Automated apparel manufacturing firm CreateMe Technologies is prepping for its platform’s retail debut through a strategic partnership with Untuckit. The direct-to-consumer label will be the first to sell apparel constructed using CreateMe’s digital bonding process, which swaps a needle and thread for adhesive that joins pieces of fabric together. Following years of development, CreateMe is now ready to release consumer-facing product to the market. More from Sourcing Journal “We’ve been working with ou ...

Core Insights - The apparel industry faced significant challenges in 2025 due to reciprocal tariffs, marking it as the most difficult year since Covid, but Lever Style anticipates a return to growth driven by its activewear acquisition, asset-light model, and digitalization efforts [1] Financial Performance - Lever Style reported revenues of $200.2 million in 2025, a decrease of 10.2% compared to the previous year, ending a three-year streak of record profitability with net profits down 7.4% to $15.9 million [2] - The revenue impact was concentrated, with a $27.2 million decrease attributed to pulling back business from its top two clients to mitigate risk; without this impact, revenue would have grown by 2.7%, or $4.4 million [3] Client and Risk Management - One major client, Bonobos, entered Chapter 11 administration in 2024, prompting Lever Style to implement recovery methods and credit insurance to limit financial exposure; by 2025, concerns over Bonobos' credit led to a $9.1 million reduction in business [5] - Another unnamed client faced consistent payment delays, leading to a halt in new orders and an $18.1 million revenue drop compared to 2024 [5] Future Outlook - Looking ahead to 2026, Lever Style is adopting a conservative approach to credit risk management due to a rising trend of retail bankruptcies affecting brands and the supply chain; recent bankruptcies, such as Saks Global, are causing brands to write off receivables and deteriorate credit standings [6]

Core Viewpoint - Lakeland Industries, Inc. has appointed Calven Swinea as Chief Financial Officer to lead financial strategies and ERP implementation for the company's growth [1][2]. Financial Priorities - The company aims to strengthen liquidity, accelerate debt reduction, maximize working capital efficiency, and enforce disciplined expense management [2][4]. - Calven Swinea has already contributed to fortifying the balance sheet, leading inventory reduction initiatives, and improving cash conversion [2][3]. ERP Implementation - Swinea is overseeing the implementation of an Enterprise Resource Planning (ERP) system, expected to be fully deployed by fiscal 2027, which will centralize data and improve financial controls [3][4]. - The near-term focus remains on cash generation, working capital discipline, cost control, and balance sheet improvement [3]. Strategic Growth Initiatives - The company is focused on integrating accretive acquisitions, expanding market share in fire protection globally, and strengthening its Industrial products business [5]. - These initiatives are supported by rigorous financial discipline aimed at improving revenue quality, expanding margins, and enhancing free cash flow [5]. Leadership Background - Calven Swinea has a strong background in finance, having served in various roles including Vice President of Finance and Global Corporate Controller prior to his current position [6].

Company Overview - Gildan Activewear Inc. is a leading manufacturer of everyday basic apparel, offering products such as activewear, underwear, socks, and intimates to a diverse customer base including wholesale distributors, screenprinters, retailers, and global lifestyle brand companies [4] - The company markets its products across North America, Europe, Asia Pacific, and Latin America under a diversified portfolio of brands including Gildan, Hanes, Comfort Colors, and Champion, among others [4] Manufacturing and ESG Practices - Gildan operates vertically integrated, large-scale manufacturing facilities primarily located in Central America, the Caribbean, North America, and Asia [5] - The company is committed to industry-leading labor, environmental, and governance practices throughout its supply chain, in line with its comprehensive ESG program embedded in its long-term business strategy [5] Upcoming Financial Results - Gildan will report its 2025 fourth quarter and full year results on February 26, 2026, with a press release issued before market opening [1] - A conference call to discuss the results will take place on the same day at 8:30 AM ET, featuring key executives including the President and CEO, Chief Commercial Officer, and Chief Financial Officer [2]

