Arab Women Entrepreneurs Defy Odds with Leap into Sportswear

Saudi fashion designer Eman Joharjy in her boutique in Jeddah, Saudi Arabia. (Reuters)
Saudi fashion designer Eman Joharjy in her boutique in Jeddah, Saudi Arabia. (Reuters)
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Arab Women Entrepreneurs Defy Odds with Leap into Sportswear

Saudi fashion designer Eman Joharjy in her boutique in Jeddah, Saudi Arabia. (Reuters)
Saudi fashion designer Eman Joharjy in her boutique in Jeddah, Saudi Arabia. (Reuters)

Nathaly Daou zigzags through an underground fabric store in Beirut, pulling out bolts of neon Lycra and patterned polyester before settling on a roll of white cotton.

Finding affordable fabric for her budding sportswear line during Lebanon's economic crisis has been a challenge for the 36-year-old entrepreneur, one of several women making strides into the activewear sector in the Middle East and North Africa.

"We had all these imported brands, but I wanted to do something special - something different," said Daou, who is also a professional photographer and pole-dance instructor.

She launched her line "Nat-Usual" in August 2020 - weeks after Beirut's devastating port blast and nearly a year into the financial collapse that has put more than three-quarters of Lebanon's people below the poverty line.

The currency has lost more than 90% of its value over the last three years, meaning imported fabrics either quintupled in price or were no longer available.

Rampant power cuts across the country delayed production by months and the banking sector had effectively collapsed, cutting off potential financing for her fledgling business.

"It was impossible to create a business plan. I kept thinking, should I do it? But I've had this idea for 10 years, and I didn't want to wait anymore," Daou told the Thomson Reuters Foundation.

She hunted down affordable fabrics across the city, spread news of her line through her pole-dancing network, and initially priced her pieces in Lebanese pounds to keep them affordable.

"I had a vision of a Lebanese brand priced in pounds - but in the end, even my tailor was asking to get paid in US dollars because his own expenses had gone up, too. I had no choice."

Small margins, big ambitions

Across the Middle East and North Africa (MENA), just 5% of formal firms are led by women. For every female entrepreneur, there are another six women who want to start a business but do not manage to achieve their goal.

Small and medium-sized enterprises led by women in the region have long struggled to access sufficient financing, according to the World Bank, which said the situation had become "even more dire" during the COVID-19 pandemic.

Tunisian business owner Fatma Ben Soltane, who launched her sportswear line Fierce in 2019, has struggled to scale up due to a credit crunch during the pandemic.

She did access some funding through Flat6Labs Tunisia, an accelerator program and early-stage venture capital fund backed by the World Bank's International Finance Corporation (IFC) arm and supported by the Women Entrepreneurs Finance Initiative (We-Fi).

"It's so much more difficult to access financing than pre-COVID. I'm trying to get credit to open a big two-level flagship store for Fierce, but it's taking too much time," she said.

Fierce focuses on sustainability - its best-selling leggings are made from recycled plastic bottles.

Other items are made out of reused Tunisian cotton, and Ben Soltane insists on producing in smaller batches to reduce textile waste.

"It's much more expensive for us because it's not an economy of scale and to push this eco-friendly product, we kept the margins on those products low to encourage people to buy it," she said.

The leggings run at 85 Tunisian dinars ($29.60) - much less than brands imported from abroad, on which Tunisia charges tariffs as high as 150%.

It seems to have worked: Ben Soltane said the company's revenues have tripled in the last year.

'Go girl!'

For Saudi designer Eman Joharjy, inspiration came from her love of exercising outdoors.

The former financial professional said she wanted to be able to run and cycle outside, but conservative norms mean women wear loose robes known as abayas and cover their hair - making exercise difficult.

The usual skin-tight leggings and t-shirts on sale at shopping malls would not do, so Joharjy designed a "sports abaya" for herself in 2007.

The loose, cotton, one-piece garment had long sleeves, pockets, zippers, and cinched legs - and came in blue, instead of the conventionally black robes.

The first time she wore it out for a jog, she got stares and plenty of laughs.

"Little by little, I went from being the joke of the town to the trend of the town - and the sports abaya became a new niche," Joharjy said, speaking by video call from her studio in Jeddah, Saudi Arabia.

They now come in cotton and dry-fit fabric, and run up to 650 Saudi riyal ($173.23).

"When I see a lady jogging or running with my abaya, I'm like, 'Yes! Go girl!'" said Joharjy, who is being mentored as part of Vogue Arabia's 100 Saudi Brands fashion program.

She has gone on to design pieces for Saudi women professionals - architects who needed to be on construction sites or photographers who needed big pockets for their lenses.

"I wanted to give women more access to the public space to say, we are here, and we can do anything," she said.

Other designers across the region have begun producing sports abayas - but Joharjy is not fazed.

"It's beautiful to be a trend-setter," she said.



Etro Founding Family Exits Group as New Investors Including Türkiye's RAMS Global Join

L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner. Reuters
L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner. Reuters
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Etro Founding Family Exits Group as New Investors Including Türkiye's RAMS Global Join

L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner. Reuters
L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner. Reuters

The founding family of Italian fashion house Etro has sold the minority stake it still owned in the brand to a group of investors including Turkish group RAMS Global, the company said on Friday.

L Catterton, a private equity firm backed by French luxury giant LVMH, will remain Etro's majority owner and "will continue to actively support the brand's long-term growth strategy," Etro added, according to Reuters.

