LBizMarketIntelligence_080725

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Leatherbiz Market Intelligence executive summary: • •

• • • •

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US tariff policy is having a great impact on the world The situation in the currency markets is also playing an important role; the US dollar depreciated by as much as 16% against the euro in the first half of the year The ratio of raw material costs to production costs for leather has shifted dramatically in recent years The old rule of thumb that raw material would account for approximately 50% of a tannery’s costs has long since ceased to apply The cost share of raw materials has fallen dramatically and, with it, the leverage on the price of finished leather Stocks of semi-finished goods across the globe are high and the shelflife of these goods is not infinite, just as the storage and financing costs are not negligible There is no realistic prospect of rapid utilisation of these current stocks A further increase in stocks can be avoided if production remains constant, but decisions will still need to be made regarding the goods already in stock today.

MARKET INTELLIGENCE

T

he first half of 2025 has come to an end.

This is a good time to take stock of the current year so far. There has not been much positive news to report for the leather supply chain. Demand for leather as a material continues to decline, and the discussion is more about the fundamental causes of this than addressing the question of how to change the situation.

Of course, it is easy to blame the global situation for the problem, but that would be too simplistic. Much of it also has to do with how the leather industry has handled its product presentation and marketing in recent years.

Macro influences also play an important role. In addition to the war in Ukraine, there have also been conflicts in the Middle East.

None of these has been resolved to date.

Immediate risks, such as a massive rise in oil prices, have been averted, as has the further spread of the conflict.

US tariff policy has a great impact on the world. At the time of writing, only a few bilateral agreements, including the recent one with Vietnam, have been reached. Vietnam is, of course, a very important negotiating partner because a large number of consumer goods for the US market are manufactured there. In our sector, this affects a large part of the footwear industry, as well as several other sectors that also deal with leather.

In addition to tariffs, the situation in the currency markets also plays an important role.

The US dollar depreciated by up to 16% against the euro in the first half of the year.

Exporters from Europe must take this into account in their calculations, in addition to tariffs. It is a package. Either the customer pays, which is rather unlikely, especially when demand is one of the core problems, or it is at the expense of the seller.

This is the case with leather and leather products. However, a final assessment of the impact on the supply chain in the leather industry can only be made once a precise overview of the tariffs is available. This is likely to happen in the coming weeks. We would repeat that tariffs are only part of the overall package of burdens in international trade and that currency’s influence, at least in the case of Europe, will be a significant part of the overall combo of burdens.

The significance of this whole issue was also evident last week in announcements from several luxury goods companies. They pointed out that currency influences are having a negative impact on their business development. Let us remember that it was not so long ago that some luxury goods companies were relatively relaxed about the fact that they would simply pass on any tariffs in their pricing and did not expect any real negative effects on their business development. They pointed to the strength of their brands and the low level of pricesensitivity of their high-end customers. This is probably no longer tenable today, which is why we should consider how strongly this will affect the lower end of the price ladder.

In this context, it should also be noted that the ratio of raw material costs to production costs for leather has shifted dramatically in recent years. There used to be an old rule of thumb that the raw material share in a leather factory’s cost calculations would account for approximately 50%, on a long-term average.

Even though there are different values for the various types of raw materials, as for finished leather, this rule of thumb has long since ceased to apply; the cost share of raw materials has fallen dramatically, and with it the leverage on the price of finished leather.

The same applies, incidentally, to the calculation of the by-product of hides in the slaughter industry. The massive fall in cattle hide prices has meant that revenues from hides and, thus, the share in a slaughterhouse’s revenue calculation have become almost negligible.

Perhaps some campaign groups, which have been enthusiastically claiming for years that cattle are not only slaughtered for their hides, but also that hides play a decisive role in the profitability of meat companies, might consider this new situation. As little truth as there was in their previous arguments, these have even less validity today.

On the raw materials markets, it has been noticeable in recent weeks that China is still purchasing relatively large quantities of hides.

This is remarkable in that almost everyone in China reports that the leather industry there is facing very low orders and continues to report significant inventories. As far as we were able to gather from our sources in China, we were only able to find out that these purchases are being made by a few large companies, which in turn are said to be receiving large orders from the military and state security agencies. This is difficult to verify, but information about state policy in China would certainly explain such behaviour.

Additional buyers are said to include companies that still have sufficient financial resources. They consider the raw material prices irresistible and simply want to maintain their production levels.

It is undisputed that exports of leather and leathergoods from China are currently relatively weak owing to the trade conflict.

Local consumption in China also remains weak, and anyone who travels to China at the moment and remembers the well-stocked, glittering shopping malls of a few years ago is now more likely to see yawning emptiness and bored salespeople in the large shopping malls.

This news is naturally accompanied by the information that the Chinese internet shopping platform AliBaba plans to distribute

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shopping vouchers worth a total of $7 billion to its customers in order to stimulate local demand. Such ideas also point to a certain degree of influence on the part of the Chinese state, which is desperately dependent on economic activity and consumption in China recovering.

Staying with the commodity markets, much of the discussion at the moment revolves around the question of how big they actually are and what should and will happen to the stocks of semi-finished goods that are scattered across the globe, waiting for orders.

The shelf life of these goods is not infinite, storage and financing costs are not negligible and can only be justified if, on the one hand, there are prospects for sales and, on the other hand, there is justified hope of compensation for the costs invested. As always, opinions about the future vary widely, but the bare facts for the coming months offer little cause for optimism. Optimists point to reduced slaughter in some regions of the world, but

this thesis is hardly tenable in terms of overall volume. Others point to rising production and demand for proteins, which is easing the pressure on the market. In terms of quantity, this is undoubtedly correct, but in terms of price, it is hardly to be expected that this could lead to rising prices for raw materials and for leather.

The conclusions to be drawn from this are relatively simple. If there is little change in the supply situation for raw materials and, at the same time, demand for leather for the corresponding end products will not increase significantly. There is, then, no realistic prospect of rapid utilisation of current stocks.

If these basic assessments are correct, then there are two decisions that must be made by those affected. On the one hand, a further increase in stocks can be avoided if production remains constant. On the other hand, decisions will still need to be made regarding the goods already in stock today.

Many people are probably taking these

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questions with them on their summer holidays, and there are many good reasons to assume that some will have to make decisions immediately afterwards. Owing to the low prices, the manageable capital commitment and the owners’ still sufficient financial resources, panic measures are unlikely. From a purely commercial point of view, however, the age and valuation of the goods in inventory may also play an important role.

We can, once again, skip our brief review of the situation in the split market. There are a few niches in which split leather plays a role, but otherwise split leather, as a cheaper alternative, has almost completely disappeared at the moment and lost its function. As a result, its use has increasingly shifted towards proteins. Wherever possible, attempts are now being made to steer production in this direction. In many cases, this is not possible for technical reasons, but the market has functioned well in this regard and the shift from wet blue splits to lime splits has been supported by the demand situation.

