Fashion's March financial summary: Geopolitical shocks, margin discipline and a resale revolution

The global fashion industry entered March 2026 under mounting pressure from the Middle East conflict, yet delivered resilient earnings, strategic repositioning and landmark corporate transactions. Sentiment remained cautiously optimistic, with profitability gains offsetting topline softness while geopolitical disruption injected fresh uncertainty into supply chains.

Profitability over volume

The clearest trend was the pivot from revenue growth to margin expansion. Hennes & Mauritz AB reported a 1 percent sales decline in local currencies, yet operating profit surged 26 percent. Asos posted a 50 percent increase in adjusted EBITDA. Debenhams Group delivered adjusted EBITDA of 53 million pounds, up 36 percent. Hugo Boss saw profits rise on cost savings even as it forecast revenue declines. Macy's returned to positive comparable sales growth, and Burlington Stores recorded an 11 percent fourth-quarter sales increase.

Not every report struck an upbeat note. Lanvin Group disclosed a 17.6 percent revenue decline. Salvatore Ferragamo posted a 5.7 percent drop. Torrid saw net sales fall 9.4 percent. Heritage hatmaker Christy & Co. entered liquidation after 253 years, LuisaViaRoma filed for preliminary liquidation in Florence, and Lycra entered restructuring to eliminate 1.2 billion dollars in debt.

Middle East crisis reshapes supply chains

The most disruptive development was the closure of the Strait of Hormuz. Air cargo rates spiked by more than 400 percent, Maersk diverted vessels to the Cape of Good Hope, and energy costs surged across South Asian manufacturing hubs. Oil prices flirted with the highest prices ever before retreating. The 55 billion dollar Gulf retail market faced stock shortages, while garment factories in Bangladesh and India confronted production shutdowns. European fashion stocks declined sharply.

Mega-deals and strategic acquisitions

Spain's Puig and The Estee Lauder Companies confirmed merger negotiations that could create a conglomerate with nearly 20 billion dollars in annual sales, though Estee Lauder's market capitalisation fell by 5.22 billion dollars after the announcement. Kering formalised a 20 percent stake in jewellery manufacturer Raselli Franco for 115 million euros and launched a dedicated jewellery division. Ebay agreed to acquire Depop from Etsy for around 1.2 billion dollars. Allbirds was sold to American Exchange Group for 39 million dollars. Frasers Group increased its exposure to Asos to 29.26 percent and acquired almost 6 percent of Puma.

AI integration accelerates

Artificial intelligence emerged as a defining operational theme. Zalando disclosed that 90 percent of its content is now machine-generated. Kering appointed its first chief digital, AI and IT officer. Gap introduced conversational AI shopping experiences, and Debenhams enacted studio redundancies as it expanded AI imagery. Direct-to-consumer platform Quince raised 500 million dollars in a Series E at a 10.1 billion dollar valuation, with investors classifying it as a technology company rather than a retailer.

Resale reaches a tipping point

Second-hand fashion advanced from niche to strategic necessity. Beyond the Ebay-Depop deal, SMCP Group deployed its own white-label resale solution. ThredUp reported 20 percent revenue growth for 2025. Industry leaders argued that owning a resale channel is now imperative, given that platforms like Vinted have built parallel ecosystems outside brands' control.

Outlook

The National Retail Federation forecast US retail sales to grow 4.4 percent in 2026, reaching 5.6 trillion dollars. Consulting firms project single-digit growth for global luxury, with sales having reached 1.5 trillion dollars in 2025. Adidas announced plans to increase sales by two billion euros. Inditex posted 6.22 billion euros in profit for 2025. Prada Group and Golden Goose both reported double-digit revenue increases.

The overarching picture is of an industry generating profit under pressure. Tariff headwinds, energy volatility and geopolitical risk are compressing margins, but disciplined operators are growing earnings even when revenues stall. The months ahead will test whether that resilience holds as Middle East disruptions work through global supply chains.

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Financial results reported in March 2026

a.k.a. Brands — Quarterly losses widened despite an uptick in full-year 2025 sales.

Abercrombie & Fitch — Reported lower profit despite setting a new sales record for fiscal year 2025/26.

Adidas — Announced plans to increase sales by two billion euros by 2028 and extended the contract of CEO Bjorn Gulden.

Alpargatas (Havaianas) — Reported record performance in Brazil and a return to profitability in international operations.

American Eagle Outfitters — Achieved record fourth-quarter revenue of 1.80 billion dollars, supported by an 8 percent comparable sales increase.

Asos — Posted a 50 percent year-over-year increase in adjusted EBITDA for the first half of the financial year.

Azzas 2154 — Brazilian group reported recurring net profit of 168 million reais in the fourth quarter.

Ba&sh — Surpassed 300 million euros in turnover with a 9 percent like-for-like increase in 2025.

Bimba y Lola — Closed 2025 with sales of 250 million euros, a 7 percent increase, but anticipated a complex year ahead.

Buckle — Net income rose to 209.70 million dollars on annual sales of 1.30 billion, up 6.6 percent.