Core Insights - Global brands are shifting their sourcing strategies from a long-term aspiration to an active priority due to rising costs, capacity constraints, geopolitical risks, and tariff exposure [1] - Africa has historically been positioned advantageously for sourcing due to preferential trade frameworks like the African Growth and Opportunity Act (AGOA) [1] Group 1: Sourcing Challenges - Sourcing from Africa involves more than just shifting orders; there are significant challenges in manufacturing capacity and supply chain integration [2][3] - Many African countries have apparel manufacturing capacity that is fragmented and disconnected from integrated supply chains, leading to limited scale and weak supporting infrastructure [3] Group 2: Investment Considerations - A critical question for sourcing executives and investors is whether there is sufficient demand to justify the necessary investments in Africa's manufacturing capabilities [4] - The demand assessment for sourcing and investment is often too narrowly focused on export potential, which creates a chicken-and-egg problem where buyers and investors are hesitant to commit [5][6] Group 3: Dual Demand Dynamics - Domestic demand in large African markets, such as Nigeria, represents a significant opportunity alongside export demand, allowing production capacity to serve both markets [7] - Nigeria, with a population over 200 million, showcases this dual-demand dynamic, as its annual apparel consumption is estimated between $2.5 billion and $6 billion, far exceeding local production capacity [8]

Core Insights - Brandix India Apparel City (BIAC) has developed into a vertically integrated manufacturing hub over two decades, adapting to industry needs [1][2] - The park spans 1,000 acres and serves leading global brands, showcasing a successful partnership between Brandix and the Government of Andhra Pradesh [2][3] Manufacturing Capacity - BIAC houses six apparel manufacturing units with a combined annual capacity exceeding 110 million pieces [5] - A network of suppliers within the park enhances self-sufficiency, providing essential materials such as textiles, threads, trims, tags, and packing materials [5] Operational Efficiency - Co-locating production at BIAC has significantly reduced lead times for brands to between 11 and 21 days, minimizing transportation delays [6] - The park's proximity to Vizag Port (31 miles) allows for competitive lead times compared to major sourcing locations like Chittagong and Shanghai, with shipping times to the U.S. East Coast taking approximately 27 to 30 days [6] Future Expansion Plans - BIAC is planning to enhance its vertical integration by adding fiber and yarn manufacturing, as well as responding to demand for synthetic fabric mills and advanced finishing processes [7]

Core Insights - Unisync Corp. reported a net income of $0.9 million ($0.05 per share) for Q1 2026, a significant improvement from a net loss of $0.7 million ($0.04 per share) in the same quarter of the previous year, despite facing unrealized foreign exchange losses in the prior year [1][2] Financial Performance - Revenues for the three months ended December 31, 2025, were $20.9 million, a slight decrease from $21.4 million in the prior year, primarily due to lower volumes in public sector accounts, partially offset by a slight increase in airline accounts [2] - Gross margin improved to 23.7% from 19.7% year over year, driven by a more favorable sales mix, lower offshore product costs, and reduced depreciation and amortization expenses [2][7] - Adjusted EBITDA was reported at $2.7 million, representing a 12.9% margin and a 3.9% improvement year over year [7] New Business Development - The company secured an additional $7.5 million in annualized new business during the quarter, including contracts in telecommunications, quick-service restaurants, and government sectors [3] - The management of Unisync Group Limited is actively pursuing a robust pipeline of opportunities expected to materialize in Canada and the U.S. in 2026 [4] Operational Overview - The Peerless Garments segment holds $25.3 million in firm contracts and options as of December 31, 2025, and continues to seek additional contract opportunities [4] - Interest expense decreased by $0.2 million due to overall reduced borrowings, contributing to improved profitability [7]