There is also little new to report on sheepskins. In Europe, the season for young lambs is currently under way, which in the past has always generated sufficient demand to sell at least this part of total annual production. This year, however, it seems to be more difficult, even though supply is also shrinking significantly. The prices currently quoted are around 30% below last year’s levels, and above all, very weak demand from the major players in China is having an impact on the market. Frankly, however, we also see a lack of creativity in this area.

In many cases, there is still a strong tradition of using lambskins because of their excellent properties. In China in particular, efforts are constantly being made to adapt technologies and offer consumers attractive products. Unfortunately, this repeatedly leads to one-sided demands on the raw material, resulting in selective demand for certain types of goods, while others are completely neglected. This is not always understandable or logical. That is why, for example, the price difference between small, light and fine wool skins and larger, slightly heavier types is currently extremely large again. Whether this is really perceived as such by the end consumer is doubtful, to say the least.

Two things are likely to be decisive for the leather pipeline development over the next six or eight weeks. On the one hand, of course, there will be the final results of the tariff negotiations. Whatever the final conditions may be, they will certainly affect some supply chains. The effects of this will, of course, have a short-term impact on price developments, and in the long term, new investment decisions may be necessary.

On the other hand, we believe that, owing to the poor prospects for a rapid improvement in demand, business decisions will have to be made at many levels. In addition to the difficulties regarding demand, the ever-increasing hurdles and bureaucratic requirements in Europe may also play a significant role.

The administrative

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bureaucracy in the European Union and the ideological interests some politicians and campaign groups are tightening their grip on the leather supply chain like a noose. Large corporations are naturally less threatened by this, but for an industry that is more organised around medium-sized companies, this is a threat that should not be underestimated and could even be fatal. Here, too, final decisions are expected after the summer break.

US PERSPECTIVE

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ales of cured cattle hides for the period ending June 26 were 324,000 pieces. The figure for exports of wet blue was 101,100 pieces.

The most recent reports on hide prices showed butt-branded steer hides weighing 62-64 pounds at $18.50 each, and heavy Texas steers weighing 60-62 pounds up again at $11.50 per piece.

Cow hide prices fell, showing northern dairy cows at $11, south-west dairy cows at $10.50, northern branded cows at $3 and south-west branded cows at $2, with weights of 50-52 pounds in each case.

The source of all these figures is the US Department of Agriculture. Please note that the prices quoted represent ‘ballpark’ figures.

Cattle markets USA Smaller show lists surprised the market following a light slaughter and purchased inventory last week. Asking prices moved higher making it more likely trade will be delayed until later this week.

Packers purchased for a full slaughter week this week and finished last week paying prices steady with the previous week. Cattle in the south sold from $224-$225 and live sales in the north were $230-$234, mostly $230-$232.

This, too, was steady with last week. Dressed trades were also steady at $368-$372 and mostly $368-$370.

June was characterised by rising box prices and falling live prices resulting in major changes to processing margins. The adjustments to processing margins has corrected close to $300 per head, leaving some plants now with margins in the profit column. The only missing ingredient to margin enhancement is increased slaughter volumes.

The box prices were firm. Most analysts are calling for weaker box prices following the July 4 holiday when larger slaughter volumes resume. One factor that will play into beef demand is the weakness in the dollar. The dollar has reached multi-year lows, making our high priced beef cheaper for trading partners.

Corn moved downward as crop conditions look good. Corn has developed a trading range between $4 and $4.50 per bushel.

Favourable growing conditions for corn are reported in most areas. Corn basis levels in Guymon, Oklahoma, are at $0.90, basis the September contract.

Actual Slaughter Under Federal Inspection Week ending 21.06.25

Week ending 22.06.24

% difference

Cattle

558,476

615,083

-9.2

Calves

2,274

3,710

-38.7

Hogs

2,342,312

2,382,352

-1.7

Sheep

36,300

43,128

-15.8

Goats

9,141

12,555

-27.2

GERMAN PERSPECTIVE This week: The usual summer lull in Europe is starting a little earlier this year. This does not mean that all leather factories are closing and production has been halted, but rather that almost all planning has already been completed and the last few weeks before the summer holidays are now being managed.

There is little to suggest that any new developments or surprise orders are still

coming in at the leather factories. Nor are there any surprising early closures or unexpected reductions in production.

Everyone seems to have resigned themselves to the fact that there will be hardly any significant new developments that could influence production and business until autumn.

In Germany, the summer holidays have now begun in schools, and over the next eight weeks, closures will spread across the federal

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states. Unfortunately, in recent years it has become customary for almost all leather factories in Europe to close their doors from the last week of July to the third week of August, which means that there are fewer and fewer opportunities to make deliveries to those businesses that are not closed. Even though slaughter may be reduced, it is still necessary to find solutions for some of the goods during the summer months, which normally involves salting them. The annoying thing about this is that many of the employees who are supposed to do the work also have school-age children and would just as much like to go on holiday during this time.

As very little is happening in the market at the moment, everyone is waiting for political decisions that could potentially influence the business situation for the rest of the year. The focus here is, of course, on US customs policy, as the suspension of customs duties for the EU will expire at the start of August. Either the customs duties will then take effect, or a

solution will be found, or the deadline will be extended again. However, it would be presumptuous to assume that the nightmare will simply disappear.

Even though Germany is still unable to export to China at the moment because the ban due to the one case of foot-and-mouth disease has still not been lifted, the weak US dollar remains a problem. Compared to January, the dollar has now lost around 15% of its value, and this, combined with the seasonally lighter hide weights, means that revenues in euros remain under pressure. The market behaviour of many competitors does not reflect this, so it can be assumed that calculation margins have continued to shrink in recent months.

In many cases, the collection and processing costs no longer cover the potential revenues from sales to leather factories, which is why the search for and flight to other alternatives has continued to increase in the first half of the year. As long as slaughter

remains relatively low, market equilibrium may still be achieved, but with increasing slaughter, demand for hides would have to rise significantly again to prevent this from becoming a problem. We have little to report in terms of sales this week; the few sales that were made were mostly at unchanged prices within Europe.

The kill: The May livestock census showed only a slight decline in the total number of animals in Germany, with a reduction of just over 1%, which does not indicate that slaughter is likely to decline significantly in the next 12 months. For the moment, however, slaughter is lower, in line with the season and, unsurprisingly, demand for beef is also declining during the holidays. As a result, individual slaughterhouses are repeatedly cancelling production days, which has a corresponding effect on total volumes.

What we expect: At the beginning of July, there is not much more to expect than that business will remain relatively quiet for the next few weeks. Of course, some companies will still buy the goods that they need to cover the first few weeks after their holidays. There will certainly be no shortage of supply. Our European colleagues are currently able to meet the demand for cow hides from China without any problems, and the quantities we supply are by no means lacking in the market.

