Readymade garment (RMG) units in Bangladesh are quite away from meeting clean energy consumption targets owing to high renewable energy costs, limited rooftop space and policy bottlenecks that are slowing adoption across the sector, a recent study revealed.

Though the European Union (EU) Corporate Sustainability Due Diligence Directive (CSDDD), which came into effect last year, requires RMG factories in the country to generate 35 per cent of their power from renewable energy sources by 2035 for smooth Western exports, just 3 per cent of electricity used by Bangladesh RMG factories comes from renewable sources now, according to the study conducted by Mapped in Bangladesh (MiB), an initiative of the Centre for Entrepreneurship Development (CED) at BRAC University.

Bangladesh garment units are quite far from meeting clean energy consumption targets due to high renewable energy costs, limited rooftop space, and policy bottlenecks that are slowing adoption across the sector, a study revealed.
Eighty-eight per cent of respondents cited high installation costs as a barrier to renewable energy adoption, while 42 per cent pointed to high maintenance costs.

The country’s RMG sector remains heavily dependent on conventional energy despite the 2035 deadline, with 61.5 per cent of used energy coming from the national grid and 35.5 per cent from captive generation.

Eighty-eight per cent of respondents cited high installation costs as a barrier to renewable energy adoption, while 42 per cent pointed to high maintenance costs.

Twenty-eight per cent of respondents said a lack of awareness was a factor, while 16 per cent blamed unfavourable policies. Fourteen per cent cited limited space in smaller factories.

At 0.9 per cent, renewable energy adoption is significantly lower in Narayanganj compared with 3.6 per cent in Gazipur, domestic media outlets reported citing the study.

As Bangladesh is moving towards a more ambitious renewable energy transition through the Renewable Energy Policy 2025 and updated climate commitments, the RMG sector is central to this, given its high electricity consumption and importance to export earnings and industrial growth, the study noted.

Around four-fifths of RMG factories receive less than 1 per cent of their total energy from renewable sources, while only 5 per cent source more than 10 per cent.

Larger factories show greater diversification in energy use, while small and mini factories remain heavily dependent on grid electricity. In these smaller units, renewable energy use remains below 1 per cent.

The study suggested setting up an RMG green finance window for solar and energy-efficient technologies, introducing energy grading for industrial equipment, and developing factory-level energy and carbon reporting systems.

It also recommended using carbon credits and carbon exchanges to finance verified emission reductions, forming an RMG energy transition taskforce and creating an independent monitoring body to track progress.

The study was conducted through a survey of 878 factories in Gazipur and Narayanganj.

Fibre2Fashion News Desk (DS)

Finnish sporting goods company Amer Sports has raised its full-year 2026 revenue, margin and earnings guidance after reporting stronger-than-expected first-quarter (Q1) results, supported by broad-based growth across regions, segments and channels.

The company’s revenue increased 32 per cent year on year (YoY) to $1.945 billion in Q1 of 2026, or 26 per cent on a constant currency basis. Amer Sports said all four regions delivered healthy double-digit revenue growth, while momentum continued into the second quarter.

Amer Sports raised its 2026 revenue, margin and EPS guidance after Q1 revenue grew 32 per cent to $1.945 billion, driven by strong double-digit growth across all regions.
Technical Apparel rose 33 per cent, Outdoor Performance 42 per cent, and Ball & Racquet Sports 13 per cent.
The operating profit increased 50 per cent, while adjusted EPS rose 47 per cent to $0.38.

“Our excellent momentum continued in the first quarter of 2026, as our unique portfolio of technical sports and outdoor brands are creating white space and taking share globally,” said CEO of Amer Sports James Zheng. “All segments, geographies, and channels performed extremely well in Q1, led by exceptional Salomon Softgoods growth, a strong Arc’teryx omni-comp, and solid Wilson Tennis 360 growth.”

Segment growth led by Outdoor Performance

Technical Apparel revenue rose 33 per cent to $885 million, or 28 per cent on a constant currency basis, driven by broad-based strength across regions, categories and channels. The segment recorded omni-comp growth of 19 per cent, Amer Sports said in a press release.

Outdoor Performance revenue increased 42 per cent to $714 million, or 33 per cent on a constant currency basis, supported by strong momentum in Salomon Softgoods. Ball & Racquet Sports revenue grew 13 per cent to $347 million, or 10 per cent on a constant currency basis, led by Wilson Tennis 360.

The gross margin improved by 210 basis points (bps) to 59.9 per cent, while adjusted gross margin rose 200 bps to 60 per cent. Selling, general and administrative expenses increased 33 per cent to $856 million, while adjusted SG&A expenses rose 34 per cent to $841 million.

Operating profit increased 50 per cent to $321 million, while adjusted operating profit rose 46 per cent to $339 million. Operating margin improved by 200 bps to 16.5 per cent and adjusted operating margin rose 160 bps to 17.4 per cent.

By segment, adjusted operating margin in Technical Apparel increased 250 bps to 26.4 per cent. Outdoor Performance margin expanded 480 bps to 20.4 per cent, while Ball & Racquet Sports margin declined 370 basis points to 3.6 per cent.