Core Insights - Jerash Holdings (NASDAQ: JRSH) reported strong fiscal 2026 third-quarter results, with earnings per share (EPS) of $0.09, exceeding consensus estimates of $0.05 to $0.07, and a significant increase from approximately $0.00 in the prior-year quarter [1] - Revenue for the third quarter reached $41.8 million, an 18% increase from $35.4 million in the same quarter the previous year, also surpassing expectations of $39.3 million [1] - The company anticipates fourth-quarter revenue growth of 23% to 26% over the $29.3 million recorded in the prior-year quarter, contributing to a record annual revenue for fiscal 2026 [2] Financial Performance - Gross margin improved by 170 basis points to 16.9% from 15.2% in the prior-year quarter, driven by a favorable product mix and economies of scale [4] - Gross profit rose 31% to $7 million from $5.4 million [4] - Operating income nearly tripled to $1.9 million from $708,000, and net income increased to $1.2 million from $6,000 in the previous year quarter [4] Operational Efficiency - The company demonstrated effective cost management and higher shipment volumes, including to the U.S. and a new customer in Korea, contributing to improved operational efficiency [1] - JRSH maintains a conservative balance sheet with a low debt-to-equity ratio of 0.089 and a current ratio of 2.73, indicating strong liquidity [3] - Recent results show positive cash generation trends aligned with profitability growth, despite historical challenges in the apparel sector [3]

Financial Data and Key Metrics Changes - Revenue for the fiscal 2026 third quarter grew 18% to $41.8 million from $35.4 million in the same quarter last year, driven by higher shipment volumes to major export markets, including the U.S. and a new customer in Korea [10][11] - Gross profit increased 31% to $7 million for the fiscal 2026 third quarter from $5.4 million in the same quarter last year, with gross profit margin improving to 16.9% from 15.2% [10][11] - Operating income nearly tripled to $1.9 million in the fiscal 2026 third quarter from $708,000 in the same quarter last year [11] - Net income rose to $1.2 million or $0.09 per diluted share for the fiscal 2026 third quarter from $6,000 or $0.00 per diluted share for the same quarter last year [11] Business Line Data and Key Metrics Changes - The company is expanding its manufacturing capacity by acquiring a 184,000 sq ft manufacturing building in Amman, Jordan, with an investment of approximately $5 million for renovations and equipment [4][5] - The new facility is expected to increase manufacturing capacity by at least 40% and employ up to approximately 2,500 workers [8][9] - The company is also pursuing additional facilities in rural towns to support growth objectives and local employment, which is expected to add an additional 5%-10% to total production capacity [9] Market Data and Key Metrics Changes - Buyers from major customers have submitted increased order projections for calendar year 2026, with facilities fully booked through July [9] - The company is recognized as one of the world's preferred manufacturing hubs, particularly in response to shifts in tariff policy [7] Company Strategy and Development Direction - The company plans to diversify its customer base and product mix to support stable year-round production and reduce seasonality impacts [5][10] - The long-term strategy aims to more than double current production capacities in the next five years while focusing on operational efficiency and cost control [10] - The company is working with the Jordan Ministry of Labor to develop additional facilities, enhancing local employment opportunities [9][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, expecting revenue for the fiscal 2026 fourth quarter to increase by 23%-26% over the same quarter last year [14] - The company is focused on cost controls and improving operating efficiency while implementing its long-term expansion strategy [14] - Management is closely monitoring the political situation in the region and has contingency plans in place to ensure stability in operations [43][45] Other Important Information - As of December 31, 2025, the company had cash and restricted cash totaling $13.2 million, with net working capital of $36.4 million [12] - A regular quarterly dividend of $0.05 per share was approved, payable on February 20, 2026 [13] Q&A Session Summary Question: How will the expansions impact the income statement and balance sheet? - The $5 million needed for renovations will be financed by the Housing Bank, showing up as long-term debt on the balance sheet [16][18] Question: Can you provide more detail on the other facilities being considered? - The company plans to set up two satellite factories in rural areas to create job opportunities and improve efficiency [22][23] Question: How quickly will the new capacity ramp up? - Renovations are expected to be completed by the end of 2026, with a gradual ramp-up of operations over 1-2 years [31] Question: What are the expectations for gross margins going forward? - Margins may decrease as the company returns to more complex styles, but efficiency improvements and new technology will help control costs [33] Question: What is the contingency plan regarding political instability in the region? - The company is monitoring the situation closely and has been assured that Jordan will remain stable [43][45] Question: What are the plans for cash on the balance sheet? - The company is utilizing cash for growth and working capital, with plans to consider other financing alternatives once a comfortable level is reached [46][48] Question: How is the relationship with major customers, particularly VF Corp? - There is pricing pressure due to tariffs, but the company maintains strong relationships by providing high-quality manufacturing [50][51]