If you calculate the prices currently being quoted for this product and take into account the correspondingly low dollar, sales might be desirable, but frankly not particularly interesting in terms of euro revenues. All in all, there are many indications that you will see a market that moves very little in the coming weeks, and if it does, there will probably be only marginal discounts.

LONG READ Leather and the Circular Economy: Circular Stories

Nothing to Hide: a decade of truth-telling Cited by companies including Puma, which used the platform as a resource when factchecking leather statistics, we celebrate 10 years since World Leather’s publisher launched the platform to dispel myths and untruths.

It is just over 10 years since World Trades Publishing launched its Nothing to Hide series of articles and website in a bid to counter some of the myths that were circulating about the leather industry; and the resource is now more relevant than ever. Born from a deep understanding of the inner workings of the leather industry – in part driven by the team’s decades-long experience and on-the-ground reports from more than 50 tanneries for Tannery of the Year – the initiative sought to deliver the truth about leather- making and chemicals, sourcing information from official bodies or penned by industry experts.

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LATEST HIDE AND SKIN PRICES FROM GERMANY TYPE

WEIGHT RANGE

AVG. GREEN WEIGHT

SALTED WEIGHT

AVG. WEIGHT SALTED

PRICE PER KG GREEN WEIGHT

TREND

Ox/heifers

15/24.5 kg 25/29.5 kg

22.0/23.5 kg 27.5/28.5 kg

13/22 kg 22/27 kg

20/21 kg 25/26 kg

€ 0.80 € 0.65

Stable Stable

Dairy cows

15/24.5 kg 25/29.5 kg 30/+ kg

22.5/23.5 kg 27.5/28.5 kg 33.5/35.5 kg

13/22 kg 22/27 kg 27/+ kg

20/21 kg 25/26 kg 29/31 kg

€ 0.45 € 0.50 € 0.50

Weak Weakish Weakish

Bulls

25/29.5 kg 30/39.5 kg

27.5/28.5 kg 36.0/37.0 kg

22/27 kg 24/34 kg

25/26 kg 31/33 kg

€ 0.90 € 0.90

Stable Weakish

40/+ kg

45.0/48.0 kg

34/+kg

38/40 kg

€ 0.95

Weakish

Thirds

15/+ kg

25.0/27.5 kg

13/+ kg

24/26 kg

€ 0.40

Stable

Thirds bulls

30/+ kg

38.0/40.0 kg

24/+ kg

33/36 kg

€ 0.45

Stable

The inspiration for the title came from a quote from Greg Page, then-CEO of meat company Cargill, who said, “In a world where nothing can be hidden, we must have nothing to hide.” At that time, the likes of PETA were pushing untruths such as the leather industry kills animals, and that it was a polluting and unregulated sector. It was also a time when synthetics masking as “vegan leather” were gaining some traction. The team at World Leather wanted to help the industry counter this and create a platform for facts, expert know-how and science-based discussion.

The series is all encompassing, covering the science behind the tannery – including debates around chrome – through to the work tanneries do to exceed environmental targets and look after their surroundings and their workers. It also covers leather’s many benefits over synthetics, detailing them in a way that those new to the industry, or wanting to find out more, can easily access.

It was important to have input from respected experts in each field, so each topic was covered in as much depth as possible, and so that any journalists or academics accessing the reports would be free to quote from these verified sources. Authors include leather chemists Elton Hurlow, Dr Dietrich Tegtmeyer and Dr Alois G Püntener, auditor Jutta Knoedler and former CEO of Worldwide Responsible Accredited Production (WRAP) Steven Jesseph. The articles also cite official sources such as the Food and Agriculture Organisation of the United Nations (FAO), the World Bank and the Leather and Hide Council of America (LCHA).

As the articles were originally penned ten years ago, the team recently revisited and updated them, adding in up-to- date figures and examples.

Vital resource Over the years, the landscape has altered slightly but the fundamental issues remain the same. Anecdotally, the fierce marketing pushes towards “vegan leather” – plastic –

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seem to have diminished, which could in part be because of the fear of greenwashing regulations and fines, but also due to the growing understanding of the detrimental effect of plastic in the environment. In its place, leather’s name has been used by some bio-based alternatives, made with raw materials such as mycelium, mushrooms, grapes and food waste. While clearly much better for the planet than the competing plastics, all are at an early stage, and none are able to compete with leather on performance, durability and cost. They remain a nascent niche product that might be used by a small number of high-end brands but are not a real threat to leather in the mass market.

Looking ahead, global meat consumption is growing, and will rise by approximately 3% per year to 2033 from a 2022 baseline, according to the Organisation for Economic Co- operation and the FAO. Global herd and flock expansion, combined with continuous improvements in animal breeding, management, infrastructures and technology,

will increase production over the period, particularly in upper middle- income countries. These countries will drive the growth in global meat production to reach 382 Mt (+12%) by 2033. The amount of skins available to the global leather industry is set to increase.

In the last 10 years, the price of leather has swung from highs of more than $100 per hide in 2015 to a reported $1 per hide this year, according to the US Department of Agriculture. We have also seen an increasing amount of these hides ending up in landfill – approximately 5 million in the US alone, by LHCA estimates. In theory, low hide prices should mean lower leather prices and therefore a greater uptake by fashion and footwear brands; but this has not been the case, and there is clearly more work to do on leather’s marketing.

World Leather will continue to champion leather, its makers and supply chain. As well as Nothing to Hide and Tannery of the Year, we are now well into our series on Leather in

the Circular Economy, publishing many articles and interviews to show how it fits into circular and recycling strategies, which will become ever more important with incoming regulation.

Industry groups such as Leather Naturally, Metcha, One 4 Leather, Leather Working Group and the Sustainable Leather Foundation have also worked hard to improve leather’s standing in the fashion market. We believe Nothing to Hide continues to offer a resource for journalists, brands and the wider industry looking to delve deeper into the story behind this beautiful, durable and circular material.

Head to: www.nothing-to-hide.org.uk

NEWS ROUND-UP EUROPE No move away from ‘full luxury’, Burberry insists

B

Leather leadership, worldwide.

Leather is a global business.

More than 95% of US hides are exported, with value added across the globe. A strong leather industry bene昀ts us all.

Our International Sustainability Programme drives best practice raising global production standards.

Our Real Leather. Stay Different. competitions showcase young international talent, launching their careers as leather advocates.

And our data-driven Life Cycle Assessment ensures leather is the most transparently studied natural material, countering misinformation from oil-derived ‘rivals’.

We work for the leather industry.

Find out more at usleather.org

urberry chief executive, Joshua Schulman, is preparing to celebrate a year in the role; he relocated to London from New York to take up the top job at Burberry on July 17 last year.

