From the Sector

Y-3 returns to present the closing chapter of its Fall/Winter 2022 collection. Representing the final iteration of the brand’s “20 Years: Recoded” thematic narrative, Chapter 4 boldly celebrates one of the label’s most revered and lasting motifs – exotic prints – as adidas and Yohji Yamamoto fearlessly reimagine historic looks and textures for a new era.

Subversively exploring the year-long theme of collective memory, the latest chapter draws on Yohji Yamamoto’s inherently rebellious spirit. With Y-3 shifting its creative focus to a distinctly textural concept – Memories of Exotics – the German sportswear brand and the Japanese visionary recall a legacy of animal prints and iconography, distorting iconic signifiers through a slew of all-over print graphics.  

The seasonal offering is highlighted by a selection of pieces that juxtapose leopard prints and fabrics with muted palettes, functional details, and dynamic sporting silhouettes. Curated as a daring blend of past and future, the collection clashes the brand’s heritage with its progressive vision for tomorrow.

Accompanying the launch of Fall/Winter 2022 Chapter 4 is a visual campaign that oscillates between mystery, intrigue, and sporting dynamism. Shot by Heji Shin with creative direction from Jamie Reid and styling from Robbie Spencer, the visuals channel a visceral, rather than understated, interpretation of Y-3’s past, present, and future.

• OFF TO NEW HORIZONS

BOGNER was founded on innovations and adventures. When looking back, it is to 90 years of pioneering heritage. The company celebrates the past while welcoming the future with a selection of iconic BOGNER silhouettes revived and reinterpreted.

BEST OF BOGNER Fall/Winter 2022 combines innovative craftsmanship with luxury and progress. A collection of refined looks that create a sense of loose elegance and lightness.

Luxurious materials such as Bavarian wool, high-performance stretch nylon and performance travel wool are combined with embroidery, color blocking, cable knit patterns and fringes. The result: a fashion revival with iconic, timeless silhouettes and modern, luxurious highlights.

The BOGNER Golf collection combines an active lifestyle with luxurious comfort and a hint of glamour. Highly functional essentials are the best equipment for long days on the golf course: a waterproof finish and taped seams offer protection from the rain; high-performance Thermore® insulation gives mid-layers moisture-regulating, quick-drying and warming qualities; Powerstretch guarantees freedom of movement, and the lightweight quality of tech jersey ensures the best in comfort.

Each BOGNER golf collection is used to layer styles individually to create the perfect golf outfit according to the needs and regardless of the season. The selection of pants, polos, skirts, jackets and accessories combine sporty appeal and timeless style. Modern contrast stripes, monochrome elegance, neutral colors and sporty silhouettes – true to the motto Athluxury Sports Fashion.

• Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
• Markets representing more than 85% of the business grow 14% overall
• Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
• Operating profit reaches € 392 million
• Net income from continuing operations amounts to € 360 million
• FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected. And we have to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year.”

Currency-neutral revenues increase 4% despite macroeconomic constraints
In the second quarter, currency-neutral revenues increased 4% as adidas continued to see strong momentum in Western markets. This growth was achieved despite continued challenges on both supply and demand. Supply chain constraints as a result of last year’s lockdowns in Vietnam reduced top-line growth by around € 200 million in Q2 2022. In addition, the company’s decision to suspend its operations in Russia reduced revenues by more than € 100 million during the quarter. Continued covid-19-related lockdowns in Greater China also weighed on the top-line development in Q2. From a channel perspective, the top-line increase was to a similar extent driven by the company’s own direct-to-consumer (DTC) activities as well as increases in wholesale. Within DTC, e-commerce, which now represents more than 20% of the company’s total business, showed double-digit growth reflecting strong product sell-through. From a category perspective, revenue development was strongest in the company’s strategic growth categories Football, Running and Outdoor, which all grew at strong double-digit rates. In euro terms, revenues grew 10% to € 5.596 billion in the second quarter (2021: € 5.077 billion).

Strong demand in Western markets
Revenue growth in the second quarter was driven by Western markets despite last year’s lockdowns in Vietnam still reducing sales, particularly in EMEA and North America, by
€ 200 million in total. In addition, the top-line development in EMEA was also impacted by the loss of revenue in Russia/CIS of more than € 100 million. Nevertheless, currency-neutral sales grew 7% in the region. Revenues in North America increased 21% during the quarter driven by growth of more than 20% in both DTC and wholesale. Revenues in Latin America increased 37%, while Asia-Pacific returned to growth. Currency-neutral revenues increased 3% in this market despite still being impacted by limited tourism activity in the region. In contrast, the company continued to face a challenging market environment in Greater China, mainly related to the continued broad-based covid-19-related restrictions. As a result, currency-neutral revenues in the market declined 35% during the three-months period, in line with previous expectations. Excluding Greater China, currency-neutral revenues in the company’s other markets combined grew 14% in Q2.