The new investors comprise also Italian fashion group Swinger International and small private equity firm ⁠RSI.

In addition to buying the stake, they all subscribed to a capital increase that will lower L Catterton's holding in Etro to between 51% and 55% from around 65%.

When including both the acquisition and the capital increase, the deal is worth around 70 ⁠million euros ($82 million), two sources close to the matter said. Etro did not disclose financial details.

Chief Executive Fabrizio Cardinali will remain at the helm, while Faruk Bülbül, representing RAMS Global, will become chairman of the board.

L Catterton bought a 60% stake in the brand known for its paisley motif four years ago, and it slightly increased the holding over the years.

The company, founded by Gimmo Etro in 1968, has ⁠been struggling with its turnaround. Last year it posted a net loss of 23 million euros with net revenues declining to 245 million euros from 261 million euros, according to filings with the local chambers of commerce reviewed by Reuters.

Rothschild advised L Catterton and the Etro family on the deal.

Rothschild had been hired in 2024 to look for a new investor who could buy all or part of the Etro fashion group, sources had previously told Reuters.


Paris Court Rejects Bid to Suspend Shein Platform in France

A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo
A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo
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Paris Court Rejects Bid to Suspend Shein Platform in France

A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo
A customer holds shopping bags with a Shein logo in the first physical space of Chinese online fast-fashion retailer Shein on the day of its opening inside the Le BHV Marais department store, the Bazar de l'Hotel de Ville, in Paris, France, November 5, 2025. REUTERS/Sarah Meyssonnier/File Photo

A Paris court on Friday rejected a government request to suspend Chinese fast-fashion platform Shein in France after authorities found illegal weapons and child-like sex dolls for sale on the fast-fashion giant’s website.

Shein welcomed the decision, saying it remains committed to strengthening its control processes in cooperation with French authorities.

“Our priority remains protecting French consumers and ensuring compliance with local laws and regulations," the company said in an emailed statement to The Associated Press.

The controversy dates to early November, when France’s consumer watchdog and Finance Ministry moved toward suspending Shein’s online marketplace after authorities said they had found childlike sex dolls and prohibited “Class A” weapons listed for sale, even as the company opened its first permanent store in Paris.

French authorities gave Shein hours to remove the items. The company responded by banning the products and largely shutting down third-party marketplace listings in France.

French officials have also asked the European Commission to examine how illegal products were able to appear on the platform under EU rules governing large online intermediaries.


Lululemon Jumps on Elliott's $1 Billion Bet Ahead of Leadership Change

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
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Lululemon Jumps on Elliott's $1 Billion Bet Ahead of Leadership Change

FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo
FILE PHOTO: A logo is displayed inside a Lululemon outlet retail store at Bicester Village in Oxfordshire, Britain, August 21, 2024. REUTERS/Hollie Adams/File Photo

Lululemon Athletica shares rose nearly 8% in early trading on Thursday after reports Elliott Management has built a $1 billion stake in the athleisure wear maker and is working with former Ralph Lauren executive Jane Nielsen for a potential CEO role.

The Canada-based retailer said last week that Calvin McDonald will step down after nearly seven years as its top boss, sparking hopes for a leader who can reverse slowing growth and win back younger shoppers amid fierce competition from trendier players like Alo and Vuori. The stock has lost nearly half of its value this year, underscoring investor concerns over Lululemon's struggles. The company's shares were trading at $224 on Thursday.

"Elliott is famous for agitating for change. These positions aren't built overnight, so Lululemon's board probably saw this coming," said Brian Jacobsen, chief economic strategist, Annex Wealth Management.

The activist investor has been working closely for months with Nielsen, a retail veteran, a source told Reuters on Wednesday. Nielsen, who sits on the board of Cadbury parent Mondelez, has also served as finance chief at Tapestry-owned Coach.

"Lululemon is one of the most powerful brands in retail, defined by exceptional products, deeply engaged communities and significant global potential," Nielsen said in a statement to the Wall Street Journal. "I would welcome the chance to discuss this opportunity with the Lululemon board."

Elliott, Lululemon and Nielsen did not respond to Reuters requests for comment.

Analysts have said the company will need to upgrade its fabrics, use fresher designs and accelerate product launches that click with Gen Z to reclaim its "cool factor" and lure shoppers back.

With much of its sourcing tied to Asian factories facing higher import duties, Lululemon will also need to streamline its supply chain to blunt US tariff pressures and protect margins next year, analysts have said.

"Lululemon should implement fast fashions and introduce an assortment that will pull customers from Alo and Vuori - especially Gen Z customers.

Fast fashion requires a much better supply chain than is currently in use at Lululemon," said Brittain Ladd, a strategy and supply chain consultant at Florida-based Chang Robotics.

The brand's struggles have drawn sharp criticism from founder and largest individual shareholder Chip Wilson. He has also called for an urgent CEO search, led by new, independent directors with deep company knowledge to restore a product-first focus.

Wilson did not respond to a Reuters request for comment.

With a 4.3% ownership, Wilson's stake is valued at about $988 million, according to LSEG data, making Elliott one of the top shareholders in Lululemon, which is valued at nearly $25 billion.

Lululemon trades at a forward price-to-earnings ratio of 16.37, while Gap trades at 11.88 and American Eagle at 16.81, according to LSEG data.