Multi Brand Exploded Suppliers Abused Workers

The famous NGO organization Human Rights Watch Human Rights Watch (HRW) has released a 140 page long report "Work Faster or Get Out", analyzing the long-term illegal exploitation and unauthorized acts of Kampuchea garment factories.

The report points out that the government of Kampuchea has also done harm to factory inspections in the country, and has also struck down ILO, which makes it impossible for women workers to be able to safeguard their own rights and interests. In the clothing industry of the country, suppliers of many well-known retailers in the West are involved in the exploitation of workers, including the famous fast fashion group Gap Inc. (GPS) in the United States; the second largest sporting goods manufacturer in the world, the German sports Brand Company Adidas AG (ADSGn.DE) Adidas group, and the second largest in the world. Clothes & Accessories Retailers, Swedish fast fashion group H&M Hennes & Mauritz AB (HMb.ST) and British Department Store Group Marks and Spencer Group PLC (MKS.L), Marsha general store, M&S and other famous enterprises.

HWR's report points out that Cambodia Clothing for a long time forced workers to work overtime, illegal dismissal of pregnant women, employment of underage child labor and so on. It includes interviews with 340 relevant personnel, including 270 industrial workers from 73 factories. The report also said that the list of retailers in Kampuchea was opaque, and pointed out that M&S, Marsha, refused to disclose supplier relationships. This has led to a lot of complaints against workers or workers associated with trade unions.

"Work Faster or Get Out" said the well-known fast fashion group H&M Hennes & Mauritz AB first class suppliers in Kampuchea subcontracted most of their work to two level suppliers, while these two level suppliers forced workers to work on weekends without paying overtime wages. Martha department store M&S was in the same situation, and the two grade suppliers in the department store in Kampuchea refused to give workers sick leave, discriminate pregnant workers, and illegally use child labor; Gap AB group also had similar situations in Kampuchea.

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Tod's SpA chief financial officer Emilio Macellari said after the 2014 annual report of the analyst conference that the current situation in China is still very grim, and that Hongkong did not recover at the end of last year's occupy campaign, but the strong dollar offset the same store sales decline in the cold weather in the United States in January and February. He also expects that the same store will not grow until the end of the year.

Tod's SpA (TOD.MI) reported 97.35 euros before the annual report released on Thursday, a slight increase of 0.41% throughout the day. The stock has risen more than 35% so far in 2015.

The annual report shows that Tod's SpA's core earnings EBITDA decreased by 18% year-on-year, from 236 million 300 thousand euros in fiscal year 2013 to 1.935, which basically met the market expectations of 193 million 700 thousand euros, and the EBITDA profit margin was 20%, a 420 basis point drop over the previous year 24.4%, mainly because of the continuous increase in the distribution network, communications, human resources and productivity inputs and the 4.8% increase in operating costs under the stagnation of revenue growth. Net profit recorded a 27.4% decline, from 133 million 800 thousand euros to 97 million 114 thousand euros, diluted earnings per share correspondingly fell from 4.37 euros to 3.17 euros.

The group has suggested that the annual dividend of 2.7 euros per share in the previous year be reduced to 2 euros per share, with a reduction of more than the market expectation and the dividend payment rate of 63%.

The annual sales situation was announced at the end of January: Tod's SpA Group recorded a total revenue of 965 million 600 thousand euros, down 0.2% from 967 million 500 thousand euros in the previous year, compared with a slight increase of 0.4% on the basis of the previous year. Roger Vivier is still the best performing brand of the group, with revenue growth of 11.6%, from 113 million 700 thousand euros to 126 million 900 thousand euros, an increase of 12.4% over the basis, and Tod's's brand income fell 1.7%, down 1.1% from the base, and fell from 578 million 100 thousand euro to 568 million euros.

Tod's SpA CEO Diego Della Valle said in its annual report that it has confidence in the group's revenue and earnings growth this year. The chief financial officer, Emilio Macellari, estimates that even if the exchange rate is negative, it will cut half the growth, but the annual revenue growth should be 5.5% of market expectations.