 1 percent in the share of total revenue of Outdoor and Action Sports segment. In the Q1 2015 ,the share was 56% however in Q1 2016, it reduced to 55%. The Jeanswear segment raised and increased its share in total profit by 5 % . In Q1 2015 it used to 28% while in Q1 2016 it reached to 33% which clearly shows how important this segment is getting to be for VF. And not only VF, it is true for many other brands who have a diversified portfolio.If we analyze the profit sharing from comparative prospective , we found that the there is a downfall in the profit by 12.7% of Outdoor and Action Sports Segment . In Q1 2015 , the profit was $260.8 million while in Q1 2016 it is only $ 227.8 million. Even in the case of Sportswear , the fall is of 62.5% which is huge .

	In Millions (US$)
Particulars	Q1 – 2015	Q1 – 2016	%
Outdoor & Action Sports	260.8	227.8	-12.7%
Jeanswear	131.9	137.3	+4.1%
Imagewear	41.3	41.5	+0.5%
Sportswear	12.8	4.8	-62.5%
Contemporary Brands	3.5	1.7	-51.4%
Other	14.7	-2.4	-116.3%

Particulars	% Of Revenue Grwoth	% OfÂ Profit Growth
Outdoor & Action Sports	2.3%	-12.7%
Jeanswear	1.5%	+4.1%
Imagewear	-5.1%	+0.5%
Sportswear	-14.6%	-62.5%
Contemporary Brands	-17.6%	-51.4%
Other	-9.8%	-116.3%

Looking at the change in the revenue against the changes in profit in the Q1 of 2015 and 2016, we found that only Jeanswear is sole segment in which growth in profit is more than growth in revenue. The revenue increased by 1.5% while the profit margin increased by 4.1%. Rest of the segments are showing decrease either in revenue or profit or in both.

The story is not much different when we consider the contribution of different segments to the profit margin. Though the absolute contribution of the Outdoor segment was expected to be the highest, the % share also increased in this case while all other segments reported reduced profits . Jeanswearâ€™s contribution to the profitability has been increased .

On the whole, VF is increasingly becoming a corporation getting its maximum turnover and profits from Activewear as well as Jeanswear segment and looks increasingly focused in this area as more and more energies of the organization get diverted to this high return segment.

July 4, 2016

US Denim Import 2012-2015

The US market has not been very strong for the last few years. The last it saw a good â€˜Denim â€˜year was in 2013 when it imported over 500 million pcs of denim apparel. It continued to remain soft in 2015 without showing too much growth. We take a detailed look at this market and cover the following in this report:

S.No	Particulars
1	Table showing Imports of all denim apparels into USA from world ( 2012-15)
2	Graph showing Imports of all denim apparels into USA from world ( 2012-15)
3	Table showing Average price of imports of all denim apparels into USA from world (2012-15)
4	Graph showing Average price of imports of all denim apparels into USA from world (2012-15)
5	Table Showing Imports of Menâ€™s Jeans into USA from world (2012-15) with average price of imports of Menâ€™s Jeans into USA from world (2012-15)
6	Graph Showing Imports of Menâ€™s Jeans into USA from world (2012-15)
7	Graph Showing average price of imports of Menâ€™s Jeans into USA from world (2012-15)
8	Table showing Imports of Womenâ€™s Jeans into USA from world (2012-15) with average price of Imports of Womenâ€™s Jeans in to USA from world (2012-15)
9	Graph showing Imports of Womenâ€™s Jeans into USA from world (2012-15)
10	Graph showing average price of Imports of Womenâ€™s Jeans in to USA from world (2012-15)
11	Table showing top exporting countries to USA in the year 2015 with average price (US$/Pcs)
12	Pie Chart showing top exporting countries to USA in the year 2015
13	Graph showing average price (US$/Pcs) of top exporting countries to USA in the year 2015
14	Table showing % change in the imports from the year 2014 to 2015
15	Table showing Top Exporting Continents of all denim apparels to USA in the year 2015
16	Pie Chart showing Top Exporting Continents of all denim apparels to USA in the year 2015

[wlm_private_special]

If we look at the figures below, we will find that US market has actually declined marginally in terms of denim apparel imports. From 474 million pcs in 2014 it went down to 469 million pcs. These are figures that the denim market will not be too enthused about!

Year	2012	2013	2014	2015
Pcs (million)	493.77	515.03	474.06	469.98

The average price also seems be on declining trend which is probably a good sign for the market. In the year 2012 the average price was US$ 8.14 per pc while in 2015 it reduced to US$ 7.99 per pc. However, this can be termed as a marginal change over 2014.

