Filings - Just Style

Fashion filings: 50% rise in digitalisation mentions in Q3 of 2021

Andrew Hillman — Mon, 24 Jan 2022 10:30:09 +0000

In total, the frequency of sentences related to digitalisation in fashion filings between October 2020 and September 2021 was 109% higher than in 2016 when Global Data, from whom our data for this article is taken, first began to track the key issues referred to in company filings. When fashion and accessories companies publish annual and quarterly reports, ESG reports and other filings, Global Data analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Digitalisation is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges. To assess whether digitalisation is featuring more in the summaries and strategies of fashion and accessories companies, we calculated the percentage of total analysed sentences that referred to digitalisation. Of the 10 biggest employers in the fashion industry, VF Corp was the company which referred to digitalisation the most between October 2020 and September 2021. Global Data identified 251 digitalisation-related sentences in the United States-based company's filings - 2.8% of all sentences. Christian Dior mentioned digitalisation the second most - the issue was referred to in 1.2% of sentences in the company's filings. Other top employers with high digitalisation mentions included LVMH Moet Hennessy Louis Vuitton, Hanesbrands and Hermes International. Across all fashion and accessories companies the filing published in the third quarter of 2021 which exhibited the greatest focus on digitalisation came from Levi Strauss & Co. Of the document's 1,780 sentences, 18 (1%) referred to digitalisation. This analysis provides an approximate indication of which companies are focusing on digitalisation and how important the issue is considered within the fashion industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning digitalisation more regularly is not necessarily proof that they are using new techniques or prioritising the issue, nor does it indicate whether the company's ventures into digitalisation have been successes or failures. In the last quarter, fashion and accessories companies based in the United States were most likely to mention digitalisation with 2.06% of sentences in company filings referring to the issue. In contrast, companies with their headquarters in Western Europe mentioned digitalisation in just 0.98% of sentences.

Revealed: The apparel companies leading the way in artificial intelligence

Nicu Calcea — Fri, 12 Nov 2021 11:11:13 +0000

The assessment comes from GlobalData’s Thematic Research ecosystem, which ranks apparel companies on a scale of one to five based on their likelihood to tackle challenges like artificial intelligence and emerge as long-term winners of the fashion and accessories sector. According to our analysis, LVMH is among the companies best positioned to benefit from investments in artificial intelligence, recording five out of five in GlobalData’s apparel, health and beauty thematic scorecards. LVMH, for example, has advertised for 196 new artificial intelligence jobs from October 2020 to September 2021 and mentioned artificial intelligence in company filings three times. Nike, Foot Locker, Inditex, and Kering each scored four. The table below shows how GlobalData analysts scored the biggest companies in the fashion and accessories industry on their artificial intelligence performance, as well as the number of new artificial intelligence jobs, deals, patents and mentions in company reports since October 2020. Higher numbers usually indicate that a company has spent more time and resources on improving its artificial intelligence performance, or that artificial intelligence is at least at the top of executives’ minds. However, it may not always mean that it is doing better than the competition. A high number of mentions of artificial intelligence in quarterly company filings could indicate either that the company is reaping the rewards of previous investments, or that it needs to invest more to catch up with the rest of the industry. Similarly, a high number of deals could indicate that a company is dominating the market, or that it is using mergers and acquisitions to fill in gaps in its offering. Nevertheless, these trends are useful in showing us the extent to which top executives in the fashion and accessories sector – and at specific organisations – think about artificial intelligence, and the extent to which they stake their future on it. This article is based on GlobalData research figures as of 10 November 2021. For more up-to-date figures, check the GlobalData website.

