Coats remains confident despite currency setbacks
Thread manufacturer Coats Group saw its revenues fall 2% in the four months to end of October as a result of currency depreciation in Turkey, China and India, but the company still hopes to deliver full-year results in line with expectations.
The UK-based company, which creates threads, yarns, zippers and trims for a variety of industries, said sales were affected by the recent weakening of certain emerging market currencies in which it operates, particularly the Indian Rupee, Chinese Yuan, and Turkish Lira.
On a constant exchange rate basis, group revenues increased by 3% during the period, from 1 July to 31 October.
The company’s strong first-half performance helped it offset the recent decline in revenue, and group sales for the year to October are still ahead of the same period last year, up 3%. On a constant exchange rate basis, revenue increased by 4% in the year to October.
Coats’ high technology performance material threads are enjoying strong growth, up 4% between July and October, and there is increasing momentum in its industrial division (up 1%).
But the company’s apparel and footwear division was hit by mixed demand from retailers, and despite growing 4% on a constant exchange rate basis, it fell by 1% on a reported basis. Crafts, which accounts for 11% of group sales, continued its fall due to lower sales in both North America and Latin America. Craft revenues fell by 31% between July and October, and have fallen by 17% in the year to date.
Copyright © 2021 FashionNetwork.com All rights reserved.