Nike, Adidas Join Brands Feeling Chinese Social Media Heat Over Xinjiang

ARCHIVE PICTURE: Customers sit in an Adidas store with a protest sign, in support of a strike by workers of Yue Yuen Industrial Holdings, pasted on its shop window during International Labour Day in Hong Kong May 1, 2014. REUTERS/Tyrone Siu
ARCHIVE PICTURE: Customers sit in an Adidas store with a protest sign, in support of a strike by workers of Yue Yuen Industrial Holdings, pasted on its shop window during International Labour Day in Hong Kong May 1, 2014. REUTERS/Tyrone Siu
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Nike, Adidas Join Brands Feeling Chinese Social Media Heat Over Xinjiang

ARCHIVE PICTURE: Customers sit in an Adidas store with a protest sign, in support of a strike by workers of Yue Yuen Industrial Holdings, pasted on its shop window during International Labour Day in Hong Kong May 1, 2014. REUTERS/Tyrone Siu
ARCHIVE PICTURE: Customers sit in an Adidas store with a protest sign, in support of a strike by workers of Yue Yuen Industrial Holdings, pasted on its shop window during International Labour Day in Hong Kong May 1, 2014. REUTERS/Tyrone Siu

Nike and Adidas came under attack on Chinese social media on Thursday over past comments the fashion brands have made about labor conditions in Xinjiang, part of a diplomatic row between China and the West.

The sportswear companies were the latest caught up in a backlash prompted by a Chinese government call to stop foreign brands from tainting China's name as internet users found statements they had made in the past on Xinjiang.

Chinese state media had singled out H&M on Wednesday over a statement reported last year where the Swedish fashion retailer said it was deeply concerned by reports of accusations of forced labor in Xinjiang, and that it did not source products from the Chinese region.

Both Nike and Adidas, which have been growing rapidly in China, have said previously that they do not source products or yarn from the Xinjiang region. Adidas declined to comment on Thursday and Nike did not respond to requests for further comment, according to Reuters.

Earlier this week, China denied allegations of human rights abuses by its officials in the western region of Xinjiang, home to Muslim Uighurs, after the European Union, United States, Britain and Canada imposed sanctions on the officials.

Beijing hit back with retaliatory sanctions on European lawmakers, scholars and institutions.

Some internet users said they would stop buying Nike and will support local brands such as Li Ning and Anta, while others told Adidas to leave China.

The dispute creates a dilemma for Western companies who must balance the desire to expand their business in China against the views of consumers in their home markets.

"Brands must not rescind on their human rights responsibilities in the face of this pressure," said Chloe Cranston of Anti-Slavery International, a member of the Coalition to End Forced Labour in the Uighur Region.

BOYCOTT CALLS

Shares of Anta Sports Products Ltd and Li Ning Co surged, while shares in Adidas, Inditex and H&M fell on Thursday.

State tabloid Global Times said Spain's Inditex, owner of Zara, had "quietly removed" a statement on Xinjiang from its English and Spanish-language websites.

An Inditex webpage stating that the company was highly concerned about reports alleging social and labor malpractice in various supply chains among ethnic Uighurs in Xinjiang was live on March 24, a Google cache showed, but now appears to be unavailable.

Inditex did not respond to a request for comment. Inditex has previously said it does not have any commercial relations in Xinjiang.

Chinese internet users also targeted the Better Cotton Initiative (BCI), a group that promotes sustainable cotton production which said in October it was suspending its approval of cotton sourced from Xinjiang, citing human rights concerns.

BCI members include Nike, Adidas, H&M and Japan's Fast Retailing. The Better Cotton Initiative website also stopped working on Thursday. The organization did not respond to a request for comment.

"If you boycott Xinjiang cotton, we'll boycott you. Either Adidas quits BCI, or get out of China," one internet user wrote.

H&M said on Wednesday it respected Chinese consumers and that it was committed to long-term investment and development in China.

But by Thursday morning, H&M did not exist on some Chinese store locator maps. Searches for H&M stores on Baidu Maps yielded no results. The retailer's official store on Alibaba's Tmall, an e-commerce platform, was inaccessible.

At a daily media briefing at China's foreign ministry, spokeswoman Hua Chunying, when asked about H&M, held up a photograph of Black Americans picking cotton.

"This was in the US when Black slaves were forced to pick cotton in the fields," she said.

Hua then held up a second photograph of cotton fields in Xinjiang.

"More than 40% of the cotton in Xinjiang is harvested by machinery, so the alleged forced labour is non-existent."



