growth decelerated to 3%. The U.S. was a highlight: wholesale order books expanded and comparable store sales rose 13%. The group's clean inventory is the quiet story of the streak — at €3.9 billion, stock was down €1.2 billion, or 23%, year-on-year, leaving it well positioned for the crucial holiday season. Adidas has raised its full-year guidance four times since October of last year and did so again, now forecasting currency-neutral revenue growth of 14–17%, an operating margin of around 11%, and net income from continuing operations of around €1.6 billion for 2026. CEO Glenn: "Consumer appetite for sportswear was strong globally in the third quarter, resulting in broad-based growth for us in almost all markets." ## 👜 CAPRI: REVENUE DOWN, OUTLOOK UP — MARGIN IS THE STORY Capri Holdings reported second-quarter revenue of $1.07 billion for fiscal 2027, down 8.3% year-on-year — and raised its full-year guidance anyway. By brand: Michael Kors fell 9% to $745 million; Jimmy Choo rose 2% to $126 million; Versace fell 8% to $199 million. DTC performance was mixed: Americas comparable store sales dropped 12%, while Asia Pacific declined 6%. Comps fell 8% overall. But the income statement told the other side: operating margin jumped 420 basis points to 7.1%, and net income rose to $53 million, or $0.48 per share, from $27 million, or $0.27 per share, a year ago. That earnings beat — against gross margin pressure of 150 basis points to 63.9% — powered the raised guidance: full-year earnings per share are now expected between $2.55 and $2.60. Capri also noted it had already received regulatory approvals for the Tapestry transaction — the activist-fueled saga that has hovered over the group since the Federal Trade Commission's blocked merger. The chairman and chief executive's statement struck the same note as the numbers: while acknowledging near-term "pressure from consumer sentiment in key markets," the company cited "the resilience of the Versace, Jimmy Choo and Michael Kors brands" and said it is "pleased with the momentum we are seeing in the business as we position the brands for the future." ## 📦 THE EU FINDS €6 BILLION IN THE SHEIN-TEMU PARCEL TRADE The European Union's charges on cheap e-commerce packages entering the bloc — which target Chinese platforms such as Shein and Temu — could raise €6 billion a year for the EU budget from 2028 to 2034, a Commission document seen by Reuters showed on Friday. The figure quantifies a policy turn that has been building all year: a temporary €3 customs duty on low-value e-commerce imports took effect in July, a per-item handling fee begins in November under the new EU Customs Code reform, and the reform's logic is to push platforms toward bulk importing and European warehousing. The scale explains
Brussels' enthusiasm: approximately 5.8 billion low-value parcels entered the EU in 2025, up 26% in one year, with the Commission estimating 65% were undervalued. Parliament's lead negotiator called it "the biggest reform of European customs since 1968" — and accused Chinese platforms of overwhelming customs authorities with a "tsunami" of products that avoided charges or failed to meet European standards. ## 🇨🇭🇨🇳 SWITZERLAND AND CHINA SCRAP ALMOST ALL CUSTOMS DUTIES In the same week the EU tightened its eastern border, Switzerland opened its western one: Beijing and Bern concluded a revised free trade agreement under which 99.8% of Swiss exports will enjoy duty-free access to the Chinese market over the next ten years — up from roughly half under the 2014 deal, Beijing's first with a European economy. The conclusion was announced after talks in Bern in August between Swiss president Guy Parmelin and China's commerce minister; signing is targeted by year-end, subject to legal review and domestic approval. The economics are significant: bilateral trade reached 51.2 billion Swiss francs in 2025, up from 31.7 billion in 2015, with China now Switzerland's third-largest trade partner. And the politics are pointed — the deal lands while Switzerland still digests a 39% U.S. tariff (later capped at 15% in a preliminary agreement, plus a 12.5% forced-labor levy in July). For Swiss watchmakers, the stakes are concrete: Federation of the Swiss Watch Industry president Yves Bugmann has already framed the eliminated duties — around 100 million francs a year — as "a boost," even if Breitling's Georges Kern notes brands "will enjoy a higher margin there" rather than cut prices. ## 🏔️ YETI: FROM COOLERS TO PERFORMANCE APPAREL Yeti — the premium outdoor brand built on coolers, drinkware and gear — is making a run at the performance apparel market under Trent Bush, its first-ever senior vice president of performance apparel. The launch collection, the Elevation Collection, debuts in December under the tagline "Untamed by Nature," spanning fleece, puffer and rain layers for men and women. Bush is a credible operator for the push: an Ironman athlete, former Nike run and cross-category apparel director, and co-founder of running brand Tracksmith. Yeti is betting on a gap it sees between high-fashion luxury apparel and functional outdoor performance wear — the same space Tracksmith occupied in running — with premium price points and a strategy that starts in the independent sporting-goods channel before expanding into direct and select wholesale. A first women's-only collection follows in 2027. CEO Matthew Reintjes framed the logic earlier this year: "We believe there is an opportunity to introduce a premium brand that is Yeti, with a proposition rooted in
performance, to a category that we think is underserved." ##
