A Century of Style on the Global Stage

The British Fashion Council has welcomed the retailer to the M&S London Fashion Week lineup. For over 100 years, the brand’s fashion has been a staple of everyday life in the UK. By joining this global stage, the retailer aims to showcase its commitment to style, value, and designer quality clothing. To ensure the event is accessible to all, the show will be streamed live, allowing audiences everywhere to experience the magic of the runway as it happens.

Heritage and Innovation in British Design

This debut follows the brand’s successful summer showcase and its previous catwalk event at the Silverstone British Grand Prix. The inclusion in the London Fashion Week schedule highlights how the brand continues to evolve while staying true to its roots. The see now buy now collection serves as a bridge between high-end design and consumer accessibility, reflecting current British fashion trends.

As a long-standing patron of the British Fashion Council, the retailer’s presence at the event is noted as a significant moment for the industry. This move demonstrates how high street fashion news can intersect with elite design platforms to engage a wider audience. By focusing on designer quality clothing that remains accessible, the brand continues to play a vital role in the nation’s cultural and retail narrative. This participation at M&S London Fashion Week underscores the importance of connecting exceptional design with consumers through relevant British fashion trends and high street fashion news.

For the quarter ending 31 May 2026, the company reported net revenue of US$1.6 billion, representing an 8% increase on a reported basis and 6% organic growth compared with the same period last year. The performance has prompted management to revise its full-year expectations upward.

Reflecting this positive trend, Levi Strauss FY26 outlook now forecasts reported revenue growth of 7% to 7.5%, an improvement from the previous guidance of 5.5% to 6.5%. Organic revenue growth expectations have also been increased to 5.5%–6.0%.

The company additionally raised its projections for adjusted diluted earnings per share (EPS) to between US$1.46 and US$1.52, while expecting an adjusted EBIT margin of 12%, both exceeding earlier forecasts.

Growth Across Key Markets

Levi Strauss recorded revenue growth in most major regions during the quarter. The Americas remained the strongest contributor, with reported sales increasing 9%, while the United States market delivered 5% growth.

European revenue advanced 4% on a reported basis, although organic sales declined 1% because of shipment timing related to distribution centre operations during the previous year.

Asia continued to perform strongly, with reported revenue climbing 10% and organic sales increasing 12%, highlighting sustained consumer demand across the region.

Profitability Continues to Improve

The company reported net income from continuing operations of US$95 million, compared with US$80 million in the corresponding quarter of the previous year. Diluted earnings per share from continuing operations increased from US$0.20 to US$0.24.

Adjusted EBIT margin improved to 9.0%, compared with 8.3% a year earlier, while gross margin expanded slightly to 62.7%. The improvement was driven by lower product costs and strategic pricing initiatives, although tariff expenses and currency fluctuations continued to create headwinds.

Operating margin also edged higher, reaching 7.8%, compared with 7.5% in the prior-year period.

Selling, general and administrative (SG&A) expenses rose to US$843 million, mainly reflecting higher selling costs and the impact of foreign exchange movements.

Direct-to-Consumer Business Drives Momentum

Direct-to-consumer (DTC) operations remained the company’s fastest-growing business segment during the quarter. Reported DTC revenue increased 11%, while organic growth reached 8%.

Online sales performed particularly well, rising 19% on a reported basis and 17% organically. Comparable sales across DTC channels also improved by 6%, reinforcing the company’s ongoing digital and retail strategy.

Overall, DTC operations contributed 51% of total quarterly revenue, while wholesale revenue increased 5% on a reported basis and 3% organically.

Outlook Remains Positive

The updated Levi Strauss FY26 outlook assumes that US import tariffs will remain at 30% for goods sourced from China and 20% for imports from other countries. The company also expects broader economic conditions to remain relatively stable, without major increases in inflation, supply chain disruptions, tariff changes, or currency volatility.

Commenting on the results, President and CEO Michelle Gass said: “The Levi’s brand is connecting with consumers around the world in more powerful ways than ever before, and our Q2 results are another proof point that our strategies are working and our team is executing. Our evolution into a DTC-first, denim lifestyle company—with a much larger addressable market—is translating to faster growth and higher profitability. While we are pleased with the progress, we are still in the early stages of our long-term growth journey, with more ways to win than ever before.”

The agreement will become effective once Authentic Brands completes its previously announced purchase of Lee, a transaction expected to be finalised during the second half of 2026.