Operating profit of € 392 million reflects operating margin of 7.0%
The company’s gross margin declined 1.5 percentage points to 50.3% (2021: 51.8%). Significantly higher supply chain costs and a less favorable market mix due to the significant sales decline in Greater China weighed on the gross margin development. This could only be partly offset by a higher share of full price sales, first price increases and the benefits from currency fluctuations. Other operating expenses were up 19% to € 2.501 billion (2021: € 2.107 billion). As a percentage of sales, other operating expenses increased 3.2 percentage points to 44.7% (2021: 41.5%). Marketing and point-of-sale expenses grew 8% to € 663 million (2021: € 616 million). The company continued to prioritize investments into the launch of new products such as adidas’ new Sportswear collection, the next iteration of its successful Supernova running franchise and first drops related to the Gucci collaboration as well as campaigns around major events like ‘Run for the Oceans.’ As a percentage of sales, marketing and point-of-sale expenses were down 0.3 percentage points to 11.8% (2021: 12.1%). Operating overhead expenses increased by 23% to a level of € 1.838 billion (2021:
€ 1.492 billion). This increase was driven by adidas’ continuous investments into DTC, its digital capabilities and the company’s logistics infrastructure as well as by unfavorable currency fluctuations. As a percentage of sales, operating overhead expenses increased 3.5 percentage points to 32.8% (2021: 29.4%). The company’s operating profit reached a level of € 392 million (2021: € 543 million), resulting in an operating margin of 7.0% (2021: 10.7%).

Net income from continuing operations reaches € 360 million
The company’s net income from continuing operations slightly declined to € 360 million (2021: € 387 million). This result was supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision. Consequently, basic EPS from continuing operations reached € 1.88 (2021: € 1.93) during the quarter.

Currency-neutral revenues on prior year level in the first half of 2022
In the first half of 2022, currency-neutral revenues were flat versus the prior year period. In euro terms, revenues grew 5% to € 10.897 billion in the first six months of 2022 (2021:
€ 10.345 billion). The company’s gross margin declined 1.7 percentage points to 50.1% (2021: 51.8%) during the first half of the year. While price increases as well as positive exchange rate effects benefited the gross margin, these developments were more than offset by the less favorable market mix and significantly higher supply chain costs. Other operating expenses increased to € 4.759 billion (2021: € 4.154 billion) in the first half of the year and were up 3.5 percentage points to 43.7% (2021: 40.2%) as a percentage of sales. adidas generated an operating profit of € 828 million (2021: € 1.248 billion) during the first six months of the year, resulting in an operating margin of 7.6% (2021: 12.1%). Net income from continuing operations reached € 671 million, reflecting a decline of € 219 million compared to the prior year level (2021: € 890 million). Accordingly, basic earnings per share from continuing operations declined to € 3.47 (2021: € 4.52).

Average operating working capital as a percentage of sales slightly decreases
Inventories increased 35% to € 5.483 billion (2021: € 4.054 billion) at June 30, 2022 in anticipation of strong revenue growth during the second half of the year. Longer lead times as well as the challenging market environment in Greater China also contributed to the increase. On a currency-neutral basis, inventories were up 28%. Operating working capital increased 23% to € 5.191 billion (2021: € 4.213 billion). On a currency-neutral basis, operating working capital was up 14%. Average operating working capital as a percentage of sales decreased 0.4 percentage points to 21.0% (2021: 21.4%), reflecting an overproportional increase in accounts payable due to higher sourcing volumes and product costs.

Adjusted net borrowings at € 5.301 billion
Adjusted net borrowings amounted to € 5.301 billion at June 30, 2022, representing a year-over-year increase of € 2.155 billion (June 30, 2021: € 3.146 billion). This development was mainly due to the significant decrease in cash and cash equivalents.

