The financial results of the past few weeks paint a differentiated picture of the global fashion industry. Between robust sales growth in sports and outdoor brands, ongoing restructuring in the luxury segment and increasing geopolitical risks, there are key areas of action for managers in the fashion industry.
The economic environment remains fragile
The German economy narrowly avoided a technical recession in the fourth quarter of 2025 with growth of 0.3 percent compared to the previous quarter. For the full year 2025, the gross domestic product recorded an increase of just 0.2 percent. Inflation was 1.9 percent in February 2026, slightly below the January value of 2.1 percent. The ifo business climate index rose to 88.6 points in February, an increase of one point compared to January. German retail recorded a price-adjusted sales increase of 2.7 percent in 2025, while real wages rose by 1.9 percent, almost reaching the pre-crisis level of 2019. However, collective bargaining coverage in retail is only 23 percent, well below the overall economic average of 49 percent. New collective bargaining negotiations will take place from April 2026, in which the Verdi union is demanding wage increases well above the inflation rate.
Sports and outdoor segment as a growth driver
Sports and outdoor brands once again delivered the strongest financial results. The Swiss running shoe brand On Holding increased its annual sales in 2025 by 30 percent to 3.01 billion Swiss francs, or even by 35.6 percent after adjusting for currency effects. The clothing segment in particular grew disproportionately at 68.2 percent, while the Asia-Pacific region grew by 96.4 percent. Adjusted EBITDA rose by 46.3 percent to 567 million Swiss francs with a margin of 18.8 percent. For 2026, On expects currency-adjusted sales growth of at least 23 percent.
The Finnish sports group Amer Sports, parent company of Arc’teryx and Salomon, increased annual sales by 27 percent to $6.57 billion in 2025. Net profit multiplied to 427.4 million dollars, after 72.6 million in the previous year. Growth in Greater China was 43.4 percent. A sales increase of 16 to 18 percent is targeted for 2026.
The German sporting goods manufacturer Adidas achieved sales of 24.8 billion euros in 2025, a currency-adjusted increase of 13 percent. The operating result was around 2.1 billion euros. For 2026, the company is forecasting currency-adjusted sales growth in the high single-digit percentage range under CEO Bjørn Gulden, whose contract has been extended until 2030. However, customs risks and currency effects weigh on the result by an estimated 400 million euros.
Challenges in the luxury segment and restructuring
While the sports segment is thriving, several companies are struggling with declining earnings and restructuring. The French luxury group Kering recorded a decline in net profit of more than 90 percent in 2025. Puma cut jobs in 2025 and 2026 and expects an EBIT loss of between 50 and 150 million euros for 2026. The US online luxury retailer Saks Global also had to have bankruptcy financing approved for around $1 billion, including around $600 million for overdue supplier payments.
In Germany, the shirt manufacturer Eterna Mode from Passau opened insolvency proceedings on March 1st, 2026 with planned closure of the business in the summer. The Berlin brand Les Lunes has been in bankruptcy since February and was taken over by Mannheim-based e-commerce company Snocks, completing its third acquisition out of bankruptcy. The Polish discounter Pepco ended its insolvency proceedings in Germany at the end of February with 36 remaining branches, after originally 64.
Tariffs, supply chains and geopolitical risks
The ongoing geopolitical tensions are having a significant impact on the industry’s cost structure. US tariffs on imports have been increased from 10 to 15 percent, placing additional burdens on the entire supply chain. Disruptions in the Red Sea cause detours via the Cape of Good Hope with 10 to 21 days of additional transit time. Insurance costs for war risks in the Red Sea have risen from around $10,000 to up to $500,000 per trip. Freight costs increased by $200 to $400 per TEU.
