Affirming its ’Ba2’ rating, the agency said Vietnam’s institutional quality and governance were improving due to administrative, legal, and public sector reforms implemented since late-2024, and downside risks from US trade measures had eased compared with what was expected earlier.

Moody’s Ratings recently raised its outlook on Vietnam to ‘positive’ from ‘stable’, citing rising confidence in the country’s ability to strengthen its credit profile over the medium term.
Affirming its ⁠’Ba2′ rating, it said Vietnam’s institutional quality and governance were improving due to reforms implemented since late-2024, and downside risks from US trade measures had relatively eased.

Moody’s emphasised that the country’s growth potential continues to be a primary anchor for its credit profile. This is supported by a diversified export base, recovering domestic demand and robust foreign direct investment (FDI) inflows, all of which provide a solid foundation for macroeconomic stability.

Vietnam has demonstrated a high degree of adaptability to global volatility like fluctuating energy prices, rising shipping costs and inflationary pressures stemming from geopolitical tensions. This resilience is underpinned by a stable economic foundation, a positive external balance and a highly diversified trade structure, it noted.

However, risks within the banking system, vulnerabilities in the real estate market and lingering institutional bottlenecks continue to serve as hurdles for a potential rating upgrade in the future, the rating agency cautioned.

Fibre2Fashion News Desk (DS)

In the Tiruppur market, cotton yarn trade soared by ****;*–** per kg since last Friday. Spinning mills are increasing yarn prices to cover additional cost of production due to costly cotton. Cotton prices jumped by ****;*,***–*,*** per candy in the last couple of days. A trader from Tiruppur market told Fibre*Fashion, “It was inevitable to increase yarn prices as mills cannot absorb such steep rise in cotton prices. Even after increase in yarn prices, supplies are still limited as mills are exporting yarn at attractive prices. Indian spinning mills’ cotton yarn export ratio increased up to ** per cent of its total production from nearly ** per cent, few months ago.”

In Tiruppur, knitting cotton yarn prices were noted as: ** count combed cotton yarn at ****;***–*** (~$*.**–*.**) per kg (excluding GST), ** count combed cotton yarn at ****;***–*** (~$*.**–*.**) per kg, ** count combed cotton yarn at ****;***–*** (~$*.**–*.**) per kg, ** count carded cotton yarn at ****;***–*** (~$*.**–*.**) per kg, ** count carded cotton yarn at ****;***–*** (~$*.**–*.**) per kg, and ** count carded cotton yarn at ****;***–*** (~$*.**–*.**) per kg.

The company’s consolidated revenues stood at $921 million for the quarter ended March 31, 2026, down 1.7 per cent year on year (YoY), or 4 per cent on a constant currency basis. DTC revenues rose 12.1 per cent, while wholesale revenues declined 9.9 per cent. Gross margin fell to 56.8 per cent from 57.8 per cent, while operating income declined 9.9 per cent to $201 million. Diluted earnings per share (EPS) slipped to $2.71 from $2.83.

Crocs has reported better-than-expected Q1 2026 results, with revenue at $921 million, down 1.7 per cent, driven by 12.1 per cent DTC growth. Gross margin fell to 56.8 per cent, while EPS dipped to $2.71.
The Crocs brand grew modestly, but HEYDUDE declined.
CEO Andrew Rees highlighted strong consumer demand and raised FY26 guidance, projecting EPS of $13.20-13.75.

“We are pleased to have started the year with better-than-expected results, fuelled by broad consumer relevance for both of our brands and disciplined execution,” said Andrew Rees, chief executive officer (CEO) at Crocs. “We delivered enterprise revenue of over $900 million, supported by strong consumer response to product newness and consistent brand storytelling.”

The Crocs brand posted modest growth, with revenues up 0.8 per cent to $767 million, supported by a 12.9 per cent rise in DTC sales. International markets remained resilient, growing 7.2 per cent. However, North America revenues declined 6.1 per cent, Crocs said in a press release.

HEYDUDE revenues fell 12.3 per cent to $154 million, weighed down by a sharp 24.7 per cent drop in wholesale sales, although DTC revenues rose 8.6 per cent.

The company ended the quarter with $131 million in cash and reduced total borrowings to $1.34 billion.

Crocs lifts FY26 outlook; sees modest margin expansion

For full-year 2026, Crocs now expects revenues to range from down 1 per cent to up 1 per cent, with adjusted diluted earnings per share projected between $13.2 and $13.75. The company also anticipates modest expansion in adjusted operating margin.

For the second quarter, revenues are expected to decline slightly, with Crocs brand growth of 1–3 per cent and HEYDUDE projected to fall 12-14 per cent. Adjusted operating margin is forecast at around 24.7 per cent.

“Based on our first quarter performance, we are raising our full-year outlook on both the top- and bottom-line,” added Rees. “We remain confident in the long-term health of the business as we drive diversified growth across brands, channels and markets.”

Fibre2Fashion News Desk (SG)