Fast-fashion Chain Primark Expands Sustainable Cotton Program

A woman walks past a window display showing new environmentally themed posters at a Primark store in Liverpool, Britain, September 15, 2021. REUTERS/Phil Noble
A woman walks past a window display showing new environmentally themed posters at a Primark store in Liverpool, Britain, September 15, 2021. REUTERS/Phil Noble
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Fast-fashion Chain Primark Expands Sustainable Cotton Program

A woman walks past a window display showing new environmentally themed posters at a Primark store in Liverpool, Britain, September 15, 2021. REUTERS/Phil Noble
A woman walks past a window display showing new environmentally themed posters at a Primark store in Liverpool, Britain, September 15, 2021. REUTERS/Phil Noble

Primark, one of Europe's biggest fast fashion chains, has pledged to train an additional 125,000 smallholder cotton farmers in more sustainable farming methods in India, Pakistan and Bangladesh by the end of 2023.

The group's sustainable cotton program trains farmers on using fewer chemical pesticides and fertilizers and less water, thereby preserving the biodiversity and helping to mitigate against climate change. It also lowers input costs and improves yields and profits for the farmer, the group says.

Primark, owned by London-listed Associated British Foods, said on Friday the commitment would take the total number of farmers in the program to over 275,000 by the end of next year.

Last September, Primark vowed to cut its environmental impact by using more recyclable materials, making clothing more durable, and improving wages for workers.

It pledged that 100% of the cotton in its clothes would be sourced from its sustainable cotton program, organic or recycled by 2027. It also committed to make all its products from recycled fibers or more sustainably sourced materials by 2030.

Currently, almost 40% of Primark clothing is made from recycled fibers or more sustainably sourced materials.

With environmental campaigners singling out the fashion industry for its heavy use of water and chemicals, major brands are coming under pressure to adapt supply chains and address a culture that has led to millions of items ending up in landfill, Reuters reported.

Many environmental campaigners are skeptical about green pledges from brands, believing they are driven by a need for good PR and that the industry requires a wider culture change instead. Primark says its sheer size means it can make a difference.

Last month Primark said it would raise some prices as it battles inflationary pressures.



Estee Lauder Sees Bigger Sales Fall in 2025 on US Slowdown, Sputtering China Recovery

An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)
An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)
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Estee Lauder Sees Bigger Sales Fall in 2025 on US Slowdown, Sputtering China Recovery

An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)
An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)

Cosmetics giant Estee Lauder forecast a bigger-than-expected drop in fiscal 2025 sales on Thursday, signaling a slowdown in demand for beauty products in the American market and a longer road to recovery in the key China region.

Estee has been struggling to revive sales at airports and tourist hubs in China and other major Asian markets as consumer sentiment in the region remains weak due to high unemployment rates. Asia-Pacific, which includes China, contributed 31.3% of the company's total sales in fiscal 2024.

Its sales have also been soft in the US, with the company now facing challenges from President Donald Trump's chaotic implementation of tariffs.

Estee had pulled its annual forecast in October, citing an uncertain recovery in China, before Stephane de La Faverie took over as CEO.

His turnaround plans for the company include speeding up of new launches and bringing in new luxury price tiers. But that might face a roadblock from growing economic uncertainties due to the trade war.

Organic net sales in the Americas fell 5% on retail softness and decline in consumer confidence and sentiment.

"From a regional perspective, the Americas had the largest miss and EMEA (Europe, Middle East and Africa) was only slightly softer ... Outperformance on margins show the progress of EL's PRGP (profit recovery plan) and restructuring activities," RBC Capital Markets analyst Nik Modi said in a note.

European peer L'Oreal has also flagged weakness in the US, while it continues to see strong demand for its creams and perfume in Europe.

Estee expects fiscal 2025 net sales to be down 8% to 9%, compared with analysts' estimate of a 7.07% fall, according to data compiled by LSEG.

The company forecasts annual adjusted per-share profit to be between $1.30 and $1.55, with midpoint above the estimate of $1.40, as it starts to benefit from its restructuring plan, including job cuts.

Shares of the MAC lipstick maker were down nearly 1%.

Estee aims to return to sales growth in fiscal 2026, its CEO said, adding that this depends on the resolution of the recently enacted tariffs to mitigate potential negative impacts.

The US has imposed 145% tariffs on China, while Beijing put a 125% levy on American imports into the country.

To navigate the tariff situation, Estee expects to reduce imports into China from the US to 10% from 25%.

Estee said about a quarter of products imported into EMEA are sourced from the US, but it is working to change to regionalized and third-party manufacturing networks.