Under the arrangement, Experience Group will take responsibility for operating Lee across European markets. The company will use its regional market knowledge, established infrastructure, and product development expertise to help accelerate the brand’s next phase of growth.

The partnership will cover Lee’s men’s and women’s collections, including sportswear, activewear, and workwear. It is intended to strengthen the brand’s position across wholesale, retail, and online channels while broadening its reach in important international markets.

Henry Stupp, president, EMEAI at Authentic Brand Group, said: “This partnership is an important step in Lee’s international expansion strategy and reflects the strength of our platform model.”

He added: “Experience Group brings deep knowledge of the region, proven operating capabilities and a clear understanding of how to build brands across channels. Together, we see a significant opportunity to grow Lee’s presence across Europe while continuing to deliver the products and experiences consumers know and love.”

Experience Group chief executive and co-founder Nacho Puig also highlighted the brand’s strong heritage and future potential. He said: “Lee is a brand with global recognition and a strong foundation in denim and lifestyle. We look forward to building on that legacy by bringing Lee’s denim heritage, craftsmanship and product offering to more consumers across the region while creating new opportunities for the brand’s future.”

The Lee Europe partnership represents a strategic move aimed at accelerating growth, enhancing distribution capabilities, and strengthening the brand’s visibility throughout the European market. By combining Authentic Brands’ global brand management platform with Experience Group’s regional operating expertise, the Lee Europe partnership is expected to support broader consumer reach and long-term market development across the continent.

Information compiled from the Industrial Police, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and reported by Prothom Alo, points to an increasing number of factory closures and employee retrenchments across the country’s key industrial zones.

The Bangladesh garment layoffs have largely affected the RMG sector, a cornerstone of the nation’s export-driven economy. While manufacturers attribute the workforce reductions to weakening business conditions, labour representatives have offered a different perspective on the reasons behind the dismissals.

Factory owners argue that reduced international orders, combined with difficulties in obtaining bank financing, have placed many businesses under severe financial strain. According to industry representatives, these challenges have forced some manufacturers to shut down operations permanently, while others have resorted to downsizing their workforce in an effort to remain operational.

Labour organizations, however, dispute the extent of the decline in export demand. They contend that garment shipments have not dropped enough to justify such widespread job losses. Union representatives have also alleged that some employees were dismissed because they were involved in efforts to establish trade unions after recent changes simplified the legal process for union registration.

Despite concerns surrounding employment, Bangladesh’s garment export performance has shown mixed results. Data from the Export Promotion Bureau (EPB) revealed that apparel exports reached US$39.35 billion during fiscal year 2024-25, reflecting annual growth of 8.84%. However, exports during the first eleven months of the fiscal year totaled US$35.31 billion, representing a 3.41% decline compared with the corresponding period of the previous year.

Industrial Police records cited in the report indicate that 79 factories across eight industrial regions laid off 7,784 workers during the first five months of the year. The highest concentration of dismissals occurred in March and May, coinciding with the Eid-ul-Fitr and Eid-ul-Adha holiday periods.

Figures released by BGMEA showed that 80 member factories collectively retrenched or terminated 19,188 employees during the first half of the year. The affected facilities included 18 factories in Dhaka, 22 in the Savar-Ashulia industrial belt, and 40 in Gazipur. Among these businesses, 27 factories have reportedly ceased operations, while the remaining units continue production.

Gazipur alone accounted for a substantial share of the workforce reductions. According to Industrial Police data referenced by Prothom Alo, 44 factories dismissed 2,155 workers between January and June. Seven factories, including APS Apparels and Evince Textile, linked the dismissal of 556 employees to shrinking export orders and financial constraints. The remaining 37 factories cited labour disputes, production interruptions, employee misconduct, and suspected document forgery as reasons for terminating another 1,599 workers.

The Bangladesh garment layoffs have also intensified discussions surrounding workers’ rights. Former Industrial Bangladesh Council secretary general Salahuddin Swapan told Prothom Alo that some employees had been dismissed due to their involvement in union activities following the easing of legal requirements for union formation.

BGMEA President Mahmud Hasan Khan told the publication that factory closures were primarily the result of declining orders, restricted access to bank financing, and business owners exiting the industry. “At the same time, new factories are also being established, which is why overall exports have not fallen significantly,” he said, adding that the actual number of layoffs could exceed 19,000 because not every dismissal may have been officially reported.