Italian Fashion House Valentino Suffers Drop in Profit in 2023

The logo of fashion house Valentino is seen outside a shop in Milan, Italy, April 8, 2024. REUTERS/Claudia Greco
The logo of fashion house Valentino is seen outside a shop in Milan, Italy, April 8, 2024. REUTERS/Claudia Greco
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Italian Fashion House Valentino Suffers Drop in Profit in 2023

The logo of fashion house Valentino is seen outside a shop in Milan, Italy, April 8, 2024. REUTERS/Claudia Greco
The logo of fashion house Valentino is seen outside a shop in Milan, Italy, April 8, 2024. REUTERS/Claudia Greco

Operating profit at Italian fashion house Valentino dropped 18% last year, to 99 million euros ($105.7 million), the company said on Tuesday.
Last year French luxury group Kering, which is struggling to revive sales at its star brand Gucci, bought a 30% stake in Valentino, with an option to purchase the whole of company's share capital by 2028.
Valentino added its 2023 revenues dropped 3% at constant exchange rate, to 1.35 billion euros ($1.44 billion).
Earlier this year Valentino hired former Gucci designer Alessandro Michele as creative director, after the departure of longtime incumbent Pierpaolo Piccioli.
Direct sales, which include e-commerce and represents 66% of total sales, rose 3% last year, boosted by a positive performance in Asia Pacific and Japan, the company said.
The second half of the year was challenging for the European market, while the Americas showed "encouraging signs" in the same period, the fashion house added.


British Retailer JD Sports to Buy US Rival Hibbett for $1.08 Billion

FILE PHOTO: JD Sports logo is seen on the exterior of a store in London, Britain, November 17, 2021. REUTERS/May James/File Photo
FILE PHOTO: JD Sports logo is seen on the exterior of a store in London, Britain, November 17, 2021. REUTERS/May James/File Photo
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British Retailer JD Sports to Buy US Rival Hibbett for $1.08 Billion

FILE PHOTO: JD Sports logo is seen on the exterior of a store in London, Britain, November 17, 2021. REUTERS/May James/File Photo
FILE PHOTO: JD Sports logo is seen on the exterior of a store in London, Britain, November 17, 2021. REUTERS/May James/File Photo

JD Sports Fashion has proposed to buy American athletic-fashion retailer Hibbett Inc for about $1.08 billion, the companies said on Tuesday, as the British sportswear retailer expands across the southeastern US.
JD Sports, Britain's largest sportswear retailer, will pay $87.50 per Hibbett share in cash, representing a premium of about 20% to the US firm's last closing price.
The Bury, Greater Manchester-based company said it expects to fund the deal and refinance Hibbett's existing debt through its existing US cash resources of $300 million and a $1 billion extension to its existing bank facilities.
The enlarged group would have combined revenues of about 4.7 billion pounds ($5.80 billion) in North America, JD Sports said, adding that the region's contribution to total sales would increase to about 40% from the current 32%.


Apparel Maker Gildan Recommends Two Browning West Nominees to Board

Representation photo: A model presents a creation from the Fall/Winter 2023/2024 Collection by British designer Kim Jones for Dior fashion house during the Paris Fashion Week, in Paris, France, 20 January 2023. (EPA)
Representation photo: A model presents a creation from the Fall/Winter 2023/2024 Collection by British designer Kim Jones for Dior fashion house during the Paris Fashion Week, in Paris, France, 20 January 2023. (EPA)
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Apparel Maker Gildan Recommends Two Browning West Nominees to Board

Representation photo: A model presents a creation from the Fall/Winter 2023/2024 Collection by British designer Kim Jones for Dior fashion house during the Paris Fashion Week, in Paris, France, 20 January 2023. (EPA)
Representation photo: A model presents a creation from the Fall/Winter 2023/2024 Collection by British designer Kim Jones for Dior fashion house during the Paris Fashion Week, in Paris, France, 20 January 2023. (EPA)

Gildan Activewear recommended the election of two Browning West nominees to its board on Monday, ahead of its annual and special shareholder meeting on May 28.
The Canadian clothing maker's board has been clashing with activist fund Browning West, which owns 5% of Gildan, following the ouster of co-founder and CEO Glenn Chamandy in December, Reuters said.
In January, Browning West escalated its fight with Gildan, expanding its list of board candidates to eight from five and called an annual and special shareholder meeting amid the ongoing dispute to replace a majority of its board members and reinstate Chamandy as CEO.
On Monday, the board recommended the election of Karen Stuckey and J.P. Towner, nominated by Browning West. It also appointed five new independent directors to its board effective May 1, 2024.
Gildan had said in March its board decided to put the company up for sale and is in talks with multiple bidders.
The company added on Monday that external interest in an acquisition persists and the process is ongoing.


