Bangladesh Garment Industry Short on Cotton as Floods Worsen Protest Backlog

FILE PHOTO: Women work in a garment factory in Dhaka, Bangladesh, May 3, 2020. REUTERS/Mohammad Ponir Hossain/File Photo
FILE PHOTO: Women work in a garment factory in Dhaka, Bangladesh, May 3, 2020. REUTERS/Mohammad Ponir Hossain/File Photo
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Bangladesh Garment Industry Short on Cotton as Floods Worsen Protest Backlog

FILE PHOTO: Women work in a garment factory in Dhaka, Bangladesh, May 3, 2020. REUTERS/Mohammad Ponir Hossain/File Photo
FILE PHOTO: Women work in a garment factory in Dhaka, Bangladesh, May 3, 2020. REUTERS/Mohammad Ponir Hossain/File Photo

Garment factories in Bangladesh, one of the world's biggest clothing production hubs, are struggling to complete orders on time as flooding disrupts their cotton supplies - exacerbating a backlog caused by recent political turmoil.
Bangladesh is a leading global cotton importer due to the size of its textile and garment industry, but the devastating floods mean few trucks and trains have been able to bring supplies to factories from Chittagong port over the last week, industry officials and analysts said.
The disruption, on top of the unrest and protests that led to factory closures earlier this month, have caused garment production to fall by 50%, said Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association.
"The industry is now under immense pressure to meet deadlines, and without a swift resolution, the supply chain could deteriorate even further," Reuters quoted Hatem as saying.
Bangladesh was ranked as the third-largest exporter of clothing in the world last year, after China and the European Union, according to the World Trade Organization, exporting $38.4 billion worth of clothes in 2023.
At the clothing factory she runs in the capital, Dhaka, Rubana Huq is counting the cost of lost production.
"Even for a moderate-sized company like ours, which makes 50,000 shirts a day and if the price of one single shirt is $5, there was $250,000 of production loss," said Huq, a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
She said some garment plants were slowing resuming production, but estimated that complete recovery "would be at least six months away", warning that Bangladeshi manufacturers could lose 10%-15% of business to other countries.
Bangladesh's readymade garments industry, which supplies many of the world's best-known fashion brands, accounts for more than 80% of the country's total export earnings.
Buyers are adopting a cautious approach and could potentially delay new orders, said Shahidullah Azim, a director of the BGMEA industry group.
"The longer this uncertainty persists, the more challenging it becomes for us to maintain the momentum we have built," he told Reuters.
The Bangladesh Meteorological Department said flood conditions could persist if the monsoon rains continued, as water levels were receding very slowly.
Some cotton shipments could get diverted to India, Pakistan and Vietnam, commodity analysts said.
"We are already hearing and seeing some cotton for prompt delivery wanted by Pakistan and Vietnam," said Louis Barbera, partner and analyst at VLM Commodities based in New Jersey.
New orders shifted from Bangladesh could also be accommodated in southern India, said Atul Ganatra, president of the Cotton Association of India.
Even before the floods and political unrest, the Bangladeshi garment industry was grappling with power shortages that remain a problem, said Fazlee Shamim Ehsan, vice president at the country's knitwear manufacturers and exporters association.
"Energy shortages continue to hamper our operations," he said.



M&S Profit Rebounds from Cyberattack but Clothing Drags on Recovery

A shopper carries a Marks & Spencer shopping bag in London, Britain, January 2, 2025. (Reuters)
A shopper carries a Marks & Spencer shopping bag in London, Britain, January 2, 2025. (Reuters)
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M&S Profit Rebounds from Cyberattack but Clothing Drags on Recovery

A shopper carries a Marks & Spencer shopping bag in London, Britain, January 2, 2025. (Reuters)
A shopper carries a Marks & Spencer shopping bag in London, Britain, January 2, 2025. (Reuters)

British retailer Marks & Spencer said on Wednesday its first-half profit rebounded from last year's cyberattack-hit level, but was down on a two-year basis as strong trading in food failed to fully offset weakness in clothing.

The 142-year-old M&S, one of the biggest names on the UK high street, said its adjusted profit before ‌tax more than doubled ‌in the six months to September 26 ‌to £403.2 ⁠million ($542.4 million), on ⁠sales up 16.2% to £9.26 billion.

Analysts had on average forecast profit of £399 million.

Food sales increased 13.9% year-on-year, while sales in the fashion, home and beauty division, or FH&B, rose 17.5%.

But, while food profit was well ahead on a two-year basis, FH&B profit was nearly £93 million lower, reflecting a more challenging apparel market ⁠and a slower recovery from the cyberattack.

M&S said ‌fashion gained market share in ‌a declining market, despite "availability constraints".

CEO Stuart Machin said FH&B's results "fell short of their potential ‌and show there is a lot more to do."

"Although ‌we have much improved product, the end-to-end transformation is in the foothills," he said.

Analysts noted that this year's spring/summer clothing collections were ordered when many systems were down after the April 2025 hack.

M&S said market conditions ‌in FH&B "remain challenging", but said performance is expected to improve in the second half compared with the ⁠first, as ⁠availability has recovered, with a better balance between core and seasonal stock.

Shares in M&S were down 1% in early trading, paring 2026 gains to 24%.

M&S' food business was quick to recover from the cyberattack and is currently Britain's fastest-growing grocer, winning market share.