In an interview with the Wall Street Journal to mark his first anniversary in the job, he said he had no intention of moving Burberry into “affordable luxury territory”. Mr Schulman insisted full luxury positioning remained central to his strategy for the brand.

The point arose because the new chief executive wasted no time in criticising and seeking to halt a previous company strategy of pushing prices of bags and other products upward. He believes the increases went too far and that Burberry had begun to pay too little attention to products it is most famous for among high-end consumers around the world, such as its scarves and trench-coats.

His assessment was that Burberry had narrowed its appeal too much, focusing too keenly on people he called “opinionated customers” and paying too little attention to more conservative and aspirational consumers.

For its profile piece, however, the WSJ also spoke to two former Burberry executives who suggested that the company’s attempt to move to the higher end of the luxury market would have paid off in time.

The newspaper quoted one of these representatives of the former Burberry regime as saying: “It takes years to elevate a brand.

Burberry started that process, but it is very hard to achieve when you are a publicly listed company. Shareholders want results.”

But Joshua Schulman said he still believes Burberry can be one of the top five luxury brands in the world, although he said it was not an ambition for the near future. “That is the North Star for this business,” he insisted.

COTANCE to move to new headquarters

T

he president of Italian tanning industry association UNIC, Fabrizio Nuti, has insisted

TUESDAY, JULY 08 2025 LEATHERBIZ 7

the European leather sector must build up its presence in Brussels, the home of the European Commission and the European Parliament.

At the start of July, after warning that legislative changes such as the forthcoming European Union Deforestation Regulation can present “an operational threat”, Mr Nuti told the UNIC general assembly that the leather industry in Europe needs to build “a much bigger garrison” in Brussels.

He explained that it was of great importance for the leather industry to remain vigilant and to build up early knowledge of the intentions of legislators. This knowledge, Mr Nuti continued, will inform the industry’s efforts to help shape political thinking so that any changes that come into effect “do not put our very survival at risk”.

He went on to say that this had led to helping install the industry’s main representative body in the European Union, COTANCE, in new headquarters in Brussels.

He said the new COTANCE office was spacious, centrally located and close to the European Parliament and the other important EU institutions.

Fabrizio Nuti said he hoped this new location would become an important point of reference for all industry bodies and associations with links to the leather supply chain. He went further and said it could even become a base in Brussels for organisations that focus on other natural materials, such as wool, silk and cashmere.

“They share with us the problem of suffering attacks that seek to cloud the facts and unfairly influence the choices of consumers,” the UNIC president said. “Unity is strength and having a common voice with which to counter these attacks and explain the dynamics of our sectors will make this investment worthwhile. I am deeply convinced that it will bring early benefits.”

in 2025 edition of the student glove design competition that London livery company The Worshipful Company of Glovers runs every year. He received an award of £1,000.

Second and third prizes went respectively to Isabel Torpey, a student at The Royal School of Needlework at Hampton Court Palace, and Manon Dufau, also from UAL. Another UAL student, Effie See Wing Wong, won the Dents Prize for the most commercial, creative and innovative design.

Swiss shoe designer joins Dior

E

xperienced high-end footwear designer Nina Christen has joined Christian Dior as the brand’s director of shoe design.

She previously worked with the brand’s creative director, Jonathan Anderson. She had a spell as head of footwear design at Loewe, from June 2022 to September 2023.

At Loewe, she carried out that role on a freelance basis. This was an arrangement she used to design footwear for a number of prominent brands, while also running her own

Zurich-based company.

Other brands Ms Christen worked with in this way include Saint Laurent, Celine, Bottega Veneta and The Row.

New MD takes the reins at two tanneries

I

talian leather industry veteran Andrea Bagnoli has taken up the leadership of two tanneries.

At the start of July, he became managing director of Conceria Samanta in San Miniato in Tuscany, and also of Conceria Gaiera in Lombardy.

Andrea Bagnoli began running his own leather manufacturing company in Santa Croce sull’Arno in 1990. When it closed in 2011, he worked for a short time as a leather buyer for Salvatore Ferragamo and then for Geox.

In 2013, he went back into leather production, taking senior roles at Nuti Ivo Group, where he continued working until the end of June.

QUAKER COLOR A STEP AHEAD IN AUTOMOTIVE FINISHING

LWG appeals for public feedback on new standards

M

ultistakeholder body the Leather Working Group (LWG) has appealed for public feedback on standards that will be introduced next year.

LWG aims to create “an inclusive dialogue” so the standard “takes account of needs and concerns”, with brands, leather suppliers, trade associations and other interested parties able to comment until August 26.

LWG Protocol 7 will be replaced by the LWG Leather Production Standard and the LWG Chain of Custody Standard. Unlike a protocol, a standard does not include the questions that will be used during the audit process. The audit questions will be listed in a separate assessment tool.

Other parts of the new standard, such as social responsibility and due diligence, will open to public consultation at a later date.

Glovers Company names student prize winners

U

niversity of the Arts London (UAL) student Chi Hin Lawrence Wan has won first prize

Supplying innovative finishes to the automotive industry for over six decades

Quaker Color is a division of McAdoo & Allen, with roots in the leather industry for over a century

8 TUESDAY, JULY 08 2025 LEATHERBIZ

What links the two tanneries Mr Bagnoli will run now is that luxury group Chanel is a shareholder of both. It took a controlling stake in Conceria Samanta in 2019 and followed this up by investing in Conceria Gaiera in 2020.

Oakley Capital buys Smythson

I

taly-based leathergoods manufacturer Tivoli Group has sold Smythson of Bond Street to private equity firm Oakley Capital.

The Italian manufacturer has owned the British leathergoods and stationary since 2009 and will continue to produce its leather collections as part of the deal.

Smythson was founded in 1887, when Frank Smythson opened his first boutique on Bond Street in London offering high-class stationery and accessories.

Stefano Giacomelli, CEO of Tivoli Group, said: “Smythson is a globally recognised symbol of excellence, and we are confident that Oakley is the ideal partner to accelerate its international expansion thanks to its strategic vision and proven expertise with

portfolio brands.

“This transaction also marks a pivotal moment for Tivoli Group, allowing us to further invest in our core business, enabling us to sharpen our focus on Tivoli Group’s growth strategy as a multi-brand manufacturer.”

Oakley also owns homeware brand Alessi, luggage brand Globe-Trotter and leathergoods and clothing brand Connolly.

UNIC president calls EUDR an operational threat

I

taly’s national tanning industry body UNIC has said the European Union Deforestation Regulation (EUDR) represents “an operational threat” to the sector.

At its general assembly on July 1 in Milan, UNIC president, Fabrizio Nuti, told colleagues that this threat will remain in place unless “a correction to it” takes place at European level.