BKMEA President Mohammad Hatem also told the newspaper that persistent shortages of export orders and tighter lending policies have placed additional pressure on manufacturers, contributing to continuing factory closures and workforce reductions across Bangladesh’s textile and apparel industry.

Impact of Import Competition and Second-Hand Clothing

Garment workshops in major hubs like Hama are currently navigating a difficult period characterized by intense competition from foreign goods. A significant portion of this pressure comes from the influx of second-hand clothing, often referred to as “bale” clothes. Industry experts argue that the prevailing open-market policies lack the necessary safeguards to balance domestic manufacturing with imported products. This has resulted in a market saturated with low-priced alternatives that local producers find difficult to match, despite the high quality of Syrian-made goods.

Industrialists Monther Arhim and Majd Sukari have noted that workshops are dealing with a multitude of hurdles. These include the high price of imported fabrics, yarns, and essential accessories, alongside the escalating expenses associated with fuel, electricity, and logistics. Consequently, profit margins have narrowed, forcing some facilities to reduce their output or cease certain operations entirely. They emphasized that the current customs duties applied to manufacturing inputs create an additional strain, particularly since many of these materials are not produced within the country.

Customs Tariffs and Manufacturing Inputs

The Burden of New Tariff Structures

Under the updated tariff regulations that commenced in June, several categories of textile yarns and imported fabrics used in the manufacturing process are now subject to a 10% duty. Manufacturers argue that the issue is not limited to customs duties alone; the total cost of importing—including shipping, insurance, and domestic transport—adds significantly to the final price of locally produced items. There is a growing call among professionals to reduce or remove these cumulative costs to support the textile sector.

These concerns align with recent proposals from the Textile Industries Committees of the Damascus and Rural Damascus Chamber of Industry. The committees have highlighted that production costs in Syria have surpassed those in many competing nations. They have urged the government to adopt zero or significantly reduced customs duties on raw materials that lack local alternatives, while maintaining balanced tariffs on finished imported goods. Supporting these inputs is viewed as a vital step in restoring the competitiveness of the Syria garment industry in both local and international markets.

Dependency on Foreign Raw Materials

Mohammad Fawaz Al-Aqqad, a member of the Board of Directors of the Damascus Chamber of Commerce, stated that approximately 95% of the inputs required for the garment industry are sourced from abroad. Because there are no local substitutes for these materials, any rise in import costs or customs duties is immediately reflected in the retail price, hindering the ability of local products to compete effectively.

Strategic Proposals for Sector Recovery

To address the ongoing crisis, manufacturers in Hama and other regions are calling for a thorough review of economic policies. Their recommendations include:

• Eliminating duties on essential raw materials and imported fabrics.
• Improving the reliability and cost of energy for industrial use.
• Enhancing logistics and infrastructure to support the textile sector.
• Implementing export incentives to help Syrian goods reach neighboring markets.

The need to facilitate export processes is particularly urgent to offset the decline in domestic demand. Industry leaders believe that Syrian producers possess the expertise to create competitive products if the business environment is optimized. Furthermore, economists warn that the combination of rising production costs and low consumer purchasing power could lead to the closure of more small and medium-sized workshops. Addressing the energy crisis and re-evaluating the customs duties on manufacturing inputs are seen as essential steps to prevent further industry contraction and protect the thousands of jobs provided by this labor-intensive sector.

According to reports, Next is exploring a formal offer for Harvey Nichols, although neither company has confirmed that negotiations are underway. Harvey Nichols declined to comment on the speculation, while Next has not publicly responded to requests for comment. Sources indicate that the proposal is still in its preliminary phase, with no certainty that a transaction will ultimately proceed.

Founded in 1831, Harvey Nichols has established itself as one of the UK’s best-known luxury department store operators, offering designer fashion, beauty products, premium food, wines and lifestyle goods through its flagship Knightsbridge store and regional locations. A successful acquisition would provide Next with a stronger presence in the high-end retail segment and further diversify its portfolio beyond its traditional fashion business.

The reported Next Harvey Nichols takeover follows the retailer’s acquisition of footwear brand Russell & Bromley earlier this year through an insolvency process. That purchase reinforced Next’s strategy of acquiring established retail brands with strong consumer recognition while expanding into higher-value market segments.

