"As the summer comes to a close, hot-button issues like tariffs, manufacturing and pricing are continuing to dominate conversations at fashion brands. After the chaos of the last few months, some companies are managing to find a way forward. Abercrombie & Fitch Co. recently reported record net sales of $1.2 billion for its second fiscal quarter. Urban Outfitters, Inc. reported a record $252.2 million in net income for its first half of the year."
"Still, the fashion industry - like much of retail - remains on somewhat shaky ground when it comes to predicting demand and sales. Many apparel and footwear brands manufacture abroad, where new, higher tariffs threaten to throw a wrench in their growth plans. Global supply chain costs are on track to rise up to 7% above inflation by the fourth quarter, per Kearney."
Abercrombie & Fitch Co. posted $1.2 billion in second-quarter net sales, Urban Outfitters reported $252.2 million in net income for the first half, and Gap Inc. recorded positive comparable sales for six straight quarters. The industry faces uncertainty from new tariffs, higher manufacturing costs abroad, and supply-chain expenses forecast to run up to 7% above inflation by Q4. Apparel and footwear remain discretionary purchases as consumers prioritize essentials; PwC found 84% expect spending cuts by December, with 36% targeting clothing and 53% influenced by price increases. Crocs' CEO described the second-half retail environment as concerning.
Read at Digiday
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