By ‘correction’, Mr Nuti said he meant removing bovine hides from the list of products EUDR will affect or, at least, simplifying the bureaucratic burdens the

regulation will impose manufacturing businesses.

on

leather

Celebrations for Gruppo Dani at 75

L

eather manufacturer Gruppo Dani has celebrated its 75th anniversary with an outdoor event for customers, employees and other friends of the company.

Arzignano-based Gruppo Dani said it was happy to celebrate three-quarters of a century of “transforming hides into beauty”.

It said recognising this important milestone was a way of paying homage to the past, of living in the present with an awareness of all that has gone before, and of building a future with quality and Made In Italy as its foundations.

Mixed reactions to Kering CEO announcement

A

profile of the incoming Kering chief executive, Luca de Meo, has said reaction inside the luxury group is mixed.

Mr de Meo will take up his new role in September; this move comes for him after 30 years in the automotive industry.

For a profile piece in the Wall Street Journal, automotive people described Mr de Meo as “intense and exacting”. As chief executive of Renault, where he will remain until mid-July, Mr de Meo provided input on details such as the stitching in the interior and the sound cardoors make when they close. He insisted on test-driving vehicles himself.

Inside Kering, according to the WSJ, there is wariness about bringing in someone from outside the luxury industry. There is a feeling among some that the move smarts of how challenging Kering’s situation has become. Its full-year revenues for 2024 were ¤17.2 billion, down by 12% year on year.

But the chief executive of high-end winter clothing brand Moncler, Remo Ruffini, told the newspaper he viewed the change differently.

In recent years, Mr Ruffini has engaged in detailed discussions with Kering and with rival group LVMH about bringing them on board as investors in Moncler.

He said Luca de Meo’s status as an outsider could be positive for Kering. “People would say that his biggest challenge will be to understand the industry codes and culture,” Mr Ruffini told the WSJ. “I see it the other way round. The sector has the opportunity to benefit from an outsider who can bring new perspectives.”

Car-makers welcome withdrawal of EU Green Claims Directive

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erman car manufacturers’ association VDA has called on the European Commission to withdraw its Green Claims Directive.

Under discussion since 2022, the Green Claims Directive aims to tackle greenwashing, preventing companies from presenting their products as more environmentally responsible than they are.

The European Parliament reached agreement on the proposal at the start of 2024 and the process for bringing the

TUESDAY, JULY 08 2025 LEATHERBIZ 9

directive into European law began. However, at the end of June this year, one of the largest political groupings in the parliament, the European People’s Party (EPP), formally requested its withdrawal.

In its request, the EPP said the proposed legislation on environmental claims would add too much complexity for companies, especially small and medium businesses, to manage. It said this went against another important European Commission principle, its so-called “simplification agenda”.

Amid a lack of clarity over exactly what will happen next, VDA issued a statement to say the Green Claims Directive represented “the opposite of the simplification agenda”.

VDA president, Hildegard Müller, said the directive would place a burden on small businesses in particular, without what she called “any discernible practical benefit for consumers' purchasing decisions”.

She added: “Europe and Germany need less, not more, regulation.” And she insisted that the existing legal framework will be able to stop companies from issuing “misleading advertising”.

shareholder. It will also embark on fundraising efforts from other sources, including its other major shareholder, Frasers Group.

Last year, retail group Frasers made several attempts to acquire full ownership of Mulberry, but without success.

Mulberry has said it would invest the new capital in rebuilding “core stocks” of its products, investing in new sales opportunities, and some selective marketing in the UK and the US. Chief executive, Andrea Baldo, who joined the company a year ago, said the leathergoods manufacturer was “firmly in turnaround mode”. But he added: “The board and I are confident that, with additional funding, we can accelerate momentum and deliver against our targets at pace.”

French tannery prepares to open new showroom

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rench leather manufacturer Tannerie Sovos is putting the finishing touches to a new showroom at its site in Le Thillot in the Vosges department in the east of France.

It said visitors had already been to the site to view finished hides from its most recent collections, but also finished products made from the leather.

These included pieces produced by partners in the famous furniture-making town of Liffolle-Grand, 120 kilometres away.

Tannerie Sovos said it still had some final touches to put in place before it can fully open the doors to visitors, but it said the finish line for the project was in sight.

LVMH: Regenerative practices are the future

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uxury group LVMH is convinced that hides sourced from farms practising regenerative agriculture are "the future", according to its raw material supply chain development manager, Guillaine Ipert.

Speaking at the Future Fabrics Expo in London, Ms Ipert explained how the group three years ago had embarked on a project to understand what happens to the skins and form closer connections with farmers, traders and slaughterhouses.

Close-up views of new collection for Santoni customers

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hief executive of high-end footwear brand Santoni, Giuseppe Santoni, hosted a series of one-on-one conversations with customers at the end of June.

Mr Santoni, the son of the brand’s founder, met customers at the company’s showroom on Via Montenapoleone, in Milan’s most famous fashion district, the Quadrilatero.

Discussions focused on his vision for the brand’s spring-summer 2026 men’s collection and the story behind it.

There were also live demonstrations from Santoni artisans showing how the shoes in the collection are constructed.

Highlights included Santoni’s use of reverse Goodyear construction. This method allows it to construct shoes with a sole that can be folded in half. It says this ensures a lightweight feel and freedom of movement to give high levels of comfort.

makes it natural

‘Turnaround mode’ Mulberry seeks £20m injection

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K-based leathergoods brand Mulberry has said it expects to report revenues of £120 million for the 12 months ending March 29, 2025.

It provided the figure in an update in June, saying that it remains subject to audit. If confirmed, this result would represent a fall of 21.4% compared to the previous year.

As part of the same update, Mulberry said it intended to raise additional capital of £20 million to help fund growth.

It said it aimed to reach annual revenues of £200 million “in the medium term”, with pretax profit levels of 15%.

Its aim is to raise the new capital through a change in its banking arrangements. Some new funding will also come from an affiliate of Challice Limited, the Singapore-based investment group that is Mulberry’s majority

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They employed an inhouse team to come up with a definition of ‘regenerative’ and began working on converting some of its materials, which could end up taking five to ten years, she explained. This kind of timeframe is difficult in fashion, when brands are used to working in six-month, or shorter, cycles, and meant a change of mindset.

The next phase of the project will involve forming closer connections to meat companies, which would have greater influence over the farmers, she said. “Farmers won’t change for LVMH, but if we work together we can help them to work towards more regenerative practices.”

The project is now beginning to bear fruit.

“We are starting to get the data – and everyone knows companies love data – that shows the costs involved in what we are doing are worth it.”

New technical lead appointed at SLF Auditing Services

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tuart Cranfield has been appointed to head the technical department of SLF Auditing Services Ltd, effective June 1, 2025.

He has worked with Sustainable Leather Foundation (SLF) since early 2025 to support its preparations for UKAS accreditation and will now oversee the technical delivery of audits in line with the organisation’s ESG standards.