Year	2012	2013	2014	2015
Average Price (US$/pc)	8.14	8.1	8.03	7.99

Menâ€™s Jeans

In the year 2012 the imports of Men Jeans from the world to USA was 263.76 million Pcs with an average price of US$8.33 which reduced to US$8.16 with an import of 269.38 million pcs in 2013. In the year 2014 and 2015 the import figure saw a decline both in quantity as well as in average prices. In 2014 where import quantity was 256.24 million pcs, while in 2015 it reduced to 250.02 million pcs. So the actual imports of menâ€™s jeans declined by over 3% since 2014 and over 7% since 2013.

Year	2012	2013	2014	2015
Average Price (US$/pc)	8.14	8.1	8.03	7.99
Year	2012	2013	2014	2015
Average Price (US$/pc)	8.33	8.16	8.15	8.1

Womenâ€™s Jeans

The import of womenâ€™s jeans also peaked out in 2013 when the country imported bout 245 million pcs. In 2014 the imports were 217 million pcs which was a whopping reduction of over 11%! 2015 however saw a marginal increase of about 1% – which cannot be said to be a very encouraging figure. The average price is almost stable from US$ 7.89 in 2014 to US$ 7.87 in 2015. The prices, we can say, are more or less stable sine 2012 â€“ a sign that the country is able to manage to balance its import prices from around the world.

Year	2012	2013	2014	2015
Pcs (million)	230.01	245.65	217.82	219.96
Year	2012	2013	2014	2015
Average Price (US$/pc)	7.93	8.04	7.89	7.87

So far as the top exporting countries are concerned, China is still leading the charts with whopping 133.13 million pcs in 2015 while Mexico ranks second with 110.02 million pcs. China is able to give an average price of about US$ 7.52 while Mexicoâ€™s average price is US$8.74. However, considering that there is no import duty on imports of garments from Mexico (made with US fabrics); the price will come out more or less same. But China gives much more fashionable products to US than Mexico â€“ which is focused on basics. Bangladesh ranks 3rd with the lowest average price per jeans which is merely US$6.53. Pakistan comes 4^the with a total of about 21 million pcs and Vietnam is at 5th with total export quantity of 19.13 million pcs at an average price of US$8.48. It needs to be seen where the share of China will spill off once the country is not able to export as much it used to.

EXPORTING	ALL DENIM APPAREL	AVERAGE PRICE
COUNTRY	(MILLION PCS)	(US$/PC)
CHINA	133.13	7.52
MEXICO	110.02	8.74
BANGLADESH	67.02	6.53
PAKISTAN	21.86	8.1
VIETNAM	19.13	8.48
EGYPT	17.59	8.99
CAMBODIA	15	7.82
INDONESIA	13.62	7.94

% Change in the imports from the year 2014 to 2015

Exporting	All Denim Apparels (2015)	All Denim Apparels (2014)	% Change
Countries	Million Pcs	Million Pcs
CHINA	133.13	135.37	-1.68%
MEXICO	110.02	116.12	-5.54%
BANGLADESH	67.02	67.58	-0.84%
PAKISTAN	21.86	21.06	3.66%
VIETNAM	19.13	18.95	0.94%
EGYPT	17.59	18.66	-6.08%
CAMBODIA	15	15.29	-1.93%
INDONESIA	13.62	9.01	33.85%

Exporting Regions :

There are many regions and blocs which can be studied as a group to analyse which region is more important for exporting denim to US. Some of the main regions are Latin America, Asean, Agoa , Cafta etc. We analyse the figures from these countries as below.

Latin America is the highest contributor in the total import to the USA with total import quantity of 135.91 million pcs followed by ASEAN, AGOA and CAFTA with 48.74, 22.27 and 20.7 million pcs. Latin America â€“ the main component is Mexico which takes the lionâ€™s share of its exports. Among ASEAN countries, Vietnam is very important. AGOA still remains a small quantity and has not evolved over time despite duty benefits.

EXPORTING REGION	ALL DENIM APPAREL(million pcs)
LATIN AMERICA	135.91
ASEAN	48.74
AGOA	22.27
CAFTA	20.7

On the whole, not a very good year for denim apparel imports for the US market. It is still sluggish but there are hopes that 2016 will be better.

[/wlm_private_special]

April 13, 2016

The Rise Of Haitian Apparel Industry

This is an article contributed by Mr. Mark Dâ€™Sa â€“ a reputed Consultant and Advisor

Nearly four years after the earthquake with aid agencies having poured billions of dollars into relief projects, the stability of Haiti’s garment industry seems to be hanging by a thread.Haiti’s garment industry is focused on low-end apparel clothing and cranking out plain T-shirts for North American companies such as Gildan, Hanes and Walmart. According to the Inter-American Development Bank (IDB), the industry makes up 80-90% of the country’s exports. And thanks to free-trade deals agreed by the US Congress, most Haitian garments are able to enter the US duty-free.