Emerging apparel investment themes to watch in 2022

Patrick Scott — Mon, 13 Dec 2021 13:39:25 +0000

GlobalData picked out the top 30 driving forces in recruitment, deal-making and innovation (through patent filings) across 23 industries in 2021, including apparel and measured how far up or down the investment rankings each had travelled compared with the previous year. The results uncover which forces have the most momentum going into 2022 and could therefore establish themselves as critically important influencers. Health and safety had the strongest momentum when it came to apparel industry hiring patterns, climbing 25 places to rank 19th this year. This meant that there were 99 health and safety roles sought per every 10,000 job postings in the sector in 2021, a significant increase. Sensory and indulgence was the second fastest emerging hiring theme (up 10 ranking spots), while smart and connected came in third (up by two ranking spots). Themes, as referenced throughout this article, are defined by GlobalData, from whom our data is taken, as any issue that keeps a CEO awake at night. Companies that fail to spot the important themes within their industry risk being unprepared for their future and, ultimately, failure. GlobalData tags millions of datapoints with these themes across its proprietary databases on a daily basis, making it possible to track their momentum over time. Our analysis found that the fastest rising themes tended to differ depending on the investment metric being analysed. ESG-related themes, such as ethics and governance featured heavily across the board as emerging forces in recruitment, while themes related to disruptive technologies tended to be the biggest risers across mergers, acquisitions and other deal-based investments. For example, machine learning was a top five emerging theme for deal investment in seven out of the 23 industries we analysed, with big data, autonomous vehicles and the internet of things each appearing in five. Deals where e-commerce played a part enjoyed the biggest increase in ranking among the apparel supply chain companies included in the analysis, rising nine places higher this year compared to last. Online retail was the second fastest emerging dealmaking theme (up five ranking spots), while millennials / gen Z came in third (up by five ranking spots). The final investment pillar analysed was patent filings, with the themes emerging here unsurprisingly tending to be at the cutting edge of each industry. This resulted in less overlap between industries but it was notable that renewable energy research was present for six of the 23. Robotics-related patent filings had the most momentum in the apparel industry, ranking 21st in 2021. This was an increase of 44 ranking places this year compared to last. Remote patient monitoring was the second fastest emerging innovation theme (up 44 ranking spots), while virtual and augmented reality came in third (up by 44 ranking spots). It is important to note that all the themes within this article are emerging themes which are worth watching in the future. They won't all necessarily rise to the tops of the thematic rankings (some will almost certainly fizzle out next year) but they have the potential to do so in the coming years. Last week, GlobalData's Thematic Team produced their annual report predicting the biggest themes for 2022 in the tech, media and telecom industries, with their top picks indcluding artificial intelligence, cybersecurity, metaverse and augmented reality. For more on this report, including which companies are predicted to be winners and losers, visit GlobalData's report store.

53% increase in apparel industrial automation mentions in Q2 of 2021

Andrew Hillman — Fri, 17 Dec 2021 11:45:19 +0000

In total, the frequency of sentences related to apparel industrial automation between July 2020 and June 2021 was 12% lower than in 2016 when GlobalData, from whom our data for this article is taken, first began to track the key issues referred to in company filings. When apparel companies publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Industrial automation is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges. To assess whether industrial automation is featuring more in the summaries and strategies of apparel companies, two measures were calculated. Firstly, we looked at the percentage of fashion and accessories companies which have mentioned industrial automation at least once in filings during the past twelve months - this was 87% compared to 37% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to industrial automation. Of the 10 biggest employers in the apparel industry, Yue Yuen Industrial (Holdings) Ltd was the company which referred to industrial automation the most between July 2020 and June 2021. GlobalData identified 12 industrial automation-related sentences in the Hong Kong-based company's filings - 0.4% of all sentences. Feng Tay Enterprises Co Ltd mentioned industrial automation the second most - the issue was referred to in 0.3% of sentences in the company's filings. Other top employers with high industrial automation mentions included Christian Dior, Hermes International and Pou Chen Corp. Across all fashion and accessories companies the filing published in the second quarter of 2021 which exhibited the greatest focus on industrial automation came from Feng Tay Enterprises Co Ltd. Within the document's 2,285 sentences, 13 (0.6%) referred to industrial automation. This analysis provides an approximate indication of which companies are focusing on industrial automation and how important the issue is considered within the apparel industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning industrial automation more regularly is not necessarily proof that they are using new techniques or prioritising the issue, nor does it indicate whether the company's ventures into industrial automation have been successes or failures. In the last quarter, fashion and accessories companies based in Asia were most likely to mention industrial automation with 0.14% of sentences in company filings referring to the issue. In contrast, companies with their headquarters in the United States mentioned industrial automation in just 0.03% of sentences.

Filings buzz in fashion: 61% increase in digitalisation mentions in Q2 of 2021

Emil Filipov — Mon, 29 Nov 2021 12:34:57 +0000

In total, the frequency of sentences related to digitalisation in the fashion industry between July 2020 and June 2021 was 519% higher than in 2016 when GlobalData, from whom our data for this article is taken, first began to track the key issues referred to in company filings. When fashion and accessories companies publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Digitalization is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges. To assess whether digitalization is featuring more in the summaries and strategies of fashion and accessories companies, two measures were calculated. Firstly, we looked at the percentage of companies which have mentioned digitalization at least once in filings during the past twelve months - this was 96% compared to 79% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to digitalization. Of the 10 biggest employers in the fashion industry, VF Corp was the company which referred to digitalization the most between July 2020 and June 2021. GlobalData identified 975 digitalization-related sentences in the United States-based company's filings - 1.5% of all sentences. Wacoal Holdings Corp mentioned digitalization the second most - the issue was referred to in 1.1% of sentences in the company's filings. Other top employers with high digitalization mentions included Christian Dior SE, LVMH Moet Hennessy Louis Vuitton SE and Hermes International SA. Across all fashion and accessories companies the filing published in the second quarter of 2021 which exhibited the greatest focus on digitalization came from VF Corp. Of the document's 2,136 sentences, 23 (1.1%) referred to digitalization. This analysis provides an approximate indication of which companies are focusing on digitalization and how important the issue is considered within the fashion industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning digitalization more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into digitalization have been successes or failures. In the last quarter, fashion and accessories companies based in the United States were most likely to mention digitalization with 1.24% of sentences in company filings referring to the issue. In contrast, companies with their headquarters in Western Europe mentioned digitalization in just 0.73% of sentences.

