Market dynamics
European Union
Macro: According to Eurostat data, the inflation rate in the 27 EU countries in June this year was 9.6%, and the inflation rate in the 19 euro zone countries was 8.6%, reaching a new high. The European Commission’s summer economic forecast report recently released stated that the EU maintained its economic growth forecast for this year unchanged, but lowered its growth forecast for next year. The report predicts that the EU economy will grow by 2.7% in 2022 and 1.5% in 2023; the Eurozone economy will grow by 2.6% in 2022 and slow to 1.4% in 2023.
Retail sales: EU retail sales increased by 0.8% year-on-year in May and remained unchanged month-on-month. German retail sales growth exceeded expectations in May, with retail sales increasing by 0.8% month-on-month after seasonally adjustment, which was much better than the 0.1% month-on-month decrease last month. In April, EU textile, clothing and footwear retail sales increased by 39.4% compared with the same period last year, a slight decrease of 0.3% from the previous month, and still decreased by 18% compared with the same period before the epidemic.
Imports: In the first five months of this year, the EU’s clothing imports were US$42.94 billion, a year-on-year increase of 15.1%. Imports from China were US$11.59 billion, a year-on-year increase of 11.9%; accounting for 27%, a year-on-year decrease of 0.8 percentage points. Imports from Bangladesh, Turkey, India and Vietnam increased by 44.8%, 19.7%, 20.7% and 12.5% respectively year-on-year, and their proportions increased by 4.6, 0.5, 0.3 and -0.1 percentage points respectively.
Japan
Macro: According to a survey by the Japanese Cabinet Office, the general household confidence index (including views on income and employment) was 34.1 in May, higher than 33.0 in April. This is the second consecutive month that Japan’s consumer confidence index has improved. On June 10, Japan officially resumed foreign group tours by exempting entry testing and quarantine. After inbound tourism is opened, directly related industries such as accommodation, catering and retail will be positively affected.
Retail: According to data from Japan’s Ministry of Economy, Trade and Industry, in the first five months of this year, Japan’s textile and apparel retail sales totaled 3.5 trillion yen, a year-on-year increase of 3%, and a 23.2% decrease compared with the same period before the epidemic. Japan’s textile and apparel retail sales in May were 765 billion yen, which has been rising for three consecutive months, with a month-on-month growth of 3% and a year-on-year growth of 11.8%. Compared with the same period in 2019, it fell 20.3%. The decline has slowly narrowed for four consecutive months. .
Imports: In the first five months of this year, Japan’s clothing imports were US$10.24 billion, a year-on-year decrease of 7.1%. Imports from China were US$5.58 billion, a year-on-year decrease of 6.5%; accounting for 54.5%, a year-on-year increase of 0.3 percentage points. Imports from Vietnam, Bangladesh, Cambodia and Myanmar increased by -10.2%, 17.7%, 8.9% and 25.5% respectively year-on-year, and their proportions increased by -0.5, 1.2, 0.7 and 1 percentage point respectively.
U.K
Macro: Data released by the British Office for National Statistics showed that UK retail sales fell by 0.1% month-on-month after seasonally adjustment in June. Data show that the British inflation rate rose to 9.4% in June, a 40-year high, and may reach double digits within a few months. UK residents are facing the worst cost of living crisis in decades. Research firm GfK said UK consumer confidence fell to a record low in July as soaring food and fuel prices left consumers “severely frustrated”.
The head of the ONS said: “Purchases of clothing fell along with household goods, with retailers suggesting consumers were cutting back on spending due to rising prices and concerns about affordability.” The ONS also warned that overall sales The trend is still down. Monthly retail sales data have proven to be fluid in the wake of the pandemic, swinging between sharp declines and modest recoveries.
Retail: According to Sprintboard data, footfall in the UK increased by only 1% in June compared with May and was still 12.3% lower than in 2019, with high street visitors falling by 14.9% and shopping center footfall falling by 16.5%. %. Springboard expects UK retail footfall to be at least 10% to 15% below 2019 levels in the second half of 2022.
In the first six months of this year, UK textile, clothing and footwear retail sales totaled 25.38 billion pounds, a year-on-year increase of 39.5% and an increase of 1.5% compared with the same period in 2019. In June, retail sales of textiles, clothing and footwear reached 5.03 billion pounds, a month-on-month increase of 21.7%, a year-on-year increase of 12%, and a 2.9% increase over the same period in 2019.
Imports: In the first five months of this year, British clothing imports amounted to US$10.41 billion, a year-on-year increase of 23.5%. Imports from China were US$2.48 billion, a year-on-year increase of 47.2%; accounting for 23.9%, a year-on-year increase of 3.8 percentage points. Imports from Bangladesh, Turkey, India and Italy increased by 54.8%, 52.2%, 44.2% and -7.5% respectively year-on-year, and their proportions increased by 3.6, 1.8, 1 and -1.7 percentage points respectively.
Australia
Retail: Australian Bureau of Statistics data showed retail sales rose 0.9% in May to a record A$34.2 billion ($23.6 billion), more than double economists’ expectations. This is the fifth consecutive month of growth in Australian retail sales, supporting expectations that the Reserve Bank of Australia will continue to tighten monetary policy at a rapid pace this year.
In the first five months of this year, retail sales of clothing, apparel and footwear stores reached 13.95 billion Australian dollars, a year-on-year increase of 13.6% and an increase of 30.7% compared with the same period in 2019. The growth rate continued to expand from the previous month. Monthly retail sales in May were A$2.87 billion, a year-on-year decrease of 1.4% and an increase of 34.4% over the same period in 2019.
