The euro area recorded a €12.6 billion (~$14.95 billion) trade surplus in goods with the rest of the world in December 2025, down from €13.9 billion (~$16.49 billion) in December 2024, as stronger import growth outpaced exports, according to the Eurostat.

Exports rose 3.4 per cent year on year (YoY) to €234 billion, compared with €226.3 billion a year earlier. Imports increased at a faster pace of 4.2 per cent to €221.3 billion, up from €212.4 billion in December 2024, Eurostat said in a press release.

The euro area has posted a €12.6 billion (~$14.95 billion) goods trade surplus in December 2025, as imports grew faster than exports.
The full-year surplus eased to €164.6 billion (~$195.26 billion).
Similarly, the EU recorded a €12.9 billion (~$15.3 billion) December surplus, with 2025’s total at €133.5 billion (~158.36 billion), reflecting narrower sectoral surpluses despite improved energy balances.

On a month-on-month (MoM) basis, the euro area balance improved from November 2025 to reach €12.6 billion. However, compared with December 2024, the surplus declined by €1.3 billion, largely reflecting weaker sectoral surpluses.

Surpluses in other manufactured goods, and raw materials narrowed during the period. In contrast, the energy deficit eased significantly to -€19.1 billion from -€24.5 billion, providing partial support to the overall balance.

For the full year, the euro area posted a €164.6 billion (~$195.26 billion) surplus in January-December 2025, slightly below €168.9 billion in 2024. Annual exports rose 2.4 per cent to €2,937.9 billion, while imports increased 2.7 per cent to €2,773.3 billion. Intra-euro area trade expanded 2.0 per cent to €2,627.6 billion.

Seasonally adjusted data showed euro area exports rising 1.1 per cent MoM in December, with imports up 0.6 per cent. The adjusted surplus widened to €11.6 billion from €10.2 billion in November. However, in the fourth quarter, exports to non-euro area countries declined 0.7 per cent, while imports fell 1.0 per cent.

Meanwhile, the European Union (EU) recorded a €12.9 billion (~$15.3 billion) trade surplus in December 2025, down from €14.2 billion in December 2024.

Extra-EU exports rose 2.2 per cent YoY to €214.8 billion, while imports increased 3.0 per cent to €201.9 billion. Compared with November 2025, the EU surplus improved, but on an annual basis it narrowed by €1.3 billion.

The decline was driven by a reduced surplus in chemicals and related products, which fell to €16.2 billion from €19.7 billion. Machinery and vehicles saw their surplus ease to €16.3 billion from €18.3 billion, while other manufactured goods shifted from a €1.0 billion surplus to a €1.9 billion deficit. The energy deficit improved markedly to €-21.9 billion from €-28.0 billion.

Primary goods exports fell 2.7 per cent YoY to €32.4 billion, while imports declined 11.0 per cent to €53.4 billion. Energy imports dropped 19.9 per cent, reflecting lower values, even as manufactured goods imports climbed 8.9 per cent.

For the full year 2025, the EU posted a €133.5 billion (~158.36 billion) surplus, compared with €140.6 billion in 2024. Extra-EU exports rose 2.0 per cent to €2,645.0 billion, while imports increased 2.4 per cent to €2,511.5 billion. Intra-EU trade grew 2.6 per cent to €4,142.9 billion.

Seasonally adjusted figures showed EU exports up 1.1 per cent MoM in December and imports up 0.6 per cent, lifting the surplus to €8.8 billion from €7.7 billion in November. However, in the final quarter of 2025, exports to non-EU countries fell 0.8 per cent and imports declined 1.4 per cent, signalling softer external demand towards year-end.

Fibre2Fashion News Desk (SG)

American footwear company Crocs Inc has reported consolidated revenues of $4.04 billion in the full-year 2025 ended December 31, down 1.5 per cent year on year (YoY), or 1.7 per cent on a constant currency basis. Direct-to-consumer (DTC) revenues grew 3.3 per cent, while wholesale revenues declined 6.2 per cent, reflecting channel rebalancing and softer wholesale demand.

The gross margin stood at 58.3 per cent, marginally lower than 58.8 per cent in 2024. Selling, general and administrative (SG&A) expenses rose sharply to $2,208 million, largely due to non-cash impairment charges related to the Heydude brand, including $430 million tied to the trademark and $307 million to goodwill. On an adjusted basis, SG&A increased a more moderate 6.8 per cent to $1,456 million.

Crocs Inc has reported full-year 2025 revenue of $4.04 billion, down 1.5 per cent, as wholesale weakness offset DTC growth.
Impairment charges linked to Heydude hit reported profit, though adjusted operating income remained strong.
The Crocs brand grew internationally, while Heydude declined.
Strong cash flow supported debt reduction and share buybacks.
The company expects modest revenue trends in 2026.

Reported operating income fell 85.4 per cent to $150 million, resulting in an operating margin of 3.7 per cent. Excluding impairments, adjusted operating income reached $901 million, with an adjusted operating margin of 22.3 per cent. Crocs posted a diluted loss per share of $1.50 for the year, compared to earnings per share (EPS) of $15.88 in 2024. Adjusted diluted EPS declined 5.0 per cent to $12.51, Crocs said in a press release.

For the full year, the Crocs brand grew revenues 1.5 per cent to $3,326 million, supported by an 11.9 per cent rise in international sales. Heydude revenues declined 13.3 per cent to $715 million, reflecting continued pressure in wholesale channels.