International Finance Corporation, (IFC), a member of the World Bank Group, is investing $4 million to help The Willbes Haitian S.A., a subsidiary of South Korea-based The Willbes & Co., Ltd, expand its apparel manufacturing capacity and create 1,000 new jobs in Port au Prince by the end of 2016. In addition, IFC is mobilizing a $4 million parallel loan from the Inter-American Development Bank.IFCâ€™s portfolio in Haiti amounts to US$122 million, including US$24 million mobilized from other partners.

Â Earlier this year, quality-apparel brand BOXERCRAFT announced that IRII (Industrial Revolution-II) would join its list of suppliers. It’s an indication that companies are willing to move away from the mass production of turning out T-shirts on the cheap and are starting to consider responsible sourcing practices. The hope is that other brands will also see the potential in the venture and that they’ll place orders with IRII for high-end clothes that might usually get produced in places like LA. According to a report published by Better Work in April this year, 100% of Haitian manufacturers audited were still paying workers around 200 gourdes (about USD3.5) a day, some several months after the 300 gourdes minimum wage had been introduced.

In June 2015, The Trade Preferences Extension Act, which extended the duty free provisions of the HELP Act, signed by the President Obama . This opened a ten year line of sight which allows investors to establish operations in Haiti with greater confidence. Earlier, in March, a trade delegation organized by IDB visited several companies in South Korea with positive results. Following up on the visit, Hansae Corporation of Seoul visited multiple locations in Port Au Prince and eventually signed an MOU with SONAPI (The Government administrator of Industrial Parks), to invest in Parc Industriel Metropolitain. This investment of U$30 million is expected to yield anywhere between 5,000 to 7,000 jobs. Haitian apparel exports to the US for the year ending November, reached U$ 896 million and 334 million SMEs (Square Meter Equivalent). Out of the total apparel exports, bottom exports are approx. 25% under Cat 347/348. Leviâ€™s is the main denim buyer followed by Old Navy, Carterâ€™s etc.

During the year the number of apparel jobs reached a high of 41,200 â€“ the highest since the HOPE and HELP Acts were signed in 2006. 60% of the growth in jobs in 2015 was in the northern region led by the Caracol Industrial Park and CODEVI.Â With the establishment of the Caracol Industrial Park the industry has decentralized and by end November, 36% of the apparel jobs (15,212 of 41,536) are now in the northern corridor. It is also important to note that between the two Industrial parks under itâ€™s management, SONAPI is now home to 49% of the total jobs in the apparel industry and scheduled to go over 50% in 2016. During the year a total of 7,226 jobs were created and 3,542 workers were laid off due to shutdowns and temporary closures. The net job increase at the end of November was 3,684. The Caracol Industrial Park contributed 2,998 apparel jobs in 2015.

The countryâ€™s growth in apparel exports has been steady over the period 2010 to 2014. The job growth is mainly driven by investments from DR, Korea and USA.

Category	2010	2011	2012	2013	2014
Total Export ($)	517.569	701.476	730.051	803.337	854.287
Total SMEs Exported/Utilized)	253.06	257.628	270.374	306.44	313.931
Average USD/SME	$2.05	$2.55	$2.70	$2.62	$2.72

Â The first quarter of 2015 saw the industry get off to a good start with jobs and exports growing steadily. The renewal of the AGOA agreement and the TPP generated a lot of discussion, but did not impact the volume of exports from Haiti. Towards the end of the year there was some disruption leading to the loss of 3,500 jobs in the Port Au Prince area, however the year finished on a positive note with an increase of 3,684 jobs.Â According to the numbers published by ADIH, the companies that contributed to the maximum number of job increases in 2015 were S&H Global (2,800),Â Val dâ€™OR (1,259), Premium Apparel (756), Island Apparel (521) and H&H Textiles (513).

Prospects for apparel exports from Haiti continue to look bright with the extension of the HELP Act and the availability of motivated labor at competitive costs. Despite minimum wage increases, the country continues to be competitive as the local currency depreciated 22.38% and according to all indications, is likely to weaken further against the US Dollar. The current minimum wage is 240 HTG (US$ 4.15) per eight hour day plus another 22% for health insurance, pension plan, two weeks vacation and one month nonus. At the time of publishing this post, the exchange rate is 58.09 Haitian Gourdes = US$1.00Â As yet Haiti has not been affected by the AGOA and TPP agreements because of itâ€™s proximity to the US and the generous TPLs available under the HELP and CBTPA agreements. Leading retailers and brands continue to be bullish about the potential Haiti has to offer.

