Bangladesh’s economic activity continued to expand in January, though at a slower pace, as the Purchasing Managers’ Index (PMI) eased marginally to 53.9, according to the latest survey.

The January PMI declined by 0.3 points from the previous month, signalling a moderation in overall expansion. Despite the slowdown, growth persisted across agriculture, manufacturing and services, indicating broad-based resilience in economic activity, PMI Bangladesh said in a press release.

Bangladesh’s economy continued to expand in January, though at a slower pace, as the PMI eased to 53.9, according to PMI Bangladesh.
Growth persisted across all sectors, with manufacturing remaining in expansion for the 17th month despite softer momentum.
While exports and employment weakened, future business sentiment improved.

Manufacturing activity stayed in expansion for the 17th straight month, though growth softened. Key indicators such as new orders, factory output, imports, input prices and supplier deliveries remained in expansion. In contrast, new exports, input purchases, finished goods and employment registered contraction. The order backlogs index returned to expansion during the month.

Looking ahead, business sentiment improved, with the future business index pointing to faster expansion across all major sectors, including agriculture, manufacturing, construction and services, reflecting stronger expectations for the coming months.

“Overall, the latest PMI readings indicate that the economy experienced a slower expansion, with weak global supply chain recovery and cautious order placement weighing heavy on manufacturing exports. Agriculture sector also showed signs of slowdown after the late autumn paddy harvests. The continued expansion of the future business index across all key sectors however, points to sustained optimism ahead,” said Dr M Masrur Reaz, chairman and CEO, Policy Exchange Bangladesh.

The PMI has been published by MCCI and PEB since January last year. Initiated by the UK government, the index covers more than 500 private sector firms across agriculture, manufacturing, construction and services.

Fibre2Fashion News Desk (SG)

American sportswear company Under Armour Inc has reported a challenging yet strategically significant third quarter (Q3) of fiscal 2026 (FY26) ended December 31, as revenue declined 5 per cent year on year (YoY) to $1.33 billion, or 6 per cent on a currency-neutral basis, reflecting continued pressure in key markets alongside higher tariff costs.

North America remained the biggest drag on performance, with revenue falling 10 per cent to $757 million amid ongoing restructuring and demand softness. In contrast, international revenue grew 3 per cent to $577 million, rising 1 per cent on a currency-neutral basis. Within international markets, Europe, the Middle East and Africa (EMEA) delivered solid momentum with 6 per cent growth, while Asia-Pacific declined 5 per cent and Latin America recorded strong growth of 20 per cent, supported by improving brand traction and distribution expansion.

Under Armour has posted a challenging Q3 FY26, with revenue down 5 per cent YoY to $1.33 billion amid tariff pressure and weak North America demand.
International growth partly offset declines.
Margins narrowed, resulting in losses, though liquidity stayed strong.
For FY26, revenue is seen down 4 per cent, with improving profitability supported by restructuring and cost controls.

Channel performance was mixed. Wholesale revenue declined 6 per cent to $660 million, while direct-to-consumer (DTC) revenue fell 4 per cent to $647 million. Within DTC, owned-and-operated store revenue slipped 2 per cent and e-commerce declined 7 per cent, with digital sales accounting for 38 per cent of total DTC revenue during the quarter.

Category-wise, apparel revenue showed relative resilience, declining 3 per cent to $934 million. Footwear remained under pressure, falling 12 per cent to $265 million, while accessories revenue decreased 3 per cent to $108 million.

Profitability was weighed down by external and structural factors. Gross margin declined 310 basis points to 44.4 per cent, primarily due to higher tariffs, alongside pricing headwinds and an unfavourable channel and regional mix. These impacts were partially offset by foreign exchange gains and a more favourable product mix, Under Armour said in a press release.

Selling, general and administrative (SG&A) expenses increased 4 per cent to $665 million. Excluding a $99 million litigation reserve linked to an insurance carrier dispute and $3 million in transformation costs related to the fiscal 2025 restructuring plan, adjusted SG&A declined 7 per cent to $563 million, mainly due to lower marketing spend following timing shifts.