In recent years, Next has built a reputation for revitalising well-known British retail brands through acquisitions and strategic partnerships. Adding Harvey Nichols to its portfolio would represent one of its most prominent moves into luxury department store retailing, potentially strengthening its position in a market that has remained resilient despite broader challenges facing the UK retail sector.

Although industry observers continue to watch developments closely, any deal remains subject to further negotiations and regulatory processes. For now, the reported Next Harvey Nichols takeover signals the retailer’s continued appetite for growth as it seeks to expand its reach across both mainstream and luxury retail markets.

The participating governments argue that the ultra-fast fashion business model encourages excessive consumption through constant online product launches and inexpensive garments that often have limited durability. As a result, many of these items are difficult to reuse or recycle, creating mounting environmental and waste management challenges across Europe.

The coalition has called on the European Commission to reinforce both existing and upcoming legislation aimed at reducing the environmental impact of low-quality textile products. Their proposal includes stronger product requirements and more effective oversight of businesses placing such goods on the European market.

Jochen Flasbarth, State Secretary at Germany’s Federal Environment Ministry, highlighted the long-term consequences of disposable clothing.

“Ultra-fast fashion is only worn for a short time, but causes problems in the long run. Once discarded, it can rarely be re-used as a second-hand garment or recycled, placing a strain on used clothing collection.

“This is a burden on our resources, climate and waste management systems and puts companies that invest in long-lived, circular textiles under pressure. That is why we are calling on the European Commission to set higher sustainability standards for manufacturers of ultra-fast fashion. Producing cheap disposable clothing can no longer be a competitive advantage.”

“Germany is pressing for ambitious provisions within the forthcoming EU Ecodesign Regulation. Among the measures it supports are mandatory recycled content in textile products, alongside binding requirements covering durability, repairability and recyclability. According to the Federal Environment Ministry, establishing a clear legal definition of ultra-fast fashion is essential to ensure consistent regulation and effective enforcement across the EU.

Beyond product standards, Germany, France, the Netherlands and their supporting partners are advocating tighter controls on online marketplaces and direct-to-consumer shipments originating from countries outside the European Union. They believe retailers introducing large quantities of short-lived garments into the EU should contribute fairly to the costs associated with collecting, sorting, reusing and disposing of textile waste.

The group also maintains that European environmental and product safety requirements should apply equally to all online sellers, regardless of where they are based, ensuring a level playing field for businesses operating within the single market.

The European Union has already begun strengthening its approach to low-value imports from non-EU countries. Since 1 July, parcels valued below €150 no longer benefit from the previous customs duty exemption. Instead, imported goods are now subject to a fixed customs charge of €3 per product category, in addition to applicable import VAT.

Further changes are scheduled to take effect on 19 July 2026, when amendments to the Ecodesign Regulation will prohibit large companies from destroying selected categories of unsold consumer products. The measure forms part of the EU’s broader strategy to reduce waste, encourage circularity and improve sustainability across the textile and consumer goods sectors.

Addressing Gaps in Online Market Oversight

According to reports from a domestic news agency, authorities determined that previous digital economy regulations had not kept pace with the rise of intermediary platforms, platform-based business models, and cross-border trade. This regulatory gap contributed to increasingly complex challenges, including the proliferation of counterfeit goods, commercial fraud, and intellectual property violations. Consequently, the government has introduced the Vietnam E-commerce Law to promote innovation while simultaneously strengthening online market oversight.

The updated statutes clearly define the legal responsibilities of all market participants. Intermediary platforms, in particular, now face more rigorous requirements regarding information disclosure and identity verification. These measures have been strengthened to curb fraud and promote fair competition across the industry.

Strengthening E-commerce Compliance and Consumer Protection

Under the updated Vietnam E-commerce Law, platforms are now mandated to verify the identities of sellers and provide transparent data regarding products and transaction conditions. To ensure strict e-commerce compliance, these entities must proactively detect potential violations and maintain functional mechanisms for handling complaints. The law also seeks to modernize the sector by encouraging green e-commerce initiatives, such as environmentally friendly packaging and more efficient logistics systems.

Further reinforcements to consumer protection include clearer protocols for personal data security, refunds, and compensation. By establishing these high standards, the law aims to support the growth of small and medium enterprises, household businesses, and start-ups within a more secure digital economy. This shift toward robust online market oversight ensures that innovation is balanced with the protection of consumer rights and the maintenance of fair competition.