Several Haitian producers like S&H Global, Willbes Manufacturing, H&H Textiles and Val dâ€™Or are in an expansion mode. A major Korean manufacturer Hansae, signed a lease agreement which could generate 5,000 jobs over the next three to four years. Logistics continue to improve with private sector port investments in the Lafito and Terminal Varreux projects on the outskirts of Port Au Prince. In the North, the World Bankâ€™s IFC and USAID are upgrading the Port of Cap Haitian. At the current time there are two weekly sailings from Cap Haitian and four from Port Au Prince with 3.5 days transit to Florida. The prospects look bright for Haitiâ€™s apparel industry in 2016. The workwear producers are increasing output, knitwear exporters are in strong expansion mode and based on the reactions of several investors, Haiti should continue see an influx of foreign companies that will add at least 6,000 jobs and a very good chance to cross the billion dollar export mark in 2016.

A T-shirt from Walmart is likely to cost at least $7. The minimum wage in Haiti is 300 Haitian gourdes a day (roughly $6-$7) and even though this is peanuts, there is the argument that paying workers even $5 a day could put factories out of business. Some workers are said to be paid as little as $3.50 a day.T-shirt production is cheap, easy and requires little skill. Because of this and the high demand, if wages get too expensive, production can just relocate to another poor country, where costs can be kept low.To put it simply, low-end apparel T-shirt production is one of the least attractive parts of the industry.

January 12, 2016

VF Grows In Activewear | Financials 2015

VF Corporation, with well known brands in its stable like The North FaceÂ®, VansÂ®, TimberlandÂ®, WranglerÂ®, LeeÂ® and NauticaÂ® , is a global leader in the design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories. The companyâ€™s highly diversified portfolio of 30 powerful brands spans numerous geographies, product categories, consumer demographics and sales channels. Denim and jeanswear is one of the key segment where VF brands have a powerful presence . A study of VFâ€™s financials gives an idea of the direction company is taking and some idea on how consumers are reacting to various segment offerings.

In this report we have done the detailed analysis as well as comparative analysis for the 3^rd Quarter 2015 and a comparative analysis for the same period last year besides a summary on the 9 months results of this year.

1. Revenue Segmentation for 3rd quarter of 2014 & 2015 (in millions)

Particulars	Amount ($) (2014)	% (2014)	Amount ($) (2015)	% (2015)
Outdoor & Action Sports	2180.88	61.95 %	2296.55	63.57%
Jeanswear	750.45	21.32%	747.87	20.57%
Image wear	292.53	8.31%	291.54	8.07%
Sportswear	163.44	4.64%	161.70	4.48%
Contemporary Brands	99.38	2.82%	83.19	2.3%
Other	33.77	0.96%	31.97	0.88%
Total	3520.45	100%	3612.82	100%

In 3^rd Quarter 2015, VF Corporationâ€™s total revenue was $3612.83 million, out of which Jeanswear was $747.87 million which is a 20.57% share of total revenue. The share of jeanswear has fallen marginally while Outdoor & Action Sports has taken a big jump of about 2% in sales. This is not surprising as Activewear is the current flavor of the consumers and VF, like many other brands, are trying to are struggling to keep their denim sales to the same levels. The increase of about $100 million in VF sales can be mainly attributed to the Outdoor and Action Sports segment .

If we look at the total sales in 9 months for VF , we will find that only Outdoor & Action Sports is the segment which has a positive growth while all other segments are experiencing a sustained fall in turnover. The increase of sales this year of about $260 million can be wholly attributed to OUTDOOR segment. This clearly shows how important this segment is getting to be for VF. And not only VF, it is true for many other brands who have a diversified portfolio.

3. Comparative Sales Analysis for first nine months for 2015 and 2014 (In millions)

Particulars	Sales Amount 2014 ($)	% ( 2014)	Sales Amount 2015 ($)	% ( 2015 )
Outdoor & Action Sports	5034.67	57.85%	5299.78	59.12%
Jeanswear	2046.61	23.52%	2055.73	22.93%
Image wear	805.73	9.26%	823.22	9.18%
Sportswear	435.05	5.00%	439.55	4.90%
Contemporary Brands	293.74	3.38%	257.61	2.87%
Other	87.50	1.01%	88.10	0.98%
Total	8703.30	100%	8963.99	100%

For the first nine month of 2014, the sales figure was $8703.30 million while for the same period in 2015, the sales increased by about 3% amounting $8963.99 million. The major part of this increase is contributed by Outdoor and Action Sports and a small contribution by Contemporary Brands. Jeanswear is on a shrinking mode as it reduces marginally trying to keep the share of 2014.

