Saudi Fashion Commission Announces Grand Opening of ‘The Lab' in Misk City

The Saudi Fashion Commission will unveil Tuesday “The Lab”, an  initiative demonstrating a monumental shift in the local fashion industry. (SPA)
The Saudi Fashion Commission will unveil Tuesday “The Lab”, an initiative demonstrating a monumental shift in the local fashion industry. (SPA)
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Saudi Fashion Commission Announces Grand Opening of ‘The Lab' in Misk City

The Saudi Fashion Commission will unveil Tuesday “The Lab”, an  initiative demonstrating a monumental shift in the local fashion industry. (SPA)
The Saudi Fashion Commission will unveil Tuesday “The Lab”, an initiative demonstrating a monumental shift in the local fashion industry. (SPA)

The Saudi Fashion Commission is excited to unveil Tuesday “The Lab,” the first of its kind in the Kingdom, a state-of-the-art product development studio that is poised to revolutionize the fashion manufacturing landscape in Saudi Arabia, the Saudi Press Agency said.
Located at The City Hub in Mohammed bin Salman Nonprofit City (Misk City), The Lab is a flagship initiative demonstrating a monumental shift in the local fashion industry. It reflects the commission's commitment to elevating manufacturing capabilities and fostering innovation within the Kingdom.
By providing cutting-edge manufacturing facilities, The Lab enables local designers, brands, and fashion entrepreneurs to actualize their creative visions, proudly under the “Made in Riyadh” label.
The grand opening of The Lab represents a pivotal moment for the Saudi fashion sector, signaling new opportunities for growth, collaboration, and global competitiveness. Attendees will experience firsthand the advanced technologies and collaborative environment that The Lab offers, marking a significant step towards achieving a vibrant and sustainable fashion industry in Saudi Arabia.
“The Lab showcases the groundbreaking advancement in Saudi Arabia's fashion industry,” said Saudi Fashion Commission CEO Burak Cakmak. “As the premier facility of its kind in the region, located in the heart of Riyadh, it streamlines the manufacturing process, empowering our local designers and brands to effortlessly realize their creative visions. By nurturing innovation and providing essential support throughout the fashion cycle, we not only foster creativity but also champion sustainable practices within the industry. The establishment of The Lab, a local product development studio, exemplifies our profound commitment to cultivating a thriving fashion ecosystem right here in Saudi Arabia.”
“The opening of The Lab at Misk City marks a significant milestone for the fashion industry in Saudi Arabia,” said Misk City CEO David Henry. “This state-of-the-art product development studio will not only revolutionize fashion in the Kingdom but also empower local designers and entrepreneurs to showcase their creativity on a global stage, especially since Misk City will contribute significantly to promoting distinguished national brands in the field of fashion in addition to supporting local companies. We are proud to be part of this transformative project and look forward to seeing the positive impact it will have on the industry.”
The partnership will enable enhanced cooperation between both entities to develop education and training programs for young Saudi designers, explore opportunities for incubation of entrepreneurs, and attract talent and investors to the Kingdom’s fashion sector. The partnership also lays the foundation for cooperation in hosting various fashion-related events and festivals at Misk City.
Esteemed members of the fashion industry, media, and government representatives are anticipated to attend Tuesday, highlighting the broad support for this transformative project in inaugurating the space. The event will showcase local fashion talents and demonstrate the potential housed within this innovative facility.
The Saudi Fashion Commission invites practitioners, brand owners, and designers in the fashion industry to join this historically exceptional space to be part of the dawn of a new era in fashion manufacturing. It aims to develop the fashion sector in Saudi Arabia through strategic initiatives that fosters innovation and talents, promote economic diversification, and enhance cultural exchange.



Puma Shares Plunge 20% as Weak Profit Shakes Confidence

The logo of German sports goods firm Puma is seen at the entrance of one of its stores in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger/File Photo
The logo of German sports goods firm Puma is seen at the entrance of one of its stores in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger/File Photo
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Puma Shares Plunge 20% as Weak Profit Shakes Confidence

The logo of German sports goods firm Puma is seen at the entrance of one of its stores in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger/File Photo
The logo of German sports goods firm Puma is seen at the entrance of one of its stores in Vienna, Austria, March 18, 2016. REUTERS/Leonhard Foeger/File Photo

Puma lost a fifth of its market value on Thursday after the German sportswear brand reported lower than expected fourth-quarter sales and a drop in annual profit, raising questions about its ability to compete with bigger rivals Adidas and Nike.

The poor results late on Wednesday came after Adidas reported strong sales and profitability, highlighting the work Puma still faces to boost its brand and take a bigger slice of the $400 billion global sportswear market.

Puma shares were down 20% at 33.5 euros as of 1330 GMT, on course for their worst day ever and hitting their lowest level since March 2018.

Puma has been relaunching shoes such as the 1999 motor racing-inspired "Speedcat" as it tries to muscle into a market dominated by Adidas' retro Samba soccer sneakers, but JPMorgan analysts said sales trends for the Speedcat have been weaker than expected so far.

Newer, fast-growing brands such as On Running and Hoka have shaken up the sportswear industry, eroding the dominance of Nike , which has seen slowing sales, and creating more competition for shelf space at top sporting goods retailers.

"This will make investors question what the competitive advantage of Puma is," said Deutsche Bank Research analyst Adam Cochrane.

"If Puma is not really taking market share, at a time when its biggest competitor (Nike) is weak, is the customer not accepting the brand premiumisation it is trying to put through?"

Puma has increased spending on marketing to boost its brand perception, and the Speedcat is priced at 109.95 euros ($114.44) on its website, on par with Adidas' Samba – whereas Puma shoes have traditionally been cheaper than Adidas and Nike.

Puma has said it aims to sell between 4 million and 6 million pairs of the Speedcat in 2025.

Puma's fourth-quarter sales rose 9.8% in currency-adjusted terms, below the 12% growth expected by analysts. Net profit last year fell to 282 million euros ($293 million) from 305 million, in part due to higher interest payments on its debt.

The company did not explain what led to its weaker than expected sales. CEO Arne Freundt had said in November he was confident about demand heading into the year-end shopping season, Reuters reported.

The strength of the US dollar poses a problem for Puma, which pays its Asian suppliers in dollars but makes a big share of revenues in euros.

On the back of the weak profit, Puma launched a cost-cutting programme aiming to reach an earnings before interest and tax (EBIT) margin of 8.5% by 2027, up from 7.1% in 2024.

"While we achieved solid sales growth in 2024 and made meaningful progress on our strategic initiatives, we are not satisfied with our profitability," Freundt said in a statement.

Puma said it would continue to make "strategic investments" in its brand to boost growth.

But Barclays analysts said there was a risk the cost-cutting drive would take management's focus away from increasing sales.

"At this stage, we see more questions than answers about the path that Puma will take in the next three years to 2027," they said in a note.

Puma is scheduled to provide more detailed guidance when it publishes its full-year report on March 12.