Consolidation and strategic partnerships
The growing consolidation dynamic in the market was remarkable. The Chinese sports group Anta acquired 29.06 percent of the shares in Puma. Canadian activewear manufacturer Gildan Activewear is integrating the acquired HanesBrands division and increasing its annual synergy target from $200 to $250 million. The German confectionery group Katjes secured a 27 percent stake in the Italian luxury brand Missoni with an option for a majority stake. The US-based Kontoor Brands, parent of Wrangler and Lee, recorded a 21 percent increase in sales to $3.15 billion through the takeover of Helly Hansen.
outlook
The industry is caught between high-growth segments and structural challenges. While sports and outdoor brands benefit from strong global demand, tariff increases, currency risks and consumer restraint are putting pressure on the margins of traditional fashion and luxury companies. The strategic diversification of supply chains and sales markets remains a central area of action for managers in the coming months.
Company overview: financial results in detail
Abercrombie & Fitch (USA): Group sales in the 2025/26 financial year at $5.27 billion (+6 percent). Hollister grew 15 percent, while core brand Abercrombie fell 1 percent. Net profit fell 10.5 percent to $506.9 million. Sales growth of three to five percent is expected for 2026.
Adidas (Germany): Annual sales for 2025 at 24.8 billion euros (currency-adjusted +13 percent). Operating result around 2.1 billion euros. Forecast 2026: currency-adjusted growth in the high single-digit range. Shares have fallen by almost 50 percent since February 2025.
Amer Sports (Finland): Annual sales for 2025 at $6.57 billion (+27 percent). Net profit multiplied to $427.4 million. Forecast 2026: +16 to +18 percent sales growth.
Coupang/Farfetch (South Korea): Total sales Q4 2025 at $8.8 billion (+11 percent). Operating profit fell by 97 percent to eight million dollars. Farfetch achieved positive quarterly results for the first time since the takeover.
Deichmann (Germany): Annual sales for 2025 at around 8.9 billion euros (+2 percent). Around 4,700 branches worldwide, including 1,300 in Germany. International share of sales is around 70 percent.
Gildan Activewear (Canada): Annual sales in 2025 at $3.62 billion. Q4 record with $1.08 billion (+31.3 percent). Forecast 2026: six to 6.20 billion dollars (including full year HanesBrands). Synergy target increased to $250 million.
Golden Goose (Italy): Annual sales for 2025 at 734 million euros (+15 percent currency-adjusted). Adjusted EBITDA margin at 34 percent. EMEA grew by 18 percent, Asia Pacific by 17 percent.
Kontoor Brands (USA, Wrangler/Lee): Annual sales for 2025 at $3.15 billion (+21 percent, of which 18 percentage points came from the takeover of Helly Hansen). Net income fell 7 percent to $227.5 million. Forecast 2026: around 3.40 to 3.45 billion dollars.
On Holding (Switzerland): Annual sales for 2025 at 3.01 billion Swiss francs (+30 percent, currency-adjusted +35.6 percent). Adjusted EBITDA rose by 46.3 percent to 567 million Swiss francs. Net profit fell by 15.9 percent to 203.7 million Swiss francs due to currency effects.
puma (Germany): Job cuts of around 20 percent in 2025 and 2026. Expected EBIT in 2026 between minus 50 and minus 150 million euros. Anta acquired 29.06 percent of the shares.
SMCP (France, Sandro/Maje/Claudie Pierlot/Fursac): Annual sales for 2025 at 1.22 billion euros (+0.5 percent). Return to profitability with a net profit of 16.6 million euros after a loss of 24 million euros in the previous year. Net debt fell by 38 percent to 147.5 million euros.
Wolverine Worldwide (USA): Annual sales for 2025 at $1.87 billion (+6.8 percent). Net income doubled to $95.8 million. Gross margin increased from 44.3 percent to 47.3 percent. Forecast 2026: $1.96 to $1.99 billion.
Bonita (Germany): Single-digit percentage sales growth in the 2024/25 financial year. Positive net result achieved. Customer cards generate 45 percent of total sales.
Eterna fashion (Germany): Insolvency proceedings opened on March 1st, 2026. Planned business closure in summer 2026. Brand sale ongoing.
Saks Global (USA): Approximately $1 billion in bankruptcy financing approved, including approximately $600 million for overdue supplier payments.
Kering (France): Net profit fell by more than 90 percent in 2025. Restructuring initiated with new competence centers and management changes.
This post was created with the help of artificial intelligence.
