Business News October 2018

TFL publishes every month business news with focus on the leather industry, on a worldwide basis.

Ted Baker reacquires shoe license

The London fashion label Ted Baker has reacquired its shoe license from the British Pentland Group. Ted Baker will pay 14.6 million Euros (converted price) for the shares of the companies No Ordinary Shoes and No Ordinary Shoes USA LLC. Additionally, they will pay assets yet to be evaluated worth 4.5 to 9 million Euros.

Vans wants to grow substantially

US shoe brand Vans, that belongs to the VF Corporation, wants to raise its turnover by two billion US Dollars to five billion US Dollars by 2023. This corresponds to a yearly growth of ten to twelve percent. “Since the take-over by VF in 2004, the Vans brand had a yearly growth rate of 17 percent and has become a global lifestyle brand” Steve Rendle, Chairman, President and CEO of VF Corporation said at an investors meeting taking place at the headquarters of the brand in the Californian Costa Mensa. In the coming five years, Vans wants to grow in all product categories, distribution channels and regions.

Zalando lowers annual forecast

Online fashion dealer Zalando SE has lowered its annual forecast for the fiscal year 2018. The long and unusually hot summer as well as a late start in the autumn/winter season are straining the turnover growth and the EBIT adjusted for currency effects. August and September 2018 were marked by high temperatures all over Europe. This has led to a declining demand and shrinking turnovers in the entire fashion market. Also, higher discounts than in previous year were a consequence. The high temperatures have furthermore postponed the start of the autumn/winter season and thus the usual sales of full-priced goods with higher margins at the beginning of the season. Despite this challenging market situation, Zalando is growing significantly faster than the fashion market. Important long-term growth indicators such as the share of the partner programme and the number of active customers have continued to show a positive development.

German shoe industry increases exports to Russia

In September, the federal association of the shoe and leather goods industry HDS/L was present at the shoe fair MosShoes in Moscow with a joint stand. The Russian market is cautiously showing positive signals. More than 1,000 brands from 30 countries presented themselves at the fair, that took place in Moscow from 10th to 13th September. According to the fair organisers, the visitor numbers remained stable: 12,000 buyers from Russia and adjoining countries attended the MosShoes to place their orders for spring/summer 2019.