Restructuring charges during the quarter amounted to $75 million. The company reported an operating loss of $150 million, while adjusted operating income stood at $26 million after excluding litigation, restructuring and transformation expenses.

Under Armour posted a net loss of $431 million in Q3, largely driven by a $247 million valuation allowance on US federal deferred tax assets. Adjusted net income was $37 million. Diluted loss per share was $1.01, while adjusted diluted earnings per share came in at $0.09.

Inventory levels improved, declining 2 per cent to $1.1 billion. Liquidity remained strong, with cash and cash equivalents of $465 million at quarter-end. The company also held $600 million in restricted investments earmarked for repayment of senior notes due in June 2026 and had no borrowings under its $1.1 billion revolving credit facility.

Under Armour continued to progress with its FY25 Restructuring Plan, first announced in May 2024, which aims to enhance operational efficiency. The plan is now expected to cost up to $255 million. By the end of Q3 FY26, the company had incurred $224 million in restructuring and transformation costs, with the remaining charges expected to be recognised by the end of fiscal 2026.

“Our third quarter adjusted operating results exceeded expectations, and despite a few unfortunate, non-recurring impacts, we’re encouraged by the progress we’re making in the business to reignite brand momentum,” said Kevin Plank, president and CEO of Under Armour. “In North America, we believe the December quarter marked the most challenging phase of our business reset, and we expect greater stability ahead as we build on this progress globally.”

“Our transformation is accelerating as we sharpen our focus and strengthen execution. Our strategy is gaining traction through better products, bolder storytelling, and a more disciplined market presence, positioning Under Armour to operate with greater intention and confidence going forward,” added Plank.

Looking ahead, Under Armour revised its full FY26 outlook as revenue is expected to decline 4 per cent, compared with the prior outlook of a 4 to 5 per cent decline. This includes an approximate 8 per cent decline in North America and a 6 per cent decline in Asia-Pacific, each compared with a previously expected high-single-digit decline, partially offset by an approximate 9 per cent increase in EMEA revenue, compared with a previously expected high-single-digit increase.

The gross margin is expected to decline approximately 190 basis points, compared with the prior outlook of a 190 to 210 basis point decline, primarily due to higher US tariffs, unfavourable channel and regional mix, and pricing headwinds, partially offset by favourable foreign exchange and product mix, added the release.

SG&A expenses are expected to decline at a low-double-digit rate, compared with the prior outlook of a mid-teen percentage decline. Adjusted SG&A, which excludes litigation reserve expenses, transformation expenses related to the FY25 Restructuring Plan, and impairment charges, is expected to decline at a mid-single-digit rate, unchanged from the prior outlook, driven by lower marketing costs, restructuring savings, and other cost management initiatives.

Operating loss is expected to be approximately $154 million, compared with the prior outlook of a $56 million to $71 million loss. Excluding the litigation reserve expense and expected transformation and restructuring charges, adjusted operating income is expected to be approximately $110 million, compared with the prior outlook of $95 million to $110 million.

Diluted loss per share is expected to range from $1.24 to $1.25. Adjusted diluted earnings per share is expected to range from $0.10 to $0.11, compared with the prior outlook of $0.03 to $0.05.

Fibre2Fashion News Desk (SG)

India’s garment exporter Pearl Global Industries Limited (PGIL) has reported a strong performance in the third quarter (Q3) of fiscal 2026 (FY26) ended December 31, 2025, with consolidated revenue rising 14.4 per cent year on year (YoY) to ₹1,170 crore (~$129.3 million).

During the quarter, adjusted EBITDA stood at ₹97 crore, up 4.4 per cent YoY, with margins at 8.3 per cent. After excluding tariff-related costs and ramp-up expenses of around ₹9 crore, the adjusted EBITDA margin improved to about 9.1 per cent. Profit after tax (PAT) increased 6.8 per cent YoY to ₹52 crore.

