From Rags to Riches: Indian Designer Finds Sustainable Way to High Fashion

A man sorts discarded fabric waste at a market in New Delhi, India, November 4, 2021. REUTERS/Adnan Abidi
A man sorts discarded fabric waste at a market in New Delhi, India, November 4, 2021. REUTERS/Adnan Abidi
TT

From Rags to Riches: Indian Designer Finds Sustainable Way to High Fashion

A man sorts discarded fabric waste at a market in New Delhi, India, November 4, 2021. REUTERS/Adnan Abidi
A man sorts discarded fabric waste at a market in New Delhi, India, November 4, 2021. REUTERS/Adnan Abidi

An Indian designer is using discarded pieces of cloth to piece together fashionwear for men and women as a sustainable alternative to high-end garments.

New Delhi-based Kriti Tula's fashion label Doodlage collects fabric waste from factories discarded for minor defects and pieces them together to create flowing dresses and sarees, selling them for about $100 a piece.

Tula said the label, which includes a men's line featuring patchwork shirts with denim strips, emerged out of her concern for global warming and the fashion industry's impact on the environment.

Having worked at major textile export houses, the designer said she had seen the environmental cost of high fashion first-hand: waste of cloth and water, and toxins emitted in the production process.

"Everything that we wear eventually impacts everything that we eat and consume and we breathe," Tula told Reuters at her workshop in the capital.

The roughly $2.4 trillion global fashion industry accounts for 8-10% of the world's carbon emissions - more than all international flights and maritime shipping combined, the United Nations Environment Program said in 2019.

The industry is also the second-biggest consumer of water, generating about 20% of the world's wastewater, it added.

Tula said sourcing the scraps initially proved complex and the product prices had to be higher than what many buyers may have felt was worth paying for recycled wear.

Gradually though, her business has found like-minded vendors and partners, she said. Besides clothes, her label also makes soft toys, bags, purses and paper out of leftover fabric.



Birkenstock Results Beat on Resilient Demand, Forecasts Margin Recovery

A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)
A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)
TT

Birkenstock Results Beat on Resilient Demand, Forecasts Margin Recovery

A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)
A Birkenstock shoe is displayed at Birkenstock shoe store in London, Britain, October 11, 2023. (Reuters)

Birkenstock beat market expectations for fourth-quarter results on robust demand for its pricey footwear and forecast a recovery in margins in fiscal 2025, sending the company's shares up 7% on Wednesday.

With fresh styles becoming a priority for consumers, Birkenstock's sandals and closed-toe clogs have drawn new customers both at its own stores and at retailers.

The company bypassed steep discounting trends evident during the holiday shopping season, which Birkenstock executives said was off to a strong start globally.

"The expansion of ranges into more closed-toe silhouette has helped boost revenue, given that they offer multi-season wear," Susannah Streeter, head of money and markets at Hargreaves Lansdown, said.

Germany-based Birkenstock's average selling prices across its product range were up 8% in fiscal 2024, in part due to higher sales of clogs, the company said, adding that closed-toe styles now made up about a third of its business.

The company has invested in expanding its global store presence and increasing manufacturing capacity this year to meet demand.

While it led to a 330-basis point drop in gross margins in fiscal 2024, Birkenstock forecast a recovery in margins in fiscal 2025 as it ramps up production from new facilities.

The company reported fourth-quarter revenue of 455.8 million euros ($478.27 million), compared with the average analyst estimate of 439.2 million euros, according to data compiled by LSEG.

However, Birkenstock's forecast for fiscal 2025 revenue to increase between 15% and 17% was below estimates of 17.5% growth.

"It would appear with this incredibly healthy growth, the company is choosing to adopt a conservative approach that they expect to be able to meet and beat," BMO Capital Markets analyst Simeon Siegel said.

On an adjusted basis, Birkenstock earned 0.29 euro per share, beating estimates of 0.26 euro.