Research firm Euromonitor International noted in its 2015 Apparel and Footwear edition that the global apparel and footwear market has delivered steady, robust performance but its fortunes are mixed.
According to data from Euromonitor International, consumers globally spent $1.7 trillion on fashion in 2014, which represents an increase of 4.5% over 2013. The performance is impressive, notes Euromonitor, given some of the headwinds facing the global economy.
Looking ahead, the research firm expects "new normal" of slower growth in China. In fact, in 2014, the country posted its slowest growth in over a decade, highlighting the effects of an economic slowdown. China’s growth target for this year has been set at just 7%. Despite the slowdown, Euromonitor expects China to take over the U.S. as the largest apparel and footwear market in 2015.
Euromonitor further noted that with the world’s biggest brands facing challenges in emerging markets, their focus is once again shifting to Western markets, especially North America. In fact, Western markets could be key drivers of global growth in 2015.
The bullish outlook for North American apparel market certainly augurs well for brands in the region. This morning one North American apparel company came out with its financial results for its fiscal second quarter ended March 31, 2015.
Canada-based iFabric Corp. (TSX-Venture:IFA) reported second-quarter revenue of $3.251 million, representing a year-over-year increase of 12%. The company’s gross profit for the quarter was $1.65 million, compared to $1.62 million reported for the same period in the previous year.
Operating income for the quarter was $159,087, compared to $342,308 reported for the same period in the previous year. The reduction in operating income was mainly due to increased administrative and operating expenses attributable to increased regulatory and testing costs, as well as to higher payroll costs.
Hylton Karon, President and CEO of iFabric, said that the company is continuing to make significant progress in both the ladies apparel and intelligent fabrics division. Karon further said that in addition to the core products, the company’s designers are currently developing new ranges in respect of the additional categories that were added to the recently renewed Maidenform Brands agreement, which was signed with a subsidiary of Hanes Brands Inc.
Commenting on the company’s intelligent fabrics division, Karon said that the company is nearing completion of the bulk trials phase for current major customers, who have now cleared PROTX2 for production. The company expects to soon receive projections from customers for purchases of PROTX2 for their major programs.