Mr Cranfield has more than 36 years’ experience in the leather and footwear sector, including roles at Clarks, where he managed supplier working conditions programmes, and at Leather Working Group, where he led standards and assurance. He has also contributed to industry initiatives including SLCP, CGF SSCI, and BSI PAS24000.

SLF Auditing Services Ltd was established in January 2025 as a separate certification body, distinct from SLF’s certification scheme, to support stronger governance and future accreditation through UKAS. The Sustainable Leather Foundation

remains the Scheme Owner and continues to provide standards, benchmarks, training, and the transparency dashboard, as well as managing project-based work for the sector.

Chief executive of FILK objects to Desserto criticism

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he lead author of FILK’s study comparing the performance properties of leather with those of alternative materials has objected to comments that criticise the objectivity of the research.

Professor Michael Meyer, chief executive and scientific director of research and testing body FILK, has said comments on the 2021 study from manufacturer of cactus-based material Desserto are unfounded.

Furthermore, Professor Meyer said some of the comments that appeared on the LinkedIn profile of one of the co-founders of Desserto constituted a public attack on him personally.

Professor Meyer said he had reacted “with astonishment” to comments on the study that he said amounted to “personal accusations”.

He said FILK would always be happy to interpret new data, but insisted that “scientific progress thrives on factual exchange, not defamation”.

The conversation took place just as World Leather was preparing to publish a new Leather Leaders Q&A article featuring Michael Meyer. In light of this, we have made early access to the article available here.

FILK to update study comparing leather to alternative materials

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ermany-based research and testing organisation FILK has confirmed that it is working on an update to its groundbreaking 2021 study comparing the performance of leather with that of synthetic alternative materials.

The news came to light during an energetic conversation on social media platform LinkedIn at the end of June.

FILK’s original research was published in an international, peer-reviewed journal, Coatings, and has earned more than 55,000 views and almost 100 citations.

After more than four years, however, it has suddenly come under attack from the manufacturer of one of the synthetic alternative materials the study featured.

Mexico-based producer of a cactus-based material, Desserto, published a blog post on June 24 questioning FILK’s “scientific neutrality”. It alleged that because leather industry body COTANCE had procured samples of alternative materials for FILK to analyse, the report’s findings “lose scientific weight and lean into the territory of industryfunded advocacy”.

It even used the phrase ‘Science for sale’ in the title it applied to the post.

When it reposted the blog entry on LinkedIn, FILK responded with patience and politeness, saying it welcomed “critical engagement” with its scientific work and was committed to “a constructive and objective dialogue”.

TUESDAY, JULY 08 2025 LEATHERBIZ 11

It made it clear that the original study was conducted independently, without external funding and provided full transparency regarding its testing procedures and evaluation criteria.

FILK then said an updated version of the study is currently in preparation.

Senior production appointment at LVMH

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uxury group LVMH has appointed Ludovic Pauchard as its industrial and craftsmanship director. He will also become executive chairman of LVMH Métiers d’Art, a specialist part of the luxury group that it founded in 2015 to help it secure access to high-end leather and other raw materials.

Mr Pauchard joined LVMH in 2003. His leather-focused roles during his time at the group have included spells as a production manager for leathergoods, manager of leather sourcing and group production director for leathergoods.

In 2019 he became the group’s senior vicepresident for manufacturing, looking after a network of 33 partner leathergoods manufacturing facilities, employing a combined total of 10,000 workers.

He will take up his new roles on September 1, focusing on “operational excellence” while upholding the group’s commitment to ethics, environmental protection and social responsibility.

Half century award for GER Elettronica

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easuring machine specialist GER Elettronica marks its 50th anniversary in 2025.

Founded in 1975 in Italy’s Vicenza tanning district, the company began by developing electronic devices for leather finishing and motor control, before expanding into advanced measurement and automation solutions.

GER Elettronica said its success was the result of long-term investment, innovation and a committed team, and represented a platform for future progress in quality and performance.

To mark the occasion, the company received a special award at the recent ASSOMAC general assembly, held in Bergamo.

LWG sets up independent certification body

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he multistakeholder Leather Working Group (LWG) has announced the launch of LWG Assurance Services (LWG AS), a new, separate organisation that will independently manage certification to LWG Standards.

According to LWG, the not-for-profit entity has been created to uphold the integrity of its standards through what it describes as impartial and robust certification processes.

The group says this move is intended to reinforce trust, strengthen impartiality and enhance the long-term credibility of its assurance system.

The new organisation will be led by managing director Jon Loxston, who was

previously director of operations at Pittards and has served on the LWG board, technical subgroup and as a technical advisor.

The group says LWG AS will apply transparent governance, supported by a publicly available framework and policies designed to secure impartiality, as well as a structured process for addressing concerns and resolving conflicts of interest. It also intends to seek accreditation with UKAS and certification to ISO 17065.

LWG says the establishment of LWG AS will enhance the assurance process for the leather industry and its stakeholders, while maintaining the group’s core values.

Leathersellers funds project to archive industry documents

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s part of the Leathersellers’ ambition to protect, share and celebrate the national history of British leather, a project to catalogue the archive of Leather UK has begun.

Dr Ian Stone, who has been funded by the Leathersellers to write a book about the history of the British leather industry 18002000, discovered the importance of the archive.

It was originally at the Museum of Leathercraft (now The Leathercraft Trust) in Northampton before being moved to Leathersellers’ Hall last year.

A cataloguer, Rebecca Darnill, has started work on the project, which will be completed prior to the archive’s move to the Modern Records Centre, Warwick University later this year.

Dr Stone says: “What this archive shows, and what we still see today, is that the Leathersellers are very close to their trade.

They have supported the British leather industry in a number of different ways, not just through providing grants and expertise but also offering their Hall for the trade organisations to convene and working in close collaboration with various institutes to achieve nationally important outcomes, for example, the establishment of the Leather Trades School in Bethnal Green in 1887, the Leathersellers’ Technical College in Bermondsey in 1909, and the National Centre for Leather Education in 1976, which would become the Institute for Creative Leather Technologies at the University of Northampton.”

The cataloguing project is being jointly funded by the Leathersellers and the British Leather Industry Development Trust.

ASIA AI and sustainability to take centre stage at UITIC Congress

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he International Union of Shoe Industry Technicians (UITIC) has said its forthcoming international congress will be “an unmissable event”.

This year, the UITIC International Technical Footwear Congress will take place for the 22nd time in its history. Shanghai will be the host city for the event, which will take place from August 31 to September 3. It will be

jointly organised by the China Leather Industry Association.

Under the central theme of ‘competitiveness and sustainability in the era of artificial intelligence’, the event will aim to explore the transformation that AI and sustainability are bringing to the footwear industry.

UITIC president, Sergio Dulio, has revealed that more than half of the submitted papers that industry professionals submitted for consideration for the programme were about AI. “The papers give details of mature and exciting projects,” Mr Dulio said. “This is a breakthrough.”