FY 2022 outlook reflects double-digit growth during the second half of the year
On July 26, adidas adjusted its guidance for FY 2022 due to the slower-than-expected recovery in Greater China since the start of the third quarter resulting from continued widespread covid-19-related restrictions. adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% to 13% range), reflecting a double-digit decline in Greater China (previously: significant decline). While so far the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any market other than Greater China, the adjusted guidance also accounts for a potential slowdown of consumer spending in those markets during the second half of the year as a result of the more challenging macroeconomic conditions. Therefore, growth in EMEA is now expected to be in the low teens (previously: mid-teens growth), while revenues in Asia-Pacific are projected to grow at a high-single-digit rate (previously: mid-teens growth). Despite the more conservative view on the development of consumer spending in the second half of the year, adidas has increased its forecasts for North America and Latin America reflecting the strong momentum the brand is enjoying in these markets. In North America, currency-neutral revenues are now expected to increase in the high teens. Sales in Latin America are projected to grow between 30% and 40% (both previously: mid- to high-teens growth).   

Due to the less favorable market mix and the impacts from initiatives to clear excess inventories in Greater China until the end of the year, gross margin is now expected to reach a level of around 49.0% (previously: around 50.7%) in 2022. Consequently, the company’s operating margin is now forecast to be around 7.0% (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion to € 1.9 billion range).

adidas Basketball in collaboration with basketball GOAT and legend, Candace Parker , unveils the new Candace Parker Collection Part II with retail partner DICK’S Sporting Goods. Rooted in a shared commitment to empower aspiring women athletes and hoopers – who like Parker set out to create their own legacy, the encore collection is the embodiment of Parker’s evolution on-and-off the court melding Ace’s style and performance insights for the next generation player.

The Candace Parker Collection Part II launches with the all-new Exhibit B, arriving in three custom colorways employing Lightstrike cushioning for fluid and dynamic handling. Each iteration of Parker's Exhibit Bs are inspired by her personal journey beginning with the “For Lailaa Nicole” receiving emerald green with silver accents in honor of her daughter. As for Parker, it’s not about “wearing the crown,” but about “sharing it” resulting in “Game Royalty”, a purple and gold colorway representing African queens followed by an ash blue and shadow navy for “Windy City” version signifying the hometown hero’s 2022 league title and rounded out by three unique Exhibit B “Elevated Team” colorways emphasizing the magic of teamwork.

The Candace Parker Collection Part II is an elevation for the new generation of athletes completed with a vibrant combination of pre to post-game apparel offerings including signature Ace sweatsuits, cropped jackets and hoodies, all paired with an assortment of tees and shorts that harken back to pivotal moments in Parker’s career. The return of inclusive sizing is paramount and purposeful, allowing Parker’s vision for expanded access to female and non-binary athletes who’ve traditionally had to size down to access men’s basketball apparel and footwear.

The premiere of the large Premium Group event cosmos in Berlin was with a number of visitors of 70% compared to before Corona a great success. The new combination of B2B and D2C, entertainment and edutainment, fashion and culture provided a lot of exchange, new input, ideas, contacts and 360 degree inspiration.

In focus: content & communication
With the conferences FASHIONTECH, CONSCIOUS CLUB Conference and The Ground Talks, the Premium Group Team put an additional focus on communication and edutainment. Important topics such as diversity, wellbeing, metaverse and sustainability were discussed and relevant lessons learned for the market, brands and consumers.

“Restart was a statement!”
“It's been quite a rodeo ride putting together two B2B trade shows, one D2C festival, three conferences, parties, dinners and receptions for so many different audiences and all while the pandemic continues in full swing – barring the rain and flight chaos. I would have wished that even more visitors would have come, but overall the restart was much better than expected. It was definitely an announcement." Anita Tillmann, Managing Partner Premium Group

New togetherness, new exchange, new ideas
With the premiere of the festival for style & culture, The Ground, young consumers and Berlin communities from GenZ and GenY were part of the Premium Group event cosmos for the first time. Almost 6000 fashion enthusiasts and trade visitors came together at The Ground. Exciting conversations, interactive fire moments and cool shows created a special vibe in and around the Palais am Funkturm. The focus was on young target groups wearing, feeling and thinking. How brands can reach young customers, communicate with them and build trust and much more.

New community through 'Larger than Life Ball'
On Saturday, the day with the most visitors at The Ground, the spectacular ballroom event, the Larger than Life Ball, curated by The House of Gorgeous Gucci in the summer garden of the Palais, caused enthusiasm. Numerous stars and friends of the international LGBTQ+ scene from New York, Rio de Janeiro and Berlin celebrated a colourful open-air party for over 5 hours with cool music and live MC, sensational outfits, plateau heels and wild vogueing and dance competitions on a water catwalk.