The group said its strategy of becoming "more of a shopping list (food) retailer" was working and its plan to double the size of its food business was on track.

M&S forecast full-year adjusted profit before tax in line with current market expectations. Analysts on average forecast £941 million.

"We enter the second half in a strong position, with a solid October under our belts," added Machin.


Jeweller Pandora Slightly Raises Outlook and Speeds up Launches

Pandora jewellery is displayed at its largest manufacturing unit, in Ho Chi Minh, Vietnam, October 1, 2026. (Reuters)
Pandora jewellery is displayed at its largest manufacturing unit, in Ho Chi Minh, Vietnam, October 1, 2026. (Reuters)
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Jeweller Pandora Slightly Raises Outlook and Speeds up Launches

Pandora jewellery is displayed at its largest manufacturing unit, in Ho Chi Minh, Vietnam, October 1, 2026. (Reuters)
Pandora jewellery is displayed at its largest manufacturing unit, in Ho Chi Minh, Vietnam, October 1, 2026. (Reuters)

Jewellery maker Pandora edged higher its near-term revenue and profitability targets on Wednesday, saying it expected a boost in demand from new collections and a shift to platinum-plated products.

Its Copenhagen-listed shares opened up 8% and by 0830 GMT were 6.7% higher, outperforming a flat pan-European STOXX index.

As it strives to keep ‌its brand ‌affordable, Pandora has accelerated launches and moved most ‌of ⁠its marketing online. ⁠It has also continued the transition announced in February to platinum-plated jewellery to limit the effect of high silver prices on the cost of solid silver bracelets.

"We are expanding into more designs, more styles, while we are also refreshing our traditional and heritage designs," Pandora Chief Executive Berta de Pablos-Barbier told Reuters.

PLATINUM-PLATED COMES TO NEW MARKETS

Silver prices ⁠have dropped from a January peak of $121 ‌per ounce to about $50 per ounce, ‌but remain higher than historic averages.

Platinum is more expensive than silver, but ‌Pandora uses a much smaller amount for plating over a metal ‌alloy core, making the end cost more predictable and easing pressure on margins.

Following a pilot for platinum-plated jewels in the Netherlands, Pandora said on Wednesday it would expand sales of the range into markets including the ‌US, Britain and Australia.

The pilot "confirmed that our initial assumptions about consumer acceptance were there," de Pablos-Barbier said.

MARKETING ⁠CUT HELPS ⁠PROFITABILITY

Pandora, whose charm bracelets start at $80, said it expects organic sales growth of between 2% and 3% in 2026, against guidance in August of 0% to 3%.

Its third-quarter organic revenue rose 6% to 6.69 billion crowns ($1 billion), beating a mean forecast of 6.58 billion in a poll of analysts provided by Pandora.

The company said a reduction in promotional activity helped its quarterly operating profit margins, which rose to 15.9%, beating analyst expectations for 13.1%.

It expects a full-year operating profit margin of 22.5% to 23%, against 22% to 23% previously, and a 2027 margin of 14% to 15% when including one-offs.


Retailer Zalando Launches AI Shopping Agent as Margins Squeezed

A person carries a shopping bag branded by Zalando in central Berlin, Germany, November 13, 2025. (Reuters)
A person carries a shopping bag branded by Zalando in central Berlin, Germany, November 13, 2025. (Reuters)
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Retailer Zalando Launches AI Shopping Agent as Margins Squeezed

A person carries a shopping bag branded by Zalando in central Berlin, Germany, November 13, 2025. (Reuters)
A person carries a shopping bag branded by Zalando in central Berlin, Germany, November 13, 2025. (Reuters)

Top European online fashion retailer Zalando on Tuesday launched its first AI shopping agent amid concerns that artificial intelligence could disrupt online retail, after reporting third-quarter gross margin below market expectations.

Shares in the German company fell 5% in early trading.

Zalando reported a gross profit margin of 38.7% in the quarter, missing expectations partly due to investments, analysts at Jefferies and JPMorgan said in notes to ‌clients.

The industry ‌is facing disruption from so-called agentic commerce, ‌in ⁠which autonomous AI ⁠agents execute the full purchase cycle for goods, from price comparison across multiple retailers to payment, on behalf of human shoppers.

"The stock could drift lower in the coming days given the lack of any incremental positives, in our view, and its current level, along with ongoing ⁠structural risk from agentic commerce development," JPMorgan said.

As ‌shoppers increasingly use AI ‌to compare prices, check product availability and get recommendations, retailers are racing ‌to adopt AI tools to remain competitive and ‌expand the range of products available on their platforms.

Zalando said it would launch Zalando Extended, a platform where users will buy products from other online shops ‌using AI agents on the Zalando app, with a pilot in collaboration with home retailer ⁠Westwing.

"Our ⁠shift to a platform business model is accelerating, with our partner business and retail media growing at a double-digit rate and B2B revenue up almost 28%," Zalando finance chief Anna Dimitrova said in a statement.

Zalando sells clothes, shoes and accessories from thousands of brands including Nike, Hugo Boss, and Coach.

It said its third-quarter revenues grew 5.1% year-on-year to €3.17 billion ($3.55 billion), above the €3.15 billion expected by analysts polled by LSEG. Gross merchandise value, a metric measuring the value of all goods sold, rose 7.5% to €4.54 billion.