It highlighted increasing adoption and experimentation of AI, UITIC said, particularly in the footwear design phase. Companies are recognising AI as “a strategic lever”, it added.

UITIC’s view is that shoe manufacturers will be able to put AI to good use in “rethinking the design process”, opening up what it called “unprecedented scenarios for creating innovative and competitive footwear”.

Alongside AI, it said sustainability is also “a key pillar”, and no longer “a regulatory constraint”.

Companies recognise sustainability as “a strategic element for competitiveness”, Sergio Dulio explained.

New shoe brand sees its products ending as compost

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new “biocircular” footwear brand has made its debut with a shoe six years in design and which aims to leave “no harmful trace” behind.

Co-founder David Solk’s father owned a footwear factory in England, and he has spent the last 30 years working in Asia, including as a head of operations for Adidas in the region.

His aim was to develop shoes that are safe to compost – an outcome he said was harder to achieve than he initially realised, despite his extensive experience in the sector.

The Solk Fade 101 has been created with a chrome- and metal-free leather upper from a German tannery with “robust environmental management techniques”. The outsole is natural rubber and the lining is a customdeveloped blend of compostable yarns and plant fibres that are 100% biobased. The laces and webbings have been made from Tencel wood pulp from sustainably harvested eucalyptus, beech and spruce trees. The shoes are manufactured at a company-owned factory in Vietnam.

Mr Solk explained: “A shoe isn’t truly what people call sustainable unless every stage of its lifecycle is considered: from the way materials are sourced and how it’s made, to how it ultimately returns to nature, ensuring that nothing nasty lingers. This is biocircularity.”

At the end of the shoes’ life, Solk will send customers a bag to return them in, and they will be added to a company-owned composter in Germany, where they will be mixed with food waste and other materials and turned into a compost. All materials have been screened against more than 200 harmful substances by a third-party laboratory and

12 TUESDAY, JULY 08 2025 LEATHERBIZ

tested for safe plant growth post-composting.

Mr Solk added: “If someone doesn’t return their shoes and they end up in landfill, or even buried by the family dog, we want to be sure they’ll still break down safely and be ultimately harmless as well.”

Chinese firms discuss leather sector investment in Uzbekistan

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epresentatives of Hong Kong Ming Feng Leather International Ltd and Dongguan Xianfeng Shoe Materials Co., Ltd held talks in Tashkent this week with the Uzcharmsanoat Association to explore opportunities in Uzbekistan’s leather and footwear sector.

Deputy chairman Murodzhon Zakhidov led the discussions, which focused on trade and investment. Ming Feng, a footwear manufacturer producing over 2 million pairs annually, expressed interest in sourcing finished leather from Uzbekistan, citing its high quality.

Dongguan Xianfeng announced plans to invest in a new production facility in one of Uzbekistan’s specialised industrial zones. The plant would produce footwear and leather goods for local and export markets and involve localising key stages of production.

Uzcharmsanoat said the talks reflect growing cooperation with Chinese firms and could support export growth and technology transfer.

Poor skinning cuts hide value by 43% during Eid

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round 21% of hides collected during Eidal-Adha in 2025 were sold at prices 43% lower than good-quality hides due to damage from unskilled skinning, according to a new study by the Centre for Policy Dialogue (CPD).

Presented in Dhaka on June 23, the joint study by CPD, the Bangladesh Tanners Association and the Leather Sector Business Promotion Council found widespread flay cuts caused by untrained butchers. In Dhaka, over 2 million animals were sacrificed, but only 11,600 certified butchers were available.

It was reported that nationwide, just 4.8% of animals were slaughtered by professionals, with most handled by untrained madrasa or mosque representatives. Poor preservation also contributed to quality loss, with 83% of seasonal traders and 37% of madrasas selling hides without salting.

High-quality leather sold at Tk39 ($0.33) per square foot, while damaged hides fetched only Tk27 ($0.23). The government-set price was Tk60–65 ($0.51–$0.55).

The CPD urged improvements in slaughter practices, incentives for salted hides, and continued rawhide export opportunities to protect leather quality and value.

China: footwear export volumes hold, but value drops

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cross all categories, China exported 2.1 billion pairs of footwear in the first quarter of this year, bringing in export revenues of $10.25 billion.

These figures represent only a slight fall in volume, 0.7%, but a substantial decline in

value, 11.2% compared to the same period last year.

Over the same three-month period, 50 million pairs of imported shoes and boots came into China, with a value of $1.3 billion.

These figures also represent falls, of 9% in volume and of 11.1% in value.

The figures for leather shoes specifically show exports of 120 million pairs in the first quarter of 2025, bringing in almost $1.75 billion. This means an increase in volume of 1% but a fall of 2.3% in value.

Over the same period, China imported 12.75 million pairs of leather shoes, with a total value of $560 million. These figures indicate a decrease of 22.4% in volume and of 20.9% in value.

AMERICAS Vice-president and merit award announcements from IULTCS

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he International Union of Leather Technologists and Chemists Societies (IULTCS) has elected Dr Giancarlo Lovato as its new vice-president.

It said Dr Lovato, who was nominated by his national association, Italy’s AICC, would bring “an impressive scientific record to the role”.

As secretary of AICC, Giancarlo Lovato chaired the third IULTCS European Congress in Vicenza in 2022.

In parallel, IULTCS announced Dr Patricia Casey as the winner of its merit award for 2025. Dr Casey earned the award for her work with her national association, Argentina’s AAQTIC, and as a past president of IULTCS. In these roles, she has consistently shown leadership in promoting technology and education throughout Latin America.

Inauguration of Stahl’s new centre of excellence in Mexico complete

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eather chemicals group Stahl has formally inaugurated its new centre of excellence for leather finishing in León, Mexico.

The project involved relocation the facility to a new site and enhancing the laboratory and testing technology the company has in place there.

Stahl said this investment was a reflection of its commitment to delivering “advanced, lower-impact products to customers across Latin America”.

It added that this project was part of a wider strategy that had led to the doubling of Stahl’s production capacity in China, a new production facility at Ranipet in India, a new centre of excellence in the US, a new laboratory in Japan and a new coatings facility in Singapore.

Commenting on the inauguration of the new site in León, chief executive, Maarten Heijbroek, said: “Mexico is an important market for Stahl, with a strong base of automotive, fashion and footwear customers.

By investing in this enhanced facility, we are staying close to where our customers are and giving them access to the very best technologies, people and expertise.”

Recommerce Caucus will champion circular fashion in Congress

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wo US congresswomen have teamed up to launch a group that will promote what they have called “the recommerce economy”.

Sydney Kamlager-Dove, a Democrat from California, and Nicole Malliotakis, a Republican from New York, have worked together to launch the Recommerce Caucus, a bipartisan coalition that will champion legislation to support the buying and selling of pre-owned, refurbished and secondhand goods.

