Q3 Supplier Sales Increase 4.7%
Nearly six in 10 suppliers (57%) reported an increase in year-over-year sales in Q3. About 23% reported lower sales and 20% had no change in third-quarter revenues. Large supplier firms (more than $5 million in annual sales) had a stronger Q3 than smaller firms (less than $5 million), data shows. Large suppliers, on average, reported a third-quarter sales increase of 5.1% versus 1.3% for smaller companies.
Going forward, more than half (56%) of suppliers expect their 2014 full-year sales to be greater than their 2013 total revenues, buoyed by favorable fourth-quarter numbers. "We expect about a 7% increase for Q4 year-over-year," said Alan Vaught, CEO of supplier firm Evans Manufacturing (asi/52840). "We have a stretch plan of 17% for next year, mostly from new product introduction."
The 4.7% quarterly supplier growth closely follows average Q3 gains among distributors. ASI data released last month showed distributors increased their third-quarter sales by 4.6%. Meanwhile, the Counselor Confidence Index, a measure of distributor health, was 112 in Q3 – identical to the six-month rolling average and a dozen points above the baseline that indicates industry growth.
EU Passes Plastic Bag Measure
"The significance of this package is enormous," Dutch politician Gerben-Jan Gerbrandy told the Guardian newspaper. "It is a huge victory for not only the European environment, but also globally as most of these single-use bags end up in the world's oceans and are one of the big causes of the ‘plastic soup' phenomenon."
Four years ago, the average EU citizen used 176 plastic bags, few of which are recycled, a number that is similar to other wealthy economies. However, usage varies widely between member states, EU data shows. For instance, Poles and Slovaks use an average of 466 disposable bags a year, whereas Danes, who are charged for them, use only four bags annually.
A trade group for the plastics industry was critical of the deal, saying a patchwork of different national rules on bags could impede trade. The group instead favors supermarkets charging customers for bags. Other opponents of the measure say implementing bag restriction legislation will be a struggle for some EU countries.
The EU deal is part of a growing trend of plastic bag bans and restrictions. Baltimore recently became the first East Coast city in the U.S. to pass a bag ban. Earlier this year, California became the first state in the U.S. to pass a statewide ban, though plastic bag manufacturers have spent millions of dollars since then working to overturn the legislation, according to reports.
Gildan Revenues, Profit Jump
The company also said that its revenues in its fiscal 2014 jumped by 8%, reaching a total of $2.36 billion for the full year, which ended on October 5.
"For the fourth quarter, we have reported record results for any fiscal quarter in the company's history and earnings-per-share (EPS) growth of 20% compared to Q4 2013," said Laurence Sellyn, Gildan's executive vice president and chief financial officer, during a conference call with analysts to announce the company's financials. "The 20% growth in EPS in the fourth quarter was due to the higher year-over-year sales revenues in both Printwear and branded apparel, as well as higher operating margins in both operating segments."
In its financial filing, Gildan said its Printwear segment (which is mostly responsible for the company's sales to apparel suppliers, distributors and decorators) performed particularly well in the most recent quarter. Ultimately, the company said, higher selling prices were to thank for the increases.
"The increase in Printwear net sales was due to higher net selling prices in the quarter and more favorable product mix, partially offset by weaker demand," Gildan said in its filing. "In the fourth quarter, the Printwear segment reported operating income of $118.9 million, up 6.2% from $112.0 million in the fourth quarter of fiscal 2013. Operating margins for Printwear were 27.3%, compared with 26.4% in the fourth quarter of last year."
Apparel Retailers Finance Bangladesh Safety Loans
PPPC 2014 Announces Momentum Award Recipients
Starline Honors Sales Reps of the Year
Superex Appoints Simpson Agencies/BrandShakers
PCNA Welcomes Kerri Clark
Spector & Co. Promotes Randi Dresher
PCNA Welcomes TC Sports Marketing
Starline Appoints Caton Stevenson Agency Ltd. and Pro-Dev Strategies
In addition, Starline has announced that Pro-Dev Strategies and Marketing will be the supplier's exclusive sales representative for the Province of Quebec. Contact Annick Laroche at email@example.com and Benoit Pichette at firstname.lastname@example.org.
Fashion Biz Hires Cara O'Grady
Kanata Blanket Welcomes Sally Piitz
THE ASI ROADSHOW IS YOUR BEST RESOURCE TO PREPARE FOR THE SUMMER SALES SEASON
The ASI Roadshow is coming to Canada this spring, to be THE resource for you to find the best products for the summer sales season from the industry's best suppliers. Plus, NEW for 2015, you can bring your end-buyers to the ASI Roadshow. Both of you can attend for FREE – just have your client bring their business card to register on site. And, with your client wearing a generic badge, their name and company information will remain confidential to both suppliers and other distributors, making this is a great opportunity to brainstorm new ideas you can implement together.
Come to the ASI Roadshow when it stops in:
Featuring a convenient half-day schedule that includes free distributor education from 7:45 a.m.-9 a.m. and exhibits from 9 a.m.-1 p.m., the ASI Roadshow is a cost-effective, efficient way to stay motivated throughout the year. Register for FREE at www.asiroadshow.com or register on show site with a valid business card.
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