Net income attributable to equity holders increased 22 per cent to $165 million, or $0.29 diluted earnings per share. Adjusted net income attributable to equity holders rose 47 per cent to $218 million, or $0.38 adjusted diluted earnings per share.

Year-on-year inventories increased 33 per cent to $1.688 billion. The company ended the quarter with net cash of $539 million and cash and cash equivalents of $684 million.

CFO of Amer Sports Andrew Page said that the company had a strong start to the year, with sales growth, margin expansion and EPS growth. “The investments we have been making behind our biggest opportunities are paying off in terms of both sales growth and margin expansion,” he added.

FY26 guidance raised on strong momentum

For full-year 2026, Amer Sports now expects reported revenue growth of 20-22 per cent, including a 200-250 bps benefit from favourable foreign exchange impact at current exchange rates. Gross margin is expected at 59-59.5 per cent, while operating margin is projected at 13.4-13.7 per cent. Fully diluted EPS is forecast at $1.18-1.23.

For the second quarter of 2026, the company expects reported revenue growth of 22-24 per cent, including a 200-250 bps foreign exchange benefit. Gross margin is expected at around 59.5 per cent, operating margin at 6-7 per cent, and fully diluted EPS at $0.08-0.1.

Fibre2Fashion News Desk (SG)

ICE cotton futures plummeted sharply across the board yesterday. The market witnessed an intensely active and heavily one-sided bearish session amid overbought conditions and a heavy liquidation spree. Both nearby and deferred contracts faced aggressive selling pressure.

The most traded July 2026 contract settled at 77.98 cents, down 3.62 cents or 4.40 per cent. The contract recorded a massive breakdown, closing below the critical 80-cent threshold for the first time since April 29. It hit an intraday low of 77.70 cents per pound, marking its lowest settlement in a month.

ICE cotton futures plunged sharply as overbought conditions triggered aggressive liquidation across contracts.
The July 2026 contract fell 4.4 per cent to settle at 77.98 cents per pound, slipping below the key 80-cent mark for the first time since April 29.
Favourable US weather, easing crop risks, a stronger dollar and weak broader markets weighed heavily on sentiment.

The December contract settled at 79.73 cents, down 3.23 cents. It also breached the key psychological level of 80 cents, erasing recent gains that had previously driven the contract to an overbought peak of 88.08 cents. Other contracts closed lower across the board, with losses ranging from 147 points to 334 points amid heavy long liquidation.

Total daily trading volume reached 90,388 contracts, marking a massive surge in market participation and a sharp breakout from recent quiet sessions. The previous session’s cleared volume stood at 52,977 contracts, representing the calm before the day’s heavy sell-off.

Market sentiment turned deeply bearish due to a combination of technical corrections from overbought conditions, a rising US Dollar Index (99.218), and a weakening Indian rupee at 96.20.

Drought-monitoring and agricultural data showed a rapid easing of crop risks, as highly favourable weather and excellent early crop emergence across key growing regions accelerated. Weather forecasts specifically indicated ideal soil moisture conditions extending from Louisiana to Georgia, supporting optimal crop development.

Market analysts said that while the fundamental bullish story may not be entirely over, the strong upward momentum has faded, triggering a sharp technical correction from recent two-year highs.

Industry experts also noted that sliding equity markets, falling CBOT grain and oilseed prices, and a stronger dollar added intense downside pressure on cotton futures.

The USDA Export Sales report for the week ending May 14 showed that US net Upland cotton export sales surged to 131,792 bales for the current marketing year. Export sales rose sharply by 176 per cent from the previous week, driven by steady demand, while net sales for the 2026–27 marketing year stood strong at 215,962 bales.

Lower domestic benchmarks followed the global plunge, with India’s Gujcot S-6 spot price shedding ₹650 to close at ₹65,400 per candy (86.71 cents/lb), causing the Indian basis premium over ICE July to widen dramatically to 873 points.

Traders also monitored Asian markets, where the China Cotton Index fell 63 yuan to 17,611 yuan per ton, while ZCE July and September cotton futures both declined by 15 yuan to close at 15,890 and 16,065 yuan per ton, respectively. Market participants remained cautious as ZCE cotton yarn bucked the trend, gaining 55 yuan to reach 22,105 yuan per ton, while ZCE Polyester Staple Fibre fell 14 yuan to 7,980 yuan per ton and viscose remained unchanged at 14,100 yuan per ton.

ICE certified cotton stocks and MCX S-6 May futures data reflected a market adjusting rapidly to international pressure.

Overall, the market tone remained highly bearish due to accelerating crop progress, favourable weather, weakness in broader markets, and aggressive technical liquidation.

This morning (Indian Standard Time), ICE July 2026 cotton traded at 78.54 cents per pound (up 0.56 cent), while cash cotton stood at 74.98 cents (down 3.62 cents). The October 2026 contract traded at 79.24 cents (down 3.34 cents), the December 2026 contract at 80.26 cents (up 0.53 cent), the March 2027 contract at 81.07 cents (up 0.49 cent), and the May 2027 contract at 81.65 cents (up 0.51 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.

Fibre2Fashion News Desk (KUL)