Louis Vuitton Holds 'Voyager' Fashion Show in Shanghai

A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)
A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)
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Louis Vuitton Holds 'Voyager' Fashion Show in Shanghai

A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)
A logo of Louis Vuitton is displayed on a Louis Vuitton store on the Champs-Elysees avenue in Paris, France, March 30, 2024. (Reuters)

Louis Vuitton debuted its newly-labeled "Voyager" traveling show in Shanghai on Thursday night, showing off asymmetric hemlines and boxy leather vests in the country that is one of the brand's key markets.
More than 1,000 invitees, including international celebrities like Cate Blanchett and local stars such as Zhou Dongyu and Jackson Wang, took in the pre-fall collection designed by women's artistic director Nicolas Ghesquière, Reuters said.
The show was held in the cavernous concrete expanse of the Atelier Deshaus-designed Long Museum, in the riverside West Bund art district. It included pieces made in collaboration with Beijing-based artist Sun Yitian, who painstakingly paints photographs of inflated plastic animals, including ducklings, cats and rabbits. Reprints of her works were incorporated into the opening designs of the show.
In the days leading up to the show, images of Sun's work popped up around Shanghai, China's most international city, projected onto the exterior of malls and plastering walls in hip shopping and lifestyle districts.
For Louis Vuitton, the largest luxury brand in the LVMH stable, China continues to represent one of the world's most important luxury opportunities, even as a broader economic slowdown and consumer malaise stymie growth.
LVMH said on Tuesday that year-on-year sales for the quarter ending in March rose 3% on an organic basis, but purchases by Chinese shoppers globally grew 10%.
Last year, Louis Vuitton's men's line, helmed by Pharell Williams, staged a large-scale show in Hong Kong.


L’Oreal Shares Shine After Sales Beat Expectations 

A cosmetic display of French cosmetics group L'Oreal is seen at a duty free shop at the Nice International Airport, in Nice, France, October 10, 2018. (Reuters)
A cosmetic display of French cosmetics group L'Oreal is seen at a duty free shop at the Nice International Airport, in Nice, France, October 10, 2018. (Reuters)
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L’Oreal Shares Shine After Sales Beat Expectations 

A cosmetic display of French cosmetics group L'Oreal is seen at a duty free shop at the Nice International Airport, in Nice, France, October 10, 2018. (Reuters)
A cosmetic display of French cosmetics group L'Oreal is seen at a duty free shop at the Nice International Airport, in Nice, France, October 10, 2018. (Reuters)

Shares in L'Oreal rose more than 4% in early Friday trading after the French cosmetics giant beat expectations with a strong rise in first quarter sales on Thursday evening, allaying concerns about a slowdown in the United States.

L'Oreal shares were up 5.0% at 0745 GMT having lost 6% this year up to Thursday's close.

"A rock solid quarter, despite concerns," said analysts at Barclays. While L'Oreal did acknowledge a slowdown in the United States, it "comfortably surprised to the upside," both in the US and Europe, they said.

The world's biggest beauty company reported more than 12% sales growth in both North America and Europe, lifted by its mass market range and dermatological products, which helped offset weakness in the luxury segment.

"L'Oreal delivered a strong beat," Bernstein analysts wrote in a note to investors.

They noted L'Oreal's ability to shift investments in advertising and promotions to different parts of the world and across categories and demographics, enabling it to optimize global growth and make it more resilient.


Dior Looks to Marlene Dietrich in New York Fall Show

Logos of Dior brand are seen outside a Dior store in Paris, France, March 3, 2017. (Reuters)
Logos of Dior brand are seen outside a Dior store in Paris, France, March 3, 2017. (Reuters)
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Dior Looks to Marlene Dietrich in New York Fall Show

Logos of Dior brand are seen outside a Dior store in Paris, France, March 3, 2017. (Reuters)
Logos of Dior brand are seen outside a Dior store in Paris, France, March 3, 2017. (Reuters)

