Performance Apparel Markets - Grado Zero Espace Srl

Performance Apparel Markets, 1st quarter 2006
Business update
Umbro is a supplier of
football related products
Sales in 2005, a nontournament
year, were
1.2% down on 2004
But profits before tax
rose to £31.4 mn
compared with a loss of
£7.15 mn in 2004
The 2006 World Cup
will benefit sales
Umbro is launching
year-round branded
products to iron out annual
peaks and troughs related
to tournaments
It also hopes for higher
sales from new
fashion-oriented ranges
VF Corporation has
reported record results
for 2005
Sales in the fourth quarter
rose by 4%, driven
primarily by 23% growth
in the company’s outdoor
category
For the full financial year
sales rose by 6.2%
UMBRO
Umbro, a UK-based supplier of football related products, has reported
the results for its 2005 financial year, which ended on December 31,
2005.
At £351.9 mn (US$639.6 mn), total sales were 1.2% down on 2004.
The company claims that this is a good achievement given that 2005
was a non-tournament year.
In fact profits before tax rose to £31.4 mn compared with a loss of
£7.15 mn in 2004. Umbro explained that underlying growth in
non-tournament activities and greater efficiencies had helped to secure
the improvement in profitability.
The company expects to benefit from sales linked to the FIFA World
Cup in 2006.
However, it is also seeking to iron out those peaks and troughs in its
financial results which are directly related to whether or not there is
a tournament in the year. To this end, it is launching branded products
which can be sold all the year round. The company is also expanding
in other countries such as China and Russia.
In addition, it is hoping for higher sales from the launch of
fashion-oriented ranges aimed at a younger market. These include U
by Umbro and a line of clothing designed by Philip Treacy.
VF CORPORATION
USA-based clothing company VF Corporation has reported record
results for the fourth quarter of 2005 and for its full financial year,
which ended on December 31, 2005.
Sales in the fourth quarter of 2005 rose by 4% to US$1.65 bn from
US$1.58 bn in the same quarter of the previous year. The increase
was driven primarily by strong growth in the company’s outdoor
category which includes brands such as The North Face and Vans.
Sales in this category rose by 23% to US$343.9 mn in the fourth
quarter of 2005.
For the full 2005 financial year, sales increased by 6.2% to
US$6.50 bn, from US$6.12 bn in 2004 (Table 5).
Sales in the outdoor sector
rose 43.8% but fell in jeanswear,
intimate apparel and
other business categories
Once again sales in the outdoor sector performed strongly—having
risen by 43.8% to US$1,454.9 mn compared with US$1,011.5 mn in
2004. But sales in the jeanswear, intimate apparel and other business
categories saw decreases.
Net profits grew by 6.7% to
US$506.7 mn
The net profit for VF in 2005 was US$506.7 mn compared with
US$474.7 mn in 2004, representing a rise of 6.7%.
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