4. Share of different segment in the total profit in 3^rd Quarter in 2015 & 2014

Particulars	Amount ($) (2014)	% (2014)	Amount ($) (2015)	% (2015)
Outdoor & Action Sports	475.44	67.50%	487.93	68.48%
Jeanswear	157.00	22.29%	157.00	22.26%
Image wear	42.86	6.08%	41.83	5.87%
Sportswear	22.98	3.26%	23.19	3.26%
Contemporary Brands	4.87	0.69%	0.59	0.08%
Other	1.19	0.17%	0.35	0.05%
Total	704.34	100%	712.50	100%

On the whole, VF is increasingly becoming a corporation getting its maximum turnover and profits from Activewear segment and looks increasingly focused in this area as more and more energies of the organization get diverted to this high return segment.

November 24, 2015

Baldwin Fall Winter 2015 Lookbook

Kansas City (US) basedÂ BALDWIN brings out Holiday 2015 Look Book including premium selvage denim, knitwear, outerwear, sweaters and hoodies for the up and coming collection.Some stylesÂ are composed of stretch selvage while an exclusiveÂ Nolan Drawstring Pant in Heather Grey Herringbone is made from boiled . Straight pajama cut works out well in selvedges ,Â green cast denim in relaxed fit adds to the looks while leather, wool and other accompaniments add to the cool visuals of the modern casual wardrobe.

August 13, 2015

The 10 Biggest Clothing Companies In The US

Apparel brands have cut across the global borders and have reached to billion of people across the world. From fashion to sports to casual wear, these apparel brands have a huge brand equity. Here is a list of the top 10 apparel companies in the USA in 2014. The list has been determined using net revenue as a parameter.

THE 10 BIGGEST U.S. APPAREL COMPANIES 2014
Rank	Name of Company	Annual Revenue (In Billion)
1	Nike	$30.60
2	Ralph Lauren	$7.60
3	Old Navy	$6.60
4	Gap	$6.20
5	Levi Strauss & Co.	$4.80
6	Michael Kors	$4.40
7	Coach	$4.30
8	Tommy Hilfiger	$3.60
9	American Eagle	$3.30
10	Under Armour	$3.10

1. Nike:

NIKE, Inc. (NIKE), incorporated on September 8, 1969, is engaged in design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. NIKE is a seller of athletic footwear and athletic apparel across the world. The Company sells its products to retail accounts, through NIKE owned retail stores and internet websites and through distributors and licensees across the world. Nike Is the Largest Apparel Company in the U.S. by a Huge Margin. Nike, Inc. is the world’s largest supplier and manufacturer of athletic shoes, apparel and other sports equipment. The company employed about 56,500 people worldwide and in 2014, Nike’srevenue amounted to aboutÂ US$30.60 billion .

Annual revenue: $30.60 billion

2. Ralph Lauren:

Â Ralph Lauren Corp. engages in the design, marketing andÂ distribution of premium lifestyle products in four categories: apparel, home, accessories and fragrances. The company’s brand names, which include Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren Collection, Black Label, Blue Label, Lauren by Ralph Lauren, RRL, RLX, Ralph Lauren Children wear, Denim & Supply Ralph Lauren, Chaps and Club Monaco. It operates in three business segments: Wholesale, Retail and Licensing. The company was founded by Ralph Lauren in 1967 and is headquartered in New York, NY.

Annual revenue: $7.6 billion

3. Old Navy:

Old Navy is a popular clothing and accessories retailer owned by American multinational corporation Gap Inc. Old Navy is currently doing better than its parent brand, the Gap. It has lower prices and tends to stay on brand, targeting the right consumers with affordable styles.Â As one of the largest apparel brands in the USA,Â they offer customers fabulous fashion online as well inÂ 1,000+ stores around the world.

Annual revenue: $6.60 billion

4. Gap:

The Gap, Inc., commonly known as Gap Inc. or Gap, is an American multinational clothing and accessories retailer.Gap Inc. is a leading global retailer offering clothing, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,300 company-operated stores, almost 400 franchise stores, and e-commerce sites.

Annual revenue: $6.20 billion

5. Levi Strauss & Co.:

Anyone can make a pair of blue jeans, but Levi Strauss & Co. made the first blue jean â€“â€“ in 1873. And they draw upon our heritage to continually reinvent the blue jean for generation after generation.Levi’s jeans have become one of the most recognizable and widely imitated clothing in the world, capturing the imagination and loyalty of generations of diverse individuals in over 110 countries.

Annual revenue: $4.8 billion

6. Michael Kors :

Â Michael Kors is a world-renowned, award-winning designer of luxury accessories and ready-to-wear brand. Behind thisÂ burgeoningÂ empire stands a singular designer which is most popular in USA and all around the world. Michael Kors Holdings Limited (KORS), which deals in fashion accessories.Â

Annual revenue: $4.4 billion

7. Coach:

Coach, Inc. is a luxury fashion company based in New York City. The company is known for accessories and gifts for women and men, including handbags, men’s bags, women’s and men’s small leather goods, footwear, outerwear, ready-to-wear, watches, travel accessories, scarves, sun wear, fragrance, jewelry, and other accessories.

