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Published
Nov 16, 2017
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Thread manufacturer Coats announces 2% sales rise

Published
Nov 16, 2017

Coats Group, the leading manufacturer of sewing thread and supplies, shrugged off ongoing pricing pressures and a continued mix demand from clothing retailers as it announced a 2% increase in sales on Thursday.


Photo: Coats


The company said sales for the period between 1 July and 31 October grew, driven by a strong performance in the Industrial division, which supplies threads and zippers to the apparel industry. This division accounts for 70% of group sales and its 5% increase was boosted by the good performance of its core apparel and footwear business.

Coats’ technical threads can be also used for a variety of end uses from bedding and flame retardant protective wear to automobile airbags. Performance Materials was up 4% during the period, while growth in hi-tech uses remained robust and delivered double-digit growth.

The Crafts division was the weakest point in the company’s accounts, reporting a 12% decline for the period and a 10% fall for the year-to-date. Coats attributed the decline to weaker demand in North American, which now accounts for around 10% of group sales, as underlying market conditions remained tough. The division was also negatively impacted by the introduction of own-brand hand knitting products at a major customer, said the company.

Coats aims to drive the next phase of growth by focusing on simplification, innovation and further development of its digital capabilities. It said it has made “good progress” in these areas and that it continues to work on is existing strategy.

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