Strong cash generation remained a highlight. Operating cash flow reached approximately $700 million, enabling the company to repay $128 million of debt and repurchase around 6.5 million shares for $577 million during the year.

As of December 31, 2025, cash and cash equivalents stood at $130 million, inventories at $369 million, and total borrowings declined to $1,231 million. Capital expenditure for the year was $51 million.

Commenting on the annual performance, Andrew Rees, chief executive officer of Crocs, said: “We ended 2025 on a strong note with a better-than-expected Holiday quarter. For the year, revenue exceeded $4 billion, led by low-double digit international growth for the Crocs Brand. At the same time, we accelerated our strategic actions to strengthen the long-term health of both the Crocs and Heydude brands.”

“Our powerful value creation model drove operating cash flow of approximately $700 million which enabled us to return shareholder value as we repurchased approximately 10 per cent of our shares outstanding and paid down $128 million of debt,” added Rees.

For the fourth quarter (Q4) of 2025, consolidated revenues declined 3.2 per cent to $958 million, or 4.2 per cent on a constant currency basis. DTC revenues increased 4.7 per cent, while wholesale revenues dropped 14.5 per cent.

The gross margin declined to 54.7 per cent from 57.9 per cent a year earlier. SG&A expenses rose slightly to $377 million, representing 39.4 per cent of revenues, while adjusted SG&A declined 2.7 per cent to $363 million.

Income from operations decreased 26.8 per cent to $146 million, with operating margin narrowing to 15.3 per cent. On an adjusted basis, operating income reached $161 million, translating into an adjusted operating margin of 16.8 per cent. Diluted EPS fell sharply to $2.03, while adjusted diluted EPS declined 9.1 per cent to $2.29.

In Q4, the Crocs brand delivered revenues of $768 million, up 0.8 per cent YoY. DTC revenues increased 6.1 per cent, while wholesale revenues declined 6.7 per cent. International markets remained a key growth driver, with revenues rising 14.1 per cent, offsetting a 7.4 per cent decline in North America.

Heydude brand revenues fell 16.9 per cent to $189 million in the quarter, with wholesale revenues declining over 40 per cent, while DTC revenues remained flat.

During the quarter, Crocs repurchased approximately 2.2 million shares for $180 million and repaid $90 million of debt.

Looking ahead, Crocs expects a challenging start to 2026 but sees improving efficiency and disciplined investment supporting earnings growth. For the first quarter of 2026, revenues are expected to decline between 5.5 per cent and 3.5 per cent YoY, with adjusted operating margin of around 21.5 per cent and adjusted diluted EPS between $2.67 and $2.77.

For full-year 2026, the company expects revenues to range from down 1 per cent to slightly higher than 2025. The Crocs brand is projected to be flat to up 2 per cent, while Heydude revenues are expected to decline between 9 per cent and 7 per cent. Adjusted diluted EPS are forecast in the range of $12.88 to $13.35.

“We enter 2026 with greater confidence around our growth engines which are diversified across channels, geographies, brands, and product categories. We have identified and actioned $100 million of cost savings in 2026 aimed at driving greater efficiency while providing the flexibility to continue to invest behind our brands and deepen our connection with consumers,” said Rees.

Fibre2Fashion News Desk (SG)

The Philippines’ GDP is expected to grow at 5.1 per cent in 2026 and 5.8 per cent in 2027, up from 4.4 per cent in 2025. Inflation is expected to rise to 2.6 per cent in 2026 and 3.0 per cent in 2027, the mid-point of the central bank’s target range, according to the first OECD Economic Survey of the Philippines.

“The Philippines’ economy has demonstrated remarkable strength and resilience: since 2010 output has more than doubled and poverty has more than halved,” OECD secretary-general Mathias Cormann said, presenting the Survey in Manila alongside the Philippines’ secretary of finance Frederick D Go. “Ambitious reforms to strengthen competition and formal job creation are needed to sustain income growth and raise living standards. In parallel, stronger efforts on climate change adaptation would reduce the economic, social and financial risks from extreme weather.”

The Philippines’ GDP is projected to grow 5.1 per cent in 2026 and 5.8 per cent in 2027, with inflation at 2.6–3.0 per cent.
Strong fiscal management, pro-competition reforms, and improved social protection are recommended to boost productivity, formal employment, and public spending efficiency.
Investments in resilient infrastructure are also urged to support inclusive economic growth.

Strong fiscal discipline would put public debt on a prudent path. Phasing out value-added tax exemptions for private healthcare, education, and senior citizens, combined with targeted social transfers, would optimise taxes, transfers and revenue collection. Addressing corruption in public investment would improve spending efficiency as well as the business and investment climate.

Pro-competition reforms are key to boost productivity growth, especially in the electricity and telecommunications sectors, where weak competition keeps prices and input costs high for the rest of the economy. In electricity, reforms need to prioritise effective separation between network infrastructure and energy generation. In telecommunications, open-access network rules that require incumbents to share infrastructure at regulated tariffs could allow households and firms to benefit from lower prices. Streamlining administrative procedures across the economy, including for foreign investors, would stimulate further investment, the survey said.

A unified, multi-tiered social protection system, with universal core benefits funded by general tax revenues and top-up benefits financed by progressive social contributions, would enhance social protection and incentives for formal job creation. Aligning minimum wages more closely with regional productivity would reduce the shares of the workforce working informally and earning less than the minimum wage.

Fibre2Fashion News Desk (RR)