59 037
Fashion Jobs
Men's Sales Manager - Fashion Island
Permanent · Newport Beach
Production Manager - Footwear
Permanent · New York
Asset Protection Detective, Queens Center - Standard Part Time
Permanent · New York
Asset Protection Detective, Lakeline Mall - Full Time
Permanent · Cedar Park
Asset Protection Detective, Florida Mall - Full Time
Permanent · Orlando
Manager, Omni Operations
Permanent · Columbus
Manager, Style Merchandise Execution
Permanent · Auburn
Senior Manager, Government Risk & Compliance
Permanent · Johns Creek
Vice President, Global Planning Systems
Permanent · East Rutherford
Visual Merchandising Manager
Permanent · Miami
Loft Part Time Sales Manager
Permanent · Virginia Beach
Senior Buyer - Dropship Program
Permanent · New York
Buyer - Dropship Program
Permanent · New York
Manager Supply Chain-Retail
Permanent · Portland
Territory Sales Representative - Northern Virginia
Permanent · Arlington
Senior Director, Product Management - Yeezy
Permanent · Los Angeles
Asset Protection - Agent - Hyatt Centric Waikiki Beach Rack
Permanent · Honolulu
Area Manager - Receiving (Monday pm-Saturday am; 8:00pm-4:30am)
Permanent · San Bernardino
Asset Protection - Agent - Victoria Ward Village Rack
Permanent · Honolulu
Assistant Manager, Guest Experience | Hill Country Galleria Pop-up
Permanent · Austin
General Manager - Carlsbad Premium
Permanent · Carlsbad
Area Manager, Asset Protection - Indianapolis
Permanent · Indianapolis
Nov 1, 2018
Reading time
2 minutes
Download the article
Click here to print
Text size
aA+ aA-

Moody’s raises outlook for US apparel and footwear industry

Nov 1, 2018

A matter of days after it upped its 2018 outlook for US retail from “stable” to “positive”, Moody’s Investors Services has done the same for the country’s apparel and footwear industry, citing higher-than-expected earnings growth in the sector, which the company expects to continue for the next 12 to 18 months.

Instagram: @amazonfashion

Moody’s now expects the industry to see operating profit growth in the range of 8% to 9% this year, revised up from a previous outlook of 3%-5%. This growth rate is predicted to decelerate to 6%-7% in 2019.
Sales in the sector are now expected to grow between 6% and 7% this year and between 4% and 5% in 2019. The Moody’s outlook also takes international sales into account and these too are expected to continue to grow steadily, particularly in Asia.

Moody’s named Nike, Inc., PVH Corp., and VF Corp. as examples of large US companies active in the apparel and footwear sector that are seeing concurrent growth after a rocky two years for the industry.
Nike’s progress with direct-to-consumer revenues and international expansion were cited as strong evidence that the company will shortly be posting solid profit growth, while PVH was praised for its product offering and marketing. VF is expected to see continued growth in its Vans and The North Face brands, as well as in its workwear business.
“The positive outlook for the US apparel and footwear industry reflects faster-than-anticipated revenue and profit growth,” said Moody's Apparel Analyst Michael Zuccaro in a release. "We expect nearly all our rated companies to show some form of profit growth next year as they realize benefits from cost-saving initiatives, acquisition synergies, new product introductions and targeted marketing, as well as improved macroeconomic conditions.”
Moody’s highlighted the renewed focus of many apparel and footwear brands on direct-to-consumer sales channels as a driver of growth, pointing out that it allows companies to more closely control brand messaging and the overall shopping experience.
Moody’s also expects companies to continue to take advantage of international expansion opportunities, particularly in emerging markets such as China.
The possibility of additional tariffs on Chinese imports, however, was highlighted as a potential risk for the sector moving forward, as such measures would result in increased costs for a number of apparel and footwear brands, as well as a possible downturn in consumer spending in the US.
Subscribers to Moody’s research can consult the company’s full report on its increased 2018 outlook for the US apparel and footwear industry on its website.

Copyright © 2022 FashionNetwork.com All rights reserved.