Financial Data and Key Metrics Changes - Revenue for the fiscal 2026 third quarter grew 18% to $41.8 million from $35.4 million in the same quarter last year, driven by higher shipment volumes to major export markets, including the U.S. and a new customer in Korea [9][10] - Gross profit increased 31% to $7 million for the fiscal 2026 third quarter from $5.4 million in the same quarter last year, with gross profit margin improving to 16.9% from 15.2% [10] - Operating income nearly tripled to $1.9 million in the fiscal 2026 third quarter from $708,000 in the same quarter last year [10] - Net income rose to $1.2 million or $0.09 per diluted share for the fiscal 2026 third quarter from $6,000 or $0.00 per diluted share for the same quarter last year [10] Business Line Data and Key Metrics Changes - The company is expanding its manufacturing capacity by acquiring a 184,000 sq ft manufacturing building in Amman, Jordan, with an investment of approximately $5 million for renovations and equipment [4][5] - The new facility is expected to increase manufacturing capacity by at least 40% and employ up to approximately 2,500 workers [7][9] - The company is also developing additional facilities in two rural towns, expected to add an additional 5%-10% to total production capacity [8] Market Data and Key Metrics Changes - Buyers from major customers have submitted increased order projections for calendar year 2026, with facilities fully booked through July [8] - The company is recognized as one of the world's preferred manufacturing hubs, particularly in response to shifts in tariff policy [6][7] Company Strategy and Development Direction - The company aims to diversify its customer base and product mix to support stable year-round production and reduce seasonality impacts [5][9] - Long-term strategy includes more than doubling current production capacities in the next five years while focusing on operational efficiency and cost control [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, expecting revenue for the fiscal 2026 fourth quarter to increase by 23%-26% over the same quarter last year [13] - The company is closely monitoring the political situation in the region and has contingency plans in place to ensure stability in operations [41][43] Other Important Information - The effective tax rate for the quarter was lower at 24%, attributed to higher income and adjustments for global operations [58][59] - The company plans to utilize cash more extensively for growth and working capital needs, while also considering debt financing for expansion [45] Q&A Session Summary Question: How will the expansions impact the income statement and balance sheet? - The $5 million needed for renovations will be financed by the Housing Bank, showing up as long-term debt on the balance sheet [15][16] Question: Can you provide details on the new facilities? - The new satellite factories will help create job opportunities in rural areas and are expected to improve overall efficiency [21][22] Question: How quickly will the new capacity ramp up? - Renovations are anticipated to be completed by the end of 2026, with a gradual ramp-up of operations [29] Question: What are the expectations for gross margins going forward? - Margins may decrease as the company returns to more complex styles, but efficiency improvements are expected to help maintain margins [30][31] Question: What is the contingency plan regarding political instability? - The company is monitoring the political situation closely and has been assured that Jordan will remain stable [41][42] Question: What are the plans for cash on the balance sheet? - The company plans to utilize cash for growth and working capital, while also considering debt financing for expansion [45] Question: How is the relationship with major customers like VF Corp? - There is pricing pressure from customers due to tariffs, but the company maintains strong relationships by providing high-quality manufacturing [47][48]