Annual revenue: $4.3 billion

8. Tommy Hilfiger :

Tommy Hilfiger is one of the worldâ€™s leading designer lifestyle brands and is internationally recognized for celebrating the essence of classic American cool style, featuring preppy with a twist designs.Tommy Hilfiger is an American fashion, apparel, design, fragrance retail company, offering consumers low end products including menâ€™s, womenâ€™s and childrenâ€™s apparel, sportswear, denim, and a range of licensed products such as accessories, jewelry, watches, fragrances and home furnishings.

Annual revenue: $3.6 billion

9. American Eagle:

American Eagle Outfitters is an American clothing and accessories retailer. The Company offers clothing, accessories and personal care products. The Company operates under the American Eagle Outfitters and aerie by American Eagle Outfitters brands. The American Eagle Outfitters brand offers denims, pants, shorts, sweaters, fleece, outerwear, graphic t-shirts, footwear and accessories. The aerie brand is a collection of intimates and personal care products for women, such as bras and undies at the core, and offerings in sleep, swim and apparel. The Company offers its products online at ae.com and aerie.com and at various international store locations managed by third-party operators. The Company operates around 1,000 retail stores in the United States and internationally. The Company has stores in the United States, Canada, Mexico, Hong Kong, China and the United Kingdom.

Annual revenue: $3.3 billion

10. Under Armour :

Under Armour, Inc. is an American sports clothing and accessories company. The company is a supplier of sportswear and casual apparel. Under Armour began offering footwear in 2006.The sports retailer made more than $3 billion in revenue last year. It may be far from eclipsing Nike’s global empire, but it continues to grow and sign major deals with impressive athletes, like Stephen Curry and Jordan Spieth.

Annual revenue: $3.1 billion

August 3, 2015

Levi’s Tries To Survive In Yoga Era

The athleisure trend has been very strong for last few years and is confounding pundits who were considering it to be just a fad . Yoga has been one of the main components of the increasing affinity to activewear and is affecting clothing lines tremendously. The denim industry is definitely influenced by this trend as sales of jeans â€“particularly women- were strongly affected specially in US where they fell about 8% last year as per NPD group figures. Companies like Leviâ€™s have been particularly affected as their sales of womenâ€™s jeans went down by 10%. By mid 2014, with sales of athletic pants had risen 62 per cent from 2010â€”and athleisure apparel started looking less like a fad and more like a permanent addition to women’s closets. Eva Mendes, the actress and style icon, spoke for many women when she told a fashion blog that if she was seen wearing jeans, it could only mean that her softer pants were dirty.

Activewear has grown faster than the overall apparel market during the past two years as more people wear exercise clothing casually. Analysts at Barclays estimate it may grow by almost 50% in U.S. to more than $100 billion at retail by 2020. A small comparison below in a report on Bloomberg shows how a small company Lulemon has grown over last few years selling yoga clothes and has actually a market capitalization of over $9 billion.

2 decades ago, Leviâ€™s was bigger than Nike at over $ 7 billion , but now Nike crosses $30 billion in revenues and Leviâ€™s fell to $4 billion.

At Levi’s, the yoga pants scourge is especially vexing, disrupting a turnaround plan by a new chief executive officer that had been showing signs of success. Leviâ€™s is , however, not sleeping . It has focused its efforts on R&D to tackle the athleisure onslaught. At the foot of Telegraph Hill in San Francisco, in a renovated grain mill with soaring ceilings and wooden beams, Bart Sights , senior Director for technical innovation is refining his recipes for denim. In his hands, stained dark blue from day after day of plunging fabric into buckets of indigo dye, he tries to work out the correct look and feel for a new skinny jeans for women using different combinations of fibers, weaves and finishes. He tries to replicate a second hand womenâ€™s jeans bought in Thailand which after years of wear has developed unique patterns all over. Artificially reproducing the wear is easy, done with sandpaper, oxygen baths, and rocks. “The trick,” Sights says, “is to get a look like this on a very modern fabricâ€”a fabric with a lot of stretch in it.”

Source : Bloomberg.com

Sightsâ€™s team began tearing apart wet suits and other unconventional garments. â€œNeoprene is supercomfortable in the water because it allows movement, but itâ€™s also superforgiving, it recovers well,â€ he says. â€œAnd there are some fibers in lingerie that bring these really valuable comfort attributes.â€. Leviâ€™s is trying to use such fibers in their jeans.