“Recommerce is more than a trend,” Ms Kamlager-Dove said. “It is a growing economic engine that provides consumers with affordable, high-quality goods and gives entrepreneurs, small businesses, and resellers access to trusted, thriving marketplaces.”

She said the members of the group were committed to advancing policies that will support the circular economy, reduce waste and “empower buyers and sellers nationwide”.

Nike reports 10% drop in fullyear revenue

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ike has reported revenue of $46.3 billion for the fiscal year ended May 31, 2025, down 10% on a reported basis and 9% on a currency-neutral basis.

Fourth-quarter revenue was $11.1 billion, a 12% decrease reported and 11% currencyneutral. Nike brand revenue fell 11% to $10.8 billion, with declines across all regions.

Direct revenue dropped 14% to $4.4 billion, reflecting a 26% fall in digital sales. Wholesale revenue declined 9% to $6.4 billion.

Converse revenue for the quarter was $357 million, down 26%.

Gross margin fell 440 basis points to 40.3%, mainly due to higher discounting and channel mix shifts. Net income dropped 86% to $0.2 billion, with diluted earnings per share at $0.14.

Operating expenses rose slightly, with demand creation up 15% and operating overhead down 3%. The effective tax rate increased to 33.6% from 13.1% a year earlier.

Nike said it expects business improvements through its ongoing “Win Now” strategy and a new focus on what it calls the “sport offense”.

Three new showrooms for Bentley in the Americas

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igh-end automotive company Bentley Motors is to open three new showrooms in North America.

It has chosen Santa Barbara, California, San Antonio, Texas, and Oakville, Ontario, as the locations for its new openings.

Bentley said there was “exceptional momentum” for the brand in the US and Canada and that demand was strong for its “ultra-luxury, performance and sustainability” offering.

Each of the locations will have Bentley’s latest models on display, including updated versions of its Continental GT and Flying Spur cars. It added that customers would also have

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access to its customisation service, allowing them to choose many of the details in the interior of the cars they buy, including the colour of the leather in the upholstery.

These three additions take the total number of outlets Bentley has in the Americas to 63.

This region is the company’s largest market.

New US-made boot marks shift in manufacturing

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ootwear manufacturer Wolverine has introduced the Workshop Wedge, the first in a planned series of boots to be produced in the United States as part of a renewed focus on domestic manufacturing.

The company, which has operated in the work boot sector for over 140 years, said the move reflects a long-term strategy to bring more production back to the US. The new model is being made in Texas and combines locally and internationally sourced materials.

Wolverine’s existing 1000 Mile Collection is already produced in Arkansas, and additional US-made styles from other brands within the Wolverine World Wide portfolio are expected to follow in the coming years.

Mike Maloney, chief product officer for the company’s Work Group, said that consumer demand played a key role in shaping the decision. “American-built boots matter to our customers, particularly in the current economic environment,” he said, adding that securing the right US manufacturing capabilities was an important part of the process.

Trade mission success for Brazil’s shoemakers

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razilian footwear companies are seeking to expand their presence in the Colombian market, and the latest edition of the Brazilian Footwear Trade Mission, an export promotion initiative organized by the Brazilian Footwear Industries Association (Abicalçados) in partnership with the Brazilian Trade and Investment Promotion Agency (ApexBrasil), was held in mid-June in Bogota.

Thirty-three Brazilian brands participated, and the event is expected to generate BRL 14.44 million in deals.

Carla Giordani, from Abicalçados, said: “We are always very well received in Colombia, which is an important partner for Brazilian footwear companies and ranked as the fifth largest destination for the sector’s exports last year. The business matchmaking model we bring to Bogotá is highly effective because it connects qualified buyers from different regions with brands that are interested in operating in the country, generating valuable business opportunities for both sides.”

Participating in the initiative for the first time, Repplay representative Maicon Rafael Heck said: “We got to know the market, made contacts and even closed a deal, which is quite significant for a first-time participation.”

Repplay’s footwear is sold in Argentina, Ecuador and Morocco.

Colombian buyers from various regions of the country, as well as from other markets

such as Peru, Ecuador, and El Salvador, visited the showroom.

Hector Alvarez, director at the Colombian company Comercializadora New York Sas, said: “I’ve bought footwear from Brazil before, and that’s why I placed another order, because the products are high quality and the logistics are easier, allowing the goods to arrive faster than from other countries.”

Chanel takes a stake in celebrityfounded brand

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ew York-based leathergoods brand The Row has won the admiration of Chanel, according to the Wall Street Journal. It said an investment vehicle set up by the family behind Chanel, the Wertheimers, has now taken a stake in The Row. According to the WSJ, one of the reasons why The Row has attracted attention is its success in emulating an Hermès strategy, using “manufactured scarcity” to boost demand for its bags.

The newspaper said there is evidence that The Row’s Margaux bag is in “high demand” because its resale price is currently more than 40% higher than it costs to buy new. Made in Italy, the bag has a retail price on The Row’s e-commerce site of $4,700, but it is sold out.

This is prompting fans to buy the Margaux second hand at a premium.

According to the WSJ, this puts the bag in an elite group of products with the Hermès Birkin bag, although at a lower resale premium.

The Row launched in 2006 as part of a shift from acting to the fashion business that child television and film stars Mary-Kate and Ashley Olsen made. The Olsen twins still run The Row; Ashley is the brand’s chief executive, while Mary-Kate is its creative director.

AFRICA

institutions, aiming to address persistent quality issues in the supply chain.

UNIDO has also revised the national regulatory framework for hides and skins and handed over an automated slaughtering machine to an Ethiopian abattoir to help reduce wastage. Other interventions include upgrading slaughterhouses, establishing mobile abattoirs, and expanding training for certified professionals.

OCEANIA MLA drops carbon neutral timeframe

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eat and Livestock Australia (MLA) has said the sector will not reach carbon neutrality by 2030 but has said that reducing emissions would remain a priority.

The pledge was absent from its latest strategy document, according to a report on newswire Reuters.

MLA director Michael Crowley said: "We need more time, more support and more investment to reach our goal.”

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UNIDO develops training curriculum for Ethiopian leather sector

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he United Nations Industrial Development Organisation (UNIDO) has developed a draft curriculum to improve the production, handling, and marketing of raw hides and skins in Ethiopia, as reported in The Ethiopian Herald.

The curriculum is part of wider efforts to modernise the country’s leather sector and was developed in collaboration with the Ministries of Agriculture, Industry, and Labour and Skills. According to UNIDOLISEC National Project Coordinator, Wondu Legesse, it will form the basis for training manuals in TVET colleges and related

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The Fundamentals of Footwear From materials through the stages of design and production To place an order, send your enquiry to john@worldtrades.co.uk