Filings buzz in fashion and accessories: 48% decrease in artificial intelligence (AI) mentions in Q2 of 2021

Patrick Scott — Fri, 19 Nov 2021 17:32:32 +0000

In total, the frequency of sentences related to artificial intelligence between July 2020 and June 2021 was 31% decrease than in 2016 when GlobalData, from whom our data for this article is taken, first began to track the key issues referred to in company filings. When fashion and accessories companies publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Artificial intelligence is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges. To assess whether artificial intelligence is featuring more in the summaries and strategies of fashion and accessories companies, two measures were calculated. Firstly, we looked at the percentage of companies which have mentioned artificial intelligence at least once in filings during the past twelve months - this was 74% compared to 68% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to artificial intelligence. Of the 10 biggest employers in the fashion industry, Wacoal Holdings Corp was the company which referred to artificial intelligence the most between July 2020 and June 2021. GlobalData identified 22 artificial intelligence-related sentences in the Japan-based company's filings - 1% of all sentences. Hermes International SA mentioned artificial intelligence the second most - the issue was referred to in 0.1% of sentences in the company's filings. Other top employers with high artificial intelligence mentions included Yue Yuen Industrial (Holdings) Ltd, Pou Chen Corp and Christian Dior SE. Across all fashion and accessories companies the filing published in the second quarter of 2021 which exhibited the greatest focus on artificial intelligence came from Pou Chen Corp. Of the document's 2,590 sentences, four (0.2%) referred to artificial intelligence. This analysis provides an approximate indication of which companies are focusing on artificial intelligence and how important the issue is considered within the fashion industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning artificial intelligence more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into artificial intelligence have been successes or failures. In the last quarter, fashion and accessories companies based in Western Europe were most likely to mention artificial intelligence with 0.06% of sentences in company filings referring to the issue. In contrast, companies with their headquarters in the United States mentioned artificial intelligence in just 0.05% of sentences.

Fashion industry filings: Supply chain, logistics mentions increase 60% in Q3 2021

Andrew Hillman — Mon, 14 Feb 2022 10:30:00 +0000

In total, the frequency of fashion and accessory company sentences related to supply chain and logistics between October 2020 and September 2021 was 37% higher than in 2016 when GlobalData, from whom our data for this article is taken, first began to track the key issues referred to in company filings. When fashion and accessories companies publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Supply chain and logistics is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges. To assess whether supply chain and logistics is featuring more in the summaries and strategies of fashion and accessories companies, two measures were calculated. Firstly, we looked at the percentage of companies which have mentioned supply chain and logistics at least once in filings during the past twelve months - this was 96% compared to 100% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to supply chain and logistics. Of the 10 biggest employers in the fashion industry, VF Corp was the company which referred to supply chain and logistics the most between October 2020 and September 2021. GlobalData identified 202 supply chain & logistics-related sentences in the United States-based company's filings - 2.2% of all sentences. Hanesbrands Inc mentioned supply chain and logistics the second most - the issue was referred to in 2.1% of sentences in the company's filings. Other top employers with high supply chain & logistics mentions included Gildan Activewear Inc, Yue Yuen Industrial (Holdings) Ltd and Hermes International SA. Across all fashion and accessories companies the filing published in the third quarter of 2021 which exhibited the greatest focus on supply chain and logistics came from Levi Strauss & Co. The document showed 1,780 sentences and 81 (4.6%) referred to supply chain and logistics. This analysis provides an approximate indication of which companies are focusing on supply chain and logistics and how important the issue is considered within the fashion industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning supply chain and logistics more regularly is not necessarily proof that it is utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into supply chain and logistics have been successes or failures. In the last quarter, fashion and accessories companies based in the United States were most likely to mention supply chain and logistics with 1.72% of sentences in company filings referring to the issue. In contrast, companies with headquarters in Western Europe mentioned supply chain and logistics in just 0.56% of sentences.

Signal: Leicester makers fear exodus as fast fashion majors look to Asia

Elizabeth Cooke — Thu, 26 Oct 2023 10:42:07 +0000

Just Style’s investigation of UK public records has found that 28 Leicester textile companies went insolvent in 2022, while 11 have filed for insolvency to date in 2023. The records show insolvent companies in late 2022 included named suppliers of Boohoo.

Sajjad Khan of the Apparel and Textiles Manufacturers Federation said last year that, of approximately 500 textile businesses still trading in Leicester in 2020, only an estimated 180 were still trading in 2022.