Must have PEACE charity initiative
The must-have PEACE merch collection initiated because of the Ukraine war in favour of Be An Angel e.v. was very well received. The sale of limited-edition clothing and accessories from Carry, Closed, Drykorn, Eastpak, Lala Berlin, Lee, Le Specs, MCM, Merz b. Swans and Wranglers as well as generous donations from Boss, among others, brought in a total of almost 15,000 euros. The remaining stocks are promoted and sold via influencer accounts.

January 2023: Happy Birthday, PREMIUM!
The next Premium Group event cosmos will take place from Tuesday, January 17th to Thursday, January 19th, 2023 with a B2B focus again at the Berlin exhibition centre. The focus is on a big anniversary: the PREMIUM will be 20 years old! After the successful kick-off, the CONSCIOUS CLUB Conference will also be further developed for the next round.

The Berlin Fashion Week and Premium Group events will take place at the same time again from 2023.

Facts

• Premium Group event cosmos
• 2 trade shows: PREMIUM and SEEK
• 1 festival: The Ground
• 3 conferences: FASHIONTECH, CONSCIOUS CLUB Conference, The Ground Talks
• More than 800 participating brands
• 45,000 sqm total area
• 50 talks & panels with 85 speakers
• Newcomer brands: 230 at PREMIUM, 134 at SEEK

ROICA™, Asahi Kasei's premium stretch fiber manufacturer, strengthens its presence in the high fashion segment thanks to its established network of partners, who will present their latest innovations - activated by ROICA™ - at the upcoming edition of Milano Unica, taking place at Rho Fiera Milano from 12th to 14th July 2022.

Going more in depth in the offers of ROICA™ partners for this season of Milano Unica, they are:

• Cifra, which presents its innovative garments for men and women, combining fashion and function. Base layers, tops, leggings and jumpsuits are made with natural yarns, or recycled pre- and post-consumer yarns in combination with ROICA™ EF, the sustainable recycled stretch yarn able to complete proposals that offer design, performance and responsibility. The design of the garments, created in Cifra's design office, offers a perfect shape with body mapping technology that creates dedicated ventilation zones, for a feeling of comfort and freshness as well as an innovative aesthetic impact.
• Iluna Group, whose journey into the new dimension of responsibility continues with developments in GRS (Global Recycled Standard) certified recycled yarns aimed at unprecedented effects in looks, performance and hands. Brand new for this edition of Première Vision is the inclusion of GOTS-certified organic cotton in GRS-certified galloons and allover lace containing ROICA™ EF, so as to meet market demands for natural comfort in the underwear sphere.
• Maglificio Ripa, which presents the Splash collection for summer 2024, developed in two major themes, united by the same focus on sustainability that results in the use of recycled pre- and post-consumer polyamide and polyester yarns including ROICA™ EF for the sustainable recycled stretch fiber. The first theme encompasses printed, 3D jacquard fabrics, ennobled by innovative processes that move the bottoms for an organic and sometimes irreverent final look. The second theme embodies a cocoon spirit, enveloping like a caress, soft as a hug.
• Penn Textile Solutions/Penn Italia, whose highlights of the new collection are on one side fabrics developed with the use of Neride eco yarns by Nurel with ROICA™ V550, characterized by restraining lace effect, soft touch and breathable, in combination with tulle as a sustainable basic, and on the other side charmeuses with soft hand, raw cut in combination with a band fabric from the dreamshape family with reinforced gripping edge, made again in Neride eco yarns by Nurel with ROICA™ V550
• Piave Maitex, whose orientation is, as always, to present new products with the right  balance between technological innovation and aesthetic look, between fashion and comfort, proposals that include sustainable fabrics made in recycled polyester,  polyamide and the sustainable recycled stretch fiber ROICA™ EF, three-dimensional and optical, perforated, plush effects, made by prioritizing technical functionalities such as waterproofness, breathability, transfer and moisture management, opacity and anti-UV as well as anti-abrasion.
• Sitip, which is one of the premium partners, together with ROICA™, for the creation of the first Scott Racing Team’s responsible biking uniform. This year, the evolution of research and development has also led to the creation of new responsible shorts, made with NATIVE-THUNDERBIKE POWER fabric by Sitip in recycled polyamide and ROICA™ EF yarn by Asahi Kasei. A fabric designed for high-performance sports, particularly suitable for making cycling pants for its maximum coverage and UV protection - thanks to ECLIPSE Sun Protection technology - breathability, comfort and fit. Also the shirt has been produced with Sitip recycled fabrics - NATIVE-BICIMANIA and NATIVE-PIRATA - made with Asahi Kasei's ROICA™ EF sustainable, stretch and certified recycled yarns.

