Fashion
GST rate rationalisation to profit Indian states in FY26: SBI Research
First, GST is shared equally between the central government and the states, with each receiving half of the collections. Second, under the mechanism of tax devolution, 41 per cent of the central government’s share flows back to the states, SBI Research said in a report on GST.
The proposed goods and services tax (GST) rate rationalisation is likely to result in stronger revenue collections validated by historical trends due to the unique revenue-sharing architecture of the tax, according to SBI Research.
FY26 projections indicate that states are expected to receive at least ₹10 trillion in state GST plus ₹4.1 trillion through devolution, thereby making them net gainers.
Taken together, this means that out of every ₹100 of GST collected, states ultimately accrue nearly ₹70.5.
SBI Research’s FY26 projections indicate that states are expected to receive at least ₹10 trillion in state GST plus ₹4.1 trillion through devolution, thereby making them net gainers.
The gains accrue even when the researchers did not take the additional consumption boost due to rate rationalisation.
“Evidence from earlier rounds of GST rate changes, such as those in July 2018 and October 2019, suggests that rationalization does not necessarily weaken revenue collections. Instead, the evidence points to a temporary adjustment phase followed by stronger inflows,” the SBI Research report noted.
“While an immediate reduction in rates can cause a short-term dip of around 3-4 per cent month on month (roughly ₹5,000 crore, or an annualized ₹60,000 crore), revenues typically rebound with sustained growth of 5-6 per cent per month,” it added.
Fibre2Fashion News Desk (DS)
The UK economy is forecast to expand by 1.3 per cent in 2025, up from the earlier 1.1 per cent estimate, supported by stronger Q1 performance and public spending. Growth is projected at 1.2 per cent in 2026 before rising to 1.5 per cent in 2027.
Business investment remains weak at 1.6 per cent this year, sharply down from the previous 4.8 per cent forecast, reflecting subdued SME sentiment and higher national insurance costs. A modest recovery is projected—1.9 per cent in 2026 and 3 per cent in 2027, British Chambers of Commerce (BCC) said in a release.
Exports are forecast to grow 3.1 per cent in 2025, aided by early momentum before new US tariffs, but net trade will stay negative as imports climb 4.4 per cent. Net trade is expected to contract by -1.3 per cent this year, -0.7 per cent in 2026, and -0.9 per cent in 2027.
“While 2025 may be slightly better than forecast, the overall growth landscape for the UK in the next couple of years looks weak. The economy will continue to be buffeted by global headwinds, alongside ongoing worries about high bond yields. Government expenditure has bolstered the economy this year, but the spending taps are likely to be tightened very soon across Whitehall,” said Vicky Pryce, chair of the BCC Economic Advisory Council, commenting on the forecast.
Inflation is expected to remain stubbornly above the Bank of England’s target, with CPI revised up to 3.7 per cent for 2025, before easing to 2.5 per cent in 2026 and 2.1 per cent in 2027. Higher wages and national insurance hikes continue to drive price pressures.
Interest rates are unlikely to fall further this year, with the base rate projected to hold at 4 per cent by end-2025. Limited cuts are expected in 2026, lowering the rate to 3.5 per cent, where it is set to remain through 2027.
Earnings growth will outpace inflation, rising 4.3 per cent in 2025, then 4.1 per cent in 2026 and 4 per cent in 2027, though this adds inflationary pressures. Unemployment is forecast to stay stable at 4.7 per cent through 2026, easing slightly to 4.5 per cent in 2027.
“A net trade deficit will continue to weigh on growth going forward. Global trade tensions, ongoing conflicts, and the recent removal of the USA’s de minimis threshold for small exporters are acting as a drag anchor on exports,” David Bharier, head of research at the British Chambers of Commerce said.
“The forthcoming Autumn Budget will be a pivotal moment. The Chancellor faces some tough decisions as more tax rises risk severely undermining sentiment and investment even further. Sustainable growth depends on driving productivity through modern infrastructure, a skilled workforce, and seizing the opportunities of the AI revolution. SMEs need the tools to invest, trade and expand. Without this, the UK risks being locked into a prolonged low-growth trap,” Bharier suggested.
“The spectre of inflation is set to loom over the economy for some time to come, with consumers reluctant to spend. That’s likely to slow the path of interest rate cuts. Government long-term strategies are welcome – but firms can’t only exist on promises of tomorrow. They need help today to grow, recruit and compete,” Pryce added.
The UK economy is forecast to grow 1.3 per cent in 2025, easing to 1.2 per cent in 2026 before 1.5 per cent in 2027.
Business investment stays weak at 1.6 per cent this year, while net trade remains negative despite 3.1 per cent export growth.
Inflation will stay above target at 3.7 per cent in 2025, with rates at 4 per cent.
Earnings outpace inflation.
Fibre2Fashion News Desk (HU)
Published
September 5, 2025
UK jeweller Beaverbrooks has filed its accounts for the year to 1 March and they show a revenue decline, although it was partly accounted for by the previous year including 53 weeks rather than 52 for the latest period. It also said the gross margin increased but it swung to a loss.
Turnover at the family-owned firm dropped to £217.3 million from £228.65 million, and gross profit dipped to £24.69 million from £25.74 million. The gross profit margin was 11.36%, up from 11.26%.
The company said operating profit before discretionary payments was £6.9 million, down from £11 million. Those discretionary payments included performance-related remuneration and contributions to charity with operating profit after them down to £1 million from £1.59 million.
Profit before tax was £0.34 million, down from £1 million and with the impact of tax on that figure, the net loss for the period was £0.79 million, after the company had been marginally profitable the year before.
The firm said its directors were satisfied with its performance in a period during which its customers, colleagues and suppliers were all “significantly impacted” by the rising cost of living in the UK and the effect of geopolitical uncertainty on costs in the supply chain.
Beaverbrooks continued strategic marketing and investment in its stores during the period, including the opening of its third Loupe boutique in Preston.
Copyright © 2025 FashionNetwork.com All rights reserved.
By
Reuters
Published
September 5, 2025
Shares of Lululemon Athletica fell more than 17% in premarket trading on Friday after the athleticwear maker lowered its annual profit and sales forecasts, citing weak US demand and increased tariff costs.
The company reduced its annual profit outlook for the second consecutive quarter on Thursday, as it contends with shrinking market share, rising competition, a volatile economic environment, and tariffs that are impacting discretionary consumer spending.
Lululemon’s shares have declined more than 40% this year. Weekly product launches have had little effect on reviving sales as American shoppers approach the holiday season cautiously.
“We have let our product life cycles run too long within many of our core categories,” CEO Calvin McDonald said during a post-earnings call on Thursday.
Comparable sales for the Americas segment—its largest—declined by 1%, while international sales grew by 15%.
“The US drives the earnings and the US is fading fast here,” Jefferies analyst Randal Konik said in a note.
“Rising competition won’t stop either, which means Lululemon’s earnings per share are permanently impaired,” Konik added.
The company now expects annual profit per share between €12.77 and €12.97, down from its previous guidance of €14.58 to €14.78.
Lululemon estimates a €240 million impact on its 2025 gross profit due to increased tariffs and the removal of the de minimis exemption.
The yogawear maker, which relies heavily on sourcing and manufacturing in Vietnam and mainland China, remains vulnerable to the tariffs introduced under former President Donald Trump’s trade policies.
Lululemon’s forward price-to-earnings ratio—a common stock valuation metric—currently stands at 13.82, significantly lower than Nike’s 39.21, according to data from LSEG.
© Thomson Reuters 2025 All rights reserved.
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