Bloomberg in their report makes a mention of shoppers such as Kate Slattery, 25, a data scientist in San Francisco, one of dozens of women interviewed for this story, says she hasn’t bought a new pair of jeans in more than a year but did splurge on Lululemons. She loves their clever pockets. Asked for her take on Levi’s, Slattery draws a blank. “My view of Levi’s is probably 15 years old,” she says, “because I just haven’t even considered shopping there since my mom shopped with me.”

Source:Bloomberg.com

Leviâ€™s developed a new line called Lot 700.-a nod to the original women’s jean, Lady Levi’s Lot 701, introduced in 1934. The new one features the retro “Two Horse” leather logo patch on the rear waistband and adds larger back pockets to accentuate the seat. Another style, Lot 300, uses a more girdle-like design for a different shaping effect. The 501ct can be worn in a looser fit.To blunt its sales decline, Levi’s rushed some of the new materials that Sights was working on to market in the summer of last year, infusing skinny and midrise jeans with additional soft and stretchy material.

Levi’s finally introduced the new women’s line earlier this month, at an event in Manhattan’s clubby Meatpacking District. Large photographs displayed up-and-coming female artists wearing Levi’s, and six models stood like mannequins wearing the Lot 700 line. Holding court near the door, James Curleigh, Levi’s president, said he expected the women’s reboot to help the company increase wholesale prices over the next three years. Macy’s is doubling the amount of space for the brand in its flagship store in Manhattan and adding floor space at stores across the U.S., according to Louis Mastrogiacomo, who manages the women’s ready-to-wear category for Macy’s. Feedbacks from customers seem to be good , though whether these jeans will make them abandon yoga pants is doubtful and remains to be seen.

July 29, 2015
Cone Denim Celebrates 110 Years Of White Oak Plant

Cone Denim recently celebrated 110th year of operation. Still true to its heritage, the White Oak Plant operates today creating Cone Denimâ€™s authentic premium and vintage denimÂ on Vintage 1940s Fly Shuttle Looms as well as state of the art modern looms. Innovation and heritage combine to create the celebrated denims, White Oak originals.

In 1905 brothers Moses and Ceasar Cone embarked on what would become an icon in the denim industry, a mill called White Oak. The turn of the century brought a new energy and excitement to America, and denim fabrics gained popularity as a favored â€œworkwearâ€. The first bobbin of White Oak yarn was produced on April 20, 1905.

Cone denim celebrates 110 years of manufacturingÂ with the release of a special T-shirtÂ and 100% profits from the sale of this T-shirt would go to support

the Salvation Army Boys & Girls Club of Greensboro .

â€œWe are returning to our roots with the unveiling of Natural Indigo Selvage Denim, produced exclusively at its historic White OakÂ® mill in Greensboro, NC. The Natural Indigo Collection is â€œCrafted with Care in the USAâ€ and created in celebration of White Oakâ€™s 110 year anniversary â€“Cone denim says’â€.

â€œThis is one of our most exciting developments,â€ says Kara Nicholas, Vice President Product Development + Marketing. â€œThe celebration of White Oakâ€™s 110 year anniversary made this the perfect time to bring together White Oakâ€™s heritage and authentic selvage denims with new innovation in bio based natural dyes from plant based – US farmed indigo. As far as we know, this is the first time that natural indigo has been used in scalable production in the United States in over 100 years.â€

Some Cool Cone Products

Coming out with their Top Secret line of Selvedges to commemorate their 110 years Cone denim White Oak brings out some cool natural indigo colors and fabric structures to give a very different look and feel to the selvedges (see pics below).

Cone denim Detail shots of knees and whiskers for month 4 of the W660 WhiteOak110 selvage denim wear test

WhiteOak110 collection style 7237 “Floral” shirting fabric is finally here in a 6.25 oz 100% cotton Dobby weave woven at the one n only White Oak mill.

Some Vintage Garments From Cone Collection

We also bring below some of iconic heritage garments from Cone collection â€“ some of which are over 100 years old and listed by Cone.

The mid-1900’s waist overall is from an unknown brand and the owner practically wore them to pieces, as evident by the extensive hand-mending and patchwork seen throughout, not to mention the lack of indigo left in yarns. These appear to be heavily customized by the wearer as well- the single needle stitching, unfinished seams and miscellaneous suspender buttons sewn onto the waist band all suggest that at one point these could’ve been started life as bib overalls and turned into a version more closely resembling the 5-pocket denim jeans.

A pair of heavily worn bib overalls from Blue Bell brand back in the ’40’s. This low back model has heavy hand-stitched patchwork repairs throughout, triangular suspender reinforcement, and printed “Blue Bell” label. There were several versions of Blue Bell’s label and the layout of this particular one indicates it is an earlier design. On later model garments the bell on the label is slightly tilted at an angle. Branded buttons read either “SANFORIZED” or “BLUE BELL.” The suspender straps were taken from an Anvil brand garment.

