Fashion
Despite a 3.1% contraction in 2025, Italy’s footwear sector sees the light at the end of the tunnel
Published
December 23, 2025
Despite the persistent crisis affecting the fashion sector, the Italian footwear industry is beginning to show signs of recovery, even as it closes the year down 3.1%: the third quarter, in fact, ended with a 0.9% decline, “a markedly better result than the steep contractions experienced in the first half of the year,” notes a press release from Assocalzaturifici.
“The current overall picture remains complex and spares not even the highest end of the market, but the third-quarter figures point to a slowing of the decline and a first glimmer of light at the end of the recessionary tunnel,” said Giovanna Ceolini, president of Assocalzaturifici. “Despite the lack of significant improvements on the geopolitical front, our companies’ ability to maintain a strong foothold in European markets and to capture demand in the most dynamic areas, such as the Middle East, is key to navigating 2026. Although business performance is uneven, with several firms still under strain, the modest downturn expected in full-year revenue (estimated at 12.8 billion euros) confirms the resilience of Made in Italy.”
On the foreign trade front, exports reached 7.72 billion euros (-1.3%) in the first eight months of 2025. The most significant figure concerns volumes: 131.8 million pairs were sold abroad, up 4.3%. This recovery in volume was accompanied by a normalisation of average prices (58.58 euros per pair, -5.3%), signalling a correction after the double-digit increases of 2022/2023.
The EU (which takes seven out of every ten pairs exported) is growing in both value (+2.2%) and volume (+7.6%). Germany stands out with a solid 6% rise in value and 10% in pairs, while positive results were also recorded in Spain, Poland, Belgium, and Austria. Outside the EU, the Middle East remains the most dynamic region, with overall value up 13%, driven by a surge in the United Arab Emirates (+20%). Turkey and Mexico also performed well. The Far East, by contrast, remains under pressure, with a contraction of more than 20% in both volume and value, affected by the sharp slowdown recorded in China (-24.6% in value) as well as in all the other main Asian markets (Hong Kong, Japan,and South Korea), and by the CIS region (-9.2%, with -17.8% in Russia), still hampered by the conflict.
“The US market remains under close watch, with the eight-month period closing up 2.9% in value against a decline in volumes (-4.2%). The sector is cautiously assessing the impact of the tariffs set under the US-EU agreement: while August registered a discouraging -17.8% in value, preliminary September data show a responsiveness that was, in some respects, unexpected. To date, 55% of member companies exporting to the US judge the effects of the tariffs to be far from negligible, with one in five companies facing severe difficulties,” the note concludes.
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The increase was driven primarily by higher reinvested earnings and intra-company loans, indicating continued engagement by existing investors with Bangladesh.
Reinvested earnings rose by 318.25 per cent, from $103.79 million in 2024 to $434.10 million in 2025, while intra-company loans increased by 25.68 per cent, from $621.96 million to $781.68 million.
Bangladesh’s net FDI inflows increased by 39.36 per cent last year to $1,770.42 million compared with $1,270.39 million in 2024, the Bangladesh Bank said.
The increase was driven primarily by higher reinvested earnings and intra-company loans.
Reinvested earnings rose by 318.25 per cent, from $103.79 million in 2024 to $434.10 million in 2025, while intra-company loans rose by 25.68 per cent.
Equity capital remained broadly stable, rising by 1.84 per cent, from $544.64 million to $554.64 million in 2025, a release from Bangladesh Investment Development Authority said.
Greenfield project announcements declined by 16 per cent in 2025.
Fibre2Fashion News Desk (DS)
The company’s adjusted EBITDA, excluding Employee Stock Option Plan (ESOP) expenses, rose around 14 per cent YoY to ₹468 crore, while EBITDA margin improved by 20 basis points to around 9.3 per cent. Excluding the reciprocal tariff impact of around ₹36 crore and incremental losses of around ₹13 crore in Bihar and Guatemala, adjusted EBITDA margin stood at around 10.3 per cent.
Pallab Banerjee, managing director, Pearl Global Industries, said: “FY26 marked the company’s second consecutive year of double-digit growth and improved profitability. This performance further solidifies the position of Pearl Global’s diversified operating model and disciplined execution across geographies.”
Pearl Global Industries has reported its highest-ever FY26 revenue of ₹5,025 crore (~$523.93 million), up 11.5 per cent YoY, driven by volume growth and value-added products.
PAT rose 17 per cent to ₹270 crore (~$28.15 million), while Q4 revenue hit ₹1,314 crore (~$137 million).
The company shipped 78.1 million pieces.
Its net worth stands at ₹1,438 crore (~$149.93 million).
He said that geopolitical shifts and Gulf conflicts could lead to energy cost escalation, affecting raw material and logistics costs. However, the company remains prepared to manage these headwinds, supported by its diversified manufacturing base, strong order book, and broad market presence.
The profit after tax (PAT) increased 17 per cent YoY to ₹270 crore (~$28.15 million), the company said in a press release.
On a standalone basis, FY26 revenue stood at ₹1,081 crore, while adjusted EBITDA was ₹67 crore, with EBITDA margin improving by 60 basis points to 6.2 per cent, mainly due to cost restructuring. Standalone PAT rose to ₹69 crore from ₹55 crore in the previous year.
The company’s net worth stood at ₹1,438 crore (~$149.93 million) as of March 31, 2026, compared with ₹1,146 crore a year earlier.
“In FY26, Group delivered another year of resilient performance against a complex geopolitical backdrop. Group achieved, among others, two major milestones this year: revenue crossed INR 5,000 crore mark and installed capacity surpassed 100 million pieces per annum,” said Pulkit Seth, vice-chairman and non-executive director, PGIL.
Seth added that the global apparel industry faced tariff-related disruptions during FY26, with the company’s India operations impacted by tariffs and penal duties imposed by the US. However, he added that Pearl Global leveraged its diversified, multi-country manufacturing presence to mitigate these challenges and deliver double-digit growth.
For the fourth quarter (Q4) of FY26, PGIL posted its highest-ever quarterly revenue of ₹1,314 crore (~$137 million), up 6.9 per cent YoY. Adjusted EBITDA rose 13.7 per cent to ₹135 crore, with margin at 10.3 per cent, the highest EBITDA margin recorded by the company in any quarter. PAT for the quarter stood at ₹81 crore, up 24.6 per cent YoY, PGIL said in a press release.
Standalone revenue during the quarter stood at ₹304 crore, adjusted EBITDA at ₹24 crore, and PAT at ₹14 crore.
PGIL shipped its highest-ever volumes in Q4 FY26 and FY26, at 22 million pieces and 78.1 million pieces respectively. Its annual installed capacity crossed 100 million pieces, reaching around 101 million pieces.
The ongoing capex in Bangladesh is expected to be completed by the first half of FY27 and will add around 6-7 million pieces of capacity during the year.
Fibre2Fashion News Desk (SG)
PTA prices recorded notable declines across key Asian benchmarks, tracking crude oil weakness rooted in evolving geopolitical signals. The correction was broad-based, spanning China, Southeast Asia, and South Korea, while India**;s CIF price held steady reflecting the lag in import contract structures and limited spot availability in the domestic market on the day.
The *** per cent Polyester Yarn market witnessed a slightly negative trend during the assessed period, with mild price corrections observed across both yarn grades in the Asia Free on Board (FOB) China market. Prices for **s (*** per cent polyester yarn) declined from around $*.***/kg to nearly $*.***/kg, registering a decrease of approximately *.** per cent.
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