French fashion house Christian Dior unveiled a fall line inspired by actress Marlene Dietrich at a catwalk show in New York on Monday evening.
Nodding to Dietrich's personal style, Dior designer Maria Grazia Chiuri dressed models in white shirts, sometimes with ties, pleated trousers and black blazers.
Belted or cowl-neck dresses looked to 1940s silhouettes while some frocks sparkled with beading, Reuters said.
There were also nods to New York, with prints of the Statue of Liberty featuring on some designs. Others were adorned with depictions of the Eiffel Tower in Paris, where Dior is based.
Chiuri worked with artist Claire Fontaine on designing the show space, with pairs of illuminated hands adorning the catwalk's backdrop.
"These hands represent positively and in an empowering way the female sex and they are the hands of the seamstresses, of the creators, myself, of Maria Grazia and the hands of the women that made this project possible," Fontaine said in an interview.
Among the celebrities attending the show were actors Anya Taylor-Joy, Michelle Williams, Naomi Watts, Rosamund Pike and Charlize Theron.


Designer Berluti Reveals Opening Ceremony Tuxedo for French Athletes

An employee shows the Paris 2024 - Berluti label sewn inside the suit jacket for the French team athletes for the opening ceremony by LVMH's upscale menswear label Berluti, in a showroom at Berluti headquarters in Paris, France, April 10, 2024.  REUTERS/Stephanie Lecocq
An employee shows the Paris 2024 - Berluti label sewn inside the suit jacket for the French team athletes for the opening ceremony by LVMH's upscale menswear label Berluti, in a showroom at Berluti headquarters in Paris, France, April 10, 2024. REUTERS/Stephanie Lecocq
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Designer Berluti Reveals Opening Ceremony Tuxedo for French Athletes

An employee shows the Paris 2024 - Berluti label sewn inside the suit jacket for the French team athletes for the opening ceremony by LVMH's upscale menswear label Berluti, in a showroom at Berluti headquarters in Paris, France, April 10, 2024.  REUTERS/Stephanie Lecocq
An employee shows the Paris 2024 - Berluti label sewn inside the suit jacket for the French team athletes for the opening ceremony by LVMH's upscale menswear label Berluti, in a showroom at Berluti headquarters in Paris, France, April 10, 2024. REUTERS/Stephanie Lecocq

LVMH-owned menswear brand Berluti unveiled navy wool suits with colored silk lapels for France's Olympic athletes' opening ceremony outfits on Tuesday.
LVMH, a sponsor of the Paris 2024 games, said the "tuxedo-inspired outfit" reflected Berluti's identity, using "noble materials and patina effects" for an elegant, French look.
The jacket lapels have a red and blue motif inspired by the French flag and the brand's signature color-infused patina leather shoes. The women's jackets have cut-away sleeves.
Berluti was founded in Paris in 1895 by a young Italian shoemaker. The French athletes will also wear Berluti trainers or leather loafers.


Adidas Surges as Strong Momentum Helps Q1 Beat, Triggers Outlook Hike 

08 March 2022, Bavaria, Herzogenaurach: The logo of the sporting goods manufacturer Adidas on a blue jacket. (dpa)
08 March 2022, Bavaria, Herzogenaurach: The logo of the sporting goods manufacturer Adidas on a blue jacket. (dpa)
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Adidas Surges as Strong Momentum Helps Q1 Beat, Triggers Outlook Hike 

08 March 2022, Bavaria, Herzogenaurach: The logo of the sporting goods manufacturer Adidas on a blue jacket. (dpa)
08 March 2022, Bavaria, Herzogenaurach: The logo of the sporting goods manufacturer Adidas on a blue jacket. (dpa)

Shares in Adidas rose more than 7% on Wednesday, hitting their highest level in over two years after the German sportswear giant on Tuesday reported better-than-expected quarterly results and raised its 2024 guidance on stronger momentum.

Growth is being driven by strong demand momentum in "terrace" retro styles, such as Samba, Gazelle and Campus, as well as strength in performance categories, analysts at Wedbush said.

Analyst Cedric Lecasble at Stifel also highlighted that the raise in 2024 guidance "had little to do with Yeezy mechanics, but was much more driven by Adidas brand building materializing at full speed."

Adidas has been undergoing a turnaround after in October 2022 it cut ties with rapper West, who goes by Ye, suspending sales of the highly profitable Yeezy sneaker line.

It later resumed sales of Yeezy products under the lead of CEO Bjorn Gulden, in the job since the start of 2023, to clear remaining stock while seeking to boost its popular retro styles.

Lecasble described revenue performance in the first quarter as "impressive" in the context of challenging market conditions.