Department store retail sales in the first five months were 8.82 billion Australian dollars, a slight increase of 3.9% year-on-year and 13.3% higher than the same period in 2019. Retail sales in May were A$1.87 billion, a year-on-year increase of 5.1% and an increase of 19.2% over the same period in 2019.
Imports: In the first five months of this year, Australia’s clothing imports were US$3.88 billion, a year-on-year increase of 5.1%. Imports from China were US$2.39 billion, a year-on-year increase of 6.7%; accounting for 61.5%, a year-on-year increase of 0.9 percentage points. from Bangladesh, Vietnam andIndia’s imports increased by 8%, 25.9% and 15.2% respectively year-on-year, and their proportion increased by 0.3, 0.9 and 0.3 percentage points respectively.
Canada
Retail: Statistics Canada data shows that retail sales increased by 2.2% in May to 62.2 billion yuan, but according to preliminary estimates from the Statistics Canada, sales growth will slow down in June. Economists at TD Bank said retail sales grew strongly in May, but most of the gains were driven by higher prices, especially for gasoline, as auto sales recovered after three months of decline, but sales of gasoline, clothing and sporting goods were recovering. Category sales actually declined when adjusted for inflation.
In the first five months of this year, Canadian clothing and apparel store retail sales reached 15.37 billion Canadian dollars, a year-on-year increase of 48% and an increase of 5.4% compared with the same period in 2019. Retail sales in May were 3.22 billion Canadian dollars, a surge of 81.3% year-on-year and 11.1% higher than the same period in 2019.
In the first five months, the retail sales of furniture and home stores were 9.71 billion Canadian dollars, a year-on-year increase of 40.6%, an increase of 22.6% over the same period in 2019, of which May retail sales were 1.93 billion Canadian dollars, a year-on-year increase of 25.2%, an increase of 18.6% over the same period in 2019. Growth slowed.
Imports: In the first five months of this year, Canada’s clothing imports were US$4.89 billion, a year-on-year increase of 7.2%. Imports from China were US$1.46 billion, a year-on-year decrease of 7.6%; accounting for 30%, a year-on-year decrease of 4.8 percentage points. Imports from Bangladesh, Vietnam, Cambodia and India increased by 29.6%, 33.9%, 0.6% and 52.5% respectively year-on-year, and their proportions increased by 2.2, 2.6, -0.6 and 1.1 percentage points respectively.
Brand Dynamics
●Aritzia
In the three months ended May 29, Canadian fashion retailer Aritzia’s revenue surged 65% year-on-year to US$407 million, and its net profit surged 85.8% to US$33.3 million, mainly due to 81% of sales in the US market. A boost in growth. During the reporting period, Aritzia achieved growth in all regions and channels around the world. It is expected that revenue in the second quarter will further increase to US$440 million to US$460 million, an increase of approximately 26% to 31% over the same period last year.
● Boohoo
In the three months ended May 31, the sales of British fast fashion e-commerce Boohoo fell 8% year-on-year to 445 million pounds, the first time since its establishment, but it still increased 75% compared with the same period in 2019. By region, Boohoo’s revenue fell by 1% in the UK, 9% in other European regions, 28% in the United States, and 15% in other global regions.
● Hugo Boss
Hugo Boss’s second-quarter sales surged 34% year-on-year to 878 million euros, an increase of 29% compared with the same period in 2019. It was the strongest quarterly performance in the group’s history, with a profit before interest and tax of 100 million euros. For fiscal 2022, Hugo Boss expects sales to increase by 20% to 25% to a record €3.3 billion to €3.5 billion.
● Mango
Spanish fast fashion Mango’s first-half fiscal year performance data shows that its sales surged 24.8% year-on-year to 1.213 billion euros, mainly due to the strong growth in market demand in Europe and the United States. As of the end of June, Mango had a total of 2,508 points of sale globally, with a net increase of 61 since December.
● Uniqlo
In the third fiscal quarter, the revenue of Fast Retailing Group, the parent company of Uniqlo, increased by 10.3% year-on-year to 546.1 billion yen, and net profit soared by more than 100.1% to 90.9 billion yen. In the first three quarters as of the end of May, Fast Retailing Group’s sales increased by 3.9% year-on-year to 1.76 trillion yen, and net profit surged 57.1% to 237.8 billion yen. In the first nine months of fiscal 2022, Uniqlo Japan’s revenue and operating profit fell 5.1% and 0.4% respectively to 640.9 billion yen and 119 billion yen. With the reduction of discounts, Uniqlo Japan’s sales in the third fiscal quarter increased by 8.7% year-on-year, and its profit margin increased by 3.9 percentage points year-on-year.
● Lululemon
In the three months ended May 1, lululemon’s sales surged 31.5% year-on-year to US$1.613 billion, and its net profit surged 30.3% to US$189 million.
●H&M
H&M Group’s revenue in the first half of the fiscal year was 103.67 billion Swedish krona, an increase of approximately 20% compared with the same period in 2021, and also increased by 17% in the second quarter. In its financial report, H&M Group emphasized that it will further integrate online and offline sales channels globally, including the optimization of the offline physical store portfolio in the Chinese market.
● Nike
American sportswear giant Nike expects its revenue in the current fiscal year to achieve low double-digit growth, and its gross profit margin will be flat or fall by 50 basis points, mainly due to the fact that the Chinese market has not yet fully recovered. Data show that Nike’s revenue in the Chinese market fell 19% year-on-year in the fourth fiscal quarter, falling for three consecutive quarters.
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