Fashion
Egypt’s SCZONE inks deal with Turkish firm to set up textile unit
The factory is likely to create 2,000 direct jobs and export nine-tenths of its production abroad.
SCZONE chairman Waleid Gamal El-Dien said the Qantara West Industrial Zone now hosts 34 projects with investments worth $859.3 million, providing over 48,000 direct jobs.
Egypt’s Suez Canal Economic Zone has signed a deal with Turkiye’s Nil Orme to set up a $35-million textile-clothing unit in the former’s Qantara West Industrial Zone.
Meanwhile, Turkiye’s Sahinler Holding Group is planning to expand its operations in Egypt, investing over $41 million to expand its garment manufacturing and planning to complete its third sportswear factory in Egypt by the yearend.
Meanwhile, Turkish conglomerate Sahinler Holding Group is planning to expand its operations in Egypt with investments exceeding $100 million, according to an Egyptian media outlet. It is now investing over EGP 2 billion (~$41 million) to expand its ready-to-wear garment manufacturing.
This includes the completion of its third sportswear factory in Egypt by the end of 2026. It will raise production lines to 34 from the current 10.
A fourth garment factory for the Zara brand is also being planned in the third phase of Robbiki City, east of Cairo.
Founded in 1982, Sahinler now operates two sportswear factories in Egypt with a total investment of $50 million, alongside five additional facilities in Turkiye, Bulgaria, Germany and France.
Fibre2Fashion News Desk (DS)
By
Reuters
Published
August 29, 2025
Gap on Thursday reported comparable sales below Wall Street estimates as customers pulled back on discretionary spending, and it said U.S. tariffs would squeeze its margins in the current quarter.
Shares of the company were down about 2% in extended trading.
Inflationary prices and uncertainty arising from the Trump administration’s trade policy have curbed consumer spending, challenging CEO Richard Dickson’s turnaround efforts to revitalize its brands.
For the quarter ended August 2, Gap’s comparable sales rose 1%, missing estimates of 2.26% growth, while net sales rose slightly to $3.73 billion, almost in line with analysts’ estimates, according to data compiled by LSEG.
In the quarter, net sales in its cheaper Old Navy and namesake Gap brands ticked up 1% each. But sales fell in its pricier brands Banana Republic and Athleta. Sales in the athleisure brand continued their decline, falling 11%.
“Dickson has delivered on his promise to reinvigorate the Gap brand, though it remains to be seen if or how he can do the same for Athleta, where sales continue to decline,” said Sky Canaves, analyst at EMarketer.
Gap, like rivals including American Eagle, opens new tab and Levi Strauss, has pushed its denim line with a new viral “Better in Denim” campaign featuring the global girl group KATSEYE to bump up sales.
The campaign comes weeks after American Eagle’s “Great Jeans” denim campaign with actress Sydney Sweeney.
The company now expects annual operating margin to be between 6.7% and 7%, compared with 7.4% in 2024.
The forecast includes a tariff impact in the range of 100 to 110 basis points, which translates to a hit of $150 million to $175 million.
Canaves said the company’s profit margins could deteriorate as the year progresses.
“Tariff impacts, combined with a heavily promotional environment during the holidays, squeeze margins further.”
In May, Gap announced $250 million to $300 million in tariff-related costs and aimed to mitigate more than half of that amount while working to reduce exposure to countries struck with high tariffs on imports to the United States.
© Thomson Reuters 2025 All rights reserved.
Published
August 28, 2025
Urban Outfitters, Inc. on Wednesday posted record-breaking earnings and sales in the second quarter, thanks to solid sales growth across all brands including its struggling Urban Outfitters chain.
The Philadelphia-based company said sales for the three months ended July 31 surged 11.3% to a record $1.50 billion, with total retail segment sales up 7.8%, and comparable retail segment sales lifting 5.6%.
By brand, comparable sales increased 6.7% at Free People, 5.7% at Anthropologie and 4.2% at Urban Outfitters.
Elsewhere, subscription segment sales skyrocketed by 53.2%, primarily driven by a 48.1% increase in average active subscribers in the current quarter. Wholesale segment sales jumped 18.1%, driven by a 19.5% increase in Free People wholesale sales, thanks to an increase in sales to specialty customers.
As a result of the sales growth, the U.S. company posted a record net income of $143.9 million and earnings per diluted share of $1.58 for the three months ended July 31.
“We are proud to announce record revenues, profits, and earnings per share for the quarter,” said Richard Hayne, chief executive officer, Urban Outfitters, Inc.
“Our success was broad-based, with all five brands achieving positive comparable sales across all geographies. We saw exceptional performance across all of our segments – retail, subscription, and wholesale – and believe these results reflect the strength of our brands, the effectiveness of our strategy, and the talent of our teams. We are confident in our continued momentum.”
Copyright © 2025 FashionNetwork.com All rights reserved.
Published
August 28, 2025
Ssense is reportedly filing for bankruptcy protection following a move by creditors to initiate the sale of the Canadian luxury retailer, as per a letter sent to employees on Thursday.
In an email sent to staff, the Montreal-based company said the protection move follows the filing of an application to sell the company by its main creditor, without consent from the retailer, under the Companies’ Creditors Arrangement Act (CCAA), according to a B0F report.
Chief executive Rami Atallah explained that Ssense will in response file its own CCAA application within 24 hours “to protect the company, keep control of our assets and operations, and fight for the future of the company,” according to the memo.
“Recently, we have worked closely with financial and legal advisors to develop our own restructuring plan to stabilize the business and rebuild it for the future,” said Atallah, as cited by BoF.
“The court will decide which path we follow, likely within the next week. Until then, our focus remains clear: protect value, stabilize the business, and set up a restructuring plan to secure our future.”
It is unknown which creditor pulled the sale trigger.
The retailer’s CEO went on to explain the headwinds facing his company following the Trump administration’s recent trade policies, which have imposed 25 percent tariffs on goods imported from Canada.
Ssense also cited the closure of the “de minimus” exemption, which allowed packages worth less than $800 to enter the U.S. duty free as a hit operationally for the company.
The bankruptcy protection news follows layoffs at Ssense earlier this year, including 100 positions in May, as the firm tries to lower overheads amid the luxury slowdown affecting demand for high-price goods, especially more younger, aspirational luxury shoppers — Ssense’s target market.
Copyright © 2025 FashionNetwork.com All rights reserved.
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