This season, adidas Originals returns with the next installment of its “Always Original” initiative. First assembled in 2021 to pay homage to the multifaceted identities of women and non-binary folks, the “Always Original Collective” takes centre stage again, as the brand with the Three Stripes turns its focus to representing allyship in originality with a new collection and campaign made to fit every story.

The drop one offering has been designed for everyone – no matter their size, shape, gender, or style. Celebrating all forms of originality each piece is available in an extended size run and boasts lace constructions that are as versatile as the moves of those the collection was designed for. Created to allow everyone to express their individuality, the garments on offer reimagine adidas’ sporting history for a new generation of changemakers while the footwear selection features updated takes on the Forum Low and the Astir W silhouettes.

Launching alongside the main Fall/Winter 2022 drop one selection is an expressive capsule collection co-created directly with the “Always Original Collective”. Inspired by each member’s interpretation of two key words – Belonging and Community – the capsule offers a host of bold and dynamic graphic pieces.

The first seasonal drop is accompanied by the arrival of an undeniably optimistic campaign centering on four members of the collective – Jari Jones, Amani, Naomi Otsu, and Lena Waithe – and inspired by the slogan: “They’ve been here for us. Now it’s our turn.”

The campaign visuals spotlight the shops and small businesses that helped to shape the lives of each dynamic changemaker: Yu & Me Book Store, Le’Jemalik Beauty Salon, Hibiscus Brew Coffee Shop, and Savant Studios. Putting the focus on those who have been there all along, the campaign seeks to demonstrate the power of allyship in communities around the world.

Iluna Group is exhibiting at the upcoming Première Vision, from July 5-7, with the aim of promoting a new fashion that combines aesthetic research and environmental responsibility.
 
The key word of this new collection is “experimentation”: the search for new solutions that can offer consumers style, sustainability and well-being translates into innovative blends, natural dyes and smart prints.

This season, the Iluna team is introducing for the first time GOTS-certified organic cotton inside its gallons and allovers, to add a natural touch to its Green Label line. Among the smart ingredients chosen by Iluna Group are Renycle® and Q-Nova, both GRS-certified pre-consumer recycled polyamide yarns, in addition to premium recycled stretch ROICA™ EF by Asahi Kasei. The result is a comfortable and ultralight product that remains true to a high value of creativity and responsibility.

In terms of aesthetic innovation, explorations continue with a yarn blend of FSC-certified viscose and polyamide, resulting in striking new Textronic designs. The 3D effect embossed designs create a cloud effect that, combined with Lurex, shows unexpected glows.

Moreover, the continuous path through the new dimension of responsibility continues in several directions: developments in GRS (Global Recycled Standard) certified recycled yarns aimed at unprecedented effects in both look, performance and hands; experiments with 16 different natural dyestuffs; and continued investment in technologies that can ensure significant savings in water and energy consumption, including GREENDROP, the new GOTS-certified digital pigment printing system.

Europe has a 7-7.5-million-ton waste problem, of which only 30-35% is collected today. The ReHubs initiative launched in 2020 has now completed a Techno Economic Master Study (TES) and it sheds light on key figures and options to collaborate to solve the European waste problem.

In two and a half year all EU member states are obliged to separately collect textile waste. Currently there are no large-scaled plans to use that waste.  The largest portion of the waste (around 85%) comes from households.

The ReHubs initiative brings together key European and world players to solve the textile waste problem by transforming “waste” into a resource and to boost textile circular business models at large scale. The completed TES has accessed critical information on solving the European waste problem. It is estimated that to reach a collection rate from 18 to 26 percent by 2030, 7 billion euro will be needed. Once matured and scaled, the textile recycling industry could become a profitable industry with a total market size of 6-8 billion € and around 15,000 direct new jobs by 2030. As a first step the ReHubs Initiative announces different actions forwards, including projects on this pathway, which one is to transform textile waste into feedstock.

TEXAID has been supporting ReHubs since the start and contributed significantly involved to the Business Council and the Steering Committee of the initiative. As strongly committed industry leader TEXAID is taking the lead on the project to transform textile waste into feedstock for recycling processes. In order to handle the increasing quantities of post-consumer textile waste a massive scale up of sorting and preparation for recycling of used textiles is needed. TEXAID is committed to lead the work on developing new technologies and building up additional capacities for the handling and preparing of textile waste for textile recycling in Europe. In a first phase this involves the built up of a new sorting and pre-processing facility with the capacity of 50’00 tons p.a. by 2024.