Fashion
Vietnam’s manufacturing growth hits 15-month high as PMI climbs to 54
The sector reported notable gains in output and new orders, while employment expanded for the first time in over a year. Purchasing activity increased, signalling renewed growth in inventories, and business confidence climbed to a 16-month high. At the same time, inflationary pressures intensified, with both input and output prices rising more steeply than in September, S&P said in a press release.
Vietnam’s manufacturing sector gained strong momentum in October 2025 as the S&P Global PMI rose to 54.5 from 50.4, the sharpest improvement since July 2024.
Output, new orders, and employment expanded, while confidence reached a 16-month high.
Input and output prices rose at faster rates amid supply challenges, though overall optimism remained solid despite inflationary and weather-related pressures.
New orders surged for the second month running, driven by improving domestic demand and a slight rebound in new export business—the first in a year. This led manufacturers to boost production at the fastest pace since July 2024, marking six consecutive months of output growth.
Business confidence strengthened to its highest level in 16 months as firms anticipated continued growth in new orders and planned production capacity expansions. In response to rising workloads, manufacturers expanded their workforce for the first time in over a year. Backlogs of work rose at the quickest pace in more than three and a half years, partly due to adverse weather and flooding disrupting operations.
Flood-related disruptions also led to longer supplier delivery times—the most pronounced since July. Despite supply challenges, firms increased purchasing activity for the fourth consecutive month, leading to the first rise in pre-production inventories in over two years. Stocks of finished goods, however, declined slightly as companies fulfilled strong order volumes.
Input cost inflation accelerated sharply in October, with about 27 per cent of surveyed firms citing higher raw material prices and supply shortages. Output prices also rose more steeply, hitting a 40-month high, as producers passed on increased costs to customers.
Overall, the October survey results suggest that Vietnam’s manufacturing sector entered the fourth quarter (Q4) 2025 with robust growth momentum and rising optimism, though escalating cost pressures and weather-related disruptions remain key risks to watch.
“The Vietnamese manufacturing sector moved up a gear in October, seeing much stronger increases in output and new orders during the month. Positively, the strength of the expansions were sufficient to enable firms to take on extra staff and build inventories of inputs,” said Andrew Harker, economics director at S&P Global Market Intelligence. “Whether these growth rates can be sustained in the months ahead remains to be seen, but there is clearly some positive momentum in the sector at present.”
“Inflationary pressures built again, however, and are now relatively elevated. For now, customers are happy to look through price increases and commit to new orders, but this may start to wane should rates of inflation pick up further,” added Harker.
Fibre2Fashion News Desk (SG)
While inflation has eased significantly from its 2022 peak, the Board noted that recent price pressures partly reflect stronger demand and capacity constraints. Private demand growth has exceeded expectations, Reserve Bank of Australia (RBA) said in a release.
Reserve Bank of Australia has raised the cash rate by 25 basis points to 3.85 per cent, citing a renewed pick-up in inflation during the second half of 2025.
The Board said stronger-than-expected private demand, easing financial conditions and persistent labour market tightness are adding to capacity pressures, keeping inflation above target for longer.
The decision was unanimous.
Financial conditions had eased through 2025, credit remained readily available, and earlier rate cuts were yet to fully feed through to demand, prices and wages. Labour market conditions remain tight, with unemployment lower than expected and unit labour costs still elevated despite some moderation in wage growth.
Looking ahead, the Board said that stronger domestic demand alongside limited supply capacity could further intensify inflation pressures. Global uncertainties persist, but growth among Australia’s major trading partners has so far surprised on the upside. The decision to raise rates was unanimous, with policymakers reaffirming their commitment to price stability and full employment.
Fibre2Fashion News Desk (HU)
In euro terms, revenues reached a record €24.81 billion (~$29.53 billion) in 2025, up from €23.68 billion in 2024, despite a negative currency translation impact exceeding €1 billion. The gross margin improved by 0.8 percentage points to 51.6 per cent, even amid unfavourable currency movements and higher tariffs. Full-year operating profit surged by more than €700 million to €2,056 million, while operating margin expanded sharply to 8.3 per cent from 5.6 per cent a year earlier.
Adidas has reported strong preliminary results for 2025, with currency-neutral revenues rising 13 per cent and reaching a record €24.81 billion (~$29.53 billion), supported by double-digit growth across markets.
Margins and operating profit improved sharply, while Q4 performance remained robust.
Backed by strong cash flows, the company approved a €1 billion (~$1.19 billion) share buyback.
Meanwhile, in the fourth quarter (Q4) of 2025, currency-neutral revenues for the Adidas brand increased 11 per cent, or 10 per cent including prior-year Yeezy sales. Quarterly revenues rose to €6,076 million from €5,965 million in Q4 2024. Gross margin improved by 1 percentage point to 50.8 per cent, while operating profit more than doubled to €164 million, compared with €57 million in the same quarter last year, Adidas said in a press release.