A hickorystripe popover style work wear shirt with chambray trim along the bottom circa 1940. The patchwork, hand-stitched repairs and lack of industrial fasteners, together with the “one operation” style of seeing indicates that this shirt was either homemade, or fashioned by a local seamstress. The front and back of the garment shows the sun-bleached outline of the bib and straps of the overalls the wearer paired it with.

Heavy hand repairs with a missing back left leg exposing cross sections of patchwork mending give way to a two back pocket bib design low back model with triangular suspender reinforcements.

And given below is a video from CONE proudly declaring that their fabrics are â€˜STILL MADE IN AMERICAâ€™ !

Still Made In America from Cone Denim on Vimeo.

July 28, 2015
Gap Looses US Market Share
US retail market is highly competitive and a large number of Speciality stores, Brand Stores, Discount stores, Departmental Stores compete with each other â€“ continuously striving to get the attention of the American customer who is not increasing his spending but is reallocating his funds between different brands and retailers. This reallocation of money by buyers is benefitting some retailers while others are losing . Gap , unfortunately, is finding its place among the latter. The most sought after casual brand in US may not remain so in the coming years as Gapâ€™s share of US apparel market fell from 5.1% to 4.7% over the past five years with a recovery not in sight. Letâ€™s see how Gap stacks in comparison to other apparel retailers in US.

1. Multi brand retail chain Macyâ€™s : 9% approx.
2. General Merchandise retailers
- Wal Mart â€“ 7% approx.
- Target â€“ 5.4%
- Gap â€“ 4.7%
- JC Penny â€“ 3.3%
- American Eagle, Aeropostale and A&F â€“ 2% each approx.
The remaining 65% share is held by a number of private label brands , pure online players, fast fashion players , department stores etc. Here is a break up of the market share as per Forbes.

Source : Forbes.com

Source: Forbes.com

Whereas Gapâ€™s market share has reduced from 1.71% is 2009 to 1.41% is 2014, that of Old Navy and Banana Republic has also fallen. The reason for growth of share from 4.34% in 2012 to 4.71% in 2014 has been the growth driver brands Athleta and the acquisition of Intermix.

One of the major reasons for Gap losing its market share has been the growth of fast fashion retailers like the Inditex , H&M and to some extent Forever 21. There has been a constant movement of buyers from casual clothing to affordable fast fashion. Todayâ€™s teenagers are getting less attached to brands and are more concerned over having a fresh look every few days. Technology is pushing this trend. With the proliferation of â€˜Whatsappâ€™, â€˜Viberâ€™,’Facebookâ€™ and the likes , the SELFIE culture is becoming a dominant youth phenomenon constantly pushing these young ones to look better and share . This trend is helping fast fashion retailers like Inditex and hurting the long established ones like GAP. This has become one major factor affecting GAPâ€™s performance .And related to this has been the other reason of underperformance â€“ poor performance of GAPâ€™s womenâ€™s business â€“ while its other business including men, kids and baby are doing reasonably well.

The result has been clear for GAP. It has planned to close 175 of its speciality GAP Inc stores â€“with 140 going down this year and balance in the year next. After these closures it will have about 800 stores in US. It is expected to lose about $300 million from these closures- an amount which is expected to be covered from better performance from other channels including Online.
July 19, 2015
Blueprint NY – A New Show

A new denim show â€˜ Blueprintâ€™ comes up in NY. Brought out by Blueprint Denim Washhouse , the show brings brings mills like Orta, Calik, Mount Vernon, Grandtex, Eratex and some other players in the market together at NY. The show aims to reduce the scale of the trade to a more intimate level allowing visitors the time and space to review denim product thoroughly with a select group of presenters.

BLUEPRINT targets that its visitors will interact with the presenters’ denim product during the show by learning denim finishing techniques like handsanding, grinding and destruction all day long. It will have a vintage denim flea market selling amazing denim garments for use as standards for development of personal wear and enjoyment. These will be for sale and proceeds will go to #denimdoinggood.
NYC is a great resource for denim.Â BLUEPRINT will have these denim resources at the expo. Local NYC manufacturers and patternmakers will beÂ there to help visitors with any needs they may have.It will be showcasing some denim brands in a crossover approach that blends in another format of the denim trade show.

THE SHOW
JUNE 24 & 25Â /Â WEDS & THURSÂ /Â 9AM-6PM
22 LITTLE WEST 12th ST (btw WASHINGTON / 9th AVE)
NEW YORK CITY

June 22, 2015