— This is the script of CNBC's news report for China's CCTV on August 11, Monday.
Welcome to the CNBC Business Daily, I'm Qian Chen.
The latest data from US consumer-market research group, NPD, says sales of jeans - as in the denim variety - are down 6% year-over-year - while sales of a different type of garment ARE taking off.
CNBC's Courtney Reagan tells us the implications.
Back to school is really the holiday season for denim sales but jean retailers arent expecting a blockbuster season thanks to the growth of ath leisure.
Teen preferences tell the story, Piper Jefferies biannual stock of teen survey shows last two years, teen girls brand favourties moved away from denim centred names like Levis, Guess, American Eagle, True Religion and towards ath leisure brands Nike, Lulu Lemon, Gaps athleta and Elle brands Victoria Secret.
But the death of denim goes beyond jeans, NPD groups says industry sales of jeans are down 6% year over year while many consumers are dressing down, sporting yoga wear beyond the gym, others are dressing up, fatigues of the same old jeans as the go to option, and it is showing up in the major denim players result.
BF corp's jean brands include Lee, Wrangler, Sefron mankind and Rocking Replubic, the company sells more jeans than any company in the world but it is seen where jeans revenue has fallen 3% over this year, while its sportswear revenues grown 4%.
BF corp adknowledges the trend and is working to incorporate stretch type innovations in its denim products. joes jeans say non denim segments is a huge driver for the back half of the year so the specialty denim maker is responding with inovative textile. Retailers response to merchandise has been strong.
The Gap inc. tells me denim is still a dynamic category for us, particularly at its Gap and Old Navy brands continues to be comited to continuous innovation in the category, back to you.
That wraps up this edition of the Business Daily.
I'm Qian Chen, reporting from CNBC's Asian headquarters.