“I am again very proud what our people have achieved. Driving double-digit growth in the fourth quarter despite all the external turbulence, and more than doubling our operating profit in the quarter made the year end very well and made 2025 much better than we had planned and expected when the year started,” said Bjorn Gulden, CEO at Adidas.
“The double-digit growth in all markets and all channels is of course very pleasing, but even more important is that this is quality growth. Our markets have been very good at managing that the right product in the right amount has been sold in their markets and that we have managed to keep full-price sell-throughs high and discounts under control,” added Gulden.
Buoyed by strong brand momentum, solid fundamentals, a healthy balance sheet and robust cash flow generation, the Adidas Executive Board has approved a share buyback programme. Starting in early February, the company plans to repurchase shares worth up to €1 billion (~$1.19 billion) in 2026, financed through anticipated cash flow generation, with the intention of cancelling the repurchased shares.
Looking ahead, Adidas reaffirmed its confidence in continued growth across sport, lifestyle, comfort and fashion segments, as well as further market share gains globally.
Fibre2Fashion News Desk (SG)
Profit from recurring operations stood at €17.8 billion, translating into an operating margin of 22 per cent, which was affected by unfavourable currency movements. Net profit attributable to the group declined 13 per cent to €10.9 billion, while operating free cash flow rose 8 per cent to €11.3 billion. Net financial debt fell sharply by 26 per cent to €6.9 billion, underscoring strong cash discipline.
French luxury group LVMH has reported €80.8 billion (~$96.96 billion) revenue in 2025, down 5 per cent reported and 1 per cent organically, amid currency headwinds.
Profit from recurring operations reached €17.8 billion, while net profit fell 13 per cent.
Performance stabilised in H2 and Q4, supported by US demand and strong cash generation, reinforcing confidence for 2026.
Region-wise, sales in Europe declined in the second half of the year, while the United States recorded growth, supported by solid local demand. Japan saw a decline compared with 2024, when tourist spending had been boosted by a much weaker yen. In contrast, Asia excluding Japan showed a ‘noticeable improvement’ compared with 2024, returning to growth in the second half, LVMH said in a press release.
Despite the full-year decline, performance improved in the second half, with organic revenue growth of 1 per cent, reflecting better trends across business groups after the slowdown seen since 2023. Fourth-quarter organic revenue growth also came in at 1 per cent, in line with the third quarter, signalling stabilisation towards year-end.
In Fashion & Leather Goods, revenue declined YoY in 2025, although LVMH reported an improvement in the second half, supported by local customers after 2024 had benefited from tourist-led demand, particularly in Japan. Profit from recurring operations fell 13 per cent, largely due to currency effects, while the division maintained a very high operating margin of 35 per cent. The group highlighted Louis Vuitton’s product and experiential strength, including The Louis in Shanghai, alongside strong brand momentum driven by fashion shows, and new store concepts. Dior’s creative reset, major store openings, and renewed creative leadership at Celine, Loewe, Givenchy and Fendi were also cited as contributing to fresh energy across the portfolio.
“Once again in 2025, LVMH demonstrated its solidity and effective strategy upheld by its highly engaged teams. The Group was buoyed by the loyalty and growing demand shown by our local customers. This momentum was once again underpinned by the powerful desirability of our brands, which embody creative passion and the pursuit of the utmost quality, and by our ambition of offering our customers extraordinary stores and cultural experiences, as demonstrated by The Louis in Shanghai, and our House of Dior stores in a number of cities around the world,” said Bernard Arnault, chairman and CEO of LVMH.
“In 2026, in an environment that remains uncertain, our Maisons’ ability to inspire dreams—coupled with the highest levels of vigilance with regard to cost management, and our environmental and social commitments—will once again be a decisive asset underscoring our leadership position in the luxury goods market. We will remain true to our entrepreneurial tradition as a forward-looking family group focused on sustainable creativity in high-quality products, exceptional spaces and the long-term future of our outstanding craftsmanship,” added Arnault.
Selective Retailing delivered 4 per cent organic revenue growth and a 28 per cent rise in profit from recurring operations, lifting operating margin by 2 percentage points to 9.7 per cent. DFS showed stabilisation, with streamlining measures improving profitability despite weak international conditions. In January 2026, LVMH signed an agreement with China Tourism Group Duty Free to acquire DFS’ business in Greater China, including the Gallerias in Hong Kong and Macao.
LVMH also reported progress under its Life 360 environmental programme, accelerating circular design initiatives. Forty-one per cent of materials used for products and packaging were sourced through recycling processes, up 8 per cent versus 2024. The proportion of certified raw materials increased further, with cotton at 84 per cent and wool at 76 per cent.
Looking ahead, LVMH said it remains confident for 2026, despite continued geopolitical and macroeconomic uncertainty. The group will continue to focus on brand development, innovation, disciplined cost management and long-term sustainability, aiming to further strengthen its global leadership position in luxury goods.
Fibre2Fashion News Desk (SG)
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