Burlington Stores — Recorded an 11 percent sales increase in the fourth quarter of 2025, exceeding projections.

Caleres — Fourth-quarter net sales increased 8.7 percent to 695.10 million dollars amid the integration of Stuart Weitzman.

Carter's — Reported sales growth for fiscal year 2025 despite significant margin pressure from international tariffs.

Debenhams Group — Delivered adjusted EBITDA of 53 million pounds, a 36 percent increase, and raised guidance.

Deichmann — Posted strong results in Spain, with local growth doubling the group's global average.

Designer Brands — Navigated a sales decline with significant gross margin expansion in fiscal 2025.

Destination XL Group — Reported a net loss of 35.90 million dollars for fiscal 2025, compared to net income of 3.10 million the prior year.

Dick's Sporting Goods — Reported record sales for the full year and forecast continued growth following the Foot Locker acquisition.

Farfetch (via Coupang) — Performance improved under Coupang's ownership, though the parent company swung to a loss in Q4.

Fossil Group — Reported a narrowed operating loss for fiscal 2025, with full-year sales declining amid turnaround efforts.

G-III Apparel Group — Reported negative fiscal 2026 results as it navigates the planned exit of licensing agreements.

Gap — Reported a second consecutive year of topline growth amid its strategic transformation.

Golden Goose — Net revenues increased 15 percent in 2025, with direct-to-consumer sales up 21 percent.

Gymshark — Reported its 13th consecutive year of sales growth, with revenue rising to 656 million pounds.

Hennes & Mauritz AB (H&M) — First-quarter operating profit surged 26 percent despite a 1 percent sales decline in local currencies.

Hugo Boss — Profits rose on cost savings, though management forecast revenue declines for the current year.

Inditex — Posted 6.22 billion euros in profit for fiscal 2025 and 3.19 percent sales growth.

Intersport Group — Concluded 2025 with a year-over-year revenue increase of 0.4 percent, or 1.2 percent on a currency-neutral basis.

JD.com — Posted a 13 percent increase in total net revenues for 2025, reaching 1,309 billion RMB.

Kohl's — Achieved increased net income despite sales contraction in fiscal 2025.

Kontoor Brands — Exceeded expectations for fiscal year 2025, with revenue growth driven by the Helly Hansen acquisition.

Lands' End — Returned to topline growth in the fourth quarter of fiscal 2025.

Lanvin Group — Reported a 17.6 percent revenue decline for full-year 2025 amid a challenging global luxury environment.

Lojas Renner — Apparel segment drove 10.2 percent revenue growth, with consolidated net income up 22 percent.

Lululemon — International growth offset a North American decline in the fourth quarter, surpassing internal expectations.

Macy's — Returned to positive comparable sales growth across its Macy's, Bloomingdale's and Bluemercury portfolio.

Mango — Delivered record turnover of 3.77 billion euros, a 13 percent increase on the prior year.

Misto Holdings — Operating profit grew 31.6 percent on consolidated revenue of 4.47 trillion South Korean won.

Myer Holdings — Reported a 24.45 percent sales increase to 2,279.50 million Australian dollars following brand integration.

Neinver — Closed 2025 with 1.72 billion euros in sales across its 20 European outlet assets.

On Holding — Increased annual revenue by 30 percent to a new record, though net profit fell short of the prior year.

Pepco Group — Reported continued growth in revenue and gross margin in its half-year trading update, led by Poland and Western Europe.

Prada Group — Boosted annual revenue and profit, driven by continued appeal of the Miu Miu brand.

Ross Stores — Fourth-quarter sales rose 12 percent, contributing to record annual sales for fiscal 2025.

Salvatore Ferragamo — Full-year 2025 revenues declined by 5.7 percent to 1.02 billion euros.

Shoe Carnival — Full-year diluted earnings per share of 1.90 dollars exceeded market expectations.

Stitch Fix — Reported 9.4 percent revenue growth in the second quarter of fiscal 2026.

Swarovski — Delivered 6 percent organic growth, reaching revenue of 1.97 billion euros for fiscal year 2025.

ThredUp — Reported 20 percent revenue growth for full-year 2025, reaching 310.80 million dollars.

Tilly's — Returned to profitability in the fourth quarter of fiscal 2025, its first profitable Q4 since fiscal 2021.

Torrid — Annual net sales declined 9.4 percent to 1.10 billion dollars amid closure of 151 locations.

Van de Velde — Reported revenue recovery of 1.9 percent in the second half of 2025 following a challenging first half.

Vera Bradley — Swung to a fourth-quarter profit under newly formalised executive leadership.

Veste — Brazilian high-end apparel group posted a 10.4 percent revenue increase for 2025.

Victoria Beckham — Sales rose 19 percent to 170 million dollars, with new stores planned for New York and Paris.

Victoria's Secret — Exceeded expectations in fiscal year 2025/26, driven by a strong final quarter.

Weyco Group — Reported a decline in net sales and earnings as tariffs and soft consumer demand weighed on performance.

Zalando — Met 2025 expectations with increased sales and operating profit, and forecast further growth for 2026.