Pearl Global Industries has posted strong Q3 FY26 results, with consolidated revenue rising 14.4 per cent to ₹1,170 crore (~$129.3 million) and PAT up 6.8 per cent.
9M revenue grew 13.2 per cent to ₹3,711 crore (~$410.5 million), supported by multi-country operations and higher value-added products.
Improved margins, rating upgrades and capacity expansion in Bangladesh strengthen its growth outlook.

Standalone performance also showed improvement. Q3 FY26 standalone revenue was ₹246 crore, with adjusted EBITDA of ₹13 crore and margins improving by 140 basis points YoY to 5.1 per cent. Excluding tariff costs of around ₹5 crore, margins stood at roughly 7.2 per cent. Standalone PAT rose sharply to ₹14 crore from ₹4 crore in Q3 FY25.

For the first nine months (9M) of FY26, PGIL reported consolidated revenue of ₹3,711 crore (~$410.5 million), registering a 13.2 per cent YoY increase, supported by its diversified multi-country manufacturing footprint and a higher value-added product mix. Adjusted EBITDA excluding ESOP expenses rose 14 per cent YoY to ₹333 crore, with margins of around 9 per cent.

After adjusting for reciprocal tariff costs of approximately ₹31 crore and incremental ramp-up expenses of about ₹11 crore, adjusted EBITDA margin improved to nearly 10.1 per cent. PAT for the period grew 14 per cent YoY to ₹189 crore, led by strong momentum in Vietnam and Indonesia.

On a standalone basis for 9M FY26, it reported revenue of ₹777 crore. Adjusted EBITDA surged 63.7 per cent YoY to ₹43 crore, with margins expanding to 5.5 per cent, an improvement of 220 basis points, largely due to cost restructuring. Excluding reciprocal tariff costs of around ₹14 crore, adjusted EBITDA margin stood at about 7.3 per cent. Standalone PAT increased to ₹55 crore from ₹32 crore a year earlier.

PGIL’s credit profile strengthened during the period, with ICRA upgrading its long-term rating from BBB (Stable) in 2021 to A+ (Stable) in 2026, and its short-term rating improving to A1+, reflecting strong liquidity and operational resilience.

The company said Bangladesh remains a key growth engine, with capacity expansion on track for completion by Q2 FY27. Indonesia and Vietnam continue to operate at optimal utilisation levels, positioning them well for future growth. PGIL added that recent trade agreements covering major global markets valued at over $250 billion, combined with existing capacity, place it in a strong position to accelerate revenue growth, improve profitability and create long-term value for stakeholders.

“We are delighted to report another quarter of encouraging performance in FY26 for the group amidst a challenging macroeconomic and geopolitical environment. Our 9M FY26 revenue grew by 13.2 per cent and EBITDA grew by 14 per cent YoY,” said Pulkit Seth, vice-chairman and non-executive director of PGIL. “Our India operations are expected to gain significant momentum following the reduction of US tariffs to 18 per cent. This trade agreement removes the burden of the additional 25 per cent duty, thereby enhancing profitability and supporting sustained top-line growth. Another positive industry development is India-EU Free Trade Agreement (FTA), which creates a level playing field for Indian exporters.”

“This agreement will accelerate growth in our India operations, allow us to leverage existing relationships with EU customers including those currently served from our other manufacturing locations. Further, the UK FTA opens new opportunities to expand India’s revenue contribution to the UK market. With capacity already in place, we are well-positioned to capitalise all these opportunities and continue to grow revenue and profitability,” added Seth.

“This performance underscores the strength of Pearl global’s diversified operating model and disciplined execution across geographies. Despite ongoing macroeconomic and trade-related challenges, we have delivered consistent growth, supported by a higher value-added product mix and operational efficiencies,” said Pallab Banerjee, managing director of the company.

“While Vietnam, Indonesia and Bangladesh continue to grow, our India operations were constrained by the high US tariff in FY26, however with the February deal with US and necessary capacity and capability in place, our India operations are also well positioned to regain growth trajectory from FY27 onwards,” added Banerjee.

Fibre2Fashion News Desk (SG)