The global textile and apparel industry is dominated by manmade fibre, but India’s textile and apparel sector is still dominated by cotton fibre due to the uneven tax structure on manmade fibre and its value chain. The Indian industry has repeatedly highlighted the inverted duty structure in the polyester value chain.

Ahead of the crucial GST Council meeting, the North India Textile Mills Association (NITMA) has demanded a uniform 5 per cent GST on polyester fibre, yarn, fabric, and garments. Following Prime Minister Narendra Modi’s announcement of rationalisation and rate cuts, the Council’s meeting scheduled for September 3–4, 2025, has become especially significant. NITMA raised the demand before Indian Finance Minister Nirmala Sitharaman, who chairs the Council.

North India Textile Mills Association (NITMA) has urged the GST Council to impose a uniform 5 per cent GST on polyester fibre, yarn, fabric, and garments to address the inverted duty structure.
Currently, polyester fibre attracts 18 per cent, yarn 12 per cent, and fabrics/garments 5 per cent GST.
NITMA warned that the imbalance threatens spinning viability, risking shutdowns and job losses.

Sidharth Khanna, president of NITMA, said in a letter: “Unlike the cotton value chain—which benefits from a uniform 5 per cent GST across all stages—the MMF segment continues to suffer from disparate tax rates that distort input-output parity and undermine domestic manufacturing viability.” He pointed out that polyester staple fibre (virgin and recycled) is taxed at 18 per cent, polyester staple yarn attracts 12 per cent GST, while manmade fabrics and garments priced up to ₹1,000 are taxed at 5 per cent GST.

Khanna added that taxing yarn at 5 per cent while fibre remains at 18 per cent creates a distortion that renders spinning operations financially unsustainable. If left uncorrected, this imbalance could trigger widespread unit shutdowns and large-scale job losses across the country.

“This is a defining moment for India’s textile sector. Correcting the inverted duty structure will not only neutralise the impact of US tariffs but also unlock growth, investment, and resilience across the MMF value chain—turning challenge into opportunity. There should be a rationalised GST rate of 5 per cent across all stages of the polyester value chain,” he emphasised.

Fibre2Fashion News Desk (KUL)

American chain of sporting goods stores Dick’s Sporting Goods, Inc has announced record second-quarter (Q2) results for the period ended August 2, 2025, with net sales climbing 5 per cent year-over-year (YoY) to $3.65 billion. Comparable sales rose 5 per cent, driven by higher average ticket values and increased transactions.

The net income reached $381 million, up 5 per cent from $362 million a year earlier. Earnings per diluted share stood at $4.71, compared with $4.37 in Q2 FY24. On a non-GAAP basis, EPS was $4.38, nearly flat versus last year’s $4.37, Dick’s said in a press release.

Dick’s Sporting Goods has posted record Q2 FY25 results with net sales up 5 per cent to $3.65 billion and comparable sales rising 5 per cent.
Net income reached $381 million, while EPS grew to $4.71.
The retailer ended with 889 stores, raised FY25 EPS guidance to $13.9–14.5, and expects 2–3.5 per cent comp growth, supported by strong execution and the pending Foot Locker acquisition.

The company ended the quarter with 889 stores across formats, after opening 11 and closing 7 locations year-to-date. Total selling space rose slightly to 45.1 million square feet from 44.8 million square feet. The growth was led by specialty banners including Golf Galaxy and Going Going Gone!, alongside expansions of House of Sport and Field House concepts, offsetting three closures in core Dick’s stores.

“We are very pleased with our strong Q2 results. Our performance shows the strength of our long-term strategies, the resilience of our operating model, and the consistent execution of our team,” said Lauren Hobart, president and CEO at Dick’s.

“With Q2 comps at 5 per cent, our momentum continues to build – a clear reflection of the strength of our long-term strategies and investments. We remain very enthusiastic about the strategic benefits from the Foot Locker acquisition. As previously shared, Foot Locker shareholders approved the transaction. We have also received all required regulatory approvals, and we anticipate that the deal will close on September 8^th,” said Ed Stack, executive chairman at Dick’s.

As of August 2, 2025, cash and equivalents stood at $1.23 billion, down from $1.69 billion last year, while inventories increased 7 per cent to $3.40 billion. The company repurchased $299 million worth of shares and paid $196 million in dividends in the first half of FY25. On August 27, the board declared a quarterly dividend of $1.2125 per share, payable September 26, 2025.

With robust sales momentum, disciplined capital allocation, and the pending integration of Foot Locker, Dick’s Sporting Goods continues to strengthen its position as a leading US omni-channel sporting goods retailer.

For fiscal 2025, Dick’s Sporting Goods projects earnings per diluted share between $13.9 and $14.5, up from prior guidance. Net sales are expected in the range of $13.75–13.95 billion, with comparable sales growth of 2–3.5 per cent. Capital expenditures are set at about $1.2 billion gross and $1 billion net.

Fibre2Fashion News Desk (SG)