The company is set to assume full responsibility for apparel operations in these regions, working in close alignment with Authentic to provide consistent service to both retail partners and consumers. This strategic arrangement is intended to harness OJG’s extensive expertise in denim manufacturing, sourcing, and product development to facilitate the continued expansion of the Lee denim brand.

Operational Continuity and Regional Commitment

While OJG takes on these new responsibilities, the Lee denim brand will maintain its primary headquarters in Greensboro, North Carolina. OJG has also expressed its commitment to continuing operations at the Mocksville, North Carolina facility. The company intends to rely on the existing workforce’s specialized knowledge to ensure the brand’s business objectives are met during this transition.

Chris Waldeck, the CEO of OJG, noted that his prior experience leading the brand has provided him with a firsthand understanding of its organizational strength and consumer loyalty. He stated that the immediate priority is to respect the brand’s heritage while supporting the Greensboro and Mocksville teams to build a sustainable foundation for growth through this Lee brand partnership.

Strategic Alignment for Future Expansion

This Lee brand partnership is a key component of the broader strategy utilized by Authentic Brands Group, which involves collaborating with established operators in specific geographic regions and industrial sectors. Authentic has further indicated that it is engaged in ongoing discussions with other potential partners to support the international trajectory of the brand.

Expertise in Distribution and Manufacturing

Jarrod Weber, the global president of sports and lifestyle at Authentic, emphasized that OJG has been a reliable partner for many years, demonstrating a consistent ability to execute complex apparel operations. He highlighted that OJG brings significant category knowledge and established retail relationships to the table. Weber noted that OJG shares a commitment to preserving the brand’s legacy in North Carolina while simultaneously investing in future opportunities. This collaboration is expected to open new avenues for wholesale distribution and denim manufacturing across the North American market. By leveraging OJG’s proven track record in wholesale distribution, both companies aim to unlock the full potential of the brand in the coming years.

The report arrives as disclosure standards tighten globally and investors demand clearer proof of implementation, not just pledges. Misto Holdings said it has responded by strengthening its data-led management approach and focusing on execution capabilities that can be applied across business units. By using more advanced analytics, the company aims to identify practical improvement priorities for each operation and feed those insights into management decisions an approach it says will accelerate the internalisation of ESG across the organisation.

Environmental focus: targets, Scope 3 expansion and biodiversity

On the environmental side, Misto Holdings said it has set defined 2030 targets to reduce Scope 1 and Scope 2 greenhouse gas emissions, while also expanding the boundaries of its Scope 3 management. The company said it has upgraded its analysis of climate-related financial exposure, refined assessments of dependencies and impacts linked to nature-positive outcomes, and adopted a biodiversity policy intended to strengthen risk oversight and preparedness.

Social priorities: supplier compliance and community engagement

In the social pillar, the company reported progress on supply-chain governance through the creation of a comprehensive compliance framework. As a result, it said Tier 1 suppliers linked to its directly operated entities reached a 100% participation rate in global code-of-conduct pledges and in submitting third-party reports. Beyond supplier standards, the report says Misto Group continues to invest in community engagement and shared-value initiatives, using its brand experience spaces to support local participation and social programmes.

Governance and capital efficiency: share cancellation

On governance, Misto Holdings framed “value-up” as a core priority. It reported the cancellation of shares worth KRW 268.2 billion, equivalent to about 11.7% of total outstanding shares, positioning the move as a step to strengthen shareholder returns and improve capital efficiency.

External ratings and recognition

Misto Holdings said its ESG performance continues to receive positive recognition from global rating organisations. It maintained an overall ‘B+’ rating from the Korea Institute of Corporate Governance and Sustainability (KCGS), held an ‘A’ rating from MSCI ESG Ratings, and remained included in FTSE Russell’s FTSE4Good global ESG index.

The company said the intent of the report is to demonstrate that its 2030 Sustainability Roadmap is being translated into measurable activity rather than aspirational language.

“A company’s sustainability is ultimately determined by its execution and data-driven management capabilities rather than just declaring goals,” said a representative from Misto Holdings. “Moving forward, we will use our 2030 Sustainability Roadmap as our compass to continuously refine climate change responses, supply chain management, and responsible governance. Through these efforts, we aim to enhance long-term corporate value and earn the continued trust of our stakeholders.”