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With regard to the potential business opportunities, Magni will make further announcement once the relevant decision is made.
This announcement is dated 18 June 2021.
Apparel demand still robust. Sports apparel has been gaining traction, benefitting from the change in consumer trends given the growing interest in sports, health and wellbeing among consumers. Additionally,there has been an increase in demand for stylish and comfortable clothes. While demand from China has dropped due to lockdown measures, the growth in demand from North America, Europe and Asia Pacific has helped to mitigate the impact.
Vietnam will increase its minimum wage by an average of 6% across different regions starting July. However, the impact is expected to be minimal on Magni’s bottomline
Magni is looking to form a JV with an Indonesian company, mainly to diversify its revenue and production base. While discussion is still in its preliminary stages, we gather that the cost is estimated to be c.USD10-20m, with a target to complete by FY23F
Garment Capacity and Production Base
The garment segment will continue to expand production capacity to support the potential increase in customer demand for the next three to five years. Concurrently, we also pursuing production locations diversification to have multiple production bases in order to mitigate the risk of production base concentration.
Sept 29 (Reuters) - Nike Inc (NKE.N) cautioned on Thursday that gross margins would remain under pressure through the year as the world's largest sportswear maker joined peers in warning of a blow from ramped up discounts and a rapidly strengthening dollar.
The company's shares, already one of the worst performing Dow components for the year, fell 10% in extended trading.
"We're going to see substantial markdowns this year through the holiday season. But going into the calendar year 2023, I believe inventories will be much lower after the holiday sell through and then the post holiday sales," Morningstar analyst David Swartz said.