Meanwhile, GlobalData’s filings database shows that mentions of “Leicester” in apparel company filings steeply dropped off in 2022 and 2023, falling from 95 mentions in 2021 to 69 mentions in 2022 to just 11 mentions this year. This coincides with the increasing prominence of Pakistan in apparel company filings, as loss-making fast fashion giants turn their attention to South Asia in the name of cost-cutting.

Fast fashion giants eye Pakistan in bid to slash costs

Leicester’s historic textile industry has taken a battering in recent months, as retailers have demanded price discounts, made last-minute cancellations and imposed financial penalties on their suppliers.

This comes as fast fashion firms like Boohoo (owner of PrettyLittleThing, Nasty Gal and MissPap) and ASOS post staggering losses and diminishing revenues: ASOS incurred losses of £290.9bn ($351.3bn) for the six-month period ending 28 February, while Boohoo’s operating losses increased by 80% year-on-year to £21.2m for the six months ending 31 August. The latter recently warned that full-year sales could fall as much as 17% this year, saying that it has identified £125m in potential cost savings.

Boohoo, which published a list of its 80 UK suppliers in 2021 in the name of transparency, has in recent years focused its efforts on extending its supply chain beyond the UK.

In September, Chairman of Boohoo Group Mahmud Kamani reportedly expressed an interest in establishing “long-term buying linkages with Pakistan”, while the country’s caretaker Prime Minister Anwaar-ul-Haq Kakar conveyed his commitment to facilitating investment and the building of manufacturing facilities within the country, according to Radio Pakistan.

Now, textile manufacturers in Leicester fear an exodus of retailers towards Pakistan, where garment workers have allegedly been paid as little as 29p an hour in “appalling conditions”. At the beginning of the month, hundreds of garment workers, trade unions and labour rights advocates took to the streets in Leicester, calling on fashion brands to commit to sustainable jobs in the city.

Just Style reached out to Leicester garment manufacturers that had previously been named as suppliers of Boohoo, but they did not immediately respond to a request for comment.

Our signals coverage is powered by GlobalData’s Thematic Engine, which tags millions of data items across six alternative datasets — patents, jobs, deals, company filings, social media mentions and news — to themes, sectors and companies. These signals enhance our predictive capabilities, helping us to identify the most disruptive threats across each of the sectors we cover and the companies best placed to succeed.

Filings signal: Macro pressures, geopolitical disruptions hit Q2 apparel margins

Elizabeth Cooke — Wed, 26 Jul 2023 10:40:09 +0000

Each week, Just Style’s journalists pick out insights from company filings that highlight sentiments in our sector. These filings signals are based on GlobalData’s analysis of earnings statements, call transcripts, investor presentations and sustainability reports. They tell us about key topics on the minds of business leaders and investors, and the themes driving a company’s activities.

This new, thematic filings coverage is powered by our underlying Disruptor data which tracks all major deals, patents, company filings, hiring patterns and social media buzz across our sectors.

Geopolitics was the second-most-cited theme in the apparel sector’s company filings in Q2 and the start of Q3, after sitting top in Q1 when the fashion industry was grappling with the knock-on effects of the energy crisis, the end of Covid lockdowns in China as well as the consequences of many fashion brands no longer operating in Russia.

Geopolitical issues and inflationary pressures hit apparel Q2 margins

Inflationary pressures continue to be cited in companies’ earning analyses despite an overall drop in mentions in Q2 as higher product input and freight and logistics costs squeeze gross profit margins.

For example, US sportswear brand Nike experienced strong consumer demand and growth in revenue for FY2023, but saw a dip in its gross margin from 46% in 2022 to 43.5% this year.

Alongside inflationary pressures, Nike cited the impact of Covid-related government restrictions in Greater China in 2022, which led to temporary store closures and reduced retail traffic, as well as fluctuations in foreign currency exchange rates. In fact, exchange rate volatility negatively affected the company’s reported revenues by approximately $2,859m.

In light of lower discretionary spending and depressed customer sentiments, Nike’s “demand creation expense” (sports marketing and advertising) rose 3% to $1.1bn.

Levi Strauss, however, was not as successful in driving consumer demand for its blue jean staples, with a consumer slowdown impacting wholesale revenue and the retail industry at large. The company complained of a “cautious order environment among wholesale partners”. Sales dropped to $1.34bn for the three-month period that ended 28 May, down 9% from $1.47bn a year earlier.

The company also incurred significant restructuring-related charges related to the Russia-Ukraine charges, as well as impacted net revenues from the wind-down of Levi Strauss’ Russia business.

Both Nike and Levi Strauss suffered from elevated inventory levels in H1, which the former blamed on “supply chain challenges, macroeconomic conditions and the impact of the Covid pandemic on manufacturing”.