Analysts however view Adidas' guidance for operating profit (EBIT) of 700 million euros as still conservative.

Given that consensus already estimates the figure at around 890 million euros for 2024, RBC analyst Piral Dadhania pointed out, "the market clearly does not believe the EBIT guide, which to us appears to be unrealistic, and overly conservative."

Adidas delivered a quarterly EBIT of 336 million euros.

The company said it sold another 150 million euros worth of Yeezy products in the past quarter, for an operating profit of around 50 million euros. It, however, expects no further profit contribution from the remainder of Yeezy inventory, which it anticipated to sell for about 200 million euros later this year.

Shares were up 6% by 09:49 GMT, topping pan-European STOXX 600 index.


UK's ASOS Sinks to First-half Loss

A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs
A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs
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UK's ASOS Sinks to First-half Loss

A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs
A model presents the latest creations from the Dior pre-fall 2024 women’s collection at the Brooklyn Museum in New York City, New York, US, April 15, 2024. REUTERS/Caitlin Ochs

British online fashion retailer ASOS sunk to a first-half loss, as it battles competition from Chinese giant Shein and self-inflicted problems from excess stock, but it said it still expected an improvement over the year.
ASOS also named former Sainsburys and Amazon executive Dave Murray as its new chief financial officer on Wednesday, saying that his retail and e-commerce experience would help return the group to profitability, Reuters reported.
The company has struggled to grow since the pandemic and has cast its current financial year as a transition period, when it will speed up new collection launches and shed a build up of excess stock which has dragged on profits.
For the 26 weeks to March 3, ASOS posted an adjusted EBITDA loss of 16.3 million pounds ($20.3 million), compared to the 4.6 million pounds it made in the period last year.
Over the full-year period, it is sticking to a forecast for positive adjusted EBITDA on sales that are expected to be 5 to 15% lower.
"ASOS is becoming a faster and more agile business, and we are reiterating our guidance for the full year as we lay the foundations for sustainably profitable growth in full-year 2025 and beyond," CEO José Antonio Ramos Calamonte said.
ASOS is facing growing competition from fast-fashion giant Shein, which is expanding rapidly in Europe, offering low prices and benefiting from its speedy response to changing trends.


Dr. Martens Dour US Revenue Outlook for the Year Sends Stock of Iconic Bootmaker Plunging

A Dr. Martens boot inspired by Elton John's famous Pinball Wizard outfit is shown at a promotional event in London, March 20, 2023. (AP)
A Dr. Martens boot inspired by Elton John's famous Pinball Wizard outfit is shown at a promotional event in London, March 20, 2023. (AP)
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Dr. Martens Dour US Revenue Outlook for the Year Sends Stock of Iconic Bootmaker Plunging

A Dr. Martens boot inspired by Elton John's famous Pinball Wizard outfit is shown at a promotional event in London, March 20, 2023. (AP)
A Dr. Martens boot inspired by Elton John's famous Pinball Wizard outfit is shown at a promotional event in London, March 20, 2023. (AP)

Chunky bootmaker Dr. Martens is warning of a tough year ahead.

Dr. Martens shares plunged more than 30% Tuesday after the iconic British brand forecast wholesale revenue in the US, its largest market, would decline by double-digits compared with last year.

Trading in Dr. Martens stock was temporarily halted on the London Stock Exchange early Tuesday as it sank to a record-low 0.64 pounds, according to FactSet.

That could translate into a sizeable hit to profits, with the company pointing to a base projected impact of 20 million pounds ($24.9 million) on pretax earnings year-over-year. In-season orders from wholesale customers could help ease US revenue expectations, the company noted, but those are difficult to predict.

Beyond weakening revenue, Dr. Martens anticipates other hefty expenses related to the company's employee retention plans as well as single-digit inflation in its cost base. Unlike years past, the brand does not plan to increase prices to offset those costs.

Dr. Martens also announced a leadership shakeup on Tuesday. After six years at the helm of the company, CEO Kenny Wilson will step down. Ije Nwokorie, Dr. Martens’ chief brand officer, will take his place before the end of the current fiscal year.

In a prepared statement regarding 2025's financial outlook, Wilson acknowledged the challenges ahead, saying that Dr. Martens is focused on its plans to "reignite boots demand, particularly in the USA.”

Still, Wilson said that the brand “remains strong.” Dr. Martens said it saw a pick-up in direct to consumer growth during the fourth quarter.

Shares for Dr. Marten